2022 Delta Electronics ESG Report
Delta's Americas headquarters becomes the first LEED Zero Energy-certified green building in Fremont, CA

Contents
About the Report

1

Devoted to Environmental Protection and Energy Savings

74

A Word from the Management3

5.1 Key Performance Indicators and Strategies

75

1Overview

6

5.2 Climate Strategy

77

5.3 Energy Management100

1.1 Delta Electronics Organizational Structure

9

5.4 Water Resource Management109

1.2 Sustainable Business Development

10

5.5 Resources Management114

1.3 Enhancing Brand Value

13

5.6 Green Products

116

2

Sustainable Management15

5.7 Biodiversity

123

2.1 Sustainable Management16

5.8 Environmental Management

129

2.2 Policies and Promotions

19

Employee Relations and Social Participation

130

2.3 Responding to Global Sustainable Development

22

6.1 Key Performance Indicators and Strategies

131

3Communication with Stakeholders

26

6.2 Diversity and Inclusiveness134

3.1 Stakeholder Communication and Response

27

6.3 Talent Attraction148

3.2 Materiality Assessment

32

6.4 Talent Learning Development

153

3.3 Management of Material Topics

38

6.5 Competitive Employee Compensation and Benefits157

6.6 Human Rights Protection

161

Corporate Governance46

6.7 Social Participation

164

4.1 Key Performance Indicators and Strategies

47

6.8 Occupational Health and Safety

170

4.2 Enhancing the Board of Directors' Functions48

4.3 Innovation

53

Appendix

174

4.4 Customer Relationship Management56

7.1 Environmental Data

175

4.5 Supplier Sustainability Management57

7.2 Social Data178

4.6 Information System Safety and Management66

7.3 Index of GRI Standards Indicators and SASB Index

180

4.7 Personal Data Protection Management68

7.4 Summary of Information Assured (ISAE 3000)

191

4.8 Risk Management69

7.5 TCFD Index

198

7.6 External Assurance Statement and Report

199

4

5
6
7

About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

About the Report
Delta issued Taiwan's first Corporate Social Responsibility Report (ESG Report) in2005 and has always upheld the business philosophy of "To provide innovative, clean
and energy-efficient solutions for a better tomorrow". Delta has actively adopted
international norms and remained committed to sharing our experience and carbon
reduction results while working with industry partners and achieving our global goals.
In 2022, Delta started a new chapter in sustainability with the support of our Board of
Directors and set a long-term goal for attaining SBT Net-zero by 2050 to embrace thechallenge of reducing Scope 3 emissions. We also incorporated biodiversity in Delta’s
sustainability strategy to expand our focus on climate change for environmental
sustainability and protect the natural ecology.
Delta surpassed our original science-based target (SBT) of reducing carbon intensity
by 56.6% by 2025 ahead of schedule in 2021 with a 71% reduction in carbon intensity.
On this basis, we are committed to attaining RE100 and carbon neutrality for all global
sites by 2030. In addition to expanding solar PV systems in Delta plants, we invested
in the development of related solutions to increase the utilization rate of renewableelectricity. We also implemented voluntary energy conservation, purchased
Renewable Energy Certificates, and directly purchased green electricity to gradually
increase the use of renewable energy. In 2022, Delta had already achieved 63%
renewable electricity use at its global sites, and was creating RE100 trend related
business opportunities. These opportunities included using Delta’s energy storage
system to adjust supply and demand and increase the RE ratio, as well as selling
renewable electricity certificates with Delta's solutions from self-built solar power
plants in Japan. In response to Taiwan’s renewable electricity market and the global
24/7 carbon-free electricity trend, Delta also developed Renewable Energy Wheelingprogram software that optimizes the matching and decision-making of renewableelectricity.
To support global efforts to control global warming in line with the 1.5°C pathway,
Delta has established a long-term strategy to achieve our net-zero sciencebased target and reduce Scopes 1, 2, and 3 greenhouse gas emissions by 90% by

2050 compared with the base year of 2021. Meanwhile, we set a 2030 short-termtarget of reducing Scopes 1 and 2 greenhouse gas emissions by 90% and Scope 3
greenhouse gas emissions by 25% compared with the base year of 2021. We continue
to implement energy conservation projects, use renewable energy, promote green
building, invest in carbon offsetting and permanent removal, implement internalcarbon pricing (ICP) to levy carbon fees, and invest in low-carbon innovations as
Delta actively pursues the goal of SBT Net-zero. In 2022, Delta's global operations
passed ISO 14064-1 verification and our Scope 1 and Scope 2 GHG emissions met theannual reduction target of 13.5%. Delta also set an internal carbon price of 300 USD
per metric ton to support energy conservation and carbon reduction projects andrenewable electricity and encourage investments in negative-carbon technologies
and low-carbon innovations.
In response to Scope 3 carbon reduction challenges, Delta has completed theinventory of emissions from all categories in Scope 3 (15 categories) and set a nearterm goal of having all tier 1 suppliers with continuous transactions pass the ISO
14064-1 Greenhouse Gas Inventory standards by 2025. We continue to organize
ESG training for suppliers, lead suppliers in carrying out carbon inventory, andimplement the Supply Chain Sustainability Partnership Program. We provide Delta's
energy conservation and carbon reduction experience as well as product solutions
to help suppliers reduce their carbon emissions. Each year, Delta calculates the
manufacturing carbon footprint for nearly 40 customers participating in the CDP
supply chain program and provides energy-saving technologies and carbon reduction
benefits to reduce greenhouse gas emissions at each manufacturing step. Delta has
also formed the "Taiwan Climate Partnership" with partners in the ICT industry toserve as a role model for leading carbon reduction in the supply chain, aligning withinternational initiatives, and achieving global goals.
In terms of actions and management implemented to protect biodiversity, Delta
has worked with the Museum of Marine Science and National Museum of Marine
Biology and Aquarium on coral restoration. We assembled approximately 60 Delta

2022 Delta Electronics ESG Report1About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

marine volunteers and specially designed automation equipment for the restorationof coral reefs with the aim of growing and restoring 10,000 corals within three years.
We organized the "Earth Pulsing-Nurturing Life Exhibition" which used technologies,
ecology, culture, and art to showcase the abundant biodiversity and natural beautyof the Earth, and thereby call on people to support our environment. The internalbiodiversity initiatives are supervised by the Board of Directors, which establishedseven commitments and standards including the introduction of biodiversity
regulations of green building standards for new plants, reduction of the impact of
raw materials on the ecology and prevention of deforestation, and minimization of
the impact of renewable energy on the ecology. Delta departments participate inthese actions based on their core competencies and work with upstream value chain
partners to start by reducing damage to the natural environment. The short-term goal
is to attain No Net Loss (NNL) and the long-term goal is to attain Net Positive Impact(NPI) by 2050.
Delta has continuously used its core competencies in power electronics and taken
real actions to support sustainable development in daily operations for more than
50 years. Delta’s business philosophy of "To provide innovative, clean and energyefficient solutions for a better tomorrow" has become an essential part of ouremployees' values. As net zero emissions and sustainability become global goals,
we aim to collaborate more broadly with global partners, strengthen environmental
and social oriented efforts, and assist our supply chains, to expand our influence andcreate a sustainable future for Earth and the next generation.

Chief Sustainability Officer

If you have any comments or suggestions regarding the ESG Report of Delta Electronics,
you are welcome to contact us at CSR@deltaww.com. We will respond as soon as possible.

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

ESG Report Scope and Reporting Period
Reporting Period

Scope

January 1, 2022 to December 31, 2022
Considering the realities of information disclosure and actual
managerial requirements, the scope of the data is consistent
with the scope of the financial and annual reports. Any
adjustment of the scope of data shall be specified in the Report.
The subsidiaries included in the consolidated financial
statements for which the Company retains more than 50% of
shares shall be included in the scope of the ESG Report.

Others

The exchange rates for currencies of different countries are
based on the posted rates on December 31, 2022.

Publication of the Report
The Sustainability Report is published on a yearly basis
Publication date: August 1, 2023

This Report is Verified and Assured by a Third Party

Verification

The Company contracted SGS Taiwan to verify that thisreport conforms to the GRI Standards and AA1000AS v3 TypeII core standards with high-level assurance. Delta obtained
SGS assurance based on SASB Standards and the Attestation
Statement is attached in the Appendix.

Assurance

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

2022 Delta Electronics ESG Report2About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

A Word from the Management
The Founder
Climate change and global warming continue to impact our environment and lives.
High ocean temperatures recently broke 40-year records. The World MeteorologicalOrganization (WMO) has also warned that the chance the planet's average temperature
will rise by more than 1.5°C before 2027 has increased from 50% to 66%. In response to
the climate crisis, all citizens of the Earth must work together and focus on environmental
protection and sustainability to create a clean and bright future for the next generation.
"To provide innovative, clean and energy-efficient solutions for a better tomorrow" is not
only Delta’s corporate mission but also our long-term goal.
Delta expanded from the production of components for TV sets into power and energy
solutions beginning in the 1980s. We have always used our core power electronics
technologies as the basis for continuous innovation to create better and more energyefficient products and solutions for the next generation. With our employees' long-term
commitment to environmental protection and technological innovation, the efficiency
of Delta's power products has continuously improved each year and now exceeds 90%.
Based on our calculations, the high-efficiency products shipped by Delta from 2010
to 2022 have saved customers an estimated 39.9 billion kWh of electricity, which isequivalent to reducing carbon emissions for the Earth by nearly 21.05 million tons.

Bruce Cheng

Founder and Honorary Chairman of Delta GroupIn addition to our commitment to increasing energy efficiency, Delta has also expanded

As buildings account for 30% to 40% of overall global energy consumption, energy

into renewable energy and aligned ourselves with global trends. In Europe, Germany's

conservation and emission reduction for buildings has become critical for attaining carbon

renewable energy power generation exceeded 50% in mid-May 2023. By April, power

neutrality and net zero emissions. Delta uses core technologies to develop smart energy-

generation from fossil fuels in Europe decreased by 16% compared to the same period insaving solutions for buildings to create an environmentally-friendly living environment thatthe previous year. The percentage of coal-based power generation in the United Kingdom

meets user demands and supports their health. From 2006 to 2022, Delta establishedin the last three years fell below 2%. Delta's goal is to attain 100% use of renewable

32 green buildings and 2 certified green data centers. In 2022, Delta’s 17 certified green

electricity at Delta's global business locations by 2030. It is also our RE100 pledge and we

factory/office buildings and 5 donated campus buildings saved 26.91 million kWh ofplan to attain RE100 objectives at our headquarters in Taiwan, and facilities in Mainlandelectricity and 15,400 tons of CO2e.

China, Northeast Asia, the Americas, as well as Europe, the Middle East and Africa (EMEA)
by 2025.

2022 Delta Electronics ESG Report3About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

The Chairman and the CEO
The Delta Americas’ headquarters building inaugurated in 2016 employs a uniquegeothermal heat pump system with variable frequency equipment and rooftop solar
power system. It received the LEED Zero Energy certification from the U.S. Green
Building Council (USGBC) in 2022 and became the first green building with zero energy
consumption in Fremont, California. Our new facility at the Automotive Campus in
Helmond, the Netherlands, was inaugurated in October 2022, and is expected to consume
56% less electricity than traditional buildings annually through the implementation of
Delta’s smart energy-saving solutions and innovative eco-friendly design. It has been
awarded a LEED Gold green building certificate. The construction of green buildings
across the world demonstrates the importance of reducing the carbon emissions ofbuildings and encourages more professionals to dedicate themselves to increasing theenergy efficiency of buildings and mitigating environmental impact.
In response to the threat of intensive competition and climate change in global industries,
we encourage everyone to embrace the concept of sustainability and adopt a practicaland persistent approach to continuously surpass their own achievements, use innovative

Yancey Hai, Chairman of Delta Electronics (right), and Ping Cheng,
Chief Executive Officer of Delta Electronics

technologies for energy conservation and carbon reduction, and pursue business
continuity as well as stable growth.

Delta started its second 50 years of development in 2022. For the last half century,
we have remained committed to integrating business development with sustainability
goals and we constantly improve our core energy conservation technologies to create
innovative, clean, and efficient products and solutions for the world and reduce carbon
emissions for the Earth. After achieving our 2°C SBT target of reducing carbon intensity
by 56.6% by 2025, four years ahead of schedule, Delta has formulated a long-term
strategy and objective of achieving net-zero science-based targets at all global operatingsites by 2050 in response to the 1.5°C pathway for keeping global warming under control.
This makes Delta the first company in the technology hardware and equipment industry
in Asia and the 125th company in the world to have passed the SBTi's net-zero sciencebased target review.
Delta has always been committed to corporate sustainability development. We havebeen selected for the DJSI World Index for 12 consecutive years and scored at the 100
percentile for the environmental and social dimensions of the global electronic equipment
industry in 2022. Our industry-leading scores reflect Delta's commitment to innovation
and R&D and enhancement of resource utilization efficiency while attaching importance to2022 Delta Electronics ESG Report4About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

supply chain management, striving to cultivate talents, safeguarding information security

with the supply chain, we will actively implement circular economy practices and productand privacy, and taking into account environmental, social, and economic development.

carbon footprint management for environmental sustainability. Delta also continues to

As a result of this hard work and real actions, Delta was honored with double A list ratings

strengthen our human-centric core value as the world focuses on energy conservation

by CDP for the second time for substantial contributions to climate change and waterand carbon reduction. We have won numerous international HR awards and hope to work

security issues and named Supplier Engagement Leader for the 6th consecutive year.

with more like-minded talents to contribute to the sustainable development of the Earth.
In 2022, Delta invested nearly 10 MUSD in social engagement and talent development

Delta promotes sustainability with technology and is committed to R&D and innovationaccounted for the largest share with over 63%. We commenced industrial and academic

in fields including power electronics, infrastructure, and automation. We have 73 R&D

collaboration with nearly 200 academic institutions across the world and invest over 3

Centers across the globe and more than 10,000 R&D engineers to develop patent assets

MUSD in industrial and academic collaboration projects each year to attract top talents.

in R&D and manufacturing bases as well as major markets. As of the end of 2022, Delta’s

The DeltaMOOCx online learning platform launched by the Delta Electronics Foundation in

total number of patents approved has accumulated to nearly 13,000. Looking at the2014 has also accumulated more than 18 million views and helped countless employees

growth trends in India and Southeast Asia, Delta will continue accelerating its related

and students.

regional portfolios going forward. Delta was once again selected by Clarivate as among
the Top 100 Global Innovators™ with international recognition for innovation capacity andDelta invested nearly 10 MUSD in social engagement in 2022 and talent development

global patent development.

accounted for the largest share with over 63%. We commenced industrial and academic
collaboration with nearly 200 academic institutions across the world and invest over 3

Delta continues to use our core competencies in power electronics to maintain our global

MUSD in industrial and academic collaboration projects each year to attract top talents.

lead in a variety of applications. Examples include the recently launched 3200W titanium-

Delta also spared no effort in participating in social welfare. The DeltaMOOCx online

grade server power supply with its power density increased by 25% and power efficiency

learning platform launched by the Delta Electronics Foundation in 2014 has accumulated

improved from 94% to 96%. For fluid automation systems, Delta's automation solutions

more than 18 million views and helped countless employees and students.

can help customers reduce energy consumption by 34%. In terms of infrastructure, ourdata center solutions use the phase change of cooling liquid to remove heat and increase

We also participated in 15 consecutive sessions of the United Nations Climate Change

the heat dissipation efficiency, reducing energy consumption significantly.

Conference (COP) to continue to increase our influence. At a COP27 side event, we
discussed energy transition with the local authorities of two islands of Spain. In the face

In response to low-carbon transportation trends and demand, Delta has developed key

of climate disasters, Delta has developed an energy storage solution to strengthen thecomponents and power systems for electric vehicles and supplies the solutions to top

resilience and reduce the carbon footprint of Orchid Island’s electricity grid. In an Action

global auto manufacturers. In addition to creating electric vehicle charging infrastructure

Hub at the COP27, we shared our adaptation methods for successfully restoring about asolutions based on the microgrid concept, we took real action by announcing our support

thousand corals, which responded to an ocean restoration program that the host country,

for EV100 in 2018, and committed to using electric vehicles or hydrogen vehicles for all

Egypt, is planning to launch.

companies by 2030. The Climate Group invited us to sign the ZEV Declaration in 2022with the aim of using zero-emission vehicles for the Company's car and van fleets by

Innovation and integration are essential for sustainable development in a rapidly

2030.

changing environment. Delta continues to strengthen its core competencies, accumulate
successful track records, and actively develop diverse application solutions for cities

In response to the global net-zero trend, scope 3 carbon emissions reduction is an

and the environment. We will also work with our partners to reduce the impact of humanimportant direction of our efforts towards the goal. While strengthening cooperation

development on the environment and contribute to the global 1.5°C climate target.

2022 Delta Electronics ESG Report5Overview1

1.1

Delta Electronics Organizational Structure

1.2

Sustainable Business Development

1.3

Enhancing Brand ValueAbout the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Overview
Established: 1971
2022 Delta Electronics, Inc. (DEI) revenue: 12,890 MUSD (NTD 384.44 billion) *1

Delta is a leader in power supplies and thermal management solutions, as well as energy-

Our participation in associations in Taiwan includes the Business Council for Sustainablesaving and new energy solutions with customers across the world. Delta has integrated

Development of Taiwan (BCSD Taiwan), Center for Corporate Sustainability, Taiwan

its software and hardware system products in recent years and focused on strategic

Corporate Governance Association (TCGA), Taiwan Optoelectronic Semiconductor

markets such as industrial automation, building automation, energy infrastructure

Industry Association (TOSIA), Taipei Computer Association (TCA), and Taiwan Climate

facilities, ICT infrastructure, and electric vehicles to create smart and energy-efficient

Partnership (TCP). In Mainland China, Delta is a member of associations such as thesolutions for customers. Delta is headquartered in Taipei, Taiwan, and has main sales

China Power Association, Chinese Association of Automation, China Communications

offices throughout the world, including nearly 40 countries in Europe, Asia, America, andStandards Association, and Carbon Neutrality Committee of China Energy Conservation

Africa.

Association. In Thailand, Delta is a member of the Electric Vehicle Association ofThailand and Thai Photovoltaic Association. In other overseas regions, Delta is a member

With our corporate mission: "To provide innovative, clean and energy-efficient solutionsof the EV100 Initiative and RE100 of the Climate Change Organization, International

for a better tomorrow", Delta has always paid close attention to climate change issues

WELL Building Institute, and U.S. Green Building Council. We believe in fulfilling Delta's

and established a long-term strategy with a target of attaining net-zero emissions insustainability goals through sound corporate governance, balancing stakeholder interests,

global operations by 2050. We obtained the certification of the Science Based Targets

and supporting social progress.

initiative (SBTi) in 2022 and became the first technology hardware equipment company inAsia and the 125th company in the world to pass the review for "net-zero science-basedtargets".

Offices

156

Plants51

R&D Center73

R&D Engineers

10,891peopleTotal Number of
Employees Worldwide

85,684people2022 Delta Electronics ESG Report7About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Global Operations

Delta has 156 sales offices, 51 plant sites, and 73 R&D centers, with over 10,000 R&D
engineers throughout the world.

Devoted to Environmental
Protection and Energy
Savings

Corporate
Governance

Employee Relations
and Social
Participation

Asia-Pacific

Americas

EMEA

Total

Global Sales Offices

98

27

31

156

Global Plant Sites

41

6

4

51

Global R&D Centers

48

10

15

73

Appendix

Main Sales Offices
Main Plant Sites
Main R&D Centers

Frankfurt Drammen Espoo
Aberdeen
Glasgow

Amsterdam
HelmondWarsaw
Manchester
Soest Prague
Wien
Paris
DubnicaBern
Liptovský Hrádok
Bucharest
Teningen
MilanoIstanbul
Rome
MadridRudrapur
New Delhi
Dubai
Cairo

Vancouver

Vaxjo

MumbaiBangalore

SeattleBeijingSeoul

Wujiang
Wuhu

MoriokaShanghai
ChenzhouTaipei
Dongguan
TaoyuanHsinchu
Krishnagiri Yangon
Taichung
ManilaTainanSamutprakarn
Pasig
Ho Chi Minh
Kuala Lumpur
Singapore

Conklin
Detroit

Fremont

Tokyo
NagoyaOsaka

Wisconsin

Los Angeles
San Diego

DallasOttawaBedfordBostonOakland
Raleigh

AustinChungli
Mexico City

Bogotá

JakartaLima
São José dos Campos

Johannesburg

Cordoba
SydneyMelbourne*1 Please refer to the 2022 Delta Electronics, Inc. (DEI) annual report revenue boundary.

2022 Delta Electronics ESG Report81.1 
Delta Electronics
Organizational Structure

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

1.1 Delta Electronics Organizational Structure
Delta's corporate governance framework and highest governance unit is the Board of Directors. To strengthen corporate governance, Independent Directors are appointed in the Board of
Directors and we have established functional committees such as the Compensation Committee and Audit Committee to improve the performance targets and compensation structure of
Directors and managers of the Company. We have implemented effective internal controls and risk management to respond to potential crises and risks for the Company.

Shareholders Meeting

Board of Directors
Chairman
Audit Committee

Vice Chairman
Audit

Compensation Committee
CEO

Strategic Steering Committee

President, COO & Branch Manager

Global Operations
Asia

Business Units

Power Electronics

Function Units

TQM

EuropeAmericas
Other Areas
Corporate Strategic Business
Development and Alliance

Infrastructure

Automation

Global Manufacturing

Global Supply Chain Management

RD

IT

Finance

Delta Solution OfficeCorp. Communications

Brand ManagementHR

NBD Management

Legal/IP

ESG

Energy Management

Corporate Investment

Delta Management System

Facility

Smart Manufacturing

Occupational Safety and Health2022 Delta Electronics ESG Report91.2 
Sustainable Business
Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

1.2 Sustainable Business Development

1.2.1 High-Performance Product Development

By leveraging our core competence in power electronics, Delta has developed innovative

Delta has divided its operations into three business categories based on its businesstechnologies in both hardware and software based on the needs of our clients. We

continuity strategy. These include “Power and Electronics”, “Automation”, andprovide innovative, clean, energy-efficient solutions and system integration services“Infrastructure”, which account for 59%, 14%, and 27% of revenue, respectively. Delta

while striving to promote our brand and enhance our corporate image. According tomaintains its leadership position in the ODM (Original Design Manufacturer) industry, andstatistics from 2012 to 2022, Delta has had 1,396 successfully completed cases all overactively integrates product advantages with hardware and software technology. We focus

the world. These projects have covered areas such as industrial automation and smart

on electric vehicles, smart manufacturing, smart green buildings, and energy storage andmanufacturing, building automation, data center infrastructure, telecom power systems,

microgrid systems to provide customers with innovative, environmentally friendly, andintelligent monitoring & management systems, electric charging systems, and renewablehigh-performance total solutions.

energy. These projects have assisted clients in saving operations costs and improving
their global competitiveness and helped reduce global warming.

Business Scope of Delta's Three Business Categories

2022 Delta Electronics ESG Report101.2 
Sustainable Business
Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Three Major Business Categories
Power Electronics

Automation

Infrastructure

The Power Electronics category includes components,

The Automation category includes industrial automation

The Infrastructure category includes ICT infrastructure

power and system, fans and thermal management, andand building automation. Delta provides customers withand energy infrastructure. In the ICT infrastructure

automotive electronics. Delta is a provider of power andindustrial applications including food, textiles, lifting,facilities sector, Delta is a main global supplier of ICT

thermal management solutions. We provide switchingelevators, rubber and plastics, printing and packaging,power systems, data center infrastructure, and networking

power supplies, DC fans, and passive components

tool machines, and electronics in the industrial automation

systems and provides customers across the world withfor renowned customers in the global ICT, consumer

sector. Delta also integrates its automation technologies

energy-efficient and reliable solutions. Delta also provides

electronics, and industry sectors. Delta uses its core

and abundant knowledge in the industry to actively

energy infrastructure facilities for multiple sectors

technologies for integrating electrical and electronic

advance toward smart manufacturing. Delta uses IoT

including renewable energy, electric vehicle charging,power systems to provide solutions and products fortechnologies to integrate equipment in buildings suchand energy storage systems to create sustainable cities

electric and power systems for electric vehicles andas air-conditioning, lighting, energy, water supply andwith customers. Delta is also a professional manufacturer

hybrid vehicles.

drainage, elevators, electricity, and security accessof video displays and projectors that are used in familysystems to create flexible, scalable, and highly compatible

theaters, surveillance centers, large-scale concert halls,building automation solutions.

outdoor displays, and exhibition halls. The scope of theinfrastructure also includes industrial power supply,
medical power supply, and medical and health equipment.

1.2.2 Global Success Stories in the Implementation of SDGs

Delta actively provides one-stop service solutions to customers around the world. As of 2022, we have delivered 109 successful cases and actively developed high-performance products
and solutions with significant benefits for our customers such as reduced operating costs, while enhancing customers' global competitiveness.

Statistics of Delta's success stories with seven major solutions
Delta's Solutions

2012-2022

2020

2021

2022

Data Centers

434

58

29

15

Display and Monitoring

190

6

10

19

Electric Vehicle Charging

74

14

18

11

Industrial Automation and Smart Manufacturing

310

27

29

35

Renewable Energy

90

11

5

5

Building Automation

185

18

21

23

Telecom Power

86

3

0

0

Others
Total

27

1

1

1

1,396

138

113

109

2022 Delta Electronics ESG Report111.2 
Sustainable Business
Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Case 1: Delta Electric Vehicle Charging Solution Provided Services at the
G20 Summit in Indonesia

Case 2: Delta Energy Storage System Installed on Orchid Island for Grid
Stabilization on Offshore Island

The 2022 G20 Summit was held in Bali, Indonesia to discuss geopolitical, economic, and

The installed capacity of the system is 500kW/1.1MWh. It provides support for enhancing

environmental issues. The Indonesian government also dispatched a fleet of electric

the stability of the grid on the offshore island and resolves electricity supply issues

vehicles to delegates from different countries to demonstrate its resolve for promoting

caused by the increase in peak electricity consumption due to the development of tourism

green transportation. Delta established long-term partnerships with Perusahaan Listrik

on Orchid Island. Delta provided customized protection measures for the whole system

Negara (PLN), PT Pertamina, and Hyundai Indonesia. Nearly 80% of the charging facilities

in response to wind speed, rainfall, flood level, salt spray and other challenges posed byin Bali are made by Delta. Delta and partners set up 250 AC/DC charging facilities at thethe island climate of Orchid Island. The measures include a 4-meter-high, 20-meter-wide

convention center, nearby parking lots, and hotels to provide charging services to nearly

RC windbreak wall next to the site. Delta also collaborated with the Lan An Cultural andone thousand electric vehicles during the Summit.

Educational Foundation and invited 27 children to design and paint the wall to add thechildren's touch and a local connection to the grid stabilization energy storage system.

With its comprehensive hardware and software portfolio, Delta is the only EV charging supplierin Indonesia capable of charging all types of EVs, from e-Buses to passenger EVs to heavy
e-motorbikes.

The 500kW/1.1MWh energy storage system Delta built at the power plant in Orchid Island,
Taiwan, helps Taipower stabilize the power grid on the island.

2022 Delta Electronics ESG Report121.3 
Enhancing Brand Value

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

1.3 Enhancing Brand Value
Unceasing Innovation for a Better Living

Brand Positioning

Delta reached a brand-new milestone in 2022 as we started our second 50 years ofDelta's brand emphasizes innovation and energy conservation and features a combination

development.

of product development and sustainability. As a provider of electronics, power, andenergy management solutions faced with global climate and environmental changes,

We have successfully transitioned from a component supplier to a provider of system

Delta continues to invest in product R&D and technological innovation to provide more

integration solutions and we have become a leading global brand for industrial

efficient and more reliable energy-efficient solutions and create sustainable low-carbon

applications over the past 50 years. We have continued innovation and pursued market

cities.

opportunities, and our business has continued to perform well with high growth in recent
years despite the impact of the global pandemic. Delta now provides closer support to

Delta is committed to its mission: "To provide innovative, clean and energy-efficientusers than ever before by expanding from an industrial brand to a commercial brandsolutions for a better tomorrow." This commitment is Delta's pledge and its commitment

with businesses encompassing electric vehicle charging, smart building, microgrid, andto investors, customers, and employees. We believe deeply in bringing together leading

renewable energy to create a healthy and safe smart city based on human needs.

technology and customer cooperation to continuously create highly efficient, reliable
power and component products, industrial automation, energy management systems, andDelta continues to innovate and evolve based on the ideal. We launched a brand-new

consumer products. Delta is dedicated to providing industry customers and consumers

corporate identity system in 2022 to upgrade the visual representation of the brand,

alike with a variety of products and services that support a smart, environmentally-

demonstrating that we not only develop individual components or products, but also offer

friendly future.

innovative and energy-efficient solutions to attain unceasing innovation for a better livingin global development.

Best Taiwan Global Brands
Delta announced 2010 as the first year of
a new era for Delta's brand, and appliedi n n ova t i o n a n d a g r a n d e r p e r s p e c t i ve
to create an outstanding brand image
and support more sustainable corporate
development. We are honored to haveattained more than ten years of stable growthin brand value.
S i n c e 2 0 1 1, D e l t a h a s b e e n l i s t e d o n
Interbrand's brand valuation of the Best
Taiwan Global Brands for 12 consecutive
years. The brand value in 2022 increased by Delta received the Best Taiwan Global
8% compared to 2021 to 426 MUSD with ten Brands award with ten consecutive years ofyears of consecutive growth.

Delta published its brand-new corporate identity slogan in 2022 — Unceasing Innovation for a
Better Living.

growth in brand value. Chief Brand Officer
Ms. Shan-Shan Guo accepted the award on
behalf of Delta.

2022 Delta Electronics ESG Report13

1.3 
Enhancing Brand Value

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Becoming an ESG Brand
As Delta shares the fruits of technological innovation, we also closely integrate business
operations with ESG to strengthen core competencies and product development andbecome an ESG brand.
The 27th United Nations Climate Change Conference (COP27) was held in November
2022. Delta and the Delta Electronics Foundation successfully held peripheral meetingsand seminars on international initiatives at the official negotiation area to communicate

Delta Publish

Delta's energy storage solutions and the results of our coral restoration efforts. We
exchanged ideas with leaders of global climate change initiatives to provide high-techsolutions for global warming and fulfill our sustainability strategy of attaining biodiversity.
In addition, Delta also continues to support energy conservation and carbon reduction
with innovation. The products shipped from 2010 to 2022 reduced customers' energy
consumption by 39.9 billion kWh, which is equivalent to reducing global carbon emissions
by 21.05 million tons. We also actively build healthy and energy efficient buildings andwe have built 32 green plants and office buildings and 2 certified high-efficiency data
centers across the world. The 17 certified green plants and offices and 5 certified green
buildings donated to academic institutions saved 26.91 million kWh of electricity in 2022,
representing approximately 15,400 metric tons of CO2e reduction. Delta will continue topursue innovation and energy conservation to attain our zero carbon targets.

Internal Brand Communication: Consolidating Employee Consensus
Delta has issued its Brand News bi-monthly for more than 10 years and continues to share
Delta's branding practices and operations in different parts of the world. We launched thedigital version of our bi-monthly newsletter a few years ago and have enhanced our video
and social media connections. These creative measures enrich our employees' reading
experience and allow us to share the achievements of the Delta brand to more external
partners.
Delta's Brand Management and Human Resource Divisions work together to organize
regular brand training courses on the development history of the Delta brand, brandpositioning, and ESG sustainability actions. We help every employee understand theconnection between Delta's core values and businesses and incorporate them into theirChief Brand Officer Ms. Shan-Shan Guo recorded brand training courses and discussed Delta'stransformation and brand value.

DNA so that they become spokespersons for the Delta brand. We hope to work withinternal and external partners and continue to enhance Delta's brand for the new era.

2022 Delta Electronics ESG Report14

Sustainable
Management2

2.1

Sustainable Management

2.2 Policies and Promotions
2.3 Responding to Global Sustainable Development

2.1
Sustainable Management

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

2.1 Sustainable Management
2.1.1 Sustainable Key Performance
ECONOMY

12

Number of
Board Members

9,625

11,275

12,890

2020

2021

2022

Total Revenue (MUSD)

331

395

426

2020

2021

2022

Brand Value (MUSD)

5ENVIRONMENT

Number of
Independent Directors

9.0

8.6

8.3

2020

2021

2022

Ratio of Innovation and R&D
Expenditures to Total Revenue (%)
10,98911,92812,992

2020

2021

2022

Cumulative Granted Patents
and Certificates (Cases)

0

0

0

84

82

82

2020

2021

2022

2020

2021

2022

Litigation Involving Corruption Supplier ESG Improvement Rate (%)
and Anti-competition (Cases)

15,400Equivalent carbon
emissions reduction of 17
certified Delta green
buildings and 5 donatedgreen buildings

Metric Tons

21.4

15.1

13.3

2020

2021

2022

SBT Carbon Intensity(Metric Tons CO2e / MUSD)*

310.3

389.0

410.8

2020

2021

2022

Produced and Purchased
Renewable Electricity (Million kWh)*
39,447.0 50,060.9 49,272.1

2020

2021

2022

Total Waste Production(Metric Tons)*

39.9
Billion kWh(2010-2022)

SOCIETY

Energy Savings ofHigh Efficiency
Products for
Customers

565.6

663.3

625.4

2020

2021

2022

Electricity Consumption(Million kWh)*

465

416

366

2020

2021

2022

Water Productivity Intensity(Metric Tons / MUSD)*

70.3

68.5

80.0

2020

2021

2022

Hazardous Waste Recycled Rate (%)*

30.2

Ratio of Female
Managers (%)

9.07

11.98

9.87

2020

2021

2022

82.0

89.4

2020

2021

2022

2020

>1,000 >1,400 >1,800

2021

2021

2022

Total Number of
Employees Worldwide

Offer Letter Acceptance Rate (%)

2020

Recordable
Occupational
Injury Rate of
Employees (%)

83,804 85,593 85,684

Social Participation andEngagement (MUSD)
81.2

0.95

2022

Cumulative DeltaMOOCx
e-Learning Platform Video
Views (10,000 times)

27.2

13.6

18.2

2020

2021

2022

Average Hours of Training per
Person (Hours)
236

314

1,249

2020

2021

2022

Number of Volunteers (People)* Overall production plants: Dongguan, Wujiang, Wuhu, and Chenzhou Plants in Mainland China; DET plant 1, 3, 5, and 6; Taoyuan plant 1, 2, 5, Pingjhen in Taiwan; Cyntec Hsinchu and Huafeng plants; Eltek (Americas
and India plant) ; exclude Eltek (Americas and India plant) due to production adjustment in 2021; Taoyuan plant 5 and Pingjhen plant were added in 2022.

2022 Delta Electronics ESG Report

16

2.1
Sustainable Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

2.1.2 Awards and Recognition

Dow Jones Sustainability IndicesSustainability Yearbook Assessment

CDP• Listed on the Dow Jones Sustainability World Index for 12
consecutive years• Highest overall score in the electronic equipment,
instruments & components industry in the Dow Jones
Sustainability Indices (DJSI) for 7 years• Listed in the Dow Jones Sustainability Emerging Markets
Index for 10 consecutive years• Delta Electronics (Thailand) was listed in the Dow Jones
Sustainability World Index and Dow Jones Sustainability
Emerging Markets Index• Ranked among the top 1% in the S&P Global ESG Score inElectronic Equipment, Instruments & Components in the
S&P Global Sustainability Yearbook.

• Awarded CDP Climate Change Leadership for the 7th time
• Included in the CDP Water Security and Supply Chain
Engagement A List for three consecutive years

Morgan Stanley Indexes

FTSE4Good Index Series• Selected consecutively for the MSCI ACWI ESG Leaders
Index• Selected consecutively for the MSCI Emerging Markets
ESG Leaders Index• Selected consecutively for the MSCI Taiwan ESG Leaders
Index• Selected consecutively for the FTSE4Good Emerging
Indexes• Selected as a constituent of FTSE4Good TIP Taiwan ESG
Index (compiled by Taiwan Index Plus Corporation and
FTSE Russell)Institutional Shareholder Services (ISS) Enterprise
Performance Evaluation• Received "Best" rating in the evaluation

2022 Delta Electronics ESG Report

17

2.1
Sustainable Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Best Taiwan Global Brands

ENERGY STAR Sustained Excellence Award

The Taiwan Corporate Sustainability Award• Selected as one of the "Best Taiwan Global Brands" forthe 12th consecutive year

• Received ENERGY STAR Sustained Excellence Awardfor the 5th consecutive year
• Received the ENERGY STAR Partner of the Year award
for the 7th consecutive year

• Delta received 7 major awards at the Taiwan Corporate
Sustainability Awards and the Global Corporate
Sustainability Award held by the Taiwan• Institute for Sustainable Energy in 2022

Honorable Legion of Corporate Sustainability

Top 100 Global Innovators Award

Awards for Foreign Companies in China• Received the first "Honorable Legion of Corporate
Sustainability" from CommonWealth Magazine• Selected by Clarivate among its Top 100 Global
Innovators™ for two consecutive years• Ranked among the top 10 foreign companies in the"China Corporate Social Responsibility Development
Index" published by the Chinese Academy of Social
Sciences for the 8th consecutive year

• Delta Electronics (Thailand) was selected as one of the ASEAN Asset Class Listed Companies for the ASEAN Corporate Governance Scorecard• Selected for the Thaipat Institute ESG100 for the 8th consecutive year
• Received the Thailand Energy Award presented by the Ministry of Energy of Thailand for the 7th year
• Received the 2022 "Excellence Award in Corporate Responsibility of the Year" and "Model Responsibility Enterprise of the Year" from "Southern Weekly", and ranked among the top 10
in the "China Enterprise Carbon Peaking and Carbon Neutrality Action Rankings" and top 10 in the "Enterprise Science and Innovation in the Electronic Component Industry"• Selected as one of the "Excellent ESG Cases of Enterprises" by Xinhua.net
2022 Delta Electronics ESG Report

18

2.2
Policies and Promotions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

2.2 Policies and Promotions

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

OUR PROMISE

2.2.1 ESG Policy and Mission
Delta has upheld the mission statement "To provide innovative, clean and energy-efficientsolutions for a better tomorrow" since its founding. We are also committed to the brandpromise of "Smarter. Greener. Together." Delta expresses its commitment to promoting
economic, environmental and social sustainable development in its various aspects
of operation. These include providing energy-saving products and green solutions,

Maintain good corporate governance and adhere to businessethicsAdhere to all laws and regulations

improving corporate governance, taking stakeholders' benefits into account, protecting
the environment, focusing on energy conservation education, promoting environmental
education, and more. Along with the continuous development of sustainability topics,
we also focus on the relationship between Delta's value chain and the environment andsociety. We actively play our role as an international corporate citizen based on our corecompetencies.
As an international corporate citizen, Delta supports international responsible businessprinciples and standards including the Universal Declaration of Human Rights,
International Labor Organization (ILO) Tripartite Declaration of Principles concerning
Multinational Enterprises and Social Policy, United Nations Global Compact, United
Nations Guiding Principles on Business and Human Rights, and the OECD Guidelines forMultinational Enterprises. Delta also complies with the Responsible Business Alliance
Code of Conduct (RBA Code of Conduct) to implement our ESG policies and missions.
Delta’s important policies are authorized for announcement by the Board of Directors tofulfill ESG responsibilities. The Board of Directors has clearly defined four major principles
through "the Delta Corporate Social Responsibility Best Practice Principles" to fully
secure ESG responsibilities: implement corporate governance, develop a sustainable
environment, safeguard public welfare, and enhance the disclosure of corporate social
responsibility information. Please refer to our official website to view the policies:

Create company value and improve shareholders' rights
Invest in innovative R&D, develop intellectual property rights,
and do our best to improve technology for humanity's social andeconomic development, and sustainable development of the
global environment
Develop environmental protection and energy saving products
and implement environmental protection as a way to reduce our
impact on the environment
Provide a safe and healthy work environment for employees,
space for their full talents, and reasonable compensation andbenefits
Actively participate in environmental protection and energy
conservation education, and encourage employees to participate
in social welfare activities
Promote the concept and practice of sustainability in Delta's
supply chain and jointly pursue better performance

Click here

2022 Delta Electronics ESG Report

19

2.2
Policies and Promotions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

2.2.2 Sustainable Promotion of Organizations
Delta's ESG Committee is its highest-ranking sustainable management organization.

initiatives. The Board of Directors oversees and supervises the progress of sustainable

Since its founding in 2007, the committee has continuously evolved with sustainability

development strategies and projects and provides necessary guidance.

development trends. Delta established the role of Chief Sustainability Officer (CSO) in2019 to promote and intensify Delta's sustainable development.
Mr. Bruce Cheng, founder and honorary chairman of Delta, serves as honorary chairmanof the committee, while Chairman Yancey Hai acts as the chairman. The ESG Committee
oversees staff organizations and execution units including project teams and the
Corporate Sustainability Development Department. Delta Electronics Foundation is
also invited to attend meetings of the ESG Committee. The "Corporate Sustainability
Development Department" serves as the secretariat which is responsible for analyzing
international trends in sustainable development and understanding stakeholder
expectations to identify material topics. It makes adjustments and mitigates possible
impact of material topics such as climate change on operations and jointly plansapplication strategies and execution plans with various function subcommittees. It also
drafts the Sustainability Report each year and submits it to the Delta ESG Committee forissuance.
The Committee oversees 10 project teams that focus on three major aspects of ESG goals
including corporate governance, environmental protection and energy conservation, andemployee relations and social participation. The "Biodiversity" project team was added
to employee relations and social participation in 2022. The project teams are composedof business groups, region directors, and department directors. They are responsible
for formulating Delta's project plans, development tools, and procedures and they
organize regular meetings to plan annual sustainability strategies, review the operationsof the Group and various functional committees, and supervise the effectiveness of theexecution of major projects.
The CSO reports the implementation results and future work plans for sustainable
development on behalf of the Company to the Board of Directors each quarter. The

In 2022, Delta completed the first phase of coral restoration, integrating biodiversity into theirsustainability strategy.

Committee held four meetings in 2022 and the proposals discussed included: (1)sustainable development topics and project progress reports; (2) analysis of importantinternational ratings; (3) stakeholders and material issues; (4) progress of international

2022 Delta Electronics ESG Report

20

2.2
Policies and Promotions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Delta ESG Committee

Global ESG Committee Board of Directors
Honorary Chairman / Founder
Chairman / Chairman of the Board of Directors
Vice Chairman, CEO, COO

Members
CSO, Regional Operations Heads and Function Heads

Corporate Sustainability Development Department

Project Teams(HR, IT, EMS, OSH and Material)

Corporate Governance

Board Competence

Responsible Business
Alliance

Supply Chain ESG
Management

Ethical Corporate
Management

Delta Electronics Foundation

Environmental
Protection and Energy Savings
Energy and
Water
Conservationand Waste
Reduction
Management

CarbonManagement

Product
Stewardship

Employee Relations and Social
Participation

Biodiversity

Human Capital
Development

SocialParticipation

2022 Delta Electronics ESG Report

21

2.3
Responding to Global
Sustainable Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

2.3 Responding to Global Sustainable Development
2.3.1 UN Sustainable Development Goals
The United Nations passed the Sustainable Development Goals (SDGs) in 2015, which set up 17 targets that are related to global sustainable development. The SDGs help Delta evaluate
whether product development is in line with global demands and encourage us to think how to maximize the impact of our corporate mission "To provide innovative, clean and energyefficient solutions for a better tomorrow" and uncover opportunities. Delta's Corporate Sustainability Department is based on the company's core professional capabilities, and referencesinternational benchmark case analysis and customer success cases. The ESG Committee decided to focus on 7 SDGs for the future direction of Delta's key development plans.

Delta Focuses on Seven SDGs
Quality Education

Affordable and Clean Energy

High quality education for all. Shaping
the development of talent and improving
knowledge. Delta is promoting educationa n d l i fe - l o n g l e a r n i n g f ro m 4 m a j o r
aspects: Promoting basic subject
education; promoting environmental
education such as energy, water
resources, and green buildings; assistingin improving educational opportunities indeveloping countries; and establishingtalent cultivation mechanisms within
the company to move towards lifelong
learning.

Constructing a reliable and sustainableclean energy system is one of thegl oba l p rioritie s . D e lta is d e dic a te d
to developing solar power generation
systems and renewable energy solutions,and discovering new business models
from them. Delta also provides affordable
re n e w a b l e e n e rg y s o l u t i o n s fo r l ow
development areas to help more people
obtain sustainable modern energy.

Industry/Innovation Infrastructure

Sustainable Cities and Communities

Accelerating industrial innovation andassisting in the construction of resilient
infrastructure are the best solutions forcompanies facing the dual pressuresof climate change and sustainable
development. Delta has implemented aninternal incentive system to continuously
accumulate innovative energy and provide
diversified energy-saving solutions for
global customers. Its applications include
smar t manufacturing and low-carbon
transportation.

As cities grow larger and populations
becomes more concentrated, sustainable
cities have become key to balance humanwelfare and sustainable environmental
and social development. Delta actively
promotes green buildings and our green
building solutions include building
automation and energy infrastructure.
We seek to build sustainable cities withstakeholders.

Responsible Consumption and Production

Climate Action

Partnerships for the Goals

Sustainable consumption and production are the basis forsustainable business operations. Delta upholds its missionof "To provide innovative, clean and energy-efficientsolutions for a better tomorrow". It has implemented
sustainable consumption and production into daily
operations by promoting green production measures,
green building factory management and the green
operation concept.

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

As global citizens, companies par ticipate in global
partnerships to help activate sustainable development.
Delta participates in international conferences on climatechange, provides its views on sustainable development
to the international community and increases theopportunities for industrial communication. Delta further
promotes global partnerships by taking action responding
to the "We Mean Business" commitments.

2022 Delta Electronics ESG Report

22

2.3
Responding to Global
Sustainable Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

2.3.2 International Sustainability Initiatives
Five Major Commitments for "We Mean Business"
Companies play a crucial role in sustainable development. Delta has long focused on the development of various international sustainability initiatives and identified topics that match
Delta's ideals to make an active response and maximize the effects of company strategy. Climate change is an issue that Delta has focused on for a long time. Dealing with climatechange has become an extension of Delta and our corporate social responsibility commitments. Delta was a leader in publishing the Delta Climate Action Plan in 2015. We signed the"We Mean Business" initiative promoted by the CDP and World Business Council for Sustainable Development (WBCSD), and committed to adopting a science-based carbon emissions
reduction target, reporting climate change information in mainstream reports as a fiduciary duty, engaging in a responsible corporate climate policy, and conversion to electric vehicles
and expansion of charging facilities. We also pledged to join the RE100 initiative (committed to using 100% renewable electricity) in 2021.

Progress of the Five Major Commitments for "We Mean Business"
Initiative Topic

Delta's Strategic Direction

Milestones

Actions in 2022

Commit to adopt a sciencebased emissions reduction
targetAdopt a science-basedtarget (SBT)for drivingcarbon emissions reduction*1• Became the first in Taiwan as well as the 87 thcompany globally to pass the validation of the
Science Based Targets initiative (SBTi) in 2017

• Delta's short-term reduction targets and net-zero targets
passed the validation by Science Based Targets initiative(SBTi) in 2022 (detailed in Chapter 5)• Became a member of the Business Ambition for
1.5°C Campaign in 2021
• Achieved carbon reduction targets for the current
stage ahead of schedule in 2021
• Became the first among high-tech hardware
equipment manufacturers in Asia as well as the125th company globally to pass the net zero target
validationof the Science Based Targets initiative(SBTi) in 2022
Commit to report climatechange information inmainstream reports as afiduciary duty

Promote climate-related
financial information
disclosure• Became a signatory and supporter of the Task Forceon Climate-related Financial Disclosures (TCFD) in
2018• Assessed the medium to long-term impact of physical risks
for climate change to renewable electricity generation in
Taiwan• Continued to conduct climate scenario analysis andimpact assessment for key topics starting from 2019

• Improved the Delta Electronics' Climate-related ProductTaxonomy and compliance ratio based on international
standards such as the EU Taxonomy.

• Developed the Delta Climate-related methodology
and Taxonomy starting from 2021

2022 Delta Electronics ESG Report

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2.3
Responding to Global
Sustainable Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Initiative Topic

Delta's Strategic Direction

Milestones

Actions in 2022

Commit to responsible
corporate engagement inclimate policy

Provide advice to thegovernment on green
technology policies and pay
attention to international
climate policies• Assisted the Business Council for Sustainable
Development of Taiwan (BCSD Taiwan) in drafting
the Energy and Climate Policy White Paper in 2015

• Delta and seven other major tech companies in Taiwan
formed the Taiwan Climate Alliance, officially registered in
2022, to promote climate policies. Yancey Hai, Chairman of
Delta, serves as its first Chairman.

Conversion to electricvehicles and expansion of
charging facilities

Delta has set a goal for
installing electric vehicle
charging facilities inmajor operation sites andswitching to using zeroemission vehicles forcompany vehicles before
2030. *2

• C o l l a b o r a te d w i t h t h e re p u t a b l e t h i n k t a n k
American Council for an Energy-Efficient Economy(ACEEE) and provided urban energy conservation
recommendations in 2018
• Delta joined the international initiative EV100 in
2018: EV100 is a global initiative launched by
the Climate Group. Its goal is to bring together
influential companies and government organizations
t o a c c e l e r a t e t h e t r a n s i t i o n t o l ow - c a r b o ntransportation and ensure that the use of electricvehicles in transportation becomes the new norm
before 2030.
• Delta joined t he international initiative ZEV
Declaration during COP27 in 2022 and the Company
took a significant step towards the switch to zeroemission vehicles.

• Attained the targets for installing charging facilities in major
operation buildings and all main production plants in Taiwan• The internal carbon pricing system encourages and subsidize
global operations to replace old ICE vehicles with zeroemission vehicles• As a member of EV100, Delta and the Climate Group havejointly presented policy recommendations to key decision
makers in the European Parliament, calling on the European
Commission to uphold the "Fit for 55 Package" proposal,and strengthen its implementation in the transition to zeroemission vehicles. The proposal has been published on thewebsite of the Climate Group: Click here
• Delta was invited to join the international initiative ZEV
Declaration and pledges to use zero-emission vehicles
for 100% of company vehicles by 2030. Official website:
Click here

Promote 100% renewableelectricity

Achieve the 100% renewableelectricity target by 2030

• Joined RE100 in 2021
• Starting from 2022, the achievement rate of the
RE100 initiative is included as a per formanceindicator for top executives. Became the firstto link ESG indicators to the remuneration of top
executives• Eight of Delta's global work groups expanded the possibilityof purchasing Renewable Energy Certifications with actual
electricity supply. Delta signed its first power purchaseagreement (PPA) in Taiwan in 2021 and purchased green
electricity products in Taiwan, Mainland China, Norway,
Slovakia, and the United States in 2022.
• In 2022, the achievement rate of the RE100 initiative wasincluded as a performance indicator for the top executives ineach region*1 Take 2021 as the base year and adopt the short-term target of reducing Scope 1+2 carbon emissions by 90% and reducing Scope 3 carbon emissions by 25% by 2030, and the long-term target of reducing Scope
1+2+3 carbon emissions by 90% by 2050.
*2 Zero-emission vehicles are defined as pure electric vehicles and hydrogen vehicles.

2022 Delta Electronics ESG Report

24

2.3
Responding to Global
Sustainable Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Conversion to Electric Vehicles and Expansion of Charging Facilities
Delta joined the EV100 low-carbon transportation initiative in 2018 and became the first
EV100 member that is a provider of energy infrastructure facilities for electric vehicles.
Delta has worked with leading companies and organizations in sustainable development
across the world to jointly support low-carbon transportation. Delta is committed toproviding charging facilities at Delta's operations and production plants within the scopeof its global energy management and converting company vehicles to zero-emission
vehicles such as pure electric vehicles and hydrogen vehicles before 2030. This will
reduce carbon emissions from transportation and fulfill Delta’s mission: “To provide
innovative, clean and energy-efficient solutions for a better tomorrow.”
As of 2022, Delta has installed charging facilities for electric vehicles in Delta's sitesof operations in 25 cities across the world including Taipei, Taoyuan, Zhongli, Hsinchu,
Tainan, Shanghai, Wujiang, Dongguan, Wuhu, Daimon, Ako, Samutprakarn, Chachoengsao,
Gurgaon, Hoofddorp, Helmond, Eindhoven, Soest, Teningen, Bern, Dubnica nad Váhom,Warsaw, Fremont, Detroit, and Raleigh.
Delta joined the international initiative ZEV Declaration at COP27

Delta's targets in the different stages of conversion to zero-emission vehicles :ܱܱ Prioritize the purchase of zero-emission vehicles for Delta's new company vehicles starting from 2020.
ܱܱ All new vehicles purchased starting from 2025 must be zero-emission vehicles.
ܱܱ Replace all non-electric company vehicles with zero-emission vehicles by 2028 and attain the EV100 and ZEV Declaration commitment by 2030.

2.3.3 Participation in Associations
Delta participates in associations and various organizations to promote business, expand sectors of concern, meet business development conditions, meet regulatory requirements,
enhance networking, cultivate talents, or demonstrate its leading position in the industry. Delta mainly joins organizations as members or serve as directors or the chairperson in certain
associations. As associations have their own goals and intentions, Delta's participation as a member of such associations does not mean that Delta agrees with all opinions of theassociations. Delta has long focused on businesses and sectors including electronics and electrical machinery, automation, renewable energy, green building, healthy and smart buildings,
electric vehicles, communication power supplies, leadership development, human resources, and corporate sustainability. Delta's total global expenditures for participation in associationsin 2022 totaled approximately 550,000 USD and the list of associations is disclosed on the Company's official website

2022 Delta Electronics ESG Report25Communication
with Stakeholders

3

3.1

Stakeholder Communication and Response

3.2 Materiality Assessment
3.3 Management of Material Topics

3.1
Stakeholder Communication
and Response

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

3.1 Stakeholder Communication and Response
Delta aims to be a global citizen committed to sustainable development and values communication with stakeholders. We deeply understand that each stakeholder has a unique andpivotal role that influences how an organization can achieve its goals. We must engage in sincere communication with stakeholders to obtain feedback and opinions, revise our sustainable
development practices whenever necessary, respond to the expectations of the public, and demonstrate our social impact. We have defined six major stakeholders pursuant to theAA1000 Stakeholder Engagement Standard (AA1000 SES). They include employees, investors, media, customers, suppliers, and communities (research institutes, NPOs, communities, andother stakeholders). To establish effective interactions with stakeholders, we target four major goals for our communications: to be received, to be understood, to be accepted, and to getaction. This ensures optimal communication and engagement to explain Delta's progress and response for sustainable management.

Interactions with Stakeholders
Communication Target

Employees

To be received

To be understood

To be accepted

To get action

Communication Platform

Issues of Concern

Response

Actions• 735 cases ofinternal opinions
were filed at major
production sites in2022• Organized the "Integrity and Human Rights Code of
Conduct Policy" online course which included a variety
of major compliance topics. 82,007 participants in
Delta's global operations completed training and thecompletion rate was 97%.

• 211 labormanagement
meetings andmeetings related to
employee welfare• Provided diverse communication channels andassigned dedicated personnel to listen to employees'
opinions and take related measures, and maintain theconfidentiality of information in the reports.

• Labor-management meetings (quarterly)• Code of Conduct• Employee Welfare Committee(intermittently)• Occupational Safety
and Health• Occupational safety and healthcommittee (quarterly)• Energy Management• Employee engagement survey (every
two years)• Delta corporate website (intermittently)• Employee feedback mailbox(intermittently)• Communication and work meetings ofunits and departments (intermittently)• Green Products• Net-Zero Commitment
and Carbon
Management• Held safety and health training or organized safetyknowledge Q&A to build a culture of safety and healthand enhance employees' abilities for identifying hazards
in the work environment and their safety and healthknowledge and concepts for disaster prevention andresponse.
• Established Global ESG Training Committee andplanned learning maps with content including general
ESG theories, energy and resource management, netzero and carbon management, circular economy, andenvironmental sustainability topics to build employees'
ESG knowledge and skills and facilitate communication
with stakeholders.

2022 Delta Electronics ESG Report

27

3.1
Stakeholder Communication
and Response

Communication Target

About theESG Report

A Word from
the Management

Overview

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

To be received

To be understood

To be accepted

To get action

Communication Platform

Issues of Concern

Response

Actions• External institutional
investors'
conference: 35
rounds• Continued to actively engage investors in effective
communication and explain the Company's financial
and business information to investors.

• Press releases: 186
releases• Increased in-person events and press releases as
the pandemic subsided, and launched a brand-new
corporate identity system to communicate our transition
from an industrial brand to a commercial brand as wellas our corporate philosophy of promoting sustainabletransformation through technology and our future smart
low-carbon applications of innovative energy-efficienttechnologies.

• Delta ESG website & ESG Report(annually)

Investors

Sustainable
Management• Risk Management• Delta website & financial report (annually)• Innovative Products
and Services• Investor forum (intermittently)• Energy Management• Annual shareholder meeting (annually)• Green Products• Institutional investor visits (intermittently)• Investor services mailbox (intermittently)• Meetings with institutional investors(intermittently)• Continued to share with investors the Company's
recent development and future goals of ESG, andprovide feedback on the investors' opinions andexpectations such as the Company's carbon reduction
targets, supply chain management, remuneration of
the management, and corporate governance to create
positive bilateral communication.

• Institutional investors' conference(quarterly)Media• Press releases (intermittently)• Climate Strategy• Press conferences (intermittently)• Green Products• Media interviews (intermittently)• Net-Zero Commitment
and Carbon
Management• Delta PR contact (intermittently)• Major activity participation(intermittently)• Social media (intermittently)• Energy Management• Circular Economy• Videos published:
36 releases• Media interviews:
170 rounds• Social media: Morethan 70,000 fans on
Facebook• Leveraged ESG international ratings/certification/
initiatives as well as summits, forums, and speeches
to share Delta's ESG experience and achievements
and Climate Policy. Encouraged everyone to adopt
an international perspective and respond to climatechange together.

2022 Delta Electronics ESG Report

28

3.1
Stakeholder Communication
and Response

Communication Target

Customers

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Employee Relations
and Social
Participation

Appendix

To be received

To be understood

To be accepted

To get action

Communication Platform

Issues of Concern

Response

Actions• Delta ESG website & ESG Report(annually)• Innovative Products
and Services• Initiated a satisfaction survey to continue improvements
if the customer has not rated their satisfaction.

• Regular customer review meetings(annually)• Code of Conduct• Customer
satisfaction scorequestionnaire
responses: 331
suppliers• Channel partner meetings and businessplatform (annually)• Customer Satisfaction Survey (annually)• Customer RelationshipManagement• Circular Economy• Customer ESG
survey responses:
47• Customerrequested CDPquestionnaire
responses: 37
customers• Brand News (every two months)• Customer audits (intermittently)• Delta website (intermittently)• Satisfaction score:
79.26

Suppliers

Devoted to Environmental
Protection and Energy
Savings• Delta ESG website & ESG Report(annually)• Supplier Sustainability
Management• Supplier Training (annually)• Code of Conduct• Supplier Platform (monthly)• Innovative Products
and Services• Environmental Hazardous Substances
Management Platform (monthly)• Initiatives and concerted actions
in response to climate change(intermittently)• 3 training programs
were held for 422
participants fromsuppliers.

• Identified customer issues at the product design phase,
while also gaining an accurate understanding of endmarket demands and exceeding customer expectations
through consultations and recruiting experts from avariety of industries.
• Promoted t he Code of Conduct, complied wit h
Responsible Business Alliance (RBA) regulations,and implemented labor, ethical, health and safety,
environment, and management reviews.
• Initiated circular economy projects in separate phases
to plan Delta's circular economy blueprint.

• Encouraged suppliers to implement energy
conservation and carbon emissions reduction andprovided them with support for basic GHG inventory toindustrial energy conservation courses to achieve longterm plans for net-zero emissions.
• Complied with the code of conduct for the supply
chain, and used supplier ESG surveys and conflictmineral surveys to identify high-risk suppliers to reduce
the risks to the continuity of the supply chain. Used theresults of the questionnaire to identify suppliers withpotential for collaboration in ESG and prioritize them forassistance and collaboration.
• Engaged key suppliers to pave the way for long-term
innovation and alternative low-carbon materials.

2022 Delta Electronics ESG Report

29

3.1
Stakeholder Communication
and Response

Communication Target

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

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

To be received

To be understood

To be accepted

To get action

Communication Platform

Issues of Concern

Response

Actions• Delta ESG website & ESG Report(annually)• Energy Management• Website of Delta Electronics Foundation(intermittently)• Energy volunteers and climate salons(intermittently)• Low Carbon Life Blog and ICBroadcasting (regularly)• Facebook and PeoPo social media(intermittently)• Online training courses for Green Collar
Architects and energy management
personnel (regularly)• Social Engagement• Net-Zero Commitment
and Carbon
Management• Climate Strategy• Green Products• Collaborating
charityorganizations: 22
organizations• Volunteer service
beneficiaries:
21,600 people• Views on social
network media:
13.23 million views

Appendix• Continued to offer in-person courses on WELL healthybuilding standards and standard online courses LEED
Zero to help people understand how to maintain ahealthy indoor environment and build energy-savingbuildings.
• Developed the ongoing DeltaMOOCx online learning
platform to strengthen fundamental science education
and reduce the gap between education and actual work.
Cultivated talents and encouraged them to study abroadin disciplines related to the environment.
• Continued to organize online training courses for energy
management personnel to communicate industry energy
management tips and help companies achieve the goalof net-zero emissions.
• Trained Delta employees to take part in coral reef
restoration and the actual construction of incubationsites. Organized the touring screening of marine
life documentaries and exhibitions on the ecology
to enhance public awareness of the importance of
biodiversity.
• Assembled employees to carr y out low-carbon
transportation education programs in elementary schools
near Delta plants to teach them about electric vehicles
and increase the environmental protection awareness ofthe next generation.
• Used social media to communicate the latest energy andclimate information and organize meetings in the United
Nations Climate Change Conference to share energy
transition case studies for islands.

2022 Delta Electronics ESG Report

30

3.1
Stakeholder Communication
and Response

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Expand the Influence on Sustainability Issues
Delta is taking real action to respond to the severe

attended more than 192 internal and external ESG

challenges of climate change. We became the firstcommunication events in 2022 and communicatedcompany in Taiwan to pass the certification for Sciencesustainable development issues with customers,

Based Targets (SBT) and we support international

suppliers, the media, investors, employees, NGO /sustainability initiatives such as TCFD, EV100, and RE100.

NPO, and public / academic research institutions. We

We passed the SBTi net-zero science-based target

strengthened the awareness of the public and companies

review in 2022 to actively implement our corporate

in regards to sustainability issues and increased Delta's

mission of "To provide innovative, clean and energy-business opportunities for sustainable development inefficient solutions for a better tomorrow". Delta isenergy conservation and carbon emissions reduction.

committed to implementing its responsibilities as aworld-class corporate citizen in response growing
public concern for the issues of climate change and net-Communication and Sharing of Sustainability Issues

Delta organized the Side Event and Action Hub at COP27 andexchanged ideas with representatives of the governments of the
Balearic and Canary Islands of Spain and an expert from RMI, arenowned energy think tank in the United States.

zero emissions. We have taken on the responsibilityof sharing our experience in sustainability issues andcommunicating the importance of energy conservation

Communication Target

Form of Communication

Communicating Sustainability
Concerns

and carbon emissions reduction to the public. Delta andthe Corporate Sustainability Development Department

Customers• Communication meetings• Internal training

Suppliers• Communication meetings• Internal trainingMedia

Ya n c e y H a i , c h a i r m a n o f D e l t a , s p o ke t o h u n d r e d s o f
representatives from the ICT industry in a press conference andinternational forum for establishing the Taiwan Climate Partnership.

• Interviews• Forums• Seminars• Award ceremonies

Investors• Interviews• Seminars• Communication meetings

Employees• Communication meetings• Internal training

Communities(research institutes, NPOs,
communities, and others)• Communication meetings• Lectures• Seminars• Actions in response to climatechange, energy conservation andcarbon emissions reduction• RE100 and Net-Zero roadmap• Internal carbon pricing (ICP) andlow-carbon innovation• Sustainability rating results

2022 Delta Electronics ESG Report

31

3.2
Materiality Assessment

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

3.2 Materiality Assessment
Only change can bring forth real impact
and Delta explores challenges andopportunities for sustainability basedon specific implementation of business
operations. Each year, Delta regularly
executes materiality assessmentp ro c e d u re s t o c o n f i r m a n d a d j u s tsustainability issues and respond to the

3.2.1 Methodology
STAGE

01

Identification of Delta's Sustainability Issues
ESG Regulations/Standards
GRI

CDP

DJSI

stakeholders. We report in accordance

IDENTIFICATION OF SUSTAINABILITYISSUESInternational Initiatives

with the principles of GRI Standards

In terms of the identification of sustainability

2021 for the first time this year toissues, Delta starts with the factors that

SDGs

establish three major analysis steps

may affect the Company's sustainability

including identification, analysis, andincluding internal and external economic,

confirmation. Delta also incorporated

environmental, and social risks andthe principle of double materiality toopportunities. Delta adopted internationalverify the commitment of stakeholders

sustainability regulations and standards (GRI

for sustainability issues, the effect onStandards, ISO 26000 Guidance on Social

Delta's operations, and the impact ofResponsibility, RBA Code of Conduct, andsustainability issues on the economy,

UN SDGs), and sustainability ratings (DJSI,

environment, and people/human rights,

CDP, and MSCI ESG Index), stakeholder

and identify material issues.

expectations and communications, internal

expectations and recommendations ofmanagement objectives, and previouslyWe established long-term targets fordisclosed sustainability information tosustainability and adopted internal key

compile and consolidate sustainability issues.

performance indicator (KPI) verification,

Compared to the sustainability issues of thesustainability ratings, international

previous year, we adjusted the titles of two

trends, and comparison with competitors

issues for "Human Rights and Labor Relations"for regular evaluations of execution andand "Occupational Safety and Health" toeffectiveness. We actively disclosed thecompile 23 sustainability issues related toprogress and effectiveness of Delta's

Delta's operations.

RBA

SASB

10 Economic Issues• Corporate Governance• Code of Conduct• Risk Management• Customer Relationship Management• Innovative Products and Services• Brand Image• Supplier Sustainability Management• Information Security Management• Taxation• Circular Economy

7 Environmental Issues
Stakeholder's Feedback

Delta’s Six Major Stakeholders• Climate Strategy• Net-Zero Commitment and Carbon
Management• Energy Management• Green Products• Water Resource Management• Waste Management• Biodiversity

Operation Strategy

Delta Operation Objective

Sustainable Development
Blueprint
Delta ESG Consensus Meeting

6 Social Issues• Diversity and Inclusion• Social Engagement• Occupational Safety and Health• Talent Development• Talent Attraction and Retention• Human Rights and Labor Relations

2025 long-term sustainability goals to
Delta's stakeholders.

2022 Delta Electronics ESG Report

32

3.2
Materiality Assessment

STAGE

02

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

ANALYSIS

representative samples. For the assessment ofprogram of Harvard Business School, and the London

Delta implemented the materiality analysis andthe "impact on operations", we evaluated theBenchmarking Group (LBG) Model for measuring

identified material issues based on the "level oflevel of impact of each issue on revenue growth,

impact to determine the importance of topics based

concern to stakeholders" and incorporated theenvironmental sustainability, customer satisfaction,on the significance of their impact. According to the

double materiality principle to identify material

and best employer. The ESG team members jointly

results of the aforementioned analysis, we used theissues with significant impact in terms of thecompleted the analysis of the impact. This year, weresults of discussions and confirmation of the ESG"impact on operations" and "impact on sustainable

adopted the methodology in GRI 3 Material Topics

Committee, external experts, and senior executives

development". We conducted sur veys on 23

and added the significance assessment of theand selected 16 material issues. Other issues were

sustainable issues. For the survey on the "level of"impact of sustainable development". We used theregarded as Delta's potential sustainability issues

concern to stakeholders", we targeted six major

methodology of the Value Balancing Alliance (VBA)

which also play critical roles in the operations

types of internal and external stakeholders with thefor assessing economic, environmental, and socialof Delta and we shall continue to disclose thequestionnaire survey for the purpose of collecting

impact, the "Impact-Weighted Accounts" researcheffectiveness of our execution in the ESG Report.

Delta's Impact Assessment Procedures

ImpactPositive

Negative

Economy6

1

Environment22People/HumanRights32

Source of Impact:

 Value Balancing Alliance (VBA)• "Impact-Weighted Accounts"
Research Program of Harvard
Business School
 London Benchmarking Group (LBG)
Model Delta's Definitions

Define Positive and
Negative Impacts

8 Significant Impacts

Likelihood

16 Impacts

Level of Impact

Sustainability Issues

Extremely High Corporate Governance Innovative Products and Services
 Brand Management
 Green Products
 Climate Strategy

High Circular Economy
 Net-Zero Commitment and Carbon
Management
 Energy Management
 Supplier Sustainability Management
 Social Engagement

Significant

 Code of Conduct Risk Management
 Taxation
 Customer Relationship Management
 Biodiversity
 Water Resource Management
 Waste Management+ Industrial Technology Development+ Create Upstream Revenue+ Increase Net Profit after Tax+ Tax-promoted Benefits+ Environmental Benefits of Products

Severity
Severity = ➀+➁+➂➀ Scale➁ Scope➂ Irremediability- Cause of Extreme Weather- Human Health and Ecology+ Participation in International Initiatives● Economic Impact● Environmental Impact● People/human Rights Impact+ Positive Impact− Negative Impact

Analysis of the Significance of Impact

Sustainability Issues with Significant Impact

2022 Delta Electronics ESG Report

33

3.2
Materiality Assessment

About theESG Report

STAGE

03
CONFIRMATION

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

3.2.2 Results of the Analysis and Corresponding Section of the Value Chain
In 2022, out of 23 sustainable issues, 16 material issues were identified in the materiality assessment including risk management, innovative
products and services, customer relationship management, supplier sustainability management, climate strategy, net-zero commitment andcarbon management, green products, energy management, water resource management, waste management, talent attraction and retention,social participation, talent development, occupational safety and health, and human rights and labor relations. Diversity, and inclusion, and risk
management were added as material issues this year. However, risk management issueis general disclosure for which the Company discloses

We s e l e c t e d 1 6 m a t e r i a l

implementation measures and results in the Company's Annual Report or ESG Report and does not set long-term targets. Non-material issues

sustainability issues which

included corporate governance, code of conduct, information security management, brand image, taxation, circular economy, and biodiversity.

identified their impact in the
Delta value chain. We also2022 Material Sustainability Issues Matrix
Environmental Issues
1

referenced the GRI Standards

2and disclose Delta's material3t o p i c s . We fo l l owe d t h e4repor ting requirements for5collecting internal information,

6

data, and management
policies. In addition, weclearly defined the importantmeanings, strategies,
management approach, longte r m g o a l s , a n d i m p a c t o feach material sustainability
issue. We followed up on the
degree of completion of annual
targets and the effectivenessof execution for flexible
adjustments of the Delta's
sustainable management.
Delta also discloses theeffectiveness of other potential
sustainability issues of thecurrent year in the ESG Report.

Climate Strategy
Energy Management
Net-Zero Commitment and Carbon Management
Green Products
Water Resource Management
Waste Management

Social Issues

Social Engagement
Talent Development
9 Talent Attraction and Retention
10 Human Rights and Labor Relations
11 Occupational Safety and Health
12 Diversity and Inclusion
7

8

Economic Issues

Innovative Products and Services
Supplier Sustainability Management
15 Customer Relationship Management
16 Risk Management

4

3

2

1

1

Impact on Sustainable Development

Directors for resolution andImpact on Sustainable Development

were reported to the Board of

1

4

2

3

7

1

810

13

1

14

8

13

4

4

3

14

5

5

6

6

9

9

11

11 12

12

3
14

7

2

10

2

13

1

2

15

15

16

16

2

3 3

Impact on Operations

44
Impact on Operations

Level of Concern to Stakeholder* Risk management issue is general disclosure for which the Company discloses
implementation measures and results in the Company's Annual Report or ESG
Report and does not set long-term targets.

Impact on Operations

Very HighHigh

Moderate

Low

None

Very HighHigh

Moderate

Low

None

2022 Delta Electronics ESG Report

34

3.2
Materiality Assessment

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

ESG Material Issues

Rank

Impact on Operations of
the Organization

Level of Concern to
Stakeholder

Impact on Sustainable
Developement

Green Products

1

★★

★★★

★★★

Innovative Products and Services

2

★★

★★★

★★★

Net-Zero Commitment and Carbon
Management

3

★★

★★★

★★★

Energy Management

4

★

★★★

★★★

Customer Relationship Management

5

★★

★★★

★

Risk Management

6

★★

★★

★

Climate Strategy

7

★★

★★★

Supplier Sustainability Management

8

★

★★

Social Engagement

8

★

★★

Talent Development

10

★

★

Diversity and Inclusion

10

★

★

Occupational Safety and Health

10

★

★

Water Management

13★

Waste Management

13★

Human Rights and Labor Relations

13★

Talent Attraction and Retention

16★

Employee Relations
and Social
Participation

Appendix

Non-Material Issues• Corporate Governance• Code of Conduct• Information Security
Management• Brand Image• Taxation• Circular Economy• Biodiversity

2022 Delta Electronics ESG Report

35

3.2
Materiality Assessment

Stage

Identification

Analysis

Confirmation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Steps and Procedures
Step 1: Communication Target
Employees, investors, media, customers, suppliers, communities (research institutes, NPOs, communities, and otherrelated stakeholders) are the main targets of communication identified by Delta based on the AA1000 Stakeholder
Engagement Standard for communicating Delta's sustainability actions.

Employee Relations
and Social
Participation

Appendix

Results

6 categories of major stakeholders

Step 2: Sustainability Issues
To ensure the comprehensiveness of sustainable issues collected, we put together 23 sustainable issues basedon ESG regulations/standards, sustainability initiatives, feedback from internal and external stakeholders, Delta's
business strategy, and feedback from Delta executives.

23 sustainable issues

Step 3: Survey the Level of Concern
Delta used an online survey to collect information on the level of stakeholder interest in sustainability issues andrecovered a total of 963 valid questionnaires including 89 from customers, 172 from suppliers, 13 from investors,
599 from employees, 23 from the media, and 67 from the community.

963 valid questionnaires

Step 4: Analyze Impact on Operations
We focused on the four major factors including revenue growth, environmental sustainability, customer satisfaction,and best employer and evaluated the impact of sustainability issues on the operations of the Group. A total of 90
ESG-related members and executives participated in the evaluation.

90 senior executives

Step 5: Impact on Sustainable Developement
We defined 11 positive impacts and 5 negative impacts based on the Value Balancing Alliance (VBA) approach, the"Impact-Weighted Accounts" research program of Harvard Business School, and the London Benchmarking Group(LBG) Model and determined the significance of the impact of sustainability issues.

16 impacts

Step 6: Confirm Material Issues
Delta's internal ESG team members, external experts, and senior executives confirmed the material issues based on
the results of the survey on the level of concern and the analysis of the impact on operations before confirming 16
material sustainable issues and producing the materiality matrix.

16 material sustainable issues

Step 7: Review Disclosed Contents
The 16 major sustainable issues that were identified will be matched with the 24 specific topics of the GRI
Standards. The information disclosure boundary of Delta's value chain (supply chain management, operations,products, society) is then graphed based on these topics and used as the basis for reporting.

18 GRI topics

Step 8: Formulate Long-Term Sustainability Goals
We formulated 3 major long-term goals based on the material issues to help Delta respond to the expectationsof stakeholders in the implementation of sustainability plans and use them as the basis for internal performance
evaluations on achievement status.

major axes of long-term

3 sustainability goals

2022 Delta Electronics ESG Report

36

3.2
Materiality Assessment

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Products

Corresponding Chapter

Appendix

Delta's Materiality Issues and Value Chain
AspectEconomicIssuesEnvironmental
IssuesSocial Issues

Direct impact

Material Issues"GRI Standard" Topic

SupplyChain

Operations

Society

Risk Management

General Disclosures

4.8 Risk Management

Innovative Products and Services

GRI 302; Energy

4.3 Innovation

Customer RelationshipManagement

GRI 418; Customer Privacy

4.4 Customer RelationshipManagement

Supplier Sustainability
Management

GRI 204; Procurement Practices
GRI 308; Supplier Environment Assessment
GRI 414; Supplier Social Impact Assessment
GRI 301; Materials

4.5 Supplier Sustainability
Management

Climate Strategy

GRI 201; Economic Performance

5.2 Climate Strategy

Net-Zero and Carbon
Management

GRI 305; Emissions
GRI 201; Economic Performance

5.2 Climate Strategy

Green Products

GRI 302; Energy

5.6 Green Products

Energy Management

GRI 302; Energy

5.3 Energy Management

Water Resource Management

GRI 303; Water

5.4 Water Resource
Management

Waste Management

GRI 306: Waste

5.5 Resources Management

Talent Attraction and Retention

GRI 201; Economic Performance
GRI 401; Labor Relations
GRI 405; Diversity and Equal Opportunity

6.3 Talent Attraction
6.2 Diversity and Inclusiveness6.5 Competitive Employee
Compensation and Benefits

Diversity and Inclusion

GRI 405; Diversity and Equal Opportunity

6.2 Diversity and InclusivenessSocial Engagement

GRI 203; Indirect economic impacts

6.7 Social Engagement

Human Rights and Labor
Relations

GRI 406; Non-discrimination
GRI 408; Child LaborGRI 409; Forced or Compulsory Labor

6.6 Human Rights Protection

Occupational Safety and Health

GRI 403; Occupational Health and Safety

6.8 Occupational Safety and
HealthTalent Development

GRI 404; Training and Education

6.4 Talent Learning Development

Indirect impact

Business relations

2022 Delta Electronics ESG Report

37

3.3
Management of Material
TopicsAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

3.3 Management of Material Topics
We formulated three major long-term goals based on the material issues to help Delta respond to the expectations of stakeholders in the implementation of ESG projects and effectively
track and manage the actions and implementation results of material issues. The ESG Committee regularly oversees the results of the material topic projects and tracks the outcomes ofaction plans to mitigate risks. Based on the results of the analysis of material issues, any issue associated with Delta's risk factors are included in Delta's risk management procedures forrisk assessment. If a project fails to reach its goals, we convene regular meetings for improvements and flexible adjustments. We learn from experience and use it as a reference for the
future implementation of sustainability management.

Three Major Long-term Goals and Material Issues
Economic Issues

Innovative
Products andServices

Customer
RelationshipManagement

Commitment

KPI

Performance"To provide innovative, clean
and energy-efficient solutions
for a better tomorrow" wasadopted as the Company's
mission to transform its
capacity for innovation into
high-quality products andsolutionsRatio of R&D
investment tototal revenue• 2022 target: > 8%;
Actual: 8.3%

By integrating its corecompetency in power andelectronics and developing
advanced energy conservation
technology, Delta provides
cleaner, more effective, andmore reliable thermal power
solutions to conserve moreenergy for its customers.
The Company also focuses
on reducing resource
consumption and greenhousegas emissions to create morevalue for customers.

Customer
Satisfaction
Score*1• 2022 target: 79%;
Actual: 79.26%

Achieved

Achieved

Short, Medium, andLong-Term Targets• 2023 target > 8%
• 2025 target > 8%

ImpactAction Plans• Industrial technology
development• Focus on enhancing theenergy efficiency of coreproducts and establish
a lively and systematic
culture of innovation
to build capacity forinnovation• Access to new
business opportunities• 2023: 80%• 2025: 82%• Stability of revenue• Industrial technology
development• Corporate image• Communicate withcustomers to understandcustomer issues during the
product design phase• Gain an accurate
understanding of endmarket demands andexceed customer
expectations throughconsultations andrecruiting experts from avariety of industries

2022 Delta Electronics ESG Report

38

3.3
Management of Material
TopicsAbout theESG Report

A Word from
the Management

Commitment

Overview

Sustainable
Management

Communication
with Stakeholders

KPI

Performance ier 1 supplierT
ESG survey
response rate

• 2022 target: 90%;
Actual: 91% Achieved• 2021: 88%• 2020: 73%

Corporate
Governance

Short, Medium, andLong-Term Targets• 2025: 95%

Devoted to Environmental
Protection and Energy
Savings

Impact• Create value
and develop
upstream industries
development• Mitigate and adapt toclimate change

Supplier
Sustainability
Management

Delta views its suppliers as
long-term partners and criticalpartners in our promotion of
the sustainable developmentof the value chain.

• 2022 target: 80% of
suppliers;
Actual:82% Achieved• 2021: 82%• 2020: 84%• 2025: 85%

 umber ofNsuppliers thatjoined our
ESG training
program• 2022 target: 150
suppliers;
Actual: 162 suppliers
422 participants• 2025: 180 suppliersand 470 participantsShort-termtargets for
reduction ofemissions bysuppliers

Achieved• 2021: 138 suppliers• 2020: 24 suppliers• Activated in 2022

Appendix

Action Plans• Increase the efficiencyof the use of upstream
resources upplier ESG
S
improvement
rate in supplieraudit based on
RBA Principles

Employee Relations
and Social
Participation• Establish short andmedium-term objectives,
focus on climate change
management as the top
priority, and provide free
training resources forgreenhouse gas inventory,
energy conservation, andcarbon emissions reduction
to global suppliers• Continue to communicate
and implement the Code of
Conduct based on the risk
rating and classification of
suppliers• Engage key suppliers
for more intensified
collaboration onsustainability and evaluate
the opportunities forpromoting low-carbon
materials in the future• Set based on the SBTi
Net-Zero Standard*1. Main targets of the survey consisted of customers who accounted for the top 60-80% of procurement from Delta in 2021/2022

2022 Delta Electronics ESG Report

39

3.3
Management of Material
TopicsAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Environmental Issues

ClimateStrategy

Net-ZeroCommitment
and Carbon
Management

2022 Targets andPerformance

Short, Medium, andLong-Term TargetsInclusion of climatechange issues in thequarterly reportsof the Board of
Directors
Disclosure ofclimate information
and Delta's progress
based on the TCFD
framework eachyear
Continuously meettargets since 2018

• Climate change
information and progress
are reported to theBoard of Directors eachquarter and the results
are disclosed in themainstream report eachyear

• Reduce climate risks
and expand business
opportunities in the
low-carbon market

 BT Scope 1 andS
Scope 2 (marketbased) absolute
reduction (%)• Target:• Actual:(baseline year: 2021)• 2023: 20%• 2030: 90% andattain carbon neutrality(baseline year: 2021)

 BT Scope 3
Sabsolute reduction(%)• Target: 2.5%
• Actual: 33.8%(baseline year: 2021)• 2023: 5%• 2030: 25%(baseline year: 2021)

Commitment

KPI

Participation ininternational initiatives andimplementation of TCFD.

Respond to limiting global
temperature increase within
1.5℃ and meet net-zerotarget by 2050.

10%
13.5%

Achieved

ImpactAction Plans• Impact on climatechange• Respond to climatechange: Recreate acomprehensive climatechange management
framework based on
TCFD framework to
manage risks andopportunities andregularly disclose theprogress.

• Align withinternationalsustainability
initiatives• Impact on climatechange• Align withinternationalsustainability
initiatives• Align with internationalsustainability trends:
Actively support
international initiatives
and attain specificachievements on the"We Mean Business"
commitments andpass the SBTi net-zeroscience-based target
review.
• Internal carbon
pricing mechanisms:
Strengthen carbon
reduction incentives
and performance
management, support
carbon reduction
projects, obtainrenewable electricity,and invest in negative
carbon technologies.

2022 Delta Electronics ESG Report

40

3.3
Management of Material
TopicsAbout theESG Report

A Word from
the Management

Commitment

Overview

KPI
Attainment
rate in the useof renewableelectricity in global
operations

EnergyManagement

Water
Resource
Management

Sustainable
Management

Communication
with Stakeholders

2022 Targets andPerformance• Target: >60%
• Actual: 63%

Achieved

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Short, Medium, andLong-Term Targets• 2025: RE80
• 2030: RE100• Energy andresource
consumption• Reduce the useof non-renewable
resources ater Productivity
W
Intensity (WPI) of
production plants= water usage /production value in
MUSD• Target:• Actual: ater Consumption
W
Intensity (WCI) of
buildings; WCI ofbuildings = water
usage / number ofpeople• Target:• Actual:

4%
21.3%

Achieved(baseline year: 2020)• 2023: 6%• 2025: 10%(baseline year: 2020)• Increase theenvironmental
benefits ofproducts• Consumption of
resources

4%
23%

Achieved(baseline year: 2020)• 2023: 6%• 2025: 10%(baseline year: 2020)

Appendix

Action Plans• Impact on climatechangeDelta promotes its own
energy conservation
management to cultivate
and accumulate energysaving technology. We arecommitted to setting power
consumption intensity
targets and global renewableelectricity targets.

In response to climatechange and to stabilize watersupply, Delta is committed
to reducing its overall waterproductivity intensity byan additional 10% by 2025,
using 2020 as the base year.

ImpactEmployee Relations
and Social
Participation• Promote renewableenergy development:
Actively develop
renewable energy
solutions and increase
the use ratio ofrenewable electricity.
• Implement
environmental
protection andenergy conservationin practice. All new
production plants
must implement green
building designs,
actively promote
multiple energysaving plans, and meet
new conservation
milestones.
• Establish risk
assessment
mechanisms andreduce the impact ofdroughts and floods• Establish managementtargets, implement
water consumption
monitoring, promote
consumption reduction
at the water source,
and improve water
recycling and reuse to
implement sustainable
management of water
resources2022 Delta Electronics ESG Report

41

3.3
Management of Material
Topics

Waste
Management

Green
Products

About theESG Report

A Word from
the Management

Overview

Commitment

KPI

In pursuit of sustainable useof resources and avoiding thedepletion of resources on
earth, we will continue toimprove the conversion rateof waste through reduction,
reuse, and recycling to reduce
the environmental impact.
Delta pledges a 100% waste
diversion rate by 2025 in theoverall production plants.

 aste conversion
W
rate

Delta continues to enhance
product energy efficiency
through technical innovationsof products. We also mitigate
environmental impact byintroducing green designs ineach phase of the productlife cycle to facilitate productresponsibility and green
consumption.

Sustainable
Management

Communication
with Stakeholders

2022 Targets andPerformance• Target: 94%• Actual: 99%

Achieved

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Short, Medium, andLong-Term Targets• 2023: 96%• 2025: 100%

Impact• Increase theenvironmental
benefits ofproducts• Reduce the useof non-renewable
resources o breach ofN
legal regulations
or standards for
product/service
provision andrelated usage• Target: >=11 products• Actual: 11 products

Achieved• Target: 0• Actual: 0

Achieved• Product energy savings
continued to pass ISAE
3000 assurance• No breach of legal
regulations or
standards for product/
service provision andrelated usage

Appendix

Action Plans• Consumption of
resources roduct energyPsavings pass ISAE
3000 assurance

Employee Relations
and Social
Participation• Industrial
technology
development• Promote environmental
management, set
reduction goals, andreduce the impact
of production on theenvironment• Promote the circular
economy andintroduce cyclicalindicator evaluation
methodologies• Intensify developmentof environmentallyfriendly products:
Continue to develop
energy-saving products
and solutions.

• Increase theenvironmental
benefits ofproducts• Consumption of
resources• Impact on climatechange2022 Delta Electronics ESG Report

42

3.3
Management of Material
TopicsAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

AppendixSocial Issues
Commitment

Diversity andInclusion

TalentAttraction

2022 Targets andperformance

Short, Medium andLong-Term Targets

 ercentage ofP
female employees
in all management
positions (%)*1• New material issues
in 2022• Actual: 32%• 2023-2024 target:• Protect diverse
values• Treat employees from diverse
backgrounds with respect andtolerance and incorporate diverse
perspectives to build a corporate
culture of innovation andteamwork.
✓ New employees: Use theExpert Adventure Program toencourage new employees
to explore Delta's culture andquickly adapt to the work
environment.
✓ Foreign employees: Carefullyplan dedicated annual holiday
events.
✓ Visually impaired employees:
Maintain monthly salary despite
reduced work hours during the
COVID-19 epidemic.
✓ Indigenous employees: Provide
annual ritual leave superior to
regulations and appoint campus
ambassadors of indigenous
peoples.

 ffer letterO
acceptance rate*2• Target: 78%• Actual: 89%• 2023: 80%• 2024: 82%• 2027: 84%• Quality of life of
employees• With rapid recruitment programsin all regions across the globe,
we leverage the integration of acomplete range of resources of
the industry, government, andacademia and flexible use ofsocial media to strengthen Delta's
employer brand and attract
talents from around the world.

KPI

32.3%

Impact

DEI's Corporate cultureof DEI (Diversity , Equity,
Inclusion) focuses on
people and fosters
respect, inclusiveness,and communication

Create a high-quality
work environment andimprove the employer's
brand.

Achieved

Action Plans• Build upon R&D capacities, create
an ecosystem for talents, andwork with nearly 200 schools
across the globe for diverse talentcultivation.

2022 Delta Electronics ESG Report

43

3.3
Management of Material
TopicsTalentLearning
Development

Human
Rightsand Labor
Relations

About theESG Report

A Word from
the Management

Overview

Commitment

KPI

Provide a diverse rangeof learning resources toensure that employees
have the capabilities
and skills for completing
their work. Establish
a comprehensive
system and become
the benchmark in themarket. Work with global
partners to improve thecapabilities of talents.

 mployees rankedEmanager and above
with 3 hours oflectures*3

Compliance withinternational humanrights principles andDelta's Human Rights
PolicySustainable
Management

2022 Targets andperformance• Target: 90%• Actual: 96%

Achieved

Communication
with Stakeholders

Corporate
Governance

Short, Medium andLong-Term Targets• 2023-2024 target:95%• Target: 40%• Actual: 60%• 2023-2024 target:

 lobal humansGrights course
completion rate*6• Target: 90%• Actual: 97%• 2023-2024 target:

Achieved

Impact• Quality of life of
employees• Cultivation of
professional talents

 atio of individualR
users of the online
learning platform*4*5

Achieved

Devoted to Environmental
Protection and Energy
Savings

60%

97%• Labor rights
violations

Employee Relations
and Social
Participation

Appendix

Action Plans• Continue to identify and develop
key talents and use diverse
talent development programs tostrengthen the organization.
• Improve a full range of online
courses for all employees
worldwide and create offline
activities to enhance learning.

• Communicate humanrights policies such as antidiscrimination and prohibition ofchild labor, and implement a zerofee system for the employment offoreign migrant workers.
• Delta implements complianceself-examinations and thirdparty assessments for identified
human rights risks each year. We
take mitigation and corrective
measures and implement
continuous improvements basedon the results of risk assessment
and internal and external audits.

2022 Delta Electronics ESG Report

44

3.3
Management of Material
TopicsSocialEngagement

Occupational
Safety and
HealthAbout theESG Report

A Word from
the Management

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance2022 Targets andperformance

Short, Medium andLong-Term Targets

 umulative
C
DeltaMOOCx
e-learning video
views• Target: 14.5 million• Actual: 18 million• 2023: 18.5 million• 2024: 19 million• 2025: 19.5 million

 elta Electronics
D
Foundation
cumulative views
on social network
media• Target: 12.16 million• 2023: 13.8 million• 2024: 14.4 million• 2025: 15 million

Commitment

KPI

Delta monitors major
issues and climate
trends of the globe andcontinuously adjusts
strategies to meetthe requirements forknowledge and actions
around the world. The
Company also continues
to invest resourcesin environmental
protection, energy
conservation, carbon
emissions reduction, andeducation.
Pay attention to thesafety and health of
the work environmentof workers and commit
to creating a safe andhealthy workplace

Overview

 ost-Time Injury
L
Frequency Rate
(LTIFR)*7

Achieved

Achieved• Actual: 13.23 million
Achieved• Target: 0.95
• Actual: 0.95

Achieved• 2023: 0.94

Devoted to Environmental
Protection and Energy
Savings

ImpactEmployee Relations
and Social
Participation

Appendix

Action Plans• Enhance theenvironment or
quality of life forthe community or
disadvantaged• Delta continues to develop
projects for energy conservationand climate education,
popularizing green buildings andlow-carbon transportation, andtalent development to promote
the low-carbon transformationof industries, buildings, andtransportation. We also takeactions for coral reef restorationand marine protection.

• Physical and mental
health of employees• Establish the ISO 45001
Management System for all major
plants across the globe andimplement preventive safety andhealth management*1 Definitions of management roles: Those with leadership and management duties for the management of subordinates, including professional technical and management personnel and management personnel
among OPs (including production line assistants).
*2 Offer letter acceptance rate = number of people who accepted offers for global professional technical and management personnel openings / number of issued offers.
*3 T hree hours of lectures for employees ranked managers or above = number of employees ranked managers or above who have produced one e-learning course or three hours of lecture by the end of the year /number of employees ranked managers or above at the end of the year.
*4 Ratio of individual users of the online learning platform = number of individual users of the year / number of employees of the year.
*5 Starting in 2023, employees from professional and technical positions and management positions will be the primary analysis targets to strengthen the development of professional and management functions.
*6 G lobal human rights course completion rate = for employees who reported for duty before the end of November of the current year who are still employed at the end of December, the number of trainees of humanrights courses in the current year / the total number of employees who reported for duty before the end of November who are still employed at the end of December.
*7 L
 ost-Time Injury Frequency Rate (LTIFR) = (recordable number of occupational injuries + recordable number of occupational diseases)/total work hours * 1,000,000

2022 Delta Electronics ESG Report

45Corporate Governance4

4.1

Key Performance Indicators and Strategies

4.2 Enhancing the Board of Directors' Functions
4.3 Innovation
4.4 Customer Relationship Management
4.5 Supplier Sustainability Management
4.6 Information Security Management
4.7 Personal Data Protection Management
4.8 Risk Management

4.1
Key Performance Indicators
and Strategies

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.1 Key Performance Indicators and Strategies
Delta Revenue

Brand Value

Customer Satisfaction Score

12,89042679.26%

Ratio of R&D Investment to Total
Revenue

Cumulative Granted Patents

Tier 1 Supplier ESG Survey
Response Rate

8.3%

12,992

91%

MUSD

MUSD

2022 Delta Electronics ESG Report

47

4.2
Enhancing the Board of
Directors' Functions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.2 Enhancing the Board of Directors' Functions
The Chairman leads the Board of Directors of the Company. The membersof the Board of Directors meet the diversity requirements and have the4.2.1 Board of Directors and Duties

expertise necessary for the development of the Company. We established

Diversity among Members of the Board

regulations such as the Corporate Governance Best Practice Principles,

The overall consideration for the composition of Delta's Board of Director is based on Delta

Rules and Procedures of the Meetings of Board of Directors, Director'sElectronics' Director's Election Regulations and Corporate Governance Best Practice Principles.

Election Regulations, Audit Committee Charter, and Rules Governing theMembers of the Board come from different genders, ages, races, nationalities, cultures, professional

Scope of Powers of Independent Directors to strengthen the effectivenessbackgrounds, and working fields, etc. Members of the Company's Board of Directors haveof the operations of the board and implement a good board governanceprofessional backgrounds and experience in business administration, control engineering, electricalsystem. The Company established the Audit Committee and Compensationengineering, industrial engineering, law, mass communication, marketing, and accounting necessary

Committee under the jurisdiction of the Board of Directors. They consist of all

for the Company's business operations. So as to provide strategic guidance in the Company's

Independent Directors of the Company and leverage professional division ofoperations. Please refer to page 16 and page 17 of the 2022 Annual Report.

work and their independence to assist the Board of Directors with decision
making and actively implement corporate governance by strengthening

Professionalism of the Board Members

oversight and management functions. If a Director or a corporate entity that

The members of the Board of Directors possess professional experience in fields related to thethe Director represents is considered an interested party in the agenda, theindustries which the company has presence or active developments in, and are highly sensitive andDirector shall state the important aspects of the interested party relationshipquick to respond to risks and impacts. The Company's Chairman Yancey Hai, Director Bruce Cheng,at the board meeting in accordance with Article 15 of the Company's Rules

and four Executive Directors have served in management roles of the Company for more than 20

and Procedures of the Meetings of Board of Directors. If the said interest isyears. Independent Director Mr. Chi-Jen Li has a bachelor's degree in industrial engineering fromharmful to the interests of the Company, the Director shall not participate in

National Tsing Hua University, and also served as a deputy administrator in Yulon Motor. Independent

discussion and voting, shall recuse himself/herself from discussion and voting,Director Mr. Hsueh-Chin Lu has a bachelor's degree in engineering science from National Cheng Kungand shall not represent other Directors as a proxy to exercise their voting

University and a PhD in electrical engineering from the University of Hawaii. Independent Director Mr.

rights. Please refer to page 23 and page 24 of the 2022 Annual Report for the

Jih-Tsan Huang currently serves as Special Advisor to the CEO of Yulon Group and Special Advisor torecusal of Directors from proposals involving conflicts of interest in 2022. For

the Chairman of Tai Yuen Textile Co., Ltd. Other Directors and Independent Directors of the Company

more information on the number of shares and shareholding ratio of Directors

also have expertise necessary for the Company including mass communication, marketing, andin the Company's invested enterprises, please refer to page 57 and page 358

accounting.

to page 371 of the 2022 Annual Report.
Delta conducts training for its Board members each year to develop and improve the highest
The Board of Directors of Delta Electronics consists of 12 Directors including

governing body's overall knowledge of economic, environmental, and social issues, and also

5 Directors who are employees (Executive Directors), 2 Directors who are notcontinues to improve the risk management capabilities of its Board of Directors. The Company

employees (Non-Executive Directors), and 5 Independent Directors with aopened courses in 2022 for the continuing education of Directors including the latest developments

term of 3 years. The role of the Chairman is filled by a Non-Executive Director

and amendments of international and domestic tax laws and net zero emissions, carbon neutrality,

and is not the same person as or a relative within the first degree of kinshipand compliance. Please refer to page 35 of the 2022 Annual Report for details of the continuingwith the CEO, President, or COO. Please refer to page 11, page 16 and page 18

education of Directors in 2022.

of the 2022 Annual Report.

2022 Delta Electronics ESG Report

48

4.2
Enhancing the Board of
Directors' Functions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Enhance the Effectiveness of Board Operations
The Company's Board of Directors passed the Rules of Performance Evaluation of Board

Communication
with Stakeholders

Corporate
Governance

4/10

Directors, individual Directors, Audit Committee, and Compensation Committee eachexperts and scholars shall be appointed to conduct the board performance evaluation atleast once every 3 years. The six evaluation categories include a familiarity with the goals● Non-employee Directors● Directors who are employees● Independent Directors

1/10

2/12

Appendix

the director's professionalism and continuing education, and internal control. They
Gender Distribution

5/12

1/10

2/12
2023
Target2022

5/10

operation of the Company, management of internal relationships and communications,risks and crises of the Company. The Company engaged an external professional and

5/12

2021

and missions of the Company, awareness of the duties of a Director, participation in theare used to ensure the effective operations of the Board of Directors and manage the

Employee Relations
and Social
Participation

Composition of the Board of Directorsof Directors, and the Company implements the performance evaluation of the Board ofyear. In addition, an external independent professional institution or a panel of external

Devoted to Environmental
Protection and Energy
Savings

5/12
3/12

5/12
3/12

independent institution for the 2022 performance evaluation of its Board of Directors
and the evaluation results were reported to the Board of Directors in 2023. The 2022
self-evaluations of the Board of Directors, individual Directors, Audit Committee, and● Male Directors● Female Directors

2021

2023
Target2022

Compensation Committee were completed and reported to the Board of Directors before
the end of the first quarter of 2023. The overall performance of the Board of Directors

9/10

was deemed effective. Please refer to page 25 and page 26 of the 2022 Annual Report.

Reports of Materials Issues to the Board of Directors
The agendas of the reports submitted to the Board of Directors encompass all aspects

Age and Gender Distribution*As of 2022/12/31

of ESG and amount to 80 in quantity, including reports on business operations, financial
statements, internal audit reports, intellectual property management, information andcommunication security management, risk management, integrity management andimplementation, board performance evaluation, communication with stakeholders,
RE100, SBT, carbon pricing, biodiversity, and green power. Meanwhile, the Company
communicates with its Board of Directors on the following major agendas, including
business plans, audit plans, financial statements (including earnings distribution),● Female Directors aged 50-59● Female Directors aged 60-69● Male Directors aged 50-59● Male Directors aged 60-69● Male Directors aged 70-79● Male Directors aged 80-89

1 / 100 / 101 / 104 / 103 / 101 / 10

9/12
2 / 12
1 / 12
1 / 124 / 123 / 12

1 / 12

9/12
2 / 12
1 / 120 / 124 / 124 / 12
1 / 12quarterly consolidated financial reports, employee and director compensation, managerial
compensation proposals, mergers and acquisitions, issuance of corporate bonds,
acquisition and sale of real estate, group shareholding restructuring, effectivenessof internal control systems, evaluation of the independence of CPAs, amendments ofcorporate governance regulations, election of Directors and Independent Directors,

2021

2022

2023 Target

appointment of members of the Compensation Committee, non-compete restrictions
on managers, non-compete restrictions on Directors and Independent Directors, andconvening of general shareholders' meetings.For more information, please refer to theCompany's material information posted on the Market Observation Post System or page
51 to page 53 of the 2022 Annual Report.

2022 Delta Electronics ESG Report

49

4.2
Enhancing the Board of
Directors' Functions

About theESG Report

A Word from
the Management

Overview

Committee

Board of Directors

Audit Committee

Compensation
Committee

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Description of Responsibilities
The Board of Directors of the Company is responsible for overseeing the attainment of the Company's operational goals, improving operational performance,and providing strategic guidance to the management team as well as upholding the guiding principles for corporate sustainability. Board meetings areconvened at least once every quarter to assess corporate business performance and discuss strategy topics and review ESG issues, including the impacts,
risks, and opportunities in relation to regulations, economics, environment, and society. Five Board of Directors meetings were held in 2022 and the overallattendance rate was 100%.
The Audit Committee performed key tasks annually including overseeing the Company's financial statements, engaging CPAs based on their independence
and performance, effectively implementing internal controls, ensuring that the Company follows relevant laws and regulations, and assessing possible andpotential risks to the Company. Meetings of the Audit Committee are convened at least once every quarter and five meetings were held in 2022, with an overallattendance rate of 100%.
The Compensation Committee establish and regularly review the performance evaluation and policy, system, standards and structure relevant to compensationof directors and managerial officers periodically and also evaluate the compensation of directors and managerial officers periodically. Delta set up theCompensation Committee to facilitate the link between the compensation of Directors and managers and the corporate operations performance to decide theratio of dividend distribution. The Committee gives compensation policy suggestions based on industry competition, corporate operations performance, andthe market rate to construct a company-level compensation policy. Delta participates in industry and consulting companies' salary surveys and evaluates how
fair Delta's compensation is compared to the current market. Four meetings were held in 2022, with an average attendance rate of 100%.

4.2.2 Ethical Corporate Management

Main tasks planned

Ethical corporate management is a core value of Delta and is part of its corporate DNA. It is deeply rooted in Delta's
corporate culture and systems. The Human Resources Division used to be responsible for the implementation of ethicalcorporate management, and jointly with the Legal Affairs Division for the establishment of ethical corporate management
policies. To integrate the resources of the departments more effectively, the Company referenced practices in the•• Analysis of the differences between existing
practices and ISO 37001 standards

industry and set up the "Ethical Corporate Management Committee" as the dedicated unit for promoting ethical corporate
management based on a resolution of the Board of Directors on October 27, 2022. The Ethical Corporate Management•• Establishment of ISO 37001 management

Committee will report to the Board of Directors on the policies of ethical corporate management, plans for preventing

mechanisms and optimization of policies andunethical conduct and their implementation status once each year. To ensure compliance with ethical corporate

procedural forms

management policies, it develops programs and measures to prevent unethical conduct, regularly reviews implementation
results and continues to make improvements. The CEO serves as the Chair of the Ethical Corporate Management
Committee and the General Counsel leading the promotion groups and members in the implementation of ethical corporate•• Establishment of audit system and audit groups
pursuant to ISO 37001 standards

management plans and affairs.
•• Trainings for key work items
After the establishment of the "Ethical Corporate Management Committee" and the completion of the self-assessmentof the Company's ethical corporate management risks for 2022, the priority plan of the Committee is to introduce ISO
37001 anti-bribery management system to Delta's Head Office in Taiwan (i.e., functional units with head office functions)and obtain ISO37001 certification. The ISO 37001 standards will further reinforce the framework of ethical corporate
management for the Company and optimize the management system.

2022 Delta Electronics ESG Report

50

4.2
Enhancing the Board of
Directors' Functions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Establishment of Policies and Systems
The Company established the "Ethical Corporate Management Best Practice Principles"and "Delta Group Code of Conduct" to clarify the Company's policies and the codeof conduct for employees. They are disclosed on the Company's website and apply
to all members of Delta including subsidiaries, directors, managers, and employees.
The Company established operating procedures and management regulations suchas the "Ethical Corporate Management Risk Assessment and Prevention Regulations","Whistleblower System Management Regulations", and "Management Regulations for
Rewards and Penalties" to prevent unethical conduct. We plan to review and optimize
the aforementioned procedures and regulations during the introduction of ISO 37001
standards in accordance with its requirements. The procurement contracts signed with
suppliers include the Delta Integrity Declaration, Responsible Business Alliance (RBA)
Code of Conduct, fair competition, and anti-trust clauses.

Whistleblowing and Protection
The Company provides a reporting channel for employees and stakeholders. If any illegal
or dishonest business practices are found, the whistleblower can choose to report tothe supervisor, a dedicated mailbox, or use other channels, either on a named or an
anonymous basis. The Company maintains strict confidentiality of reported information
to protect whistleblowers from retribution or inappropriate treatment, and any breach ofconfidentiality will be punished in accordance with the Company's regulations.
According to the Company's Whistleblower System Management Regulations, where areport is verified as true and its contribution generates significant economic benefits,
the whistleblower may be provided with a suitable amount of rewards based on local
regulations. In 2022, the Company did not have litigation or losses involving violation of
corporate governance, anti-corruption/bribery, or competition laws.

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

AppendixTraining and Communication
New employees are required to attend orientation training for ethical corporate
management and the attendance rate is 100%. Employees take refresher online courses
on ethical corporate management/Code of Conduct each year. 82,007 employees
worldwide completed the course in 2022 and the completion rate was 97.0%, which saw
an increase compared to the previous year. The Company's Directors also attend online
courses on ethical corporate management / Code of Conduct each year and the training
completion rate is 100%. In 2022, the Company invited experts in the industry to organize
a practical course on "Anti-corruption and Trade Secrets". Case studies were used tohelp Directors and senior executives learn more about the regulations and penalties
for insider trading under Article 157-1 of the Securities and Exchange Act and prevent
unethical conduct such as corruption and bribery. It also strengthened the awarenessof the risks of unethical conduct. In addition, ethics and integrity have always been
included in the evaluations of values and skills in employees' performance evaluation.

Evaluation and Prevention
To implement the Code of Conduct and avoid conflicts of interest, the Company require
all new employees to report conflicts of interest when they report for duty. Current
employees are reminded to file reports every year and 2,095 employees actively
completed the report globally in 2022.
The Company has established risk management mechanisms for ethical corporate
management and business and functional units to conduct self-assessment of risks
each year. In 2022, a total of 34 risk assessment forms were filled out (with a completion
rate of 100%), and improvement measures to address the risks were also provided
accordingly.

2022 Delta Electronics ESG Report

51

4.2
Enhancing the Board of
Directors' Functions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Refresher online courses on ethical corporate management / Code of Conduct: Records of training completion by region and employee
category*1
Employee Category

China

Asia PacificProfessional
technical andmanagement
personnel

Senior level

Mid-level

Junior level

Non-management

Eligible Trainees

3,939

10,294

284

1,366

162

12,421

14,233Trainees that Completed
Training

3,727

10,045

275

1,337

161

11,99913,772Completion Rate

94.6%

97.6%

96.8%

97.9%

99.4%

96.6%

96.8%

Eligible Trainees

30,026

12,060

98

1,736

2,467

37,78542,086

Trainees that Completed
Training

29,842

11,944

96

1,714

2,455

37,521

41,786

Completion Rate

99.4%

99.0%

98.0%

98.7%

99.5%

99.3%

99.3%

Eligible Trainees

19,158

5,038

55

590

390

23,161

24,196

Trainees that Completed
Training

18,528

4,726

46

548

387

22,27323,254Completion Rate

96.7%

93.8%

83.6%

92.9%

99.2%

96.2%

96.1%

Eligible Trainees

944

2,177

31

166

7

2,917

3,121

910

1,634

23

121

3

2,397

2,544

Completion Rate

96.4%

75.1%

74.2%

72.9%

42.9%

82.2%

81.5%

Eligible Trainees

87

802

28

75

5

781

889

Trainees that Completed
Training

68

583

15

56

1

579

651

Completion Rate

78.2%

72.7%

53.6%

74.7%

20.0%

74.1%

73.2%

Eligible Trainees

54,15430,371

496

3,933

3,031

77,06584,525Trainees that Completed
Training

53,07528,932

455

3,776

3,007

74,76982,007

Completion Rate

98.0%

95.3%

91.7%

96.0%

99.2%

97.0%

97.0%

Europe, Africa, Trainees that Completed
and Middle East Training

Americas

Total

Management roles / non-management roles

OP (including
production line
assistants)

RegionTaiwanEmployee Category

Total

Note 1: Global ethical corporate management / Code of Conduct course completion rate = the number of trainees of relevant courses in the current year among employees who reported for duty before the end of
November of the current year who are still employed at the end of December / the total number of employees who reported for duty before the end of November who are still employed at the end of December

2022 Delta Electronics ESG Report

52

4.3
Innovation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.3 Innovation
4.3.1 Delta's Internal Innovation Mechanisms

4.3.2 Intellectual Property Rights Applications

To reward outstanding accomplishments and to cultivate a culture of innovation, Delta

Innovation, R&D, and Patent Planningestablished the Delta Innovation Awards in 2008, with the management team serving

Delta promotes sustainability with technology and is committed to R&D and innovation

as members of the judging committee. The annual awards are designed to encouragein fields including power and electronics, infrastructure, and automation. The Company

employee innovation across the globe as well as to reward exceptional innovation. The

has established 73 R&D Centers across the world with more than 10,000 R&D engineers.

15th Innovation Awards in 2022 included four grand prizes for "Intellectual Property

In recent years, we have continuously invested at least 8% of total revenue in R&D andRights", "New Products," "Production," and "New Business Models and Processes." Theinnovation. The investment reached 8.3% of total revenue in 2022 as the Company"Intellectual Property Rights" award included "Elite Designer Award" and "Excellent Patentremained committed to creating innovative and energy-efficient solutions. In terms ofPlanning". These awards are presented to recognize individual and team development

intellectual property rights, Delta has maintained its long-term commitment to patents

and to establish patent planning for commercial value. Competition in the Delta Innovation

and assets in terms of R&D, manufacturing bases, and main markets to maintain its

Awards was extremely intense and it demonstrated Delta's sustained commitment andcompetitiveness.

capabilities for innovation across the world. In the final round, the judges decided topresent the highest honors for innovation at Delta to 10 teams and 10 individuals. Since

Patent Applications and Awards

2008, 94 teams and 68 individual awards and 6 Outstanding Contribution Awards haveTo encourage employees to focus on R&D and proactively apply for patents from patent

been presented with over 3.52 MUSD in incentives.

offices in Taiwan and other countries of the WTO, Delta has established Intellectual
Property (IP) Patent Incentive System Procedures and assisted business units incompiling a risk map for IP rights. As of the end of 2022, Delta has accumulated nearly
13,000 patents acrossthe globe and obtained
1,064 patents in 2022
mainly in the UnitedStates, Mainland China,
Taiwan, and Europe.
The accumulation ofpatents has made Delta
one of Clarivate's Top
100 Global Innovators™
for two consecutive
years since 2022.

At the 15th Delta Innovation Awards, the highest honors for innovation at Delta was presented to 10
teams and 10 individuals.

2022 Delta Electronics ESG Report

53

4.3
Innovation

About theESG Report

A Word from
the Management

Total Number of Patents
3,271

6,315

3,615

6,938

3,966 7,597

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.3.3 Open Innovation and the Latest Technology Exchanges
Delta Research Center was established in 2013 and headquartered in Taipei. We have set up R&D operations in Hsinchu,
Tainan, and Singapore and we are committed to incorporating emerging technologies into Delta's next-generation
products to expand the future market. We also actively collaborate with industries, government, academia, and researchecosystems to create an open innovative model and an ecosystem for mutual prosperity.

PATENTS

The team actively uses data analysis, IoT, and information security technologies to improve Delta's internal manufacturing
2020

2021

2022

(Cumulative from 2011)● Cumulative Number of Patent Granted with Incentives Given● Cumulative Number of Patents Proposal with Incentives Givenand operational efficiency, accelerate new product development, and increase product value and customer satisfaction.

Improved Capacity for Production and Operations• Increased production efficiency: We use the Digital Twin technology to automate design and shorten product design
time in the design phase of Delta's products. In the product manufacturing process, we use production line simulation

Total Incentives Givento provide production line optimization strategies to reduce the need for labor and other resources and increase

461,874 3,437,035 537,234 3,803,558

603,612 4,160,572

production capacity and the utilization rate.

Increase Product Value and Customer Satisfaction• Help customers reduce operational risks: The R&D team works with business units to improve the existing
uninterruptible power supply (UPS) systems of semiconductor manufacturers in Taiwan. The team incorporates special
predictive maintenance (PdM) for special projects to improve product reliability and ensure that customer operations

BONUS

can continue normally and minimize losses when the power supply is unstable.
2020

2021

2022

(Cumulative from 2011)● Cumulative Incentives Given for Proposals (USD)● Cumulative Incentives Given for Patents Granted (USD)

Number of Granted Patents and Certificates
10,98911,92812,992• Ensure the stable supply of renewable electricity: The team applies predictive maintenance to Delta's PV inverters todetect abnormalities early and provide early warning to improve the reliability of renewable energy power generationand overall system efficiency.

Increased Information Security Resilience• Reduce the impact of online attacks on the Company: Incorporate information security specifications or standards into
Delta product designs and test and evaluate the information security risks of Delta's products. In addition, the Company
provides tools to reduce the risks of blackmail with corporate data when the Company is attacked and reduce thelosses from the intrusion of malicious software.

CERTIFICATES

2020

2021

2022
(Cumulative from 2011)● Cumulative Granted Patents and Certificates2022 Delta Electronics ESG Report

54

4.3
Innovation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Tools for Open Innovation Case Studies and Expected Benefits
DesignManufacturing

Operations/Services

Digital Twin
Manufacturing sustainability
Use digital tools for automation in product design and production line
optimization to increase overall efficiency.

Predictive Maintenance
Environmental sustainability

Operational sustainability

Improve the stability of renewableenergy supply.

Improve product reliability and enhancecustomer capacity for recovery from
unexpected conditions.

Information Security
Corporate sustainability
Protect the Company's business sustainability, reduce the risks of Company and customers,
and improve the company's brand image and trustworthiness.

2022 Delta Electronics ESG Report

55

4.4
Customer RelationshipManagement

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.4 Customer Relationship Management
Customer Satisfaction Survey
Delta has sought to achieve a deep understanding of customer requirements and issues

the COVID-19 epidemic in recent years has reduced the parties' activities and reduced

through observation of user operating environments and usage habits, seeking constantcustomers' willingness to participate in the satisfaction survey. The customer satisfaction

improvement to find the most appropriate solutions. We make it a point to gather therate is 79.26% in 2022, which reached the 79% target.

responses of customers and end users through focus groups, individual interviews,
and online questionnaires. The results are given an in-depth analysis of their needs

Many new customers in new markets have appeared as Industry 4.0 progresses. Thereand expectations, which is then used to improve the basis for technology research andhave been significant changes in customers' industry types and Delta has noted thedevelopment, system design, and program development.

potential of Internet and telecommunication customers. To collect feedback from thesepotential customers, Delta will continue to send mail for customer satisfaction surveys

The customer satisfaction survey consisted of two components which are consolidated

and uncover potential needs of customers in order to identify more opportunities forfor analysis. These included the Quarterly Business Review (QBR) with information

providing services and increase customers' satisfaction with Delta each year.

actively provided by customers and the Delta Satisfaction Survey, which is a satisfaction
survey actively initiated by Delta when the customer has not rated their satisfaction.

Distributor and ASP Service ISO 9000 Quality Certification

Delta continues improvements based on customer recommendations and Delta engineers

Delta seeks to maximize customer satisfaction. To provide customers with consistent

are encouraged to communicate directly with customers. This allows engineers toservices, we ensure that both authorized service partners (ASPs) and authorizedunderstand customer issues at the product design phase, while also gaining an accurate

distributors have the same quality management capabilities as Delta. Delta started tounderstanding of end-market demands and exceeding customer expectations throughcommunicate the ISO 9000 quality management regulations to existing distributors andconsultations and recruiting experts from a variety of industries. To achieve an in-depth

ASPs in 2020 to ensure that the services and operations of ASPs and distributors areunderstanding of customer satisfaction with Delta's products and services, we organize

consistent with Delta standards in order to provide customers with good service quality.

annual customer satisfaction surveys and use the results of the evaluation and surveys

In 2022, Delta has implemented operation standard surveys on ISO 9000 standards foras an important basis for improving customer relations. We analyze surveys for intensified

existing distributors and Authorized Service Partners (ASPs). The results showed thatinteractions with customers to explore potential market opportunities and improve

only 21% of the distributors and ASPs had obtained ISO 9000 certification. To promote

product design to meet customer demands and build win-win cooperation. In the past,

ISO 9000 quality management regulations, Delta decided to provide ISO 9000 training

each business unit adopted the survey system it had designed instead of a systematicand appointed TÜV Rheinland in 2021 and 2022 to provide Delta distributors and ASPs

universal questionnaire for the customer satisfaction survey. To effectively maximize

with ISO 9000 training. Subsequently, the ratio of distributors and ASPs that participatedcustomer satisfaction and continuously improve the customer service managementin ISO 9000 training or obtained ISO 9000 certification increased to 31%, which met theprocess, we focused on seven major components such as technology, quality, response,

30% target set for 2022.

delivery, cost, service, and global ESG, and adopted an analysis process including
questionnaire collection, system analysis, dashboard display, FA/CA/PA, and effectAs Delta has distributors and ASPs who use different languages and have different work

verification to develop and design the Customer Satisfaction Survey System for the entire

hours, Delta created the ISO 9000 online e-learning courses in both Chinese and English

Group. The main targets of the customer satisfaction survey consisted of customers whoin 2023 and plans to offer these courses to Delta Group distributors and ASPs in 2023 so

accounted for the top 80% of procurement from Delta in 2021/2022. We distributed 616

that they can learn online from anywhere at any time.

questionnaires and recovered 331 copies with a response rate of 54%. The impact of2022 Delta Electronics ESG Report

56

4.5
Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.5 Supplier Sustainability Management
4.5.1 Overall Measures for Supplier Sustainability Management
Delta Supply Chain
Suppliers work with Delta as our most important strategic cooperation partners. In
addition to providing customers with valuable products and services, we also focus onsocial and environmental values by actively fulfilling our corporate mission "To provide

Supply Chain ESG Committee

Chairman: Director of the Supply Chain Management Division

innovative, clean and energy-efficient solutions for a better tomorrow" as we work toward
creating a sustainable supply chain. Delta jointly carries out its social and environmental
obligations with the supply chain on the basis of cooperation. Delta's suppliers include
suppliers of materials/components, agents, and contractors. Their head offices are mainly
located in Mainland China, the United States, and Taiwan. Their manufacturing sites arelocated in Mainland China, Taiwan, Thailand, and other countries.

Corporate
Sustainability
Development
Department

BG Materials
Top Supervisor

Supply Chain ESG Committee

Executive Secretary

The Company established the Supply Chain ESG Committee to effectively implement
sustainable management for the supply chain and integrate Delta's global procurement
systems. The Committee is chaired by the Director of the Supply Chain Management
Division and members are comprised of procurement managers of business groups.
The Committee is assigned an executive secretary to take charge of planning andimplementing project activities and the Corporate Sustainability Development Department
serves as the consulting team. The six major project categories include "amendment ofrules/management regulations", "supplier evaluation", "supply chain ESG system platform

Policy / Regulations/Management Methods

Supplier Evaluation

Establishment of the
Supply Chain ESG
SystemEnvironmental
Performance
Improvement

Communication andDisclosureManagement ofSpecial Issues

setup", "environmental performance improvements", "communication and disclosure",and "management of special issues". The Supply Chain ESG Committee reports on the
progress of each project to the COO each quarter, and on the annual KPI attainment
rate and future plans to the ESG Committee. The communication continues with external
communication and internal training such as courses on greenhouse gas inventory andsupplier ESG risk management for procurement personnel. Approximately 80 participants
attended training for procurement personnel in 2022.

2022 Delta Electronics ESG Report

57

4.5
Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Supply Chain Management Procedures
Delta's supply chain management include selection and recognition of new suppliers,
continuous ESG risk management, performance evaluation, and supplier engagement andlong-term improvements. The targets include suppliers of materials/components, agents,
and contractors.

01

02

Selection and recognition of new suppliersContinuous ESG risk management

New material suppliers must have ISO 9001 certificationand meet requirements for environmental management
substances. We encourage suppliers to obtain ISO 14001
certification. Only companies that pass onsite audits
for procurement, quality, technology, and hazardous
substances can become official suppliers of Delta.
Delta's procurement contracts include product liability
and confidentiality clauses as well as the Supplier
Code of Conduct, Responsible Business Alliance (RBA)
Code of Conduct on environmental protection, conflictminerals, fair competition, and anti-trust. In the screeningof new suppliers in 2022, the Company evaluated theenvironmental and social standards of 100% of thecandidates.

Delta continues to use survey forms and documents for the first round of document audit to investigate potential
risks of the supplier in labor, health and safety, environment, ethical corporate management, management systems,
potential risks for supplier management, and compliance with the Code of Conduct to evaluate ESG risk ratings and ESG
capability ratings. We also distribute the survey form for conflict minerals to complete our due diligence investigation forconflict minerals in the supply chain. We use the risk map to identify high-risk suppliers. Delta uses systematic tracking,on-site audits, and requests for improvement based on the categories of high-risk issues and the level of urgency.
Delta makes use of its extensive ESG experience to create training materials to be shared with suppliers. If a high-risk
supplier fails to implement any improvement measure and causes damage to Delta, its customers, or any third party, thesupplier shall bear liabilities for all compensation. Delta shall have the right to withdraw, terminate, or discontinue any
partnership agreement with the supplier.
Delta identifies significant suppliers each year and defines them as suppliers of high concern for subsequentidentification of high-risk suppliers. Suppliers of high concern are determined based on factors such as continuoustransactions, transaction amount, types of service or material provided by the supplier, labor, environment, safety,
and climate change performance. Special issues such as water risks and biodiversity risks are also included in the risk
information by country and by industry. After identifying suppliers of high concern, the Company focuses on high-risk
conditions such as "suppliers with labor, environmental, safety, or integrity-related violations that have not implemented
corrective or mitigating measures, and those that do not comply with Delta's Supplier Code of Conduct for child labor,
minor labor, student labor, interns, and migrant workers". We identify high-risk suppliers from among the suppliers ofhigh concern and implement improvement surveys.
2022 Delta Electronics ESG Report

58

4.5
Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

03

04

Performance evaluation

Supplier engagement and long-term improvements

To incorporate ESG sustainability performance as incentives, Delta implements the
Quarterly Business Review (QBR) for technology, quality, service, lead time, and cost,and selects the Most Valuable Partner (MVP) and Most Improved Partner (MIP) based on
the suppliers' ESG risk rating and capabilities. We seek to use the influence of the Delta
brand to power the continuous improvement of the supply chain. In 2023, Delta included
suppliers' ESG compliance into the response (R) to the QBR to increase incentives. The
ESG indicators incorporated into overall scores included ESG survey response speed,
whether the supplier has provided greenhouse gas inventory data and obtained the ISO
14064-1 Greenhouse Gas Inventory certificate. These indicators account for 10% of thescore.

Delta started the Supply Chain Sustainability Partnership Program in 2021 whichtargeted long-term suppliers for interviews on the needs for energy-saving products.
We also introduced Delta's energy saving case studies and technologies, and provided
Delta's energy-saving products and solutions that matched their needs to help suppliers
perform energy conservation diagnoses and plan improvement projects such as energy
management systems and intelligent energy-saving plant management systems.
Delta aims to create a paradigm for energy conservation and promote the continuous
improvement of the entire supply chain.

Delta also provides supplier ESG programs and technical support programs to help
suppliers improve ESG performances, take corrective actions, and build capacity.

For a certain semi-conductor manufacturing company, the investment totaled
approximately 1.764 million and the annual electricity savings is approximately 14 million
kWh, which reduced their electricity bill by approximately 1.152 MUSD.

2022 Delta Electronics ESG Report

59

4.5
Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.5.2 Ratio of Localized Procurement and Materials
Localized Management
Delta's products and services cover three major areas including Power Electronics, Automation, and Infrastructure. Delta's suppliers are divided into three types: production-related
direct materials, non-production-related indirect materials, and labor. For historical purchasing expenditures, direct materials constitute the major proportion, accounting for 94% in 2022.
There are three types of direct material suppliers: raw material/component suppliers, agents, and outsourced suppliers. In recent years, Delta has focused on R&D and innovation for coretechnology and products, and the Company has rapidly expanded its role as a solution provider through M&A and by integrating its own professional competencies. The scale of Delta's
supply chain continues to expand. In addition, Delta continues to implement local procurement strategies and construct a green supply chain to build close relations with local partners,
promote local social and economic development, and reduce carbon dioxide emissions produced in production and transportation. The percentages of global and local procurement of
direct materials for major production sites in Mainland China, Taiwan, and Thailand are shown in the figure below.

Procurement ratio by supplier type

Percentage of purchase amount by region (%)

93%

Materials/
components suppliers

2021
Ratio

4%
2%
1%

AgentsOutsourced

2021
Ratio

Others

94%

Materials/
components suppliers

2022
Ratio

4%
2%
0%

AgentsOutsourced
Others

2022
Ratio

52%

China

18%

Thailand

20%

Others10%

Taiwan

51%

China

21%

Thailand18%

Others10%

TaiwanRatio of localized procurement
54% 54%

29% 25%

16% 14%

CN

TW

TH

■ Ratio of Localized Procurement in 2021
■ Ratio of Localized Procurement in 2022

Materials Management
The main materials used by Delta include metals, plastics, chemicals, packaging or buffer packaging materials, and other materials. Based on the weight of procured materials in 2022,
metal materials accounted for 70.1% (288,937 metric tons), packaging materials accounted for 18.0% (74,064 metric tons), plastic materials accounted for 11% (45,416 metric tons),chemicals accounted for 0.5%, and other materials accounted for 0.4%.

2022 Delta Electronics ESG Report

60

4.5
Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Paper packaging materials with recycled pulp or recycled fiber accounted for 50.4%

Key Suppliers(18,218 metric tons), and those made with blended recycled fiber accounted for 18.3%.

Key suppliers of Delta are defined as suppliers with large purchase volumes (annual

Among metal materials, 0.8% (347 metric tons) of the aluminum is recycled metal, whichpurchase amount greater than NT$5 million), suppliers of key components or irreplaceable

is used in the thermal fin of inverters and drivers.

raw materials, and suppliers whose materials are needed by many business groups andhave a significant impact on the quality and delivery of the Company's products.
The total value of procurement from 175 key suppliers in 2022 accounted for 64%. And thetotal number of significant suppliers in non Tier-1 was 671.

4.5.3 Supplier ESG Risk Assessment and Due Diligence Research on Conflict Minerals
Supply Chain ESG Risks

Analysis and Results of the 2022 Questionnaire

In 2022, Delta continued to optimize the Supplier Code of Conduct and added seven

The 2022 questionnaire added supply chain management categories, including whether

major categories including climate change, labor, occupational health and safety,

suppliers have formulated effective processes to convey the RBA Code of Conduct toenvironment, ethics, management systems, and supply chain management in the supply

their suppliers, and investigated the improvement measures of suppliers in each category.

chain management chapter in accordance with the Responsible Business Alliance Code of

After collecting the questionnaire responses, we will conduct systematic review on key

Conduct (RBA) 7.0. We use the "Delta Supplier Code of Conduct" as important guidance toinformation and supporting evidence, such as third parties' certification. The overall

encourage compliance by suppliers.

response rate for ESG management in 2022 was 91%. According to the analysis results for
suppliers with different ratings, 39% of the suppliers exhibited high levels of sustainability.

Delta uses the "Delta Supplier Annual ESG Management Survey" for management andIt means that they have high risk management and ESG capabilities and are suitablerisk assessment to learn about the suppliers' RBA implementation and possibilities forfor long-term partnerships for sustainability. 32% of the suppliers were regarded as

promoting sustainable development, and identify possible opportunities. The distribution

suppliers of high concern and 119 were defined as high-risk suppliers. In terms of suppliertargets were tier 1 suppliers with whom we have continuous transactions including productcategories, 106 were manufacturers, 9 were distributors, and 4 were outsourced service

manufacturers, branch companies of manufacturers, external processing manufacturers,

providers. In terms of regions, 47 were located in Taiwan, 49 were in China, and 23 were

agents, and service companies.

in other regions.

The 2022 "Delta Supplier ESG Management Survey" included labor, occupational healthIn addition, 21% of the suppliers are classified as suppliers with high potential. It means

and safety, environment, ethics, management systems, and supply chain management.

that they have high risk management but require improvements in their ESG capabilities.

We designed questionnaires based on the nature of suppliers, (including the specific risks

They can thus be prioritized for mentoring resources later on. No suppliers were identified

related to the countries they operate, the sectors they belong, and the commodities theyas having significant actual and potential negative environmental impacts with which

provide) RBA high-risk issues, and subsequent management goals. We also provide therelationships were terminated as a result of assessment in 2022.

survey in traditional Chinese, simplified Chinese, English, and Thai. The Supply Chain ESG
Committee also organized webinars to help suppliers understand Delta's expectations, theWe analyzed the performance of risk management across the categories and found thatimportance of ESG, and the requirements of the questions.

the average deficiency rate was higher in the labor category and lower in the environment,

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4.5
Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

ethics, and supply chain management categories. This shows that the high-risk issues mostly lie in the labor category for which 11.9%of the suppliers lost points. The issues included lack of related policies for human rights protection and overtime work hours of workers.
Delta will continue to follow up with tracking, audits, and requests for improvement plans. The suppliers who voluntarily introduced RBA

Employee Relations
and Social
Participation

Appendix

Percentage and distribution ofqualified refineries

VAP accounted for 10.8% of the effective questionnaires.

Delta's key supply chain ESG management issues and response measures:
Integrity

Total

All suppliers must sign and agree to comply with the Delta Supplier Code of Conduct and sign the Delta Integrity Declaration to become431

a qualified supplier.

Labor and Human Rights
Delta pays special attention to issues such as child labor, underage workers, migrant workers, overtime work, and violations of local
labor regulations. We use questionnaires to learn about current conditions, track progress of improvements with written documents,
and use publicly available information to verify the authenticity of the information.

Environmental Protection
Delta pays special attention to climate change and greenhouse gas management issues. Starting in 2021, we encouraged all suppliers● Gold● Tin● Cobalt

175
82
78

● Tungsten● Tantalum● Mica50
36
10

to provide information on greenhouse gas emissions and the percentage of renewable electricity. We also request suppliers tovoluntarily provide data verified by a third party starting from 2022 and obtain a third-party verification statement for greenhouse gas
inventory data before 2025 Q4.

Conflict Minerals
The Responsible Minerals Initiative (RMI) research discovered that rebel groups in the Democratic Republic of Congo and neighboring

Total

countries in Central Africa use forced labor, child labor, and other illegal means to mine tungsten, tin, tantalum, gold, cobalt, and mica,431

and sell them in exchange for weapons, thereby causing regional instability. Minerals obtained through illegal means are referred to as
conflict minerals. Tungsten, tin, tantalum, gold, cobalt, and mica are essential for the functions of electronic products. To avoid the use of
conflict minerals obtained from illegal operations, we have established the Responsible Mineral Procurement Policy and the Due Diligence
Investigation on Conflict Minerals of Suppliers. Delta also organized webinars to communicate directly with suppliers and help themunderstand Delta's targets for joint implementation. In the due diligence investigations of suppliers, we disclosed and required suppliers togradually shift purchases of minerals to qualified refineries. Delta will include mica, which has received more attention from stakeholders,in the scope of due diligence investigation.
We use the CMRT 6.22, EMRT 1.11, and PRT template for conversion into online questionnaires and the most recently updated list ofrefineries announced by RMI for the overall assessment. According to the investigation, Delta's supply chain sourced materials from 431
refineries in 2022, including 431 which were included in the most recently updated list of qualified refineries. According to the analysis,
most of the qualified refineries are located in Asia while others are located in Europe.

● Asia271● Europe 72● America 61● Africa● Oceania

2252022 Delta Electronics ESG Report

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4.5
Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.5.4 Value Chain GHG Emissions
The Supply Chain ESG Committee and Business Groups commenced the comprehensive

Delta views its suppliers as long-term partners and critical partners in Delta's

carbon footprint pilot program for products of Delta Group in 2022. Business Groups

promotion of sustainable development. In addition to competitive quality, technology,

established a product carbon footprint implementation team. They will take the initiative

delivery, and cost, Delta also pays close attention to their performance in governance,

to improve the carbon footprint of their products and commence quantitative programs

environmental protection, and society, including actions taken in response to climate

as medium-term objectives. They also established mechanisms to respond to the carbonchange. To help suppliers who have not yet conducted a GHG inventory measurefootprint requirements of customer products. In terms of long-term developments, alltheir annual GHG emissions in accordance with ISO standards, Delta invited external

products were included in Delta's product carbon footprint calculation system to support

consultants to provide a two-day GHG inventory training program in Chinese, which

the R&D of low-carbon products and continue engagements, communication, andwas provided free of charge to Delta's tier 1 suppliers. The course on ISO 14064-1

incentives for value chain partners to accelerate product carbon footprint reduction andGreenhouse Gas Inventory Standards included an analysis of the requirements and themeet international standards, customer requirements, and related regulations.

terminology. We then introduced quantitative tools and inventory calculation formulas

The key measures implemented were as follows:

to show the GHG inventory process and matters of note with real case studies. We also
provided information on the organizational structure of the report and the key points

1. P ay attention to developments in international carbon border taxes, complete

for verification. More than 400 supplier representatives attended the course. We also

inventories and calculation of the carbon footprint of products based on internationalorganized the course in English for 22 participants from approximately 22 suppliers. Delta

standards, and ensure that the methodology and data quality comply with thewill continue to organize related external education training programs to enhance theregulations.

overall ESG capabilities in the supply chain.

2. E stablish a product carbon footprint implementation team in Business Groups tostrengthen product carbon footprint awareness and knowledge in all functional groups

Starting in 2022, Delta's suppliers will be required to measure their annual GHG emissions

and facilitate the long-term development of low-carbon products.

and provide the necessary product-based GHG data to meet Delta's requirements for3. Incorporate data from international carbon emission factor databases and set
requirements for material suppliers to provide data on carbon emissions for continuous

information on product carbon footprint. We also require suppliers to obtain third-party
verification statements for GHG inventory data before Q4 of 2025.

updates of Delta's carbon emissions database for materials.
4. Analyze product carbon footprint hot spots and opportunities for carbon reduction.
Consider the use of circular business models, green product design, partnerships
with low-carbon raw material suppliers, energy conservation and renewable power
operation in plants, setup of green logistics, waste management, and more, to plan
carbon footprint reduction actions.

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4.5
Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

2021 data

2022 data

Number of suppliers and participants in GHG inventory
course in Chinese

116 suppliers; A headcount of 250 people

140 suppliers; A headcount of 400 people

Number of suppliers and participants in GHG inventory
course in English

NA

22 organizations; A headcount of 22 people

Ratio of type A companies with GHG inventory data

39%

42%

Ratio of type B companies with GHG inventory data

16%

19%

Ratio of type A companies with ISO 14064

6%8%

Ratio of type B companies with ISO 14064

4%6%*Type A companies are manufacturers and type B companies are agents.

4.5.5 Supply Chain Audits
To lower ESG risks in the supply chain and to improve competitiveness, Delta began providing RBA audits and mentoring in 2012 for high-risk critical suppliers. Key suppliers are selectedbased on the performance of materials in inventory, production process, and overall user-end quality. We select key components and list suppliers that account for the top 80% of allpurchases as key suppliers. In January each year, we make such choices based on the performance, transaction volume, and environmental safety and health, or labor and ethics anddesignate suppliers for key audits and improvements in the current year.
In 2022, Delta's Supply Chain ESG Committee appointed a consulting company to plan Delta's Supply Chain Social Responsibility Standards and Audit System based on the Responsible
Business Alliance (RBA) Code of Conduct 7.0. It includes the completion of the Delta Self-Assessment Questionnaire (SAQ), establishment of the Delta Supply Chain Onsite Audit Protocol,and training of Delta advisors and observers. In 2022, around 2200 suppliers are assessed via desk assessment for ESG and conflict minerals, 119 of them are assessed with potential
negative impacts - 100% of them have submitted corrective action plans thus none of them were terminated. In 2022, we conducted 50 on-site audits by our audit teams and conducted
5 onsite audits by third parties. We also plan to complete the onsite audits, support, and improvements for 15 suppliers in 2023. The practical experience gained from the 15 suppliers canbe used to create comprehensive audit, support, and improvement procedures. Delta will continuously provide audit and support services for high-risk suppliers with the aim of reducing
the number of high-risk suppliers each year and attaining growth with downstream suppliers.

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4.5
Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

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

Packaging
Materials Recycling

Repetitive Use of
Carriers(Plastic Frames)

Pallet Recycling
and Reuse• Delta cooperates with major processing
factories to recycle packaging
materials such as EPE, paper, andmore.

• Delta cooperates with local mechanism
suppliers to use reusable carriers(plastic frames).

• Delta works with local suppliers to use
recycled foundations and battens ofwooden pallets.

Summary

Quantitative/
Qualitative Results• We saved 5.16 MUSD on packaging
materials recycling in 2022. Plastic
boxes accounted for 58%, paper
accounted for 22%, and plastic
accounted for 13%. In terms ofquantity, we saved 440,000 plastic
boxes and 380,000 cardboard boxes.

• for transporting plastic casings andmaterials in place of cardboard boxes.

• We saved 5.24 million cardboard
boxes in 2022, saving up to
approximately 10.45 MUSD inpackaging costs.

• Wood strings and wooden panels
in pallets are recycled, saving 1.65
MUSD in pallet costs. We also recycled
approximately 403,000 pallets.

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4.6
Information System Safety
and Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Corporate
GovernanceCommunication
with Stakeholders

Devoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.6 Information System Safety and Management
Delta established an information security organization which is responsible for formulating information security policies to ensure the information security of Delta's IT infrastructure,
information application systems, and products, and the data security of customers. Delta expanded the ISO 27001 information security certification to Europe in 2022 and introduced theISO 27701 personal data management system to enhance the security of personal data. In October 2022, Delta obtained both ISO 27001 and ISO 27701 certifications. Delta will continue
to enhance the protection of information infrastructure and application systems and implement data security and personal data protection mechanisms.

4.6.1 Information Security Organization
Delta's information security organization

Delta Global Information Security Committee

is shown in the figure below. The Chief

CEO, CIO/CISO, COO, BG & Region Heads

Executive Officer, Chief Information
Officer, Chief Information Security
Officer, Chief Operating Officer, andsenior executives of Business Groups are
responsible for supervision and review.
They lead t he information security
teams to oversee information security
operations, information security policym a n a g e m e n t , i n fo r m a t i o n s e c u r i t yarchitecture, information security project
management, vulnerability management,
and information security audits. We also
appointed information security officers ineach region across the globe to ensurethat information security policies andcontrols are implemented in Delta's

Information Security
Advisory Board

IT Security teamHead Office
Function Units
BABG

CPBG

BLSBG

EVSBG

FMBG

ICTBG

IABG

PSBG

AM

CN

CyntecNEA

Information
security
operations

Information
security
management
policyInformation
securityarchitecture

Information
security
projectmanagement

Vulnerability
management

Information
security audit

Global Information Security
Information security
policy development

Training and communication

Support for customer
requirements

Compliance with laws
and regulations

Prevention of data leaks

Vulnerability scan andmanagement

EMEA

Risk assessment

Information security
technologies

Information security incident
report and response

SEA

Network security defenses

Email security

End-point security
managementbusiness units.

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4.6
Information System Safety
and Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.6.2 Establishment of the Information Security Policy and Processing Procedures
The Information Security Team formulated Delta's Information Security Policy in

Delta also organizes information security training for new employees to continuously

accordance with requirements in the ISO 27001 international information security

enhance employees' information security awareness. Professional technical andstandards. It includes Information Device Usage Guidelines, Mobile Device Usage

management personnel must complete the annual information security training and

Principles, Password Usage Guidelines, Company Email Usage Guidelines, Internet Usage

pass the test. In 2022, 40,986 participants completed the annual online and in-person

Guidelines, Information Handling Guidelines, Software Usage and Licensing Guidelines,

information security training courses with 100% coverage rate. The IT Department issues

Removable Computer Media Device Usage Principles, Visitor Security Guidelines, Anti-monthly information security electronic newsletters to remind employees of the latest

Virus and Data Leakage Prevention Software Deployment Principles, Remote Accessinformation security risks and zero-day vulnerability. The IT Department also set up a

Guidelines, Information Security Incident Management Guidelines, External Network

mailbox for information security issues. All employee mailboxes are equipped with aApplication Information Security Requirements, and Company Resource Usage Guidelines.

phishing email notification button, which allows the person in charge of operations to

Employees that violate the Information Security Policy shall be punished in accordance

process information security issues and investigate phishing emails.

with the Delta Group Reward and Punishment Management Regulations, and the
maximum punishment may be the termination of employment. The Information Security

Information Security Incident Response

Team reviews the Information Security Policy every year, updates the contents based on

After an information security incident in early 2022, Delta enhanced information security

the progression of information technology, and requires all employees to sign and comply

training and social engineering exercises for all Delta employees across the globe. The ITwith the contents. In 2022, 8 employees in Taiwan were penalized for violation of Delta

team also enhanced mail screening mechanisms and continued to upgrade network andGroup's Information Security Policy and 2 employees were dismissed.

system monitoring and security management to reduce information security risks andcreate a more secure work environment.

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4.7
Personal Data Protection
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.7 Personal Data Protection Management
Delta complies with the Personal Data Protection Act and related regulations andhuman resources procedures, marketing and supply chain procedures for Europe,established the "Personal Data Protection and Management Policy", "Privacy Policy", andcompletion of the privacy and security risk assessment, management system design andrelated operating procedures. We also set up the "Personal Data and Privacy Protection

implementation, physical control management enhancements, and internal audits. We

Team" as the unit responsible for the operations of the personal data protection system.

adopted a systematic approach to assess potential risks and ensure the confidentiality,

It supervises all units in regular personal data inventories, risk assessments, and internal

integrity, and availability of privacy information. This demonstrates Delta's capabilities

audits in accordance with ISO 27701. All current employees have signed the Personaland commitment to privacy protection and the rights and interests of clients, employees,

Data Protection Management Policy and Notification of Collection, Processing and Useand stakeholders.

of Personal Data Statement. And new employees are also required to sign the Statement
and take online courses for personal data management to strengthen their personal data

Delta upholds the rights of individuals for exercising their legal rights on personal dataprotection awareness. A total of 4,950 participants attended personal data courses inand accepts complaints. We also provide contact information on the Company's website.

2022.

If the Company receives a complaint or discovers an incident involving personal data
infringement, the Company shall notify authorities, process the infringement, and punish

To demonstrate our commitment and responsibility for creating an environment thatperpetrators in accordance with the "Personal Data Incident Response Management

values privacy, Delta obtained the ISO 27701 international privacy information security

Procedure". In 2022, there were no complaints arising as a result of infringements ofmanagement system certification in 2022. The scope of the verification included thecustomer privacy.

Organization Structure of the Personal Data and Privacy Protection Team

Chairman

Personal Data Protection Manager

Personal DataManagement Team

Personal Data Internal
Audit Team

Incident Response
Team

Data Protection Representativesof Each Unit
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4.8
Risk Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

4.8 Risk Management
Delta adopted a preventive policy for risk management. In addition to setting up a

Duties are as follows:

rigorous internal control system and assigning internal auditors to conduct audits at• Board of Directors: To approve risk management architecture and policies and bear
ultimate responsibilities for risk management.

regular and irregular intervals, Delta has also set up committees and crisis management
teams to implement risk management. Delta's Board of Directors passed the Delta• Audit: To be responsible for the audits of the internal control system.

Group Risk Policy in 2020 to specify the units responsible for various risk factors. The• Highest-ranking manager for risk management: To understand the impact of different

units-in-charge use risk identification, risk assessment, risk control, risk monitoring,risk types of the Group, ensure the effectiveness of risk management, and coordinate

and communication management procedures to ascertain the scope of risks and takethe interactions and communication of risk management among the departments. The

appropriate measures to ensure the adequate management of related risks. For crises

CFO, who is designated by the CEO, reports the implementation and the Group’s Risk
Assessment Results to the Board of Directors once a year.

involving several departments or plants, the CEO or personnel designated by the CEO are• First-line risk management personnel (President and COO, BG Heads, Functional

responsible for directing and coordinating the response.

Heads, and Region Heads): To ensure timely and accurate communication of risk
information, effective implementation of risk management, determine and recommend
response methods based on changes in the external environment and internal
strategies.

Group Risk Management Organization Architecture and Procedures

Shareholders Meeting

Audit Committee

Board of Directors
ChairmanVice Chairman
Audit

Compensation Committee

CEO

Strategic Steering Committee

Function Units

President, COO & Branch Manager
Global Operations
Asia

Business Units
Power Electronics

EuropeAutomation
Americas
OthersInfrastructure• TQM• Global Manufacturing• Global Supply Chain Management• Corporate Strategic Business
Development and AllianceRD

IT

Finance

Delta Solution OfficeCorp. Communications

Brand Management

HR

Strategic Marketing

Legal/IP

ESG

Energy Management

Corporate Investment

Delta Management System

Facility

Smart Manufacturing

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4.8
Risk Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

The risk management of Delta (including companies of the Group) involves the use of2022 Risk Assessment Results

the aforementioned risk identification, risk assessment, risk control, risk monitoring,

Based on the results of the overall self-assessment in 2022, the prioritized risk categories

and communication management procedures by means of qualitative or quantitativewith higher multiplication results than the previous year included business and financial

managerial approaches.

risks. The strategy and hazard risks were also assessed to be high but the Company
continues to monitor risks on all levels and has implemented corresponding management

Risk
Identification

The risks identified by the Group include strategy, business,financial, hazardous incident, and compliance risks.

Risk
Assessment

 he business, functional, and regional units analyze and identifyT
the risks within the Group's defined risk management scope.
They analyze the likelihood of a risk event occurring and thedegree of negative impact if it occurs, and multiply the results
to gauge the impact of the risk on the Company. In the event of
an incident that increases the Company's risks, they assess thepotential increase in the risk category and response methods,
and review the possible response measures.
(I) The risks in the day-to-day operations of units are controlled
and monitored by each responsible unit.

Risk Control
and Monitoring(II) Risk assessments on crises across departments or plants
shall be implemented involving the departments or plants
concerned. The CEO or personnel designated by the
CEO are responsible for directing and coordinating the
response to identify feasible strategies for the identificationand prevention of crises. They shall also formulate crisis
management procedures and recovery plans based on therisks.
(III) The deficiencies found in risk monitoring and control shall bereported through normal channels.

Risk
Communication

The highest-ranking manager for risk management or his/her designated personnel shall report the Company's risk
management operations to the Board of Directors once a year.

and control measures ahead of schedule. The results of the self-assessment were thesame as the previous year. Besides, in the self-assessment, the legal compliance risk wasdeemed lower than the previous year due to the Company's active implementation ofrelated policies.

Major Risk and Mitigating Actions in 2022
I. The Russo-Ukrainian War has triggered an energy crisis and protectionism in trade,which was assessed as a medium-term risk. The Company has adopted response
measures including: 1) development of new customers; 2) increasing the number ofsuppliers; 3) product optimization and enhanced market monitoring.
II. The Zero-COVID epidemic prevention policy and electricity supply restrictions in China
were assessed as short-term risks. The Company has adopted response measures forhuman resources, machinery, materials, and the environment including: 1) separated
work areas and movement of personnel; 2) advance preparation of machinery andequipment and rapid-response mechanisms; 3) enhanced inventory adjustments andstrategic inventories of key materials; and 4) signing of supply contracts with suppliers
and the development of alternative suppliers.
III. The West has tightened monetary policies and increased interest rates to combat
inflation, which have caused a decline in consumer market demand. It was assessed
as a short-term risk and the Company has adopted response measures including: 1)
continuous development of new customers and introduction of new products and new
applications; 2) close monitoring of overall market development and customer demand
to invest resources at the appropriate time; and, 3) the issuance of corporate bonds atfixed interest rates to diversify the risks of rising interest rates.

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4.8
Risk Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Emerging Risks
Emerging
Risk

Description

ImpactFailure of Technology GovernanceFailure of Climate Action

The emerging technologies of the Fourth Industrial Revolution pose
great risks to economic development, given the speed and scale atwhich digital applications and systems can be deployed across the
traditional border. How these technologies are harnessed and regulated
to encourage innovation and accelerate growth plays a vital role in abusiness environment. Technology governance is important to a business’s
ability to survive and thrive in the future digital world while ensuring risks
are identified and managed. Failure of technology governance is the lackof globally accepted frameworks, institutions or regulations for the use ofcritical digital networks and technology, as a result of different states orgroups of states adopting incompatible digital infrastructure, protocols or
standards. The technology areas it focuses on are Artificial Intelligence,
Internet of Things, mobility, medical technology, drones and unmanned air
systems, which are highly related to our business operations.

Delta have been accelerating climate adaption and mitigation actions. The uncertainty
of how climate change will affect our planet means that every strategy or action
carries a certain degree of risk. Thus, planning climate actions sometimes builds onimperfect information that leads to failure. Climate adaptation and mitigation failure iswhen action to climate change goes beyond wrong. Not just failing to create resilience
to climate risk, but failing to adapt to climate change could even cause impacts on
our business operations or lead to unexpected outcomes. It is hard to guarantee or
perfectly define the success of climate action in the short term, it might take several
years to assess the outcomes.

Automation is the key engine that we highly focus on. While technology
governance is closely related to automation, impacts include:

Failure of climate action might not be easy to observe in the preliminary implementation
phase but might cause a significant impact in the later stages. Those impacts include:

1. Long-term profit loss: Failure to monitor or identify the technology trend
may impact Delta’s long-term market share and revenue.

1. Business failure costs: Invalid investments such as stranded assets and wasted
capital might occur due to wrong scenario analysis and planning for climate changethat leads to wrong climate strategy.

2. Business failure costs: Invalid product strategy and lack of internal
control mechanism in the decision-making process may cause invalid
investments such as stranded assets and wasted capital.

Delta has been involved and building on our experience in developing climate solutions
and products such as our core energy technologies, and sustainable mobility. Also,
implement resource efficiency practices that contribute to efficiency and sustainability.
For example, we invest in renewable energy and energy technologies development
projects, energy and resources management, as a part of climate adaptation. Besides,
participating in nature-based solutions with mitigation co-benefits that contribute to
net-zero goals is one of Delta’s long-term strategies.

2. Reputation damaged: resulting from strategy failure that would harm stakeholders’trust.

3. The limited or lack of regulation such as the IoT cybersecurity breaches
issue may affect Delta’s product development, IP strategy.

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4.8
Risk Management

Emerging
Risk

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Failure of Technology Governance
4. Human capital development loss: Failure of technology governancecould cause technological unemployment and wrong talent strategy.

Impact5. Ethical disputes or litigious concerns: Fail to establish a robust approach
to identify vulnerabilities may cause privacy ethics issues, misuse orunintended use of technology and data.
6. T he liability and accountability issue may raise stakeholders’ concerns.

1. Reinforce and manage internally:a. Strengthen the technological competence of the board by structuring
a board with technology professional backgrounds.
b. Reinforce Intellectual Property management by establishing dedicatedauthority, including identifying market trends and avoiding future
infringement.

Mitigating
actionsc. Regularly hold Strategic Steering Committee meetings to analyze
technology-related topics to adjust and respond to rapid technologicalprogress instantly.
2. Engage and leverage externally:a.P articipate in technology and standard-related associations andengage policymaker. Become a member of associations to get
access to the latest standards, participate in task forces, and latest
specifications, and receive qualifications. Coordinate with public
sector to exchange insights.
b.C ooperate with customers, supply chain and academia for joint
development and shared knowledge to stay ahead of the technology
trend toward a commercial solution business.

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Failure of Climate Action
3. Long-term profit loss: Failure to efficiently allocate resources (human resources,
R&D investment etc.) or adopt an invalid business strategy for future sustainabilityoriented markets.
4. Negative unexpected outcomes: In order to achieve RE100 and Net Zero goals, theinvestment in renewable electricity sites, which is originally implemented with goodintentions but might result in a negative impact on ecology and biodiversity loss.

1. Reinforce and manage internally:a. Fortify the ability to take in climate-related risk: Strengthen the ability andaccuracy of the quantification and scenario planning by TCFD project. Criticallyanalyze the climate change risks, from physical exposures to policy changes totransition challenges to financial impact. To provide a robust basis for internal
decision-making of overall business plan.
b. Undertake adaptive strategy: proactively review the strategy through learningand feedback by regularly holding Strategic Steering Committee meetings andcatching adaption or mitigation failure before it happens.
c. Conduct the renewable electricity due diligence project to minimize ecologicalimpacts while reaching RE100, which would minimize the negative unexpected
outcome.
d. Established Delta climate-related product taxonomy and ICP mechanism, which
not only quantifies the low carbon-related cost, revenue and environmental
benefits in the review process, but also provides a better alignment basis withsustainable economic activities to lessen the financial impact.
2. Engage and leverage externally:a. Cooperate with governments, academia and multi-stakeholder to develop betterclimate-risk models and likely future weather patterns to make appropriate
adaption decisions and avoid the design flaws in strategies.
b. Participate in international communities that promote action on climate action andshare collaborative outcomes to leverage resources and experiences.

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4.8
Risk Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Violations of Laws
There were no cases of penalties for antitrust conflicts of Interest, money Launderinganti-slip tape or sprayed anti-slip agents on the floor. It also enhanced training foror Insider trading,, product safety, corruption, environmental protection, or labor laws incleaning personnel and required them to set up warning signs when the floor is not yet

2022. However, there was one case of a minor violation of the Occupational Safety anddry.

Health Act. In 2022, an employee in Tainan Plant was burned by sparks as a result of ashort circuit that occurred during test operations. It was a violation of the Occupational

Material violations of labor regulations are defined as cases with a penalty of NT$1 million

Safety and Health Act and the Company was fined NT$110,000 (USD 3,630) by the(USD 33,000) or above. Material violations of environmental protection regulations are

Southern Taiwan Science Park, National Science and Technology Council. The plant

defined as cases with a penalty of USD 100,000 or above. Major occupational accidents

conducted a full review of related operations and adopted improvement measuresrefer to cases that meet one of the following occupational accident conditions, including

including installation of an emergency cutoff device for the equipment, enhanced

deaths, accidents involving three or more people, leaks of chemical substances suchelectrical safety training for employees, and regional safety and management measures

as ammonia, chlorine, hydrogen fluoride, phosgene, hydrogen sulfide, or sulfur dioxide,

to ensure the safety of employees in operations.

accidents involving one or workers who require hospitalization, and other accidents
designated and announced by the central competent authority.

In 2021, there were one case of labor, one case of environmental protection, and one
case of occupational safety violations which resulted in penalties. The case involving
environmental protection was deemed as a material violation. The labor case in 2021 was
mainly due to an employees' extended work hours for processing personal affairs andfailure to correct the attendance records, for which the Company was fined NT$20,000(USD 723). The Company later enhanced its communication of overtime work procedures.
If an employee logs a delayed departure time due to reasons other than overtime work,
the employee is required to verify the correction of the departure time to prevent therecurrence of abnormal work hours. The environmental protection case in 2021 was
mainly caused by the failure to complete the review and approval procedures for theenvironmental impact of the newly added processing project for steel alloy powder semifinished products. The two new exhaust gas processing equipment were not inspected
for acceptance and the Plant failed to adopt preventive measures for the emissions of
VOCs for the acetone exhaust gas from the baking process of the steel alloy powder
semi-finished products. The exhaust gas was directed into the exhaust gas processing
facilities for processing to reach emission standards. The Company was fined USD
122,982 and has completed the pipeline improvements and added exhaust gas treatment
facilities. The occupational safety case in 2021 occurred when an employee at Pingzhen
Plant slipped while walking on a wet floor in the warehouse. The employee suffered afracture of the left elbow. It constituted a violation of the Occupational Safety and Health
Act and the Company was fined NT$60,000 (USD 2,169) by the labor inspection authorityof Taoyuan City Government. The Plant later set up warning signs in the area and applied

2022 Delta Electronics ESG Report73Devoted to Environmental
Protection and Energy Savings

5

5.1

Key Performance Indicators and Strategies

5.2 Climate Strategy
5.3 Energy Management
5.4 Water Resource Management
5.5 Resources Management
5.6 Green Products
5.7 Biodiversity
5.8 Environmental Management

5.1
Key Performance Indicators
and Strategies

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.1 Key Performance Indicators and Strategies
Energy-saving of High-efficiency Products
for Worldwide Customers

Energy Saving Practices at Global
Green Building Plants

Use of Renewable Electricity at Delta's
Global Operation sites

39.9

25.14

63%

Decrease in
Plant EI

Reduction in Electricity Consumptionof Non-IT Equipment

22%

6.0%

Compared to 2020

Compared to 2020

Decrease in
Plant WPI

Waste Diversion
Rate

Environmental Protection
Expenditures

21.3%

99%

44.87

billion kWhmillion kWh

2010-2022

SBT Decrease in Scope 1+2 Emissions

13.5%
Compared to 2021

Compared to 2020

MUSD

2022 Delta Electronics ESG Report

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5.1
Key Performance Indicators
and Strategies

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Aligning with UN Sustainable Development Goals and key Implementation Measures
No Poverty

Responsible Consumption and Production

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

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

Corresponding material topics: Energy Management

Corresponding material topics:• Energy Management• Resources Management• Green Products

Clean Water and Sanitation
Set water reduction goals and improved water resource usage
efficiency. Developed green building and water-saving technology.
Corresponding material topics: Water Resource Management

Affordable and Clean Energy
Developed solar power systems, increased the popularization ofrenewable energy, and enhanced renewable electricity usage in ourplants.
Corresponding material topics: Energy Management

Industry, innovation and infrastructure

Promoted a variety of integrated energy-saving solutions to accelerateindustry innovation.
Corresponding material topics: Green Products

Climate Change

Established and committed to a science-based target (SBT) of carbon
reduction and joined the Business Ambition for 1.5°C Campaign toexert a wider positive influence. Committed to the fight against climatechange and seizing related business opportunities.
Corresponding material topics:• Climate Strategy

Life on Land

Promoted green buildings to increase land biodiversity and reduce
corporate operations' ecological impact.
Corresponding material topics:• Energy Management

Partnerships for the Goals
Sustainable Cities and Communities
Developed electric vehicle charging solutions and joined the EV100
initiative in 2018 to promote sustainable transportation. Developed
green buildings to assist in sustainable urban development.
Corresponding material topics:• Climate Strategy• Energy Management

Assisted the Taiwan Business Council for Sustainable Development incompiling energy and climate policy white papers and called upon thelocal government to focus its attention on related policies. Responded
to the five commitments behind We Mean Business* by committing to
adopt a science-based emissions reduction target.
Corresponding material topics:• Climate Strategy

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

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.2 Climate Strategy
5.2.1 Climate Strategy and Climate-Related Financial Disclosure
As global warming gradually impacts the global economy and climate change becomes achange has been integrated into Delta's business strategy and sustainability goals. Delta

global risk, the 2023 Global Risks Report published by the World Economic Forum (WEF)

is not only concerned about the direct and indirect impacts of climate change on humanlisted the failure of climate-change adaptation and failure to mitigate climate change as

life, but also how to respond more proactively to the coming era of climate change.

one of the most severe long-term risks for the world.

Starting from 2004, Delta has focused on how to use green buildings to mitigate andadapt to climate change. Delta has conducted in-depth research on the impact of climate

By leveraging our core competence in power and electronics, Delta provides more thanchange since 2007. We have actively communicated with Delta employees regarding

10,000 products and solutions for the world. Our products span across three major

the importance of climate change mitigation and increased public awareness of climate

business areas including power electronics, infrastructure, and automation. The Groupchange. Delta set the 2°C scientific-based target (SBT) of carbon reduction in 2017,

maintains operations in different climate zones across major continents and climate

passed the SBTi review, and introduced an internal carbon fee mechanism in 2021. Wechange is thus a major factor in Delta's sustainable development. As a company with aformally committed ourselves to "promoting 100% renewable electricity" in 2021, set along-term focus on climate change and energy efficiency as its core business, climate

net-zero SBT and passed the SBTi review in 2022.

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Key Achievements for Climate Change Mitigation
Greenhouse Gas and Energy
Management

Carbon Information Disclosure
2010• Product carbon footprint disclosure

2014• The only company in Greater China

2015

selected as CPLI (Carbon Performance
Leadership Index) and CDLI (Carbon
Disclosure Leadership Index) for CDP(Carbon Disclosure Project)• Selected as CDLI (Carbon Disclosure

2010• ISO 50001 compliance certification

2015• Dongguan, Wujiang, Wuhu, Cyntec

2016

2016

• Selected as CDP Climate Change

2017

2017

• Disclosed climate change information in

the Financial Report based on the TCFD
framework for the first time

2018

• Selected as CDP Climate Change

2019• Awarded the CDP Climate ChangeManagement Level and Supplier
Engagement Leader

2019

Hsinchu and Cyntec Huafeng plants
achieved ISO 14064-1 certification

2011• India Rudrapur Plant (LEED-India Gold)2012• Taoyuan R&D Center (EEWH Diamond• 100% of Delta’s overall production

plants (including Eltek) have achieved
ISO 14064-1 certification

2013• Awarded the CDP Climate Change

2014• Reduced electricity intensity of main

2015

• Expanded the scope of energy saving

2017• Submitted Delta's SBT and became the2018• Joined the EV100 Initiative• Became the world's first TCFD

• Taipei Headquarters - Ruey Kuang
Building (EEWH-RN Diamond)• Shanghai R&D Building (LEED Gold)2015• America Headquartersn (LEED2016• Beijing Office Building (LEED Silver)• Taoyuan Plant 5 (EEWH Gold and LEED• 100% of Delta's overall production

Platinum)Gold)• India Mumbai office Building (LEED
Platinum)• Taipei Headquarters - Ruey Kuang
Building (LEED Platinum)

plants and main buildings in Taiwan
have achieved ISO 14064-1 certification

2022 • Delta's global operation sites haveachieved ISO 14064-1 certification

Green Operations

Platinum)• 100% of Delta's main production plants

have achieved ISO 14064-1 certification

Grade and LEED Gold)• India Gurgaon Plant (LEED-INDIA

2017• EMEA Headquarters (BREEAM VeryGood)

• DET Plant 5 (LEED Gold)• Shanghai R&D Building (LEED Platinum)

Leadership Level A- and Supplier
Engagement Leader

2020 • Awarded the CDP Climate Change andWater Security Leadership Level A and
Supplier Engagement Leader
2021

certification

2011

Leadership Index) of CDP for two
consecutive years
Leadership Level A-• Greenhouse Gas Inventory ISO 14064-1

Green Buildings / Plants

2018• Chungli R&D Building (LEED Gold)• Multi-purpose building in AKO Energy
Park in Japan (LEED Gold)• Wujiang Data Center (LEED Gold)

Leadership Level A-, Water Security
A List, and Supplier Engagement Leader

2019• Green data center in Taipei Headquar-

2022 • Included in the CDP Climate Change
and Water Security A List, and Supplier
Engagement Leader• All business groups completed the
product carbon footprint trial program

2021• DET Plant 7 (LEED Gold)ters (LEED Platinum)2022 • Taichung Plant 1 (LEED Gold Grade &EEWH Diamond Grade)• Chungli Plant 5 (LEED Gold)• America Headquarters(LEED Zero-Energy Consumption
Certification)

plants by 50% compared to 2009

to new plants, buildings, and data
centers• Commitment to the We Mean Businessinitiative
87th company in the world to pass the
SBTi compliance validation• Official Establishment of Internal
Carbon Pricing

supporter for the technology manufacturing industry

2020 • Completed climate change risks andopportunities assessment (comprehensive survey every 3 years)
2021• Joined the RE100 Initiative and pledged
to attain RE100 by 2030

• Met the 2025 Delta science-basedtarget (SBT) carbon reduction targets
ahead of schedule• Delta signed a long-term green powerpurchase agreement with a wind power
generation company, which was Delta's
first renewable energy transaction• Officially joined the Business Ambition
for 1.5°C Campaign
2022 • Submitted Delta's net-zero SBT andbecame the 125th company in theworld to pass the SBTi compliancevalidation

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Task Force on Climate-related Financial Disclosures (TCFD)
Delta published its first Corporate Social Responsibility Report in 2005 to disclose theenergy conservation and carbon emissions reduction achievements of its plants. Delta
joined the "We Mean Business" initiative in 2015 and committed to Report Climate Change

Global ESG Committee Board of Directors

Information in Mainstream Reports as a Fiduciary Duty. After the Financial Stability Board(FSB) published the Task Force on Climate-related Financial Disclosures (TCFD) in 2017,
Delta became the first company to disclose the required information in its annual financial
report since the publication of the TCFD Recommendations and registered to become a
TCFD supporter in February 2018. We continue to promote climate change managementand disclosure based on the four core elements of TCFD including climate governance,
strategy, risk management, and metrics and targets.

5.2.1.1 Governance▶ Board’s Oversight
The members of Delta's Board of Directors have participated in international events,
understand the latest climate change development for many years and climate changerelated knowledge has become a key part in the board's professional functions. Morethan half of the board members participate in meetings of the Delta ESG Committee,
energy efficiency management, water and waste reduction management, andHighest Management• CSO• Region Heads and Function Heads

Functional Committees
Related to Climate Change• Energy and Water Conservationand Waste Reduction• Delta RE100• Carbon Management• Product Stewardship• Supply Chain ESG Management

renewable electricity.
Global ESG Committee Board of Directors oversees Delta's actual management ofclimate change risks and opportunities, and is Delta's highest level internal climate risk
and opportunity supervision body.

▶ Management's Role
The Chief Sustainability Officer reports the progress of climate change management to
the Global ESG Committee Board of Directors on a quarterly basis, including important
trends, key metrics, effectiveness of disclosure and external evaluation results, andthe overall implementation results of the energy conservation and carbon emissions
reduction budget. The Board of Directors oversees the Company's sustainable

Departments Related to
Climate Change• Corporate Sustainability
Development Department• Finance Department• Legal Affairs Department• Energy Management Department• Facility Managers• Procurement Department• Business Groups

management strategies and actions.

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.2.1.2 Climate Strategy
Delta has set climate-related performance indicators with sound climate governance andorganization, and actively takes real actions to fulfill its commitment to sustainability.
We analyze the climate-related risks and opportunities based on the latest internal andexternal regulations, scenario analysis, and strategies, and implement management on the

Climate Governance
Governance and Organizational Structure

Climate-related Disclosurebasis of "mitigation" and "adaptation". The mitigation measures include the measurement
and the settings for commitments and objectives. We also strengthen the circular
economy, renewable energy, and energy-saving products. In terms of adaptation, we

Climate-related KPIfocus on water resource management and the Delta's Climate-related Product Taxonomy
for addressing climate change. Delta uses the TCFD and decision-making tools such as
internal carbon pricing mechanisms to continue to encourage low-carbon innovation. We
continuously uncover business opportunities through technologies to respond to climatechange challenges and we regularly disclose our climate-related management results andClimate-related
Risks and
Opportunites

performance.

Mitigation

Measurement
Regulation

Targets

Adaptation

Value Chain
Measures

Water Resources
Products

Scenarios▼ Solar energy system at Delta's Helmond office, the Netherlands

Strategies

Decision-making Tool

Innovation

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Climate-related Risk and Opportunities and the Impact
The scope of climate risks and opportunities identified by Delta includes upstream, own operations and downstream activities such as in products and services, supply chain, adaptationand mitigation activities, research and development, investment, and operations. We assess the probability of occurrence and the impact of events for each risk and opportunity. We
launched a pilot program in 2018 to analyze the possible impact on operating costs and revenue as well as capital expenditures and allocations of different products to determine thepossible financial impact of the event on the organization and develop response strategies. Delta defines short-term plans as those within two years, medium-term plans as thosebetween two and five years, and long-term plans as those above five years according to the internal carbon reduction objectives.
Possible Financial Impact
Risk Type

Risk Factors

Decreased
Revenue

Increased
Expenditures

Impact on
Assets or
Discarding

Increased
Liabilities

Decreased
CapitalFinancing
Difficulties

Domestic and international GHG reduction requirements
Carbon tax and related regulations
Short term

Customers change criteria for supplier selection
Requirements for suppliers to reduce greenhouse gas emissions
Increase in the severity of extreme weather events
Renewable energy regulations
Voluntary regulations
Uncertainties in laws and policies
Mandatory regulations for products and services
Products and services replaced by other low-carbon products andservices

Medium term

Cost of the transition to low-carbon technologies
Customers change product specifications and requirements
Increase in the cost of raw materials
Consumers shift to low-carbon products
Changing rainfall patterns and severe weather patterns
Rise in average temperatures
Risks of litigation
Failed investment in new technologies

Long term

Lack of contribution from company in climate change, which affects
investors' and banks' willingness to invest
Industry stigmatization
Adverse news on climate change that damages the Company's reputation
Rise in average sea level2022 Delta Electronics ESG Report

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Scenario Analysis
Delta identifies risks and opportunities in accordance with corporate strategies, big data on climate risks, research reports, and external evaluation and indicators. We screen key
indicators and use climate scenarios to analyze the impact on the market size, costs, and overall strategies. We have selected climate scenarios for the most pressing transition andphysical risks for analysis and included quantification factors. The results of the analysis have been incorporated into the internal decision-making process.

▶ Transition Risks and Opportunities
Business opportunities for Delta's ventilator and air quality solutions

Background

The Sixth Assessment Report (AR6) of the IPCC pointed out the link between air pollution and global warming, and that as global warming becomes more severe, air
pollution indicators will deteriorate. Delta has long been committed to environmental issues and offers air quality solutions. Due to the vast differences in the degreeof air pollution across the globe, Delta adopted IPCC-AR6 to simulate future warming scenarios with air pollution.
GlobalScenario andAssumptions

We used SSP1-2.6 (ideal mitigation) and SSP5-8.5 (high emissions) as scenarios to estimate the future air pollution (PM2.5) conditions at the end of each decadeand the end of each quarter and simulate the projected risk maps of the globe, key regions, and cities.
SSP1-2.6 scenario

Under SSP1-2.6 and SSP5-8.5 scenarios, the air pollution increases.

Severe pollution is concentrated in China, South Asia, West Asia, Equatorial
Africa, Western Australia, and the Southern Cone of South America. Air pollution
levels in South Asia and China may decrease slightly by the middle and end of
the century.

SSP1-2.6 scenario

SSP5-8.5 scenario

SSP5-8.5 scenario

As opposed to SSP1-2.6 scenario, the air pollution changes in the middle andlatter periods of the century do not subside and the pollution expands to North
America and Central America.

Air pollution continues to increase until the middle of the century, and the impact
of pollution from outside the country expands beyond the scope in the 2.6
scenario and reaches southern Taiwan, with only a slight decrease towards theend of the century.

Simulation
Results

Response
MeasuresTaiwanAir pollution on the western half of the island is much more severe than theeastern half.
Air pollution in the north is mainly affected by pollution from outside the country
which decreases as in the middle to latter periods of the century.

• We have analyzed the changes of air pollution around the globe as a key reference for determining Delta's global marketing strategy for ventilation and air quality
solutions.
• We develop and design different product lines and solutions for different regions to meet different market requirements.
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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

AppendixBusiness opportunities for Delta's energy storage solutions
BackgroundRenewable energy is one of the options for mitigation and adaptation for responding to climate change. However, as the proportion of renewable energy increases,
the impact on the power grid will be more pronounced, thereby creating the need for energy storage systems through operational requirements.
TaiwanScenario andAssumptions

We adopted the NDC scenario and Beyond 2°C scenario (B2DS) to simulate different climate scenarios and evaluate the business opportunities for energy
storage products under the two renewable energy scenarios. In addition to the estimated amount of energy storage installations, Delta's energy storage system
specifications, prices, market and customer demand, and estimated installation capacity were also included as parameters for analysis.

Simulation
Results

The results showed that before 2025, Delta's internal strategy for energy storage solutions is consistent with the NDC climate scenario. In the NDC scenario
simulation, the energy storage market is expected to double in 2030 compared to the market in 2025. In the B2DS scenario simulation, we see an opportunity toincrease the revenue growth by twofold compared to the benchmark.

Response
Measures• We joined the RE100 international initiative and continue to expand the proportion of renewable energy and set up demonstration sites for energy storage
solutions at many operation locations. We implement practical integration of power applications and energy management systems to maximize the effectivenessof grid frequency regulation.
• Both the installation capacity market for short-term microgrid stabilization and the energy market for long-term power shortage supply are critical market
developments for the future.

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix▶ Physical Risks and Opportunities
Impact of external renewable power generation purchased by Delta

BackgroundRenewable energy generation relies on natural resources such as solar power, hydropower, wind power, geothermal, and biomass. Due to the impact of climatechange and extreme weather, Delta must carefully evaluate whether the renewable energy sources that provide the electrical power purchased by Delta cangenerate power continuously and steadily to maximize benefits.
TaiwanScenario andAssumptions

We analyzed the long-term changes in power generation of Taiwan's hydropower generation units for the next 10 years (2022 to 2031) under four future warming
scenarios (RCP2.6, RCP4.5, RCP6.0, and RCP8.5).

Simulation
Results

According to estimates of the power generation capacity under each RCP scenario, the highest amount is under RCP4.5 and the lowest is under RCP6.0. However,
the average difference between the scenarios in the next 10 years is insignificant. As an example, the lowest estimated value of total generation capacity under
RCP4.5 is in 2029 and the highest estimated value is in 2031.

Response
Measures• The impact of long-term climate and short-term weather variability on renewable energy generation will be evaluated from time to time, so as to respond to theimpact in advance and adjust the strategy of purchasing renewable power on a rolling basis.
• Incorporate the analysis results in the selection of renewable energy sites and suppliers.
Impact of water shortage in production plants in Taiwan

BackgroundAs extreme weather events become more frequent, companies will experience extreme weather events such as droughts and floods more frequently and those that
did not occur frequently in the past may cause substantial losses to operations.
TaiwanScenario andAssumptions

Delta evaluated the current conditions and future water shortage risks according to RCP 2.6 (2°C warming) and RCP 8.5 (Business as Usual, BAU) scenarios of IPCC
AR4 as well as the local water restriction policies and measures.

Simulation
Results

Under RCP2.6 conditions, the probability and number of days of severe droughts in the future will increase. The demand for cooling water in the plant will increaseby 3% to 4% due to the rising temperatures. In response to the significant increase in the number of drought days, it is necessary to improve the current water use
efficiency by approximately 30%.

Response
Measures• The impact of long-term climate and short-term weather variability on renewable energy generation will be evaluated from time to time, so as to respond to theimpact in advance and adjust the strategy of purchasing renewable power on a rolling basis.
• Incorporate the analysis results in the selection of renewable energy sites and suppliers.

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Climate Risk and Financial Impact Analysis
Delta allocated a budget of approximately 120 MUSD through an internal carbon pricing mechanism fund in 2022 to promote investment in renewable energy and energy technology
development, energy and resource management, and low-carbon innovations and initiatives. Delta also incorporated climate change factors into consideration, and focused on
uninterruptible power supply (UPS) systems and electric vehicle auto power to analyze the potential climate-related financial impact.
Background

Delta
Uninterruptible
Power Supply(UPS)

A s t h e d e m a n d fo r e l e c t r i c i t ycontinues to soar and the ratioo f re n e w a b l e p owe r g r a d u a l l y
increases, the importance of UPS
p ro d u c ts i n m i t i g a t i n g c l i m a techange is self-evident. Amongthem, high-efficiency UPS, green
data center UPS and modular UPS
products are our key research anddevelopment categories.

Related Issue

Scenario• Products/services replaced by
low-carbon technology• Continuing to invest research and development
resources in maintaining or enhancing the highenergy efficiency of UPS products to increase
product competitiveness.

• Development or expansionof low carbon products andservices• Visiting customers to collect specification
information and strategically developing the 3
major categories of UPS products.

Operating Income• Rise in average temperatures• Based on the IPCC AR5 RCP8.5 scenario,
the average annual temperature increase iscalculated to be 0.03 degrees.

Operating Costs• Products/services replaced by
low-carbon technology

Electric Vehicle
Auto PowerElectric vehicles are low-carbon
vehicles. As governments launch
electric vehicle policies and automakers conver t ICE vehicles
to electric vehicles, the market
fo r e l e c t r i c ve h i c l e p a r t s a n dcomponents is expected to rise.

• Lower sales of non-high-performance products
results in lower revenue, lower marketing
expenses, and lower operating costs.

Possible Financial Impact

R&D Expenditures

R&D Expenditures

Fixed Assets

R&D Expenditures
Operating Revenue• Products with higher specifications increases
the cost of production and reduces the costof testing (electricity consumption) on the
production line.

Production Costs• Uncertainty of market
information• Increase in customized project equipment
expenses

Production Costs• Responding to changes in
consumer preferences• Increased consumer demand for electric vehicles
results in higher revenue, higher operating costs,
and higher R&D expenses

Operating Income
Operating Costs
R&D Expenditures*Refer to CDP for related case studies

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.2.1.3 Climate Risk Management
Climate-related risks factors are integrated into Delta Group risk management policy and uses regular risk identification,assessment, control, monitoring, and communication management procedures to clarify the scope of climate change risks.
The Board of Directors tasked the ESG Committee to manage climate issues, take charge of the identification of climate
risks and opportunities, and manage the implementation of relevant countermeasures and programs under the TCFD
framework. The ESG Committee divided risks into transition risks and physical risks based on the Climate Change Report,
Risk Assessment Report, stakeholder feedback, issues of concern in the ESG evaluation, and the risk framework of the
Recommendations. It analyzed the impact of policy and regulations, technologies, markets, business reputation, and acuteand chronic climate events.

Climate Risk Identification and Assessment Procedures
Delta organizes a major survey every three years and an annual review to gather information on the views of key global
players. We also consider the information in the latest international research reports, TCFD Knowledge Hub, climate change
and weather data of local government, local regulations, and local market reports to continue to optimize and improve risk
management tools. Delta uses probability and impact of the risks to screen high-risk items in the list of climate risks basedon short-term, medium-term, and long-term strategies and evaluations of the possibility of the risk, degree of risk impact,
degree of financial impact, risk preparedness, and risk management principles.
Risk Identification

The major risk categories
encompass transition risks
such as policy and regulatory
risks, technical risks, market
risks, and reputation risks aswell as immediate and longterm physical risks.

Risk Assessment

Delta evaluates risks basedon the possibility of therisk, degree of risk impact,
degree of financial impact,risk preparedness, and risk
management principles.

Risk Response
Delta implements management
through mitigation andadaptation for the items withhigh climate risks based on theoverall risk rating.
Delta continues to clarify the
implementation and response
measures for different types ofclimate risks and the degree of
response, and establish SOPs
whenever necessary.

The types of climate-related risk

Current and Emerging Regulation, Technology, Legal, Market, Reputational,
Acute Physical and Chronic Physical Risk.

The value chain stages covered

Own operations, upstream activities, and downstream activities or clients.
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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Delta Climate Risk Analysis Matrix

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Current and Emerging Regulatory and Legal Risks

6.00
High

1

Domestic and international GHG reduction requirements

2

Voluntary regulations

3

Uncertainties in laws and policies

4

Carbon tax and related regulations

5

Mandatory regulations for products and services

6

Renewable energy regulations

7

Risks of litigation

Technology Risks

4.00
Magnitude of Impact

17

8

7

9

10

4

11

22

3

1

12
5
16

2.00

18

15 19

21

6

2

14
20

13

8

Products and services replaced by other low-carbon products and services

9

Cost of the transition to low-carbon technologies

10

Failed investment in new technologies

Market Risks
11

Customers change criteria for supplier selection

12

Customers change product specifications and requirements

13

Consumers shift to low-carbon products

14

Requirements for suppliers to reduce greenhouse gas emissions

15

Increase in the cost of raw materials

16

Lack of contribution from company in climate change, which affects investors'
and banks' willingness to invest

Reputational Risks
Low

High

0.00
0.00

2.00

6.00

4.00
Impact of Likelihood

17

Industry stigmatization

18

Adverse news on climate change that damages the Company's reputation

Acute Physical Risks
19

Increase in the severity of extreme weather events

Chronic Physical Risks
Financial Impact
Very HighHigh

Moderate

Low

None

20

Changing rainfall patterns and severe weather patterns

21

Rise in average temperatures

22

Rise in average sea level2022 Delta Electronics ESG Report

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5.2
Climate Strategy

About theESG Report

A Word from
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Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Risks of High Concern to Delta

Cost of the Transition to Low-carbon Technologies

Major Risk

Type | Transition risks - technology risks

01

Major Risk

02

Uncertainties in Laws and Policies
Type | Transition risks - policy and regulatory risks

Potential Path and Method of Impact

Potential Path and Method of Impact• Required purchase of low-carbon technology
equipment• Increased risks of operational and productcompliance due to uncertainties of domestic andforeign regulations• Required sourcing of low-carbon materials• Continuous increase in energy prices due touncertainties in international energy policies• Increased R&D costs• Possible loss of customers during the Transition• Miscommunication between the Company andinternal and external stakeholders may affect theCompany's reputation.

• Insufficient investment in low-carbon technology
and resources
Description

Description
The lack of regulatory
measures may make it
difficult for enterprises
to obtain the necessary
policy support. The
impact of new regulations
and policies may create
uncertainties and make it
impossible for enterprises
to respond accordingly.

• Continue to strengthen low-carbon technologies,
reduce product carbon footprint, and increase
product competitivenessIn response to the global
trend and customer
demand for carbon
reduction, Investment
may occur in low-carbon
technology Transition
such as increasing
the use of renewableenergy, enhancing
the capacity of power
storage technologies,
and improving the energy
efficiency of production
processes, which incur
increased costs ofresearch and development
as well as applications.

• Business opportunities and market development
for energy storage solutions

Impact Likelihood

Response to Risks• Introduce internal carbon pricing mechanisms toaccelerate internal carbon reduction actions• Encourage investments in negative carbon
technologies and low-carbon innovations touncover business opportunities• Intensify R&D talent development and retention• Continue to develop the circular economy andlow-carbon materials
Financial Impact
Decreased revenue, increased expenditures,
impact on assets or discarding
Potential Opportunities

Impact Likelihood

Response to Risks
 ontinue to monitor legislative changes in differentCcountries
Financial Impact

Decreased revenue, increased expenditures,
impact on assets or discarding, increased
liabilities, decreased capital, financing difficulties
Potential Opportunities

Implement the RE100 commitment and net-zerocommitment

Virtually certain
Level of Impact
Moderate

Virtually certain
Level of Impact
Moderate
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5.2
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Management

Overview

Carbon Tax and Related Regulations

Major Risk

Type | Transition risks - policy and regulatory risks

03

Communication
with Stakeholders

Major Risk

04

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Domestic and International GHG Reduction Requirements
Type | Transition risks - policy and regulatory risks

Potential Path and Method of Impact

Potential Path and Method of Impact• With the carbon border tax required by Europe
and the U.S., Delta must calculate the carbon
footprint of products and set reduction targets. If
it fails to do so, carbon tax expenses will increase
and affect product profitability, and may preventthe sales of products on the international market.

• It may affect the reputation of companies and thewillingness of investors to invest• After Taiwan's Climate Change Response Act
goes into effect, companies will incur additional
carbon expenses and their operating costs will
increase.
Response to Risks• Continue to use the internal carbon pricing toaccelerate internal carbon reduction and lowcarbon innovations and applications• Launch the product carbon footprint project andset active carbon reduction targets• Set the classification tree diagram for Delta's
climate-related products based on theircharacteristics, method of application bycustomers, and the EU Taxonomy
Financial Impact
Decreased revenue, increased expenditures,
impact on assets or discarding• Carbon reduction measures may lead to higher
operating costs• If suppliers are levied high carbon taxes or fines,
the costs will be passed on to Delta

Description

Description

The governments offoreign countries andTaiwan have establishedrelated laws andregulations for carbon
taxes and carbon fees,and set carbon reduction
targets and carbon tradingmechanisms. These
measures increase thecost of carbon emissions
for companies.

Many countries haveannounced their carbon
reduction commitments
and formulated carbon
reduction policies tosupport the international
carbon reduction
initiatives. They thus
require enterprises tocomply with greenhousegas reduction policies
and attain specific carbon
reduction results.

Impact Likelihood

Impact Likelihood

Potential Opportunities

Very likely

Very likely

Continue to strengthen low-carbon technologies,
reduce product carbon footprint, and increase
product competitivenessLevel of Impact

Level of Impact

Moderate

Moderate

Response to Risks• Continue to use the internal carbon pricing toaccelerate internal carbon reduction and lowcarbon innovations and applications• Actively implement the RE100 commitment• Enhance supplier sustainability management
and collaboration with upstream/downstream
industries
Financial Impact

Decreased revenue, increased expenditures,
impact on assets or discarding, increased
liabilities, decreased capital, financing difficulties
Potential Opportunities• Develop innovative carbon reduction technologies
for manufacturing processes• Consider carbon trading or include forestry
carbon sinks in the work plan to obtain carbon
credits2022 Delta Electronics ESG Report

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Climate Strategy

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A Word from
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Sustainable
Management

Major Risk

Customers Change Criteria for Supplier Selection

05

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Overview

Employee Relations
and Social
Participation

Appendix

Type | Transition risks - market risks

Potential Path and Method of Impact• Failure to meet customers' supplier selection criteria may result in aloss of orders which will impact revenue and the corporate image• Customers impose increasingly stringent requirements for Delta's
greenhouse gas reduction, which requires more energy-efficient andcarbon-reducing production.

Response to Risks• Set net-zero strategies, pathways, and targets and continuously
manage carbon reduction performance• Monitor customers' sustainability developments and incorporate theminto Delta's product R&D strategies to actively respond to customer
demandFinancial Impact
Decreased revenue, increased expenditures, impact on assets ordiscarding, increased liabilities, decreased capital

Description
As the sustainability andenvironmental protection
awareness of corporate
customers increase, they may
opt for suppliers that provide
products for adapting to the new
climate. The selection criteria for
suppliers will thus change.

Impact Likelihood
Very likely

Potential Opportunities• Provide customers with innovative energy conservation solutions andservices

Level of Impact
Moderate• Enhance Delta's sustainability impact by participating in international
evaluations and supporting international initiatives (SBTi, RE100, etc.)

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Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Climate Risks Response Measures
In terms of responding to climate risks, Delta continues to clarify the implementation and response measures for different types of climate risks and the degree of response, andestablishes SOPs whenever necessary. Delta implements management through mitigation and adaptation for the items with high climate risks based on the overall risk rating.
Mitigation

Adaptation

Actively reduce greenhouse gas emissions to slow down the rate or scale of climatechange issues.

Develop renewable and other alternative clean energy sources, and create asustainable business plan for climate-related physical risks. Analyze and monitor
the impact of climate change and develop strategies to provide customers withintegrated solutions for helping them adapt to climate change.

Response measures

Response measures

Energy Management

Internal Carbon Pricing

Build the Company's own renewableenergy equipment, energy
conservation projects, and green
building to enhance energy efficiency
and reduce Delta's dependence
on energy. Refer to Ch 5.3 Energy
Management in this Report

Support Delta's RE100 and net-zerotargets as the basis for obtaining
energy conservation, water and waste
reduction and carbon emissions
reduction projects and renewableenergy to encourage, track, andpromote investment in renewable
power and energy technology
development, energy resource
management, low-carbon innovationand initiatives. Refer to Ch 5.2.2 NetZero Commitment - Internal Carbon
Pricing

Risk Identification with International
Databases
We used the online tools launched by
the partnership between the Global
Facility for Disaster Reduction andRecovery (GFDRR) and the World Bank
to gain a preliminary understanding ofDelta's medium to long-term physicalrisks at major production sites over the
next five years, five to ten years, and
11 or more years.

Business Continuity Plan (BCP)
In response to the pandemic andthe frequent occurrence of climaterelated disasters, Delta has developed
Business Continuity Plans (BCPs) for
epidemics, floods, fires, earthquakes,
and typhoons with reference tointernational standards such as "ISO14090: Adaptation to climate change— Principles, requirements andguidelines" and "ISO 22301: Business
continuity management systems" toprevent interruptions in the Company's
business operations and protect
critical business operations from major
failures or disasters.

Climate-related product classification
We set the classification tree diagram for Delta's climate-related products based on their characteristics, method of application by customers, and the EU Taxonomy. It facilitates theinternal management of the ratio of Delta's revenue that meet climate change trends and meets international green investment requirements. Based on the impact of climate change,
we classified products into stable products (e.g., UPS products), adaptation products (e.g., fan products), and emerging products (e.g., electric vehicle auto power) in 2019. In 2022, weanalyzed the EU Taxonomy and continued to optimize the climate-related classifications of Delta products.
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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.2.1.4 Metrics and Targets
Delta has continuously implemented energy, water and waste conservation solutions for internal energy conservation targets and targets set in international initiatives since 2009. We
pledged to attain the 2030 renewable electricity targets in the RE100 and in 2021 and we passed the net-zero target compliance evaluation of the Science Based Targets initiative (SBTi)
in 2022.
Name or Type

Corresponding chapters/sections in the Report

SBTi: 2°C SBT

56.6% reduction in carbon intensity of Scope 1 and
2 greenhouse gas emissions in 2025 compared to2014 (achieved targets ahead of schedule in 2021)

SBTi: Net-Zero SBT

90% reduction in GHG emissions in Scope 1 and 2
by 2030 compared to 2021 and 25% reduction in
Scope 3 compared to 2021
90% reduction in net-zero science-based target in
Scope 1, 2, and 3 by 2050 compared to 2021

RE100

100% use of renewable electricity at global businesslocations by 2030

5.3.2 RE100 International Initiative and Renewable
Electricity Promotion

EV100

Provide charging facilities at Delta's operations andmain production plants within the scope of its global
energy management and conver ting company
vehicles to zero-emission vehicles such as pure
electric vehicles and hydrogen vehicles by 2030.

Ch 2.3.2 International Sustainability Initiatives

Attainment rate in the use of renewable electricity inglobal operation sites

2022 target: >60%

Ch 5.3 Energy Management

Water Productivity Intensity (WPI) of overall
production plants

2022 target: 4% reduction (2020 as baseline year)

Water Consumption Intensity (WCI) of buildings

2022 target: 4% reduction (2020 as baseline year)

Waste diversion rate2022 target: 94%

External targets

Internal targets

Metrics and Targets

Ch 5.2.2 Net-Zero Commitment
Ch 5.2.3 Greenhouse Gas Inventory

Ch 5.4 Water Resource Management

Ch 5.5.2 Waste Generation and Effectiveness2022 Delta Electronics ESG Report

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Climate Strategy

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Overview

Name or Type

Sustainable Key
Performance

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Metrics and Targets

Green building• Green building and plant electricity savings
practices and carbon reduction• Data center power usage effectiveness (PUE)Electricity consumption intensity

Overall plant electricity intensity per unit production
value (EI)

Water Productivity Intensity

Overall plant water productivity intensity per unit
production value (WPI)

Electricity savings and carbon emissions of highefficiency products

Ballast, server power, fans, AC-DC adapters, PVI,EV DC chargers, LED high bay lights, UPS, TVP, LEDdrivers, Computer and Networking Power

Employee Relations
and Social
Participation

Appendix

Corresponding chapters/sections in the Report

Ch 7.4 Summary of Information Assured (ISAE 3000)

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5.2
Climate Strategy

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Devoted to Environmental
Protection and Energy
Savings

Corporate
Governance

Employee Relations
and Social
Participation

Appendix

5.2.2 Net-Zero Commitment
Delta actively supports international initiatives. Since 2015, we have implemented the policies of the We Mean Business Coalition for "commit to adopt a science-based emissions
reduction target", "commit to report climate change information in mainstream reports as a fiduciary duty", "commit to responsible corporate engagement in climate policy", and"conversion to electric vehicles and expansion of charging facilities". In 2021, we also pledged to "use 100% renewable electricity" and joined the "Business Ambition for 1.5°C" Campaign
to actively respond to the United Nations Race to Zero initiative to limit global temperature rise to 1.5°C before industrialization.

Delta's Net-Zero Commitments and Action Strategies
Low-Carbon Growth

Road to Net-Zero Emissions

Commit to“We Mean Business”

Pass SBTi 2℃ Evaluation

Commit to EV100

Commit to
RE100 & Carbon Neutrality

Pass SBTi 1.5℃ Evaluation

2015

2017

2018

2021

2022

SBT 2℃ Commitment• Reducing carbon intensity
by 56.6% by 2025 with2014 as the base year

SBT 2℃ Target Achieved• CI reduction: 71%

SBT 1.5℃ Commitment• Achieving SBT Net-zero by 2050

• Use of RE: 55%

2030 & 2050
SBT 1.5℃ Target

SBT 1.5℃ Target

Short-term• Scope 1+2

90%Long-term• Scope 1+2+3• Scope 3

25%• Base year: 2021

90%

• Base year: 2021
RE100
EV100
Carbon Neutrality
Continue to adopt energy
conservation solutions and renewableelectricity
Delta continues to reduce carbon emissions
by implementing energy conservation
projects, self-generation and use ofrenewable electricity, purchasing renewableelectricity, and purchasing Energy AttributeCertificates.

Continue to promote green buildings

Starting from 2006, Delta has pledged touse green building construction methods
and Delta's green building solutions for all
new plants.

Set internal carbon pricing andaccelerate carbon reduction
Delta set an internal carbon price of
300 USD per metric ton to promoterenewable electricity and energy
technology development, energy resource
management, and low carbon innovationand initiatives.

Invest in carbon offsetting and removal

Delta will use offsetting and permanent carbon removal toneutralize remaining emissions and reduce emissions outside thevalue chain.

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Climate Strategy

About theESG Report

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the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Delta's Net-Zero SBT
Delta met its science-based target (SBT) set in 2017 four years ahead of schedule in 2021. We continued to actively pursue a 1.5°C reduction pathway in 2022 in accordance with the
Net-Zero Standard published by the Science Based Targets initiative (SBTi) at the end of 2021. We obtained the SBTi validation in the same year and became the first high-tech hardware
equipment company in Asia and the 125th company globally to pass the review for net-zero science-based targets.
We proposed our SBT with 2021 as the baseline year for reducing absolute Scope 1 and Scope 2 emissions by 90%, reducing absolute Scope 3 emissions by 25% by 2030, and attaining
net-zero emissions in global operation sites by 2050. We also continue to implement emission reduction measures for limiting global warming to 1.5°C to reduce carbon emissions ininternal operations, empower the internal low-carbon transition, and develop innovative products and services.
In 2022, Delta expanded the inventory of the emissions in global operation sites and reduced carbon emissions by implementing energy conservation projects, self-generation anduse of renewable electricity, purchasing renewable electricity, and purchasing Unbundled Energy Attribute Certificates. These measures demonstrated Delta's resolve and long-term
commitment to attaining SBTs and promoting the growth of the low-carbon economy with value chain partners.

Delta's SBT carbon reduction pathway

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Climate Strategy

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Sustainable
Management

Communication
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Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.2.3 Greenhouse Gas Inventory
Reduction of GHG Emissions in the Value Chain

Delta's Greenhouse Gas Emissions in 2022

Since 2007, Delta has participated in CDP to disclose the Group's greenhouse gas
emissions. Delta overall production plants have passed ISO 14064-1 certification. We
gradually expand the scope of certification to buildings, overseas operations, andsubsidiaries. Our global operation sites have achieved the ISO 14064-1 certification.
Delta's value chain consist mainly of Scope 3 emissions (accounting for more than 94%

0.5%
Scope 1by market-based) while Scope 1 and 2 emissions account for 0.5% and 2.1%, respectively.
In the future, we will continue our carbon reduction measures in Scope 1 and 2 andexpand our efforts to upstream and downstream sections of the value chain to actively

2.1%

discuss, communicate, and encourage value chain partners to join us on our path to 1.5°C

Scope 2 (market-based)

reduction.

97.4%
Scope 3

Total GHG emissions
in 2022
7.15 Million metric tons CO e
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Management

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GovernanceDevoted to Environmental
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Participation

Appendix

Direct Emissions and Energy Indirect Emissions (Scope 1 and 2)
According to the results of greenhouse gas inventories in past years, Delta's Scope 1 and Scope 2 GHG emissions consisted mainly of Scope 2 emissions (accounting for more than
91% by location based or more than 79% by market based). Therefore, Delta's greenhouse gas emissions reduction strategy is based primarily on energy management and adoption ofrenewable electricity.
We completed the GHG inventory of global operation sites in 2021 and 2022 for the first time. Our global operation sites can be divided into seven regions including Taiwan, China,
Southeast Asia, Northeast Asia, India, Europe, the Middle East & Africa (EMEA), and Americas. China (approximately 35% by location based), Southeast Asia (approximately 32%
by location based) and Taiwan (approximately 23% by location based) are the main regions of Delta's GHG emissions and the distribution is consistent with the locations of overall
production plants. Direct emissions and energy indirect greenhouse gas emissions of global operation sites in 2022 was 187,645 metric tons CO2e (by market-based), which was a 13.5%
reduction compared to the previous year. It was mainly the result of continuous voluntary energy conservation and the increase in the use of green electricity in 2022 to 63%, including
the installation of solar power generation equipment in plants, signing long-term green power purchase agreements, the purchase of green electricity products, and the purchase of
unbundled energy attribute certificates (unbundled EACs).
Direct emissions and energy indirect greenhouse gas emissions of overall production plants in 2022 was 142,225 metric tons CO2e (by market-based), which was a 5.8% reduction
compared to the previous year.

Greenhouse Gas Emissions (Market-based)
323,828
25,670258,120

35,456

187,645
38,807

21.4

18,598Global operation sites

216,891

17.1■ Direct and Energy Indirect(metric tons CO₂e)■ Direct and Energy Indirect(metric tons CO₂e)

177,81141.2■ Direct GHG Emissions(metric tons CO₂e)Overall production plants*1

34.3

14,183

21.4■ Energy Indirect(metric tons CO₂e)

151,015
17,808142,225
19,337

15.1
13.3

・・・Carbon Intensity (metric tons CO₂e /production value in MUSD)
181,435

148,838

298,159

239,522

163,628

133,207

122,888

2021

2022

2018

2019

2020

2021

2022

■ Direct GHG Emissions(metric tons CO₂e)■ Energy Indirect(metric tons CO₂e)・・・Carbon Intensity (metric tons CO₂e /production value in MUSD)*1.Overall production plants: Dongguan, Wujiang, Wuhu, and Chenzhou Plants in Mainland China; DET plant 1, 3, 5, and 6; Taoyuan plant 1 and 2 in Taiwan; Cyntec Hsinchu, Huafeng, and Wuhu plants; and the
production plants of Eltek acquired after 2015 (plants in the United States and India).
*2.In 2021, plants of Eltek in the United States and India were removed due to product line adjustments and we added Taoyuan Plant 5 and Pingzhen Plant.

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Sustainable
Management

Statistics of Greenhouse Gas Emissions in 2022(market-based)
Global operation sites

Overall production plants

CO2

164,265

131,953

CH4

6,505

5,285

N2 O

113

27

HFCs

16,384

4,581

PFCs

179

179

SF6

199

199

NF3

-

-

187,645

142,225

Total

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Appendix

Other Indirect Emissions (Scope 3)
Delta identifies significant emissions and calculates GHG emissions based on therequirements of ISO 14064-1:2018. We have also conducted an inventory of indirect GHG
emissions in each category in accordance with the GHG protocol methodology. Emissions
from all categories in Scope 3 were reviewed. The increase in 2022 compared to theprevious year was mainly due to the significant increase in product sales in 2022. Our
main categories of Scope 3 emissions are Category 11 use of sold products (accountingfor 60.9%) and Category 1 purchased goods and services (accounting for22.5%). In the
future, we will continue to focus on reducing emissions in three key areas including lowcarbon product development, low-carbon supply chain engagements, and low-carbon
transportation.

Other Indirect Greenhouse Gas Emissions

Unit: metric tons CO2e

Scope 3 Category

Category 1~8

About theESG Report

Unit: metric tons CO2e

Emissions in 2022

Purchased Goods and Services

1,568,772.62

Capital goods

346,435.89

Fuel- and Energy-related activities
Not Included in Scope 1 or Scope 2

51,990.43

Upstream transportation & distribution

177,397.56

Waste generated in operation

7,223.53

Business travel

4,827.10

Employee commuting
Upstream leased assets

Category 9~15

5.2
Climate Strategy

76,262.03
18.75

Downstream transportation & distribution

151,809.80

Processing of sold products

48,602.60

Use of sold products
End-of-Life treatment of sold products
Downstream leased assets

4,240,197.05
176,356.63
4,127.84

Franchises

N/A

Investments

109,269.85

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Climate Strategy

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Management

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Employee Relations
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Participation

Appendix

Delta's Internal Carbon Pricing
Delta has long focused on the trend for internal carbon pricing and has internalized
the economic costs of carbon emissions from operating activities. Delta established aconsistent internal carbon pricing management strategy for all global operation sites

Three major applications of Delta's internal carbon pricing

in 2017 and updates its internal carbon pricing annually based on carbon reduction
developments as a strategic tool to help our internal decarbonization efforts, as well as toserve as a risk management tool.
To enhance incentives for reducing carbon emissions and performance management,
Delta introduced carbon price mechanisms in 2021 and set the internal carbon price at
300 USD per ton based on the internal and external carbon costs of our global production
plants including regulatory penalties, carbon trading prices, case studies of benchmark
international companies, and the Company's investment in renewable energy solutions
and renewable electricity purchase costs. The price was consistent with the expectedcarbon price for limiting global warming to within 1.5°C by 2030 as specified in the Sixth
Assessment Report of the IPCC. The rate was implemented after it was approved by the
Board of Directors and the Sustainability Committee.

Development of
renewable electricity
and renewable energy
technology

Delta's implementation system for its internal carbon pricing mechanisms collects carbon
fees from business groups and units at a rate of 300 USD per metric ton. The carbon fee
charged by the ICP mechanism is regarded as one of the costs in the monthly financial
management reports and is related to KPIs of the BG heads. The fees are included in the
carbon payment fund which incentivizes investments in carbon reduction applications in
production plants and R&D units. The three major applications of Delta's internal carbon
pricing include supporting energy conservation and carbon emissions reduction projects,
obtaining renewable electricity, and investments in negative carbon technologies andlow-carbon innovations. We seek to uncover business opportunities in technologies
as reference for decision making by business groups and integration of carbon cost

Energy andresource management

Low-carbon innovations
and initiatives

management.

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5.3
Energy Management

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Appendix

5.3 Energy Management
To increase industrial production capacity, expand production output, reduce energy
consumption in production, and improve economic efficiency, Delta's overall global
production plants have passed third-party certification of the ISO 50001 energy
management system. We have also developed the Delta Energy Online (EnOL)
management system to provide real-time energy consumption and load analysis throughEnergy Consumption in Delta’s Global Operation Sites in 2022

91.3% Electricity

7.1% Natural Gas
0.4% Gasoline

methods such as energy planning, efficiency, consumption analysis, and equipment
management. It optimizes equipment operations, enhances power consumption
efficiency, and analyzes the current energy consumption of each system as the basis forEnergyConsumption
in 2022

evaluating energy-saving improvements and ensuring accurate control of energy cost.

776,710 MWh

5.3.1 Energy Management and Performance

1.0% Diesel
0.1%

Liquefied Petroleum Gas

0.1% Purchased Heat

Delta's energy consumption in global operation sites includes electricity, fossil fuels (e.g.,natural gas, diesel, petroleum, and liquid petroleum), and purchased heat. Electricity
accounts for approximately 91.3%. The energy consumption in overall production plants*1
includes electricity and fossil fuels (e.g., natural gas, diesel, petroleum, and liquid
petroleum). Electricity accounts for approximately 93.4%. Fossil fuels are mainly used to
power emergency power generators, lawn mowers, forklifts, company vehicles, as well asboilers (including dormitories and cafeterias).
In recent years, Delta has not made significant changes to the ratio of its fossil fuel

Energy Consumption in Delta's Overall Production Plants in 2022

93.4% Electricity

5.8% Natural Gas

consumption. In 2022, due to expand the production lines, the fossil fuels are increase.
Our management practice include replacing diesel to natural gas, optimizing theefficiency of boiler fuels to reduce consumption and purchasing electricity vehicles toreplace diesel vehicles.

EnergyConsumption
in 2022669,640 MWh

0.5% Diesel
0.2% Gasoline
0.1%
Liquefied Petroleum Gas*1 Overall production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China, DET plant 1, 3, 5, and6, and Taoyuan plant 1, plant 2, Plant 5, Pingzhen in Taiwan, Cyntec Hsinchu and Huafeng plants.

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5.3
Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Energy Conservation Performance of Delta's Energy Utilization in 2022
Overall Production Plant*1*2

Building*3

Data Center*42022 EI was 53,847 kWh/MUSD for Delta’s
overall production plants.

The EUI of 12 buildings in 2022 was 111 kWh / m2

The PUE was 1.29 for Delta's 4 data centers in 2022.

2022 target: 8%2022 actual results: 6.3%

2022 target: 15%2022 actual results: 13.4%

2025 target: 20% reduction in EI

2025 target: 20% reduction in EUI

2025 target: 37.5% reduction in PUE

Baseline year:2020

Baseline year:2020

Baseline year:20202022 target: 8%2022 actual results: 22%
Achieved

The main reasons are as follows:

The main reasons are as follows:

The main reasons are as follows:• The electricity usage in 2022 had increased by 9%compared to 2020

• The electricity usage in 2022 had decreased by 6.1%
compared to 2020

• The server room electricity usage in 2022 increased
by 5% compared to 2020

• The production value in 2022 had increased by 32%
compared to 2020

• 0.3% increase in area used in 2022 compared to 2020

• The IT equipment electricity usage in 2022 decreased
by 8% compared to 2020

• The production plans were reorganized and adjusted
based on international trade trends and local policies• Implemented energy conservation plans with the ICP
budget• Review energy consumption categories with newmetering infrastructure• Introduced AFDD to gain improvements in dynamic
energy conservation in existing facilities• Replaced cooling equipment*1.The total electricity consumption does not include the self-generated and consumed renewable electricity from solar energy*2.Overall production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China, DET plant 1, 3, 5, and 6, and Taoyuan plant 1, plant 2, plant 5, Pingzhen in Taiwan, Cyntec Hsinchu and Huafeng plants.
*3.12 Buildings including Ruey Kuang, Yang Guang, Taoyuan Plant 3, Chungli R&D, Tainan 1&2, Dongguan R&D, Wujiang R&D, Shanghai R&D, Japan, DAF, and Soest.
*4.Four data centers (Taipei Headquarters, Wujiang, DET, and American Headquarters).

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Energy Management

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A Word from
the Management

Overview

Sustainable
Management

Establishment of Delta Energy Online and Continuous Promotion ofEnergy Conservation Projects
In 2011, Delta established a cross functional energy management committee, and an

Communication
with Stakeholders

measures for public facilities such as the sintering furnace, reflow furnace, wave soldering

No.

Energy Saving
Subject

1

Air Conditioning
Ventilation
Systems

furnace and burn-in production plant. By coordinating firsthand experience with energy
conservation from internal and external consultants, the team is able to implement thesepractices at all primary production plants around the world.

2

From 2011 to 2022, Delta's overall production plants have continued to implement energy
conservation and carbon reduction measures (see the table below). The company put
309 energy conservation projects into practice in 2022 and saved approximately 41,126

355,330 thousand kWh of electricity saved, equivalent to a reduction of 276,766 metric

2011

4

Lighting
Systems

2022
309 energy conservation projects
saved approximately

41,126 thousand kWh of electricity

5
Delta implemented a total of

2,826 energy saving projects
355,330 thousand kWh of electricity saved

Reduction of 276,766 metric tons CO2e

Air Compressors

3

tons CO2e.

Statistical Item

Employee Relations
and Social
Participation

Appendix

Burn-inRecovery
Systems

6

Process
Improvements

7

Other
(Management,
etc.)

Total

Cumulative
2011-2022*

2022

Cases

66

629

Electricity Savings (MWh)8,467

70,198Carbon Reduction (Metric tons)

6,113

51,332

25

253

Electricity Savings (MWh)8,079

33,205

Carbon Reduction (Metric tons)

6,254

24,844

3

34

Electricity Savings (MWh)461

16,033

Carbon Reduction (Metric tons)

365

13,697

Cases

Injection
Molding
Machines

thousand kWh of electricity, equivalent to approximately 31,687 metric tons CO2e. Delta
implemented a total of 2,826 energy saving projects from 2011 to 2022 with an estimatedDevoted to Environmental
Protection and Energy
Savings

Energy Saving Practices for Overall Production Plants from 2011 to 2022

Energy-Saving Technology Team was further organized within the Committee. Overthe years, the team has implemented various energy conservation and improvement

Corporate
Governance

Cases

Cases

36

223

Electricity Savings (MWh)

2,421

16,021

Carbon Reduction (Metric tons)

1,896

16,367

13

143

Electricity Savings (MWh)2,988

57,468Carbon Reduction (Metric tons)

2,374

43,237141

1,036Electricity Savings (MWh)17,34990,439Carbon Reduction (Metric tons)

13,612

70,248

Cases

Cases

Cases

25

508

Electricity Savings (MWh)1,361

71,966

Carbon Reduction (Metric Tons)

1,073

57,040

Cases

309

2,826

Electricity Savings (MWh)41,126355,330

Carbon Reduction (Metric tons)

31,687

276,766*The electricity emission coefficient cited included the electricity emission coefficient of 0.509 kg CO2e/kWh for Taiwan in 2021; the emission coefficients of Mainland China's regional power grid in 2019 were 0.7921
kg CO2e/kWh in Eastern China, 0.8587 kg CO2e/kWh in Central China, and 0.8042 kg CO2e/kWh in Southern China; the electricity emission coefficient in Thailand in 2019 was 0.4999 kg of CO2e/kWh.

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Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.3.2 RE100 Renewable Electricity
Delta announced in 2021 that it has joined the global renewable electricity initiative

products) with bundled renewable electricity and certificates. The third category is

RE100 as a Gold Member, and pledged to achieve the goal of 100% renewable electricity

unbundled energy attribute certificates (unbundled EACs). In full compliance with theand carbon neutrality by 2030 for all of Delta's global operation sites. Delta officially

RE100 technical manual, Delta developed other categories of innovation to encourage

established the Delta Global RE100 Committee in 2021 with the Chairman, Vice Chairman,

innovative measures for increasing the percentage of renewable electricity use. The

CEO, COO, and CSO as the main members who oversee eight work groups in moremechanisms are also partially linked to the internal carbon pricing system to encouragethan 30 countries. Each work group is led by the president of regional operations, who

all sites to prioritize the use of self-generated and consumed renewable electricity andestablishes a regional promotion organization to expand management to all locations. It

bundled renewable electricity.

is responsible for the promotion and attainment of renewable electricity targets for all
locations in each region.

Overall Progress in 2022
Delta promotes the target of attaining 100% renewable electricity at global operation

Delta's global operation sites continued to promote renewable electricity in 2022. The

sites by 2030. In 2022, the use of renewable electricity at global business locations

sites studied and reviewed local renewable electricity regulations and policies, market

reached 63%. Total electricity consumption was 709,484 thousand kWh (MWh), including

trends, prices and costs, and the integrity of traceability information, and gradually

447,002 thousand kWh of renewable electricity. The sources of renewable electricity

consulted with renewable electricity suppliers or electricity retailers. They also considered

included 25,454 thousand kWh (4%) from self-generated and consumed solar power,

the long-term sustainability of renewable power and evaluated the benefits and feasibility

51,808 thousand kWh (7%) from the direct purchase of PPA renewable electricity, 88,313

of building or investing in renewable power plants. The sites also identified bottlenecks

thousand kWh (12%) from green electricity products, and 281,427 thousand kWh (40%)

for using renewable electricity in the process. They learned about the reasons for thesefrom unbundled EACs.

bottlenecks and sought opportunities for improvement.
In 2022, the attainment rate of the use of renewable electricity was included as

Delta’s RE100 Goal

performance indicators of the Chairman, CEO, and highest-ranking officers of the workgroups for the first time, and it accounted for 5% to 15% of their total remuneration andincentives. Renewable electricity must comply with RE100 technical documents. To avoid
double counting and manage data quality, Delta strengthened awareness in meetings,

100

80%
63%

80

training programs, and internal audits in 2022. We then used the ISO 14064-1 verification
process to ensure the integrity of electricity consumption data.
Delta strategically promotes renewable power by setting procurement priorities andlinking different types of procurement projects to their internal carbon fees. In terms ofthe methods for attaining the targets, Delta uses energy conservation as the basis for
reducing electricity consumption and adopted a strategy of self-generated and consumed
renewable electricity as the highest priority. The second category is direct purchaseof renewable power (e.g., Power Purchase Agreements (PPAs) and green electricity

100%

Key Approaches

55%
60

45.7%

•• Energy conservation, self-generation
as priority

40•• Application of Delta’s solutions•• Encourage purchasing Bundled

20
0RE100 &
Carbon Neutrality

Renewable Electricity
2020

2021

2022

2025

2030

•• Develop other innovation approaches*Percentage of renewable electricity at Delta’s global operation sites was 63% in 2022.

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Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Delta Global RE100 Committee

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Delta's Renewable Electricity Promotion History

Board

2014

Dongguan, Wujiang and Wuhu Plants in Mainland China have partaken in
the "Golden Sun Demonstration Engineering" project,in which solar power
generation systems were established at the plants.

2016

Taoyuan Plant 2, Cyntec Huateng and Huafeng Plant (hereinafter referred
to collectively as Cyntec Huafeng Plant) established solar power generation
systems at the plants.

2017

Chenzhou Plant in Mainland China established solar power generation
systems.

Chairman,Vice Chairman, CEO, COO, CSO

Secretariat

Corporate Sustainability
Development Dept.

TaiwanWorking Group

China
Working Group

SEA
Working Group

India
Working Group2018• Wujiang and Wuhu Plants in Mainlan d China expanded their solar power
generation systems.
• Purchased International Renewable Energy Certificates (I-RECs) in
Mainland China.

2019

10% of the contracted capacity of renewable electricity has been installedin Taiwan.

2020

Negotiated long-term Renewable Electricity Power Purchase Agreements(PPAs) in Taiwan.

• Became a RE100 Gold Member.
2021

EMEA
Working Group

AmericasWorking Group

NEA
Working Group• Established the Delta Global RE100 Committee.
• Completed Delta’s first renewable electricity transaction.

CyntecWorking Group2022

The RE100 achievement rate was officially included as a performanceindicator for Delta’s top executives

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Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.3.3 Promotion of Energy Conservation by Green Buildings
Since the construction of Delta's first green building at the Southern Taiwan Science
Park in 2006, Delta actively promised that all future new Delta plants and offices shall
implement green building concepts. In 2022, the office buildings and plant buildings inboth Taichung Plant 1 and Chungli Plant 5 obtained LEED Gold and EEWH Diamond Gradecertification in 2022. By December 2022, Delta built and donated 32 green buildings andtwo green data centers around the world.
Delta continues to expand products and energy-efficient solutions in green buildings
and received certification from the US Green Building Council (LEED), the UK Building
Research Establishment (BRE), BREEAM, Ecology, Energy-Saving, Waste Reduction, andHealth (EEWH) system in Taiwan, and the Green Building Evaluation Standards in China.
With the inauguration of green buildings, Delta has incorporated diverse greening intoplant areas, ecological ponds, and other environmentally-friendly designs with positive
benefits for biodiversity. Delta also joined the narrative in the United Nations Climate
Change Conference, sponsored green building design contests, organized green building
exhibitions, published books such as "Build Green Buildings with Delta", and released
microfilms to promote green buildings.
Delta has autonomously set standards to establish comparison standards based on the
EUI (kWh/m2) of local building standards each year. We calculate energy savings of green
buildings including 17 plants and office buildings as well as 5 green buildings donated toacademic institutions in reference to the ISAE 3000 Assurance standard. In 2022, Delta's
global certified green plants and buildings collectively saved, in total, 26.91 million kWh ofelectricity* and reduced carbon emissions by approximately 15,400 metric tons CO2e.
In addition, Delta uses the power usage effectiveness (PUE) of data centers as a baseline
to evaluate electricity savings. In 2022, Delta's certified green plants and buildings
collectively saved, in total, 53,557 kWh of electricity and reduced carbon emissions byapproximately 27.51 metric tons CO2e.
*R efer to page 106-108 for the literature on the EUI calculation methodology used for Delta's
green buildings. The items below were excluded for the calculation of the building EUI: Electricity
consumption in the laboratories (Ruey Kuang Building of Taipei Headquarters, Taoyuan R&D Center,Taoyuan Plant 5, Chungli Plant 5, Chungli R&D Center, Taichung Plant, Tainan Branch Office Phase I& II, and Shanghai R&D Building), electricity consumption in the production process (Taoyuan Plant
5 and Chungli Plant 5), and electricity consumption of data centers (Ruey Kuang Building of Taipei
Headquarters and American Headquarters) and floor area in indoor parking lots, floor area in data
center area and floor area in unused area.

▲ Delta's LEED Gold-certified green building at the Automotive Campus in Helmond, the Netherlands

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Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Energy-saving Solutions Adopted by Delta Green Buildings and Their Benefits

Wujiang IT Data Center(Inaugurated in 2014)
LEED V4 ID + C GoldEMEA Headquarters(Inaugurated in 2017)
BREEAM Very Good
• 2022 EUI: 144 > EUI Baseline: 133.17*7• Highest energy saving rate to date:
65%(Compared to non-residentialbuildings)

Shanghai R&D Building(Inaugurated in 2011)
LEED Gold
WELL Health-Safety Rating• 2022 EUI: 47 < EUI Baseline: 89.8*3• Highest energy saving rate to date:
49%(Compared to large-scale
civil buildings)

Beijing Office Building(Inaugurated in 2012)
LEED Silver• 2022 EUI: 31 < EUI Baseline: 124*4• Highest energy saving rate to date:
73%(Compared to traditional offices) 2022 PUE: 1.30
 Highest energy savings rate todate: 57% (compared to 2015)
 Electricity savings: 215,762 kWh

India Rudrapur Plant(Inaugurated in 2008)
LEED-India Gold

India Gurgaon Plant(Inaugurated in 2011)
LEED-India Platinum

India Mumbai Office Building(Inaugurated in 2015)
LEED Platinum

DET Plant 5(Inaugurated in 1990)
EEWH• 2022 EUI: 60 < EUI Baseline: 210*5• Highest energy saving rate to date:
76%(Compared to traditionalcommercial buildings)• 2022 EUI: 88 < EUI Baseline: 210*5• Highest energy saving rate to date:
60%(Compared to traditionalcommercial buildings)• 2022 EUI: 94 < EUI Baseline: 210*5• Highest energy saving rate to date:
77%(Compared to traditionalcommercial buildings)• 2022 EUI: 604 < EUI Baseline: 640*8• Highest energy saving rate to date:
23%(Compared to pre-renovation plant)*1.<Bureau of Energy, Ministry of Economic Affairs>2021 Energy Audit Annual Report for Non-Productive Industries (P.28): 153.1 kWh/m2 (office buildings, parking lots not included).
*2.<Architecture and Building Research Institute, Ministry of the Interior>2019 Green Building Evaluation Manual of the Architecture and Building Research Institute of Ministry of the Interior-Basic Version (P.180): 154
kWh/m2 (air-conditioned general factory operation area).
*3.<Shanghai Municipal Commission of Housing and Urban-Rural Development>2021 Shanghai Government Office Building and Large Public Building Energy Consumption Monitoring and Analysis Report (P.28): 89.8
kWh/m2 (office buildings, parking lots not included).
*4.<The Energy Foundation> Study on Energy Conservation Potential and Promotion Mechanism for Civil Buildings in Beijing (P.25): 124 kWh/m2 (office buildings, parking lots not included).
*5.<UN and Indian Bureau of Energy Efficiency>
Energy Efficiency Improvements in Commercial Buildings (P.14): 210 KWh/m2 (office buildings, parking lots not included).
*6.<ENERGY STAR> Technical Reference of the 2018 U.S. Energy Use Intensity by Property Type (P.4): 166.88 kWh/m2 after conversion (office buildings).

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Energy Management

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A Word from
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Overview

Sustainable
Management

Delta Headquarters IT Data Center(Inaugurated in 2014)
LEED V4 ID + C Platinum(first in the world)• 2022 PUE: 1.29
• Highest energy saving rate to date:
26.7%(compared to 2015)• Electricity savings: 169,672 kWh

Multi-purpose Building in AKO
Energy Park in Japan(Inaugurated in 2017)

Taipei Headquarters Ruey Kuang Building

Taoyuan R&D Center(Inaugurated in 2011)
LEED Gold
EEWH Gold
WELL Health-Safety Rating(Inaugurated in 1999)
EEWH-RN Diamond
WELL Health-Safety Rating• 2022 EUI: 75 < EUI Baseline: 153.1*1• Highest energy saving rate to date:
58%(Compared to traditional offices)
Taoyuan Plant 5(Inaugurated in 2015)
LEED Gold
EEWH Gold• 2022 EUI: 138 < EUI Baseline: 154*2• Highest energy saving rate to date:
19%(Compared to traditional offices)

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

America Headquarters(Inaugurated in 2015)

LEED Gold• 2022 EUI: 109 < EUI Baseline: 165.57*9• Highest energy saving rate to date:
50%(Compared to green building
application documents)• 2022 EUI: 88 < EUI Baseline: 153.1• Highest energy saving rate to date:
53%(Compared to traditional offices)*1

Chungli Plant 5(Inaugurated in 2021)
LEED Gold 2022 EUI: 91 < EUI Baseline: 154*2

Communication
with Stakeholders

LEED Zero-Energy Consumption
Certification
LEED Platinum
CBE Annual Livable Buildings Award
WELL Health-Safety Rating• 2022 EUI: 0 < EUI Baseline: 166.88*6• Highest energy saving rate to date:
100%(Compared to traditional
offices)*10
Chungli R&D Center(Inaugurated in 2017)
LEED Gold 2022 EUI: 86 < EUI Baseline: 153.1*1• Highest energy saving rate to date:
45%(Compared to office buildings)

Tainan Plant Phase I(Inaugurated in 2006)
EEWH Diamond Grade
WELL Health-Safety Rating

Taichung Plant 1(Inaugurated in 2021)
LEED Gold Grade & EEWH
Diamond Grade
WELL Health-Safety Rating• 2022 EUI: 49 < EUI Baseline: 154*2

Tainan Plant Phase II(Inaugurated in 2013)
EEWH Diamond Grade 2022 EUI: 66 < EUI Baseline: 153.1*1• Highest energy saving rate to date:
65%(Compared to traditional
offices)

 2022 EUI: 101 < EUI Baseline: 153.1*1• Highest energy saving rate to date:
38%(Compared to traditional offices)*7.<European Commission>European Commission Buildings Database: 133.17 kWh/m2 (2014 Netherlands nonresidential buildings) As the pandemic subsided and business transactions increased in Europe in 2022,
the number of employees and total work hours increased, which resulted in higher electricity consumption.
*8.< LEED 2009 for Existing Buildings Operations and Maintenance Rating System>DET Plant 5 Green Building Application (According to the LEED 2009 for Existing Buildings Operations and Maintenance)-Baseline
year 2010-2012 average EUI: 640 kWh/m2.
*9.AKO green building application documents (according to LEED v4 commercial interiors, retail, hospitality minimum energy performance simulation requirements) simulation baseline value: 165.57 kWh/m2.
*10.The American Headquarters was designed to have net zero energy consumption. It is equipped with 1.1MW of self-generated, and the self-generated and consumed renewable energy exceeded the purchasedgray energy consumption in 2022 and therefore the EUI = 0.

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5.3
Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Energy-saving Solutions Adopted by Green Buildings Donated by Delta and Their Benefits

The Delta Building at
The Namasia Minquan Elementary School(Inaugurated in 2012)
LEED Zero Energy
EEWH Diamond Grade 2022 EUI: 0*12
 Highest energy saving rate to date:100%
The Kuo-Ting Optoelectronics Building at
National Central University(Inaugurated in 2011)
EEWH Bronze Grade(2015-2018)
 2022 EUI: 22.62*11
 Highest energy saving rate to date: 70%

The Delta Building at
National Cheng Kung University (NCKU)(Inaugurated in 2009)
EEWH
School Category(2009-2012) 2022 EUI: 58.25*1
 Highest energy saving rate to date: 62%
Yun-Suan Sun Green Building Research Center at
National Cheng Kung University (NCKU)(Inaugurated in 2011)
LEED Platinum Grade, EEWH
Diamond Grade 2022 EUI: 26.84*1
 Highest energy saving rate to date: 85%

Delta Building at
National Tsing Hua University (NTHU)(Inaugurated in 2011)
EEWH Bronze Grade(2011-2014) 2022 EUI: 80.75*11
 Highest energy saving rate to date: -3%*11.<Bureau of Energy, Ministry of Economic Affairs>2021 Energy Audit Annual Report for Non-Productive Industries (p.28): 76.6 kWh/m2(general university EUI, indoor parking lots not included)*12.<Ministry of Economic Affairs and Ministry of Education> Energy Conservation Action Plan for Government Agencies and Schools (page 19) approved by the Executive Yuan in 2021 elementary school group 2 EUI:
24 kWh/m2

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5.4
Water Resource Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.4 Water Resource Management
5.4.1 Identification of Water Risks and Response Measures
Establishing Risk Assessment
Mechanisms
Delta continues to strengthen operation
management and risk identification to

Baseline water stressValue Chain

Risk Factors

achieve sustainable cooperation withpartners in the value chain and conduct
indepth analyses of the risks of supply
chain interruptions caused by risks ofdroughts derived from climate change.
Delta uses the Aqueduct Water Risk Atlasdeveloped by the World Resources Institute(WRI) to identify the risks of Delta's supply
chain and global operation sites. We scoredeach risk based on the risk elements andthe final results were used as the basis
for Delta's internal decision making. We
formulated corresponding measures toensure adequate response capabilities,
make adjustments before risks arise, andimplement sustainable management ofwater resources. Delta shall continue to
use the assessment methodology for highrisk plants and plan suitable measures foradaptation.

Supply Chain
Entities at Risk
Tier 1 supplierswith whom we havecontinuous transactionsin 2022

Global Operation
Sites
Entities at Risk
Sales offices, plant sites
and R&D centers

Extremely
High

High

Medium High

MediumLow

Low

2.9%

20.1%

5.5%

3.5%

68.1%

13.6%

13.1%

13.1%

5.7%

54.5%

• Hazards: Use the tools of the World
Resources Institute (WRI) for hazard
classification• Exposure: Rating based on the amountof purchases made from suppliers• Vulnerability: Determined by the industry
characteristics (sensitivity to water
usage) of the supply chain• Hazards: Use the tools of theWorld Resources Institute (WRI) for
classification• Dependency: Classification based on
the water consumption and standard
deviation of the plant in previous years

Total water withdrawal (ML)

• Severe: Classification based on the
production value and standard deviationof the plant in previous years• Probability: Past flooding/droughts areused as the criteria

246.2

1,803.1

306.6

38.6

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5.4
Water Resource Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Water Risk Adaptation and Response
Supply Chain•• According to the weighted score, the risk distributions of suppliers are medium-high(18.6%), low-medium (78.4%), and low (3.0%).
•• Delta shall share the water conservation experience of Delta's own plants and green
buildings with suppliers in high-risk areas to plan for climate change mitigation andadaptation.
•• Delta shall evaluate suppliers' water resource management and short, medium,and long-term response strategies based on the feedback in the questionnaire tostrengthen the sustainability of the value chain and enhance the Company's influencein achieving corporate sustainability.

Global Operation Sites•• According to the weighted score, Delta Thailand 1 is classified as a plant at risk. We▲ High efficiency water pump system

proposed related water conservation measures to reduce water consumption demand.
•• With regard to direct operations, Delta has established its own water conservation
targets and evaluated the current conditions and future water shortage risks according
to RCP 2.6 (2°C warming) and RCP 8.5 (Business as Usual, BAU) scenarios of IPCC
AR4 to enhance regional water resource resilience and achieve sustainability in water
consumption. The risk values derived from the analysis are used as the basis forfinancial impact estimates.
•• Delta shall continue to use the assessment methodology for high-risk plants and plansuitable measures for adaptation. In addition to reducing the impact of floods, thesemeasures will also increase the number of days for sustained operations.
•• Increase wastewater treatment and recycling: Reduce dependency on tap water•• Delta evaluated individual risks of the sources of water resources for formulatingcorresponding measures to ensure adequate response capabilities and to makethe most resilient adjustments before risks arise, in order to implement sustainable
management of water resources.
▲ Smart monitor

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5.4
Water Resource Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.4.2 Consumption and Effectiveness of Water Resources
Implementing Water Resources Management
Delta is keenly aware of the connections between water safety and the welfare of people and industries. The issues have been extended from the environment to human rights andeconomic development. Among the 17 Sustainable Development Goals of the United Nations, SDG 6 "Clean Water and Sanitation" aims to ensure availability and sustainable managementof water and sanitation for all.

Clean Water
for Consumption

In terms of the drinking water and water supply for the kitchen in each plant, tap water must be filteredthrough a filtration system and UV light to ensure that the quality of drinking water meets local legal standards.

Effectiveness/Results
Drinking water is tested at least once each quarter. We also commission third-party water quality inspection
units to test for bacteria such as E. coli.

Improving
Efficiency

Smart
Monitoring

Pollution
Reduction

Delta actively increases water consumption efficiency at the process end and increases output
under the same water consumption conditions to reduce the risks of water resources in different
industries.

Effectiveness/Results
Delta has introduced 37 water conservation solutions in overall production plants and buildings
in 2022 which reduced 108.8 million liters of water consumption.

Delta completed its water meter installation in production plants and buildings and combined
them with the Delta Energy Online system to monitor water consumption.

Effectiveness/Results
Each plant monitors and regularly reviews water consumption efficiency to reduce unnecessary
waste.

Sewage treatment and wastewater treatment in plants help to effectively reduce the negative impact on the environment.

Effectiveness/Results
Delta regularly appoints third-party institutions to test the waste (sewage) water quality to ensure that there is nomaterial impact on the surrounding environment from receiving the water.

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5.4
Water Resource Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Devoted to Environmental
Protection and Energy
Savings

Corporate
Governance

Employee Relations
and Social
Participation

Appendix

Promoting Water Conservation and the Use of Recycled Water
The sources of water of Delta's overall
production plants *1 consist mostly of

50.9

tap water (99.0%) which is mainly usedin cooling towers, restaurants, and

16.6

Rain

megaliters

megaliters

daily general sanitation for cleaning
bathrooms. In 2022, Delta's total volume3,922.1of water withdrawn for overall production

Overall
Production Plants

plants was 3,973 ML (rainwater reuse
50.9 ML). Total water consumption was
1,361.3 ML and water discharge was2,611.7 ML (91.9% domestic sewage and8.1% process wastewater). Total volume
of water recycled was*2359.7 ML andrecycled water usage rate was*3 8.4%.
The total volume of water withdrawn forbuildings*4 was 145.5 ML (rainwater reuse
16.6 ML). Total water consumption was
69.3 ML and water discharge was 76.2

megaliters

Total Water Withdrawn

1,361.3

megaliters
Total Water
Consumption

3,973 megaliters

2,611.7
megaliters

128.9

megaliters

City
Water

308.8

1.8

megaliters

megaliters

8.4%*3

12.5%*3

Buildings
Total Water Withdrawn

145.5 megaliters

Reclaimed Water

91.9%

Domestic Sewage

8.1%

Process Wastewater

69.3

megaliters

76.2

megaliters

Total Water
Consumption

ML. Total volume of water recycled was
18.4 ML and the recycled water usage
rate was 12.5%.
A total of 37 new solutions for
production sites and buildings havebeen implemented in 2022, including:
rainwater retention and reuse,condensate recycling, outlet pressure
control, and equipment adjustment andProduction Plants

Buildings

2022 Water productivity intensity (WPI) was 366 metric
ton/MUSD for Delta’s overall production plants. A decreaseof 21.3% compared to 2020. The main reasons are as follows:

The WCI of 7 buildings in 2022 was 16.9 metric tons / numberof people/year, a decrease of 23% compared to 2020 mainly
due to the following reasons: Inclusion of the cooling water circulation system for machinery Recycling of concentrate discharge from the RO pure water
system Installation of conductivity control pumps/drainage for machinery Fish pond filtering system update reduced water replacement
frequency Adjustment of the control valve for the pure water system toelectronic control

improvement, saving a total of 108.8 MLof water consumption.

*1.Overall production plants: Dongguan, Wujiang, Wuhu, and Chenzhou Plants in Mainland China; DET plant 1, 3, 5, and 6; Taoyuan Plant 1, Taoyuan Plant 2,
Taoyuan Plant 5, and Pingzhen Plant in Taiwan; Cyntec Hsinchu and Huafeng Plants*2.Total water recycled= (reclaimed water + rainwater).
*3.Recycled water recycling rate = total water recycled / (total water withdrawn + reclaimed water).
*4.Seven buildings including Ruey Kuang, Yang Guang, Taoyuan Plant 3, Chungli RD, Tainan 1 & 2, and Shanghai Technology Development; excluding Dongguan
Technology Development, Wujiang Technology Development, Japan, USA, and Germany.

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5.4
Water Resource Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Wastewater Management
All waste (sewage) water from Delta's overall production plants and buildings is either properly treated by suitable wastewater treatment facilities, or directly discharged to waste (sewage)
water plants designated by the local management center. For sites where no flow meter is installed, the sewage discharge is estimated to be 80% of the water consumption; while
wastewater discharge of Taoyuan Plant 5, Pingzhen Plant, Cyntec Hsinchu, and Cyntec Huafeng is calculated by actual monitoring and inspection of discharge volume.
The quality of discharge across all plants is in compliance with current legal regulations, and we regularly test the waste (sewage) water quality to ensure that no material impact occurs
to the surrounding environment from receiving the water. No material leakage or overflow occurred at any production plant in 2022.

Water Discharge by Quality and Destination
RegionTaiwan HQs

Mainland
China

Production Plants

Discharges(ML)

Taoyuan Plant 5

Concentration of Effluent (mg/L)
Processing Unit

Receiving Water

222.0

Guishan Industrial Park
Wastewater Treatment
Company

Nankan River

34.9

52.2

Treatment within the plant

Dakengque River

3.6

5.6

25.1

Hsinchu Science Park
Wastewater Treatment
Company

Keyaxi River

116.7

33.8

109.9

Yundong Wastewater
Processing Company

Wusongjiang River

Total Suspended
SolidsBiochemical Oxygen
DemandChemical Oxygen
Demand

1.5

58.5

103.0

Pingzhen

1.2

31.6

Cyntec Hsinchu

174.5

Cyntec Huafeng

34.7

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5.5
Resources Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

5.5 Resources Management

Devoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Delta's Circular Economy Strategies

5.5.1 Enhancing Circular Recycling and Reuse
Design for circularity

Promotion of the Circular Economy in Separate Stages
Delta offers a diverse range of software and hardware products with its three major business groups for power electronics,
automation, and infrastructure. Its product portfolio includes components, power and system, fans and thermal
management, automotive electronics, automation equipment, communication power systems, data center infrastructure,
network systems, electric vehicle charging, and energy storage systems. To strengthen resource recycling and reuse, Delta
will promote the circular economy in separate stages from the introduction of an assessment methodology to focusing on

Product value
recovery

Delta's Circular
Economy Strategies
Products Services

strategies and indicators, and setting targets for formulating a circular economy plan.

Shifting fromproducts toservices

From 2021 to 2022, we proposed 17 products for trial operations in the circular economy evaluation meetings to introduce
the evaluation methodology for product circular economy programs. We inventoried the current state of the products andvalue chain resources and discussed a total of 60 potential circular economy solutions. Then we used the above evaluation

Circular sourcing andmanufacturing

process to focus on four major circular strategies that fit the characteristics of Delta's products and services, including thedesign for circularity, circular sourcing and manufacturing, shifting from products to services, and product value recovery.
From these strategies, we defined quantifiable indicators that will serve as the basis for future objectives in the circular
economy plan.

Expansion of the Use of Recyclable and Renewable Building Materials
To fulfill and expand its responsibilities as a producer, Delta set source and output waste reduction targets in 2017 andcreated a venous economy supply chain with the discarded scraps of PCBs from the production process and connections
with all partners in 2020. The supply chain starts with Delta's production and we work with waste disposal and processing
companies, circular material design consultants, renewable building material producers, architects, and construction
companies to create a renewable building material demonstration and application project.
With Delta's active support, recycled building materials were used for the exterior walls of the control building and weighing
room of the Taoyuan Biomass Energy Center in 2022. We used approximately 8 metric tons of waste PCBs to produce"Sustainable Island" installation art made with recycled materials
was exhibited at the Taiwan Design Expo

550 square meters of recycled building materials, which was equivalent to reducing nearly 12 metric tons* of carbon emissions. In the same year, Delta successfully used the renewablebuilding materials for footpaths and landscaping in the greening areas in Taoyuan Plant 3 and Taoyuan Plant 5. In late May, Delta used renewable building materials as an anti-corrosion
decorative wall in the "Zero-Carbon Community" exhibition in COMPUTEX Taipei to support the theme of the exhibition of using technology to empower the transition to sustainability.
In early October of the same year, Delta's "Sustainable Island" installation art made with recycled materials was exhibited at the Taiwan Design Expo, which attracted the attention ofvisitors. It was moved to the lobby of Delta’s Taoyuan Plant 3 in late October for use by employees and visitors as a place to rest. It also served as a demonstration of the circular economy
to inspire more innovation.
*1.The project used 8 metric tons of PCB waste with approximately 43% glass fiber powder (3.44 metric tons) and the carbon reduction benefits included:‣Reduction of emissions due to incineration totaling 0.617 metric tons of greenhouse gas emissions X 3.44 metric tons of glass fiber = 2.12 metric tons CO2e;‣Reduction of emissions due to the reduced extraction of new materials totaling 2.76 metric tons of greenhouse gas emissions X 3.44 metric tons of glass fiber= 9.5 metric tons CO2e2022 Delta Electronics ESG Report

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5.5
Resources Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.5.2 Waste Generation and EffectivenessImplementation of Waste Management

Value Chain Waste Flow Chart of Overall Production Plants

Delta established its " Water Conservation and Waste Reduction Management Committee"

Unit: Metric Tons

Main procured materials 408,417

in 2016. In order to achieve sustainable use of resources and ensure proper handling ofwaste, the Committee analyzed the sources and types of waste output, and identified

Raw Material Suppliers

potential for reuse by combining respective internal and external resources. In 2019, Deltabegan to introduce the UL 2799 zero waste landfill certification and production sites in

26%

Dongguan and Wujiang obtained UL 2799 Platinum certification. Delta continued to promote

Reuse/reutilization
18,321.4

waste reduction measures, and a total of 61 waste reduction projects were implemented*1

in the overall production plants in 2022 , including recycling of packaging materials,

100%

adjustments to reduce the use of solvents, and sludge moisture content reduction, which

Reuse of packaging
materials

Reuse of carton,tray
and trailer

resulted in a total of 1,480 metric tons of waste production savings and reduced expenses
by approximately 0.4 MUSD.

2%

The data on Delta's waste generation were reported by the plants in the internal ESG

Cartondata platform at regular intervals and placed under the centralized management of theReduce1,470.1

Overall
Production
PlantsPaper

system. The plants and buildings retain the weighing records and government report datafor reference. The management units track the vehicles of the institutions responsible for

89%

11%

disposal and perform audits from time to time.

qualified disposal institutions was approximately 49,272 metric tons in 2022, of which, nonhazardous waste accounted for 45,352 metric tons (92%), and hazardous waste accounted
for 3,920 metric tons (8%).

Waste Reduction in Value Chain
Delta's waste reduction starts with its own improvements and it collaborates with the value
chain to facilitate effective use of resources and reduce waste. Delta's overall production
plants have quantified value chain collaboration and overall effectiveness. The total amountof waste generated was 69,064 metric tons, and the total amount of all waste diverted was
68,403 metric tons, with a diversion rate*2 of 99%. The income from waste recycling totaled

Outsourced Waste Treatment

Statistically, the total weight of waste for overall production plants which are disposed by

62%

Recycle9%

Waste to Energy
Recovery0%

Incineration(without Energy Recovery)

1%

Landfill

Total:49,272.1
93%

11%

86%

7%

89%

14%

16.193 MUSD.
*1.Overall production plants in Dongguan, Wujiang, Wuhu, and Chenzhou Plants in Mainland China; DET
plant 1, 3, 5, and 6; Taoyuan Plant 1, Taoyuan Plant 2, Taoyuan Plant 5, and Pingzhen Plant in Taiwan;
Hsinchu and Huafeng Plants,*2.Waste diversion rate = reuse + reduction + recycling + waste energy recovery + anaerobic digestion+ biofuel + composting) / total weight of waste generated; of which, the percentage of waste energy
recovery must be less than 10%.

Non-hazardous Waste

Hazardous Waste

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5.6
Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.6 Green Products
5.6.1 Green Design
Life Cycle Assessment
Life Cycle Assessment (LCA) is a systematic analysis method for environmental impact caused in each phase of input and output from acquisition of raw materials, manufacturing andassembly, transportation and distribution, and use to final disposal. In order to reduce the impact of products on the environment, Delta conducted a full-scale LCA and Screening LCA on
the environmental impact of respective products according to the international standards ISO 14040 and ISO 14044 in each phase, and introduced green design.
Since 2010, Delta has selected several representative products to perform product carbon footprint research based on the Life Cycle Assessment methodology in accordance with PAS
2050 and ISO 14067 standards. This included the carbon footprint inventory of notebook external power supply units (adapters), DC fans, PV inverters, high-efficiency rectifier modules,
switching power supply, and DC/DC modules for EV powertrain, for which third-party certificates were obtained. By summarizing the results of several products' LCA, it shows that theenvironmental impacts from the "use phase" of Delta's core products is currently most significant during their actual life cycle, while "acquisition of raw materials" comes in second.
Delta has a large variety of products, and for this reason, we calculate our product carbon footprint in separate phases. In 2022, the Supply Chain ESG Committee assembled a businessgroup for the comprehensive product carbon footprint system project and published the Delta Group’s Product Carbon Footprint Strategies. We expanded the types of products including
an adapter, power choke, stator, DC fan, LED high bay lights, wireless AP, electric vehicle charger IC-CPD, digital projector, and integrated low-voltage DC brushless vehicle motor forthe carbon footprint calculation and verified in accordance with ISO 14067. We adopt the existing Delta Material Carbon Emission Database and established a product carbon footprint
calculation mechanism as well as international carbon emission factor databases to create a platform of knowledge. We analyze product carbon footprint hot spots and opportunities forcarbon reduction, and will use circular business models, product green design, partnerships with low-carbon raw material suppliers, energy conservation and renewable power operationin plants, setup of green logistics, waste management, and continuous engagement, communication and encouragement for value chain partners to jointly accelerate product carbon
footprint reduction actions.

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5.6
Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Continuous Reduction of the Environmental Impact of Products
Delta has upheld the mission statement "To provide innovative, clean and energy-efficient solutions for a better tomorrow"and prioritizes green design and circular design throughout the product life cycle from the design of source products tothe final disposal. We continue to develop and innovate energy-efficient products and solutions to provide efficient andreliable integration solutions and services for energy conservation. We continue to provide training programs for circular
design, including the principles of making changes at the source, using waste as resources, maintaining high-value use,and considering pathways for the circular economy. We introduce strategies for circular design, choosing smart materials,
providing product access, extending product life, and creating product residual value to design products or services from a
product life cycle perspective and reduce resource consumption and environmental impacts.

Product
Life Cycle Stage
Strategies for Reducing
Environmental Impact of
Products

2018
Product design
 Consider the full life cycle
 Modular design

Raw materials• Lightweight product design• Use of recyclable/recycled/renewable materials• Green supply chain• Local procurement of materials• Usage management of environment-related substances*For more information, please refer to Ch 4.5 Supplier
Sustainability Management and Ch 5.5 Resources Management

Transportation & distribution

Manufacturing and production

NOW

Delta's brand Innergie has gradually reduced the sizeof product packaging and uses environmentally friendly
packaging materials

Since the end of 2022, Innergie has adopted zeroplastic packaging for its flagship One For All charger
in separate phases across the globe. We completely
removed the plastic window and the inner linings ofthe products and replaced them with FSC Mix paper.
We also performed a complete inventory of the volume
of products and digitalized the instruction manual.

• Adoption of green packaging materials• Reduced packaging volume design• Lightweight product design• In-plant energy conservation / water conservation /waste reduction solutions• In-plant resource recycling• Use of renewable electricity*For more information, please refer to Ch 5.3 Energy Management,
Ch 5.4 Water Resource Management, and Ch 5.5 Resources Management

Usage• Enhancing the energy efficiency of products*For more information, please refer to Ch 5.6.4
Energy Saving Benefits of Products

Final disposal• Use of recyclable materials• Design for ease of product dismantling and recycling• Meeting requirements of local environmental protection
regulations (e.g., EU WEEE Directive)

We continued to utilize structural design to maximize
shared use, which provides products that have thesame dimensions with packaging materials of thesame specifications across the world to support thespirit of One for All.
Based on 2022 sales statistics, Innergie's transition
to zero-plastic packaging is expected to reduce
plastic use by at least 2.5 metric tons each year. The
transition will reduce the volume of the same products
by up to 60% compared to the old packaging, and will
significantly increase the efficiency of logistics.

*For more information, please refer to Ch 5.5 Resources Management

2022 Delta Electronics ESG Report

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5.6
Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.6.2 Hazardous Substance Policy and Management
Since 2002, Delta has established the Delta Environmental Hazardous Substance Management Policy and Regulations. Delta's product design to manufacturing process, including thecomponents, process chemicals, jigs, and packaging materials that make up Delta's products, are all included in the management system in order to achieve the most comprehensive
management. It is Delta's responsibility and contribution as a global citizen to insist on producing excellent products that meet green regulations and enhance performance.
Monitoring Legislative Changes
In line with Delta's diverse product development,
Delta continues to pay attention to various
regulations related to hazardous substances,such as the "Restriction of Hazardous Substancesin Electrical and Electronic Equipment Directive"(RoHS), which is the main regulation for electronic
products in the European Union; the European
Union's "Registration, Evaluation, Authorization
and Restriction of Chemicals" (REACH);"Persistent Organic Pollutants Regulations"(POP); the automotive industry's mainstream"Global Automotive Declarable Substance List"(GADSL); the Safe Drinking Water and Toxic
Enforcement Act of the United States, also known
as "California Proposition 65" (Prop 65); the "Toxic
Substances Control Act" (TSCA) list of the U.S.
Environmental Protection Agency; to Japan's"Chemical Substances Control Law" (CSCL). We
pay advance attention to these regulations, andat least one year before the implementation of theregulation, we incorporate into our management
standard and implement the introduction.
EU and US regulatory authorities have shifted
their focus to per- and polyfluoroalkyl substances(PFAS) in recent years. The US TSCA and theEU's POP/REACH directives have added new
management plans, and the electronics industry istrying hard to respond and adjust to the changes.

Delta's Hazardous Substance Process
Management System
Delta introduced the IECQ QC 080000
Hazardous Substance Process
Management System to ensure
a consistent set of standards forhazardous substance management.
We also set up a comprehensive
internal process for hazardous
substance management from material
evaluation and material numbering tomaterial procurement with Product
Lifecycle Management (PLM) andenterprise resource planning (ERP).
We use the Delta EC Suppliers
exchange platform as an interface
to publish the latest hazardous
substance management regulations.
We will then subsequently obtain adeclaration based on the material
number and conduct new supplierevaluations based on the same
management regulations.
We currently impose restrictions on
more than 500 hazardous substances
in approximately 13 categories
including heavy metals, flame
retardants, plasticizers, and persistentorganic pollutants.

Implementation

Disclosure of Hazardous Substances

When there are significant adjustments
to external laws and regulations orDelta's policies, the Delta Environmental
Hazardous Substance Management Policy
and Regulations content will be discussed
across business groups to reissue theregulations and confirm the schedule. The
frequency of adjustment is once a year.
Under the management regulations, eachplant has established detailed control
procedures, including material recognition,
testing requirements, reports, anddeclaration requirements. Each plant has
a dedicated staff responsible for handling
quality abnormalities and preparing
environmental management material
implementation plans. We have also
incorporated supplier-end management
and audit into the management scope by
integrating VQA (Vender Quality Assurance)
supplier audits with incoming material
inspection and sampling, parts engineering
units, and materials units to establish acomplete hazardous material management
system.

The composition of electronic products
is complex, and the most major concernsof customers are the substances ofvery high concern under EU REACH and
RoHS exclusion-related statements.Take
power supplies as an example, there
are mainly 17 disclosed substances in
Delta's electronic products, including resinmaterials and additives, metal surfaces,
electrical contact alloys, electrolyte
additives, ceramic material additives,
flame retardant, such as antimony trioxide,
boric acid, and siloxane.
In addition to disclosing hazardous
substances in response to customer
demand, Delta has also begun to compile
data on all of Delta's hazardous substancemanagement indicators in response toinvestor expectations. All products in the
power supply business group comply with
the IEC 62474 Material Declaration for
Products of the Electrotechnical Industry.
We also completed the International
Material Data System (IMDS) reference
settings for automotive product lines.

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5.6
Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Progress on the Response to the Latest Legislation
In 2022, the European Commission proposed to add tetrabromobisphenol A (TBBP-A) and medium-chain chlorinated paraffins (MCCPs) to the list of restricted substances in the RoHS
Directive. Delta had evaluated and completed the phasing out of such substances many years ago and will thus be compliant with the latest RoHS changes in the shortest possible time.
EU and US regulatory authorities have shifted their focus to per- and polyfluoroalkyl substances (PFAS) in recent years. As PFAS is both carcinogenic and non-degradable in the naturalenvironment, the industry must exercise greater caution in its use. Due to its stable nature and high performance, PFAS is commonly used in electronic products. Delta will launch an
inventory in 2023 and a reduction plan is expected to be proposed in 2024.

Delta's Phase-Out Program for Hazardous Substances
Since Delta's introduction of the first lead-free soldering production line in 2000, it has eliminated hazardous components that do not comply with regulations, and has actively reviewed
the materials used. In 2007, we established the Delta Halogen-Free Standard to ensure that Delta's products comply with market trends and regulatory requirements for the use of
halogenated substances.

Targets and progress for flame retardants and plasticizers
Delta also continues to carry out more control and evaluations of flame retardants and plasticizers for continuous optimization. For example, phosphorus-based flame retardants wereused in the past to replace brominated flame retardants to achieve the halogen-free goal (chlorine and bromine). But several phosphorus-based flame retardants were later found to
be more biotoxic so they were phased out again, while a number of phosphorus-based flame retardants and plasticizers with higher biotoxicity have been banned. The phasing out is
expected to be completed by 2023 to be above the regulatory requirements. In new products produced after 2024, we will adopt higher standards to provide safer products and services.
Our ultimate goal is to achieve seamless conversion and we continued to incorporate halogen-free replacements. From 2022, none of our new models will use Tris(2-chloroethyl)
phosphate (TCEP) or Tris(1-chloro-2-propyl) phosphate (TCPP).

2022 Delta Electronics ESG Report

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5.6
Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Devoted to Environmental
Protection and Energy
Savings

Corporate
Governance• Adoption of the QC
080000 Hazardous
Substance Management
SystemDelta established
Environmental Hazardous
Substance Management
Policies and Regulations

2000

2005
2002

Introduction of thefirst lead-freesoldering production
line• Establishment of Delta's
Halogen-Free Regulations

Adoption of the ISO
14001 Environmental
Management System

Delta completed the first
product carbon footprint
inventory

2013
2010

Delta Green ProductManagement (GPM)
Information System

Appendix• Production plants in Taiwan, Mainland
China, and Thailand no longer use
chlorinated organic solvents or cleaning
agents which contain CMR Levelingredients.

2008
2007

Employee Relations
and Social
Participation

2022
2021

Registration in theInternational Material
Data System (IMDS)• Delta Environment
Related Substance(ERS) Management
Platform• From 2022, none of
our new models will
use TCEP or TCPP.

Rare Metals
Delta uses rare metals for certain elements of its electronic components, particularly rare metals defined by SASB such as cobalt, gallium, graphite, tantalum, and palladium. In responseto the issue of the scarcity of metals, Delta conducts regular inventories and evaluates the feasibility of product use in the circular economy to manage the use of rare metals.
Gallium plays a critical role in the next generation of semiconductor power components. Rare elements such as cobalt, tantalum, palladium, and antimony are widely adopted in a varietyof passive components such as resistors, capacitors and magnetic components. Rare earth elements are also indispensable parts of passive components.

2022 Delta Electronics ESG Report

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5.6
Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.6.3 Eco-labels and Eco-declarations
Type I . Eco-labels

Type II . Environmental Declarations

Type I Eco-labels conform to the specification standards of organizations or governments,

Data collected from Streamlined Life Cycle Assessments (SLCA) of several of ourand have been verified by third parties. Trademarks are easily identified by clients andproducts shows that the environmental impact from the use phase of Delta's core

consumers.

products is most significant during their actual lifecycle. We therefore implement productenvironmental information disclosure while improving product energy efficiency, andDelta's Type I Eco-labels

integrate this with the ISO 14021 Self-Declared Environmental Claims and the ISO 14025
Environmental Product Declaration (EPD).

Taiwan Green Mark

45 projector products have obtained the

Taiwan Green Mark

Delta launched the "EnergE" program for telecom power supply in 2010, which assigns
different ratings based on product performance in energy efficiency. These include agreen label for 95% to 96%, gold label for 96% to 97%, and purple label for efficiency

87
Taiwan Energy Label

China Environmental
Labelling

ENERGY STAR Most
Efficient Products

80 PLUS Certification

higher than 97% to help customers distinguish between products.
products have obtained the Taiwan

Energy Label(including indoor lightings, road lightings,
bathroom exhaust fans)

EnergE Product Label Examples

Efficiency> 97%

95 roducts received ENERGY STAR's highest

Efficiency

96% ~ 97%442 power supply products certified by

Efficiency

95% ~ 96%

71 products were certified by China CEC*1certification for efficiency(including ceiling fans and ventilating fans)

80 PLUS*1.They do not include phased-out products2022 Delta Electronics ESG Report

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5.6
Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.6.4 Energy Saving Benefits of Products
Delta continues to enhance product energy efficiency and to develop integrated green energy products, energy-saving products and solutions, which help clients conserve more energy
and achieve even higher cost-effective performance. Based on the shipment of power supplies, direct-current fans, uninterruptible power supplies, variable-frequency drives, LED lamps,
electrical ballasts, PV inverters, and direct-current EV chargers shipped between 2010 and 2022, Delta's high efficiency products saved customers an estimated 39.9 billion kWh ofelectricity and reduced carbon emissions by 21.05 million metric tons CO2e.
In 2022, Delta's products saved, in total, 4.02 billion kWh of electricity and reduced carbon emissions by approximately 2.046 million metric tons CO2e*1. In 2015, Delta was the first in
the industry to introduce product energy-saving calculations into ISAE 3000 assurance. Since then, Delta has added product items each year and accomplished assurance of ISAE 3000
product energy conservation for 11 products by 2022. For more information, please refer to Appendix Ch 7.4 Summary of Information Assured (ISAE 3000)*1.The electricity emission coefficient cited was based on the electricity emission coefficient of 0.509 kg CO2e/kWh for Taiwan in 2021.

Eleven Types of Products Assured by ISAE 3000 in 2022

5.5 million kWh
LED High Bay

32 million kWh
Electronic Ballast

108 million kWh31million kWh
Ventilating Fans (Bathroom Exhaust Fans)

5.5 million kWh

PV Inverter (PVI)

3.39

billion kWh
Computer and Networking PowerTV Power

115 million kWh
AC-DC Adapter

192

million kWh
Uninterruptible Power Supply (UPS)

58 million kWh
LED Driver

44 million kWh

LED Street Lights

42 million kWh

EV DC Charger

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5.7
Biodiversity

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.7 Biodiversity
Biodiversity loss has accelerated due to the impact of climate change. Humans'

environmental impacts of flat-panel solar PV farms include the loss and fragmentation of

overconsumption of natural resources has also created systemic risks of the collapse ofnatural habitats as well as the death of birds or bats that fly into the panels. Their indirect

the ecosystem. In addition to its long-term focus on climate change, Delta incorporated

impacts include the shading created by the PV panels which changes the vegetation

biodiversity into its sustainability strategy in 2022. We will continue to support thetype and the composition of species. We thus compiled the types of impacts during

Sustainable Development Goals (SDGs) with real actions and the core competencies ofthe site selection, design, and operation phases. We also referenced the environmental

the Company.

and ecological evaluation and management procedures of renewable electricity sites
domestically and internationally. We will develop methods to reduce the impact or

5.7.1 Biodiversity Management and Implementation
Delta's Board of Directors passed the Delta Group Biodiversity Policy in 2022 to
implement avoidance, minimization, restoration, offset and additional actions within theimplement restoration to minimize the ecological impact of the use of renewableelectricity.

External Organizations/Initiatives

scope of corporate actions. Delta also works with upstream value chain and partners to

Taiwan Nature Positive Initiative (TNPI)

achieve No Net Loss (NNL). We aim to achieve the ultimate goal of Net Positive Impact

Delta was one of the first to join
the Taiwan Nature Positive Initiative(TNPI) as a founding member in 2022.
We work with domestic companies
to take local actions for supporting
the global target of "Net Positive by
2030 | Full Recovery by 2050". We
also increased the resilience andmanagement capacity of companies
when responding to natural risks andopportunities. In addition to participating in courses and workshops, we also used the WBCSD
Nature Readiness Assessment tool to examine our readiness for protecting nature. Delta willcontinue to participate in platform activities and work with members to maximize our local
influence.

(NPI) by 2050.
In the same year, Delta started the analysis and establishment of related methodologies
and organized internal biodiversity training programs to help employees learn aboutbiodiversity issues and understand the relationship between climate change andbiodiversity. Externally, we actively connect with domestic and international initiatives andhave become a member of the TNFD Forum and a founding member of the Taiwan Nature
Positive Initiative (TNPI). We monitor international trends and industry developments, andleverage the resources of internal and external partners to actively implement Delta's
management of biodiversity issues.
Delta Group Biodiversity Policy Click here

Renewable Electricity Due Diligence Investigation Project
Delta joined RE100 and committed itself to attaining the goal of using 100% renewableelectricity by 2030. To effectively reduce the potential ecological impact caused by theuse of renewable electricity, Delta works with an ecological consulting company to createchecklists and evaluation procedures for Delta's ecological due diligence for renewableelectricity. We have conducted a literature review and learned about the potential impact
of different types of renewable energy sites on the ecology. For instance, the direct

Member of the TNFD ForumThe Taskforce on Nature-related Financial Disclosures (TNFD) launched the beta framework
in 2022 and Delta disclosed the corresponding information for the four pillars for the first timein the 2021 ESG Report. To continue to monitor the latest trends, Delta evaluated its potential
membership in the TNFD Forum in late 2022 and became an official member in 2023. We will
participate in several online seminars organized by the TNFD Secretariat to obtain updates ofthe framework and related knowledge.

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5.7
Biodiversity

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.7.2 Task force on Nature-related Financial Disclosures (TNFD)The Kunming-Montreal Global Biodiversity Framework (GBF) that passed towards the end of 2022 stated that the private sector must manage and disclose biodiversity-related risks
to ensure a sustainable production model. Delta introduced the TNFD framework to establish a framework for nature risk management and disclosure. We will work to identify, assess,manage, and disclose nature-related dependencies, impacts, risks, and opportunities and continue to develop assessment methodologies to support global biodiversity targets by taking
real actions. The 2022 data based on the Beta v0.4 framework published by TNFD in March 2023 are as follows:
Governance
Guiding Principles

Response Measures

Describe the board's
oversight of nature-related
dependencies, impacts, risks
and opportunities.

The highest-ranking supervisory authority of nature-related risks and opportunities is the ESG Committee. Mr. Bruce Cheng, founder and honorary
chairman of Delta, serves as honorary chairman of the committee, while Chairman Yancey Hai acts as the chairman. The committee is composed of
the following members: vice chairman, CEO, COO, CSO, and top regional operations and functional executives. The ESG Committee oversees staff
organizations and execution units. The biodiversity implementation plans have been reported to the Board of Directors, which passed the Delta Group
Biodiversity Policy in 2022.

Each department has different core businesses and capabilities, and their roles in nature-related issues are described as follows:
Describe management's
role in assessing andmanaging nature-related
dependencies, impacts, risks
and opportunities.

• The Corporate Sustainability Development Department is currently responsible for the analysis and evaluation of nature-related frameworks (TNFD,
SBTN, and EP&L) and the development methodology to gradually intensify the Company's implementation of biodiversity issues and lead internal
projects.
• The Supply Chain ESG Committee encourages suppliers to reduce their dependency and impact on key nature capital.
• Delta Electronics Foundation participates in international initiatives and uses the Company's core products to work with external partners for the
restoration of coral reefs.
As the number of nature-related management issues increases, we expect other departments such as plant operations, human resources, and businessgroups to play different management roles in the future.

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5.7
Biodiversity

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Strategy
Guiding Principles

Response Measures

Dependencies and impacts

We used Encore to conduct a dependency and impact analysis. Delta's main production activities are electronics and hardware production, which has
moderate dependencies on surface water and groundwater, and low dependencies on the dilution effects of the atmosphere and ecosystem. In termsof impact, as chemicals are often used in the production of electronic components, it has significant impact on water pollution and soil pollution. In
addition, the production process creates solid waste and the noise affects the environment. They are defined as moderate impacts.

Risks

Delta defined short-term risks as those within two years, medium-term risks as those between two and five years, and long-term risks as those above
five years according to the risk management framework and definitions.
Describe the nature-related
dependencies, impacts,
risks and opportunities theorganization has identified
over the short, medium, andlong term.

• Short term: Use of renewable energy may cause the loss of biodiversity and damage the functions and integrity of habitats.
• Medium term: Water shortages may affect us through the supply chain (above tier 1 and tier 2) and water shortages may also directly affect ouroperation sites.
• Long term:-Ecosystem degradation.
-Supply chain disruptions caused by shortages of raw materials.
-Negative impact on the physical and mental health of employees due to the loss of biodiversity.
-If the Company's operations affect the stability of the ecosystem, it will impact the community and other stakeholders and generate negative
perceptions of the Company.

Opportunities• Delta's Plant Factory is an integration of Delta's automation technologies, fan and heat dissipation solutions, LED lighting, and other products andsystems. Its water consumption is lower than that of traditional farming and it is committed to providing a stable, toxic-free, low-carbon, and highquality source of vegetables.
• The introduction of the circular economy can increase the use of renewable resources and reduce the impact on the environment.
• In addition to providing high-quality products, we work with customers to build smart and eco-friendly energy solutions.

Describe the effectnature-related risks andopportunities have had
and may have on theorganization's businesses,
strategy, and financial
planning.

We are currently evaluating suitable tools to analyze the impact of nature-related risks on upstream activities (tier 1 and above), company operations,downstream activities, and customers, and developing opportunities to create benefits for the ecosystem.
In terms of upstream raw materials, based on the weight of procured materials in 2022, metal materials accounted for 70.1% (288,937 metric tons),
packaging materials accounted for 18.0% (74,064 metric tons), plastic materials accounted for 11% (45,416 metric tons), chemicals accounted for 0.5%,
and other materials accounted for 0.4%.
We also used the research reports of external units to learn about the possible impact. For instance, the PwC report stated that although the electronics
industry is less dependent on natural resources for the gross value added (GVA), it has a moderate dependence of 40% on the value chain, which canaffect prices, procurement channels, and the volume of raw material procurement.

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5.7
Biodiversity

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Strategy
Guiding Principles
Describe the resilience ofthe organization's strategy
to nature-related risks andopportunities, taking into
consideration different
scenarios.
Disclose the locations
where there are assets
and/or activities in theorganization's direct
operations, and upstream
and/or downstream and/or
financed where relevant, thatare in priority areas.

Response Measures

Discussion in progress.

• Overall assessment: We used Taiwan local data (open data such as protected areas, major habitats and biodiversity hotspots) and IUCN World
Database on Protected Areas (WDPA) data to identify the spatial relationships between global operation sites, suppliers and the ecosystem. The
current result showed that our overall production plants didn’t locate in areas with significant biodiversity on a national or international level.
• Water shortage assessment: We used the Aqueduct Water Risk Atlas of the World Resources Institute (WRI) to screen overall production plants andtier 1 suppliers with whom we have continuous transactions in 2022 located in areas with high water risks. The results detailed in to 5.4.1 Identificationof Water Risks and Response Measures.
Risk and Impact Management

Guiding Principles

Response Measures

Describe the organization's
processes for identifying andassessing nature-related• Location data collection: We have collected the location information of Delta's global operation sites and some suppliers in 2022, and will continue todependencies, impacts, risks
update the changing location information in the future and improve the accuracy and completeness of supplier location information.
and opportunities in its direct
operations.
• Spatial distribution map: We used Taiwan local data and international resources for preliminary site assessment. We will keep study more tools such as
GloBio, iNaturalist, Biodiversity Networks and National Geospatial Information Database(Taiwan) to realize more the spatial relationships betweensites
and the ecosystem.
Describe the organization's
approach to identifying• We are currently conducting a questionnaire survey based on the LEAP (Locate, Evaluate, Assess, and Prepare) assessment process to identify thenature-related
nature-related dependencies, impacts, and risks to our direct operations, upstream and downstream value chains. We will keep develop methodologies
dependencies, impacts,
to identify the nature-related opportunities.
risks and opportunities in its
upstream and downstream
value chain(s) and financed
activities and assets.
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5.7
Biodiversity

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Risk and Impact Management
Guiding Principles

Response Measures
We have set our strategies and principles in policies and commitments.
To determine the sequence and process, the measures we adopted include avoidance, minimization, restoration, offset, and additional conservation
actions.
• Avoidance: We established a Biodiversity Policy and pledged that the Company should avoid setting up operations in or near recognized areas withsignificant biodiversity on a national or international level.

Describe the organization's
processes for managing• Minimization:-Site level: Adopt green building standards which comprehensively consider energy, greenhouse gas, water, waste, and biodiversity-related criteria.
nature-related-Product level: Develop new products and business models that require fewer natural resources and pose lower pressure on the ecosystem.
dependencies, impacts,-Value-chain level: Include nature-related risks as one of the key items in the supply chain evaluation and due diligence investigation.
risks and opportunities andactions taken in light of these • Restoration: Fulfill the biodiversity criteria listed in the green building standards; build partnerships with our supply chain to reduce the negative
processes.
impact on the ecosystem of raw material sourcing activity by sharing knowledge and evaluating the methods of acquiring materials.
• Offset: Research the methodologies with experts and develop our process of assessing the feasibility of natural-based solutions such as nondeforestation and preserving biodiversity, by investing in permanent carbon removal and Natural Climate Solutions (NCS) credits.
• Additional conservation actions: Partner with professional marine conservation teams to restore coral reefs, increase biodiversity, and sustain theecosystem.

Describe how processes for
identifying, assessing andmanaging nature-relatedrisks are integrated into theorganization's overall risk
management.

Discussion in progress.

Describe how affectedstakeholders are engaged
by the organization in
its assessment of, andresponse to, nature-related
dependencies, impacts, risks
and opportunities.

Discussion in progress.

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5.7
Biodiversity

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Metrics and Targets
Guiding Principles
Disclose the metrics
used by the organization
to assess and manage
material nature-related risks
and opportunities in linewith its strategy and risk
management process.
Disclose the metrics used by
the organization to assess
and manage dependencies
and impacts on nature.
Describe the targets
and goals used by
the organization to
manage nature-related
dependencies, impacts, risks
and opportunities and its
performance against targets.

Response Measures• Percentage of purchased printing papers with labels or certificates that prove non-deforestation.
• No beef provided in cafeterias.
• Amount of coral restoration planted and survived – which fulfill the health standard by the Coral Health Chart.
• Overall biodiversity scorecard.

Discussion in progress.

• We aim to purchase the Forest Stewardship Council (FSC) certificated printing paper only to reach a no deforestation target and has positive impacts
on the environment, social development and governance by 2025.
• We aim to restore 28 coral species and plant more than 10,000 coral fragments propagate by 2025.
• We plan to reach a Net Positive Impact (NPI) target in 2050. The overall biodiversity score considers populations of specific target species, area,connectivity, integrity of ecosystems, and credits from Natural Climate Solutions (NCS).

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5.8
Environmental Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

5.8 Environmental Management
Delta upholds its corporate mission of "To provide innovative, clean and energy- efficientsolutions for a better tomorrow". All production plants across the globe have passed third-

5.8.2 Air Pollution Prevention and Management

party certification of the ISO 14001 Environmental Management System and promote

All of Delta's plants have obtained emission permits in compliance with local

environmentally friendly performance management.

environmental regulations and used best available treatment technologies for eachpollutant type to ensure that environmental loads around the plants are minimized;
moreover, gas monitoring is regularly scheduled at discharge outfalls of the plants.

5.8.1 Environmental Protection Expenditures

15% 6.61 MUSD
Others

Input cost for waste
reduction

1% 0.30 MUSD

Input cost forwater conservation

Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and particulate matter (PM).

43% 19.76 MUSD

*3

1% 0.33 MUSD

Currently, air pollutants generated by Delta include Volatile Organic Compounds (VOCs),

Green investments

*1

Total

operation time. The total emissions amount declared of VOCs in overall production plants
was 439.1 metric tons. The VOCs mainly came from escaped asphalt (filled in electronicballast) during the heating process, and volatile organic solvents (such as fluxes andisopropyl alcohol) and others. Nitrogen oxides (8.3 metric tons) and sulfur oxides (0.3

44.87
MUSD

The total VOCs in 2022 were calculated based on data from monitoring reports andmetric tons) came from testing or the emergency use of generators at plants, or from hot

40% 17.87 MUSD

water furnaces in dormitories and kitchens, and both were in minute quantities. The total
amount of suspended particulate matter generated was 45.4 metric tons.

Input cost for energy saving
and carbon reduction*2*1.Including the construction of energy storage facilities, investments in low-carbon transportation(including EVs and charging facilities), energy attributes certificates (EACs), and the Company's solar
PV facilities.
*2.Including energy saving and PPA.
*3.Including waste, air pollution and waste (sewage) water treatment fees, environmental testing fees,and management system verification costs.

2022 Delta Electronics ESG Report129Employee Relations
and Social Participation

6

6.1

Key Performance Indicators and Strategies

6.2 Diversity and Inclusiveness6.3 Talent Attraction
6.4 Talent Learning Development
6.5 Competitive Employee Compensation and Benefits
6.6 Human Rights Protection
6.7 Social Participation
6.8 Occupational Health and Safety

6.1
Key Performance
Indicators and Strategies

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.1 Key Performance Indicators and Strategies
Number of All Employees

85,684peopleRatio of Managers and Above with 3 Hours of
Lectures*1

96%

Number of Volunteers

1,249
peopleRatio of Female Managers

Global Offer Letter Acceptance

Ratio of Unduplicated Individual Users of theOnline Learning Platform*2

Social Engagement Expenditures

32.0%

60%

Cumulative DeltaMOOCx
E-Learning Video Views*3

>18

89.4%
9.87
MUSD

Lost-Time Injury Frequency Rate (LTIFR)*4

0.95

million*1 Three hours of lectures for employees ranked managers or above = number of employees ranked managers or above who have produced one e-learning course or three hours of lecture by the end of the year /number of employees ranked managers or above at the end of the year.
*2 Ratio of individual users of the online learning platform = number of individual users of the year / number of employees of the year.
*3 Cumulative from 2015.
*4 Lost-Time Injury Frequency Rate (LTIFR) = (recordable number of occupational injuries + recordable number of occupational illnesses) / total work hours * 1,000,000.

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Key Performance
Indicators and Strategies

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Aligning with UN Sustainable Development Goals

Good Health and Well-being

Gender Equality• Delta offers EAP counseling, spiritual fulfillment, and club subsidies,and encourages employee engagement for mutual support towards
better mental and physical health;• Delta implements gender equality measures that ensure female
colleagues can sufficiently participate in decisions and enjoy equal
opportunities for leadership roles in various fields and levels;• Promotes prevention-oriented safety and health management
systems to ensure worker safety;• Receives recognition such as the 2022 Excellent Enterprise Award
from Taoyuan City in Welfare Benefits and Gender Equality• Regularly inspects workplace safety

Decent Work and Economic Growth

Quality Education• Delta continues to develop the DeltaMOOCx online learning
platform and high-quality education to ensure that students who
are unable to attend courses in schools can continue their studies
during the epidemic;• Delta promotes courses for the Responsible Business Alliance andDelta's Code of Conduct to provide full employment and equal pay
to persons with disabilities and minority groups;• Utilizes diverse learning platforms such as in-person, e-Learning,and podcasts to achieve technology upgrades and innovative
improvements that elevate the continued development ofknowledge among colleagues.

• Offers incentives for talents to study abroad in disciplines related
to the environment;

Industry, Innovation and Infrastructure• Provides necessary and diversified learning resources to ensurethat employees have the capabilities for completing their work;• Use cooperation between the industry, government, and academia
to provide digital video and audio tools and actual experience tohelp students connect to the workplace seamlessly.

• Continues to organize online training courses for energy
management personnel to communicate industr y energy
management tips and help companies achieve the goal of net zero
emissions.

• Protect equal employment opportunities and provide diverse
employment opportunities by launching comprehensive online andoffline recruitment channels across the world and encourage talentretention by reinforcing long-term incentive measures.
• Ensure the presence of a talent pool for succession and theCompany's stable operations

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Key Performance
Indicators and Strategies

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Responsible Consumption and Production

Life Below Water• Delta comprehensively implements waste categorization andrecycling, and prohibits the use of disposable plastic products andutensils in all factories.

• Delta trains its employees to take part in coral reef restoration;• Organizes tours for screening marine life documentaries andexhibitions on the ecology to enhance public awareness of theimportance of biodiversity.

Climate Change

Peace, Justice and Strong Institutions• Delta continues to offer in-person courses on WELL healthybuilding standard and LEED Zero online courses to help people
understand how to maintain a healthy indoor environment and buildenergy-saving buildings;• Delta promotes a corporate culture of peace, compassion, diversity,and inclusion while practicing human rights management.

• Organizes employees to carry out low-carbon transportation
education programs in elementary schools near Delta plants toteach them about electric vehicles and increase the environmental
protection awareness of the next generation.

Partnerships for the Goals• Delta uses social media to communicate the latest energy andclimate information and organize events at the United Nations
Climate Change Conference to share energy transition case studies
for islands.

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6.2
Diversity and Inclusiveness

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.2 Diversity and Inclusiveness6.2.1 Diverse and inclusive employee composition
Diverse and inclusive policies

Employee Composition

Delta has implemented DEI to build a diverse and inclusive workplace that is human-

Delta hires local workers and is concerned with employment opportunities forcentric, open and embracing of new thinking, respects compassion and multi-party

disadvantaged groups throughout the Company's global factories and operatingexchanges, and creates a highly collaborative environment. We value the diverse

locations. As of the end of 2022, the Company has directly employed a total number of

recruitment and staffing of persons with disabilities, gender diversity, ethnic and racial

85,684 employees, including 30,620 technical specialists and management personnel,

minorities. The circumstances of implementation are tracked annually to shape the55,064 operators (including production line assistants), and has 2,507 workers who arecomposition of employees and executives at all levels.

not directly-hired employees*1. Due to the continued expansion of production capacity in
the APAC, the number of employees increased by 4,546 (the growth rate of approximately

Employee awareness and engagement Diverse recruitment and staffing channels andcandidates Host DEI seminars and unconscious bias courses
 Events to celebrate International Women's Day
Data analytics of diverse groups Ratio of persons with disabilities and minorities
groups amongst employees Ratio of female executives
 Analysis of remuneration according to gender
Collaboration between departments
 Established a department to conduct engagement surveys
 Factories provide migrant workers with dormitories and facilities

22.4%) compared to 2021 making it the highest growing region. Due to expansions toDiversity

the R&D and engineering teams as well as new business developments, the number of
employees in Taiwan increased by 2,438 (the growth rate of approximately 20.4%); theexceptional performance of smart manufacturing in the China region decreased the total
number of employees by 7,282 (approximately 8.6%) compared to 2021.

EquityDEI

Due to factors such as the nature of the tech industry and supply-demand of theemployment market, Delta's management level and technical personnelare predominantly

Inclusion

male. Delta's sustainable policy of diverse recruitment and staffing has allowed theratio of female employees to exceed 60% in roles such as finance, human resources,
manufacturing, and quality assurance resulting in the total ratio of female employees toachieve 50.6% or a 2.3% increase compared to 2021; at the end of the current year, thenumber employees who were persons with disabilities totaled 1,144 and the number of
employees from minority groups*2 totaled 2,082.

*1 Please refer to the Distribution of Workers Who are not Directly-hired Employees.
*2 Definition of minorities:
Taiwan: Indigenous peoples of Taiwan totaling 102 persons
Mainland China: Non-Han ethnic Chinese peoples totaling 1,649 persons;
Americas: N ative Hawaiians or other Pacific Islanders (non-Hispanic or Latino), American Indians or Natives Alaska (non-Hispanic or Latino), Asians (non-Hispanic or Latino), Hispanic or Latinos, Black of African
Americans (non-Hispanic or Latino) and other ethnicities, totaling 331 persons.

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6.2
Diversity and Inclusiveness

About theESG Report

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the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Ratio of Employees by Region *3

16.8% / 14,406
49.7% / 42,600
28.9% / 24,798
3.5%
1.1%

/ 2,975/ 905

100.0%

Taiwan
China
APAC

Total

85,684

EMEA
AmericasTotal*3The number of employees in Taiwan includes manpower of Delta (Taiwan) along with subsidiaries Cyntec (Taiwan) and Vivotek (Taiwan); The APAC region refers to regions in Asia outside of Taiwan and Mainland
China, including the locations of operations in countries in Southeast Asia and Northeast Asia.

Gender Distribution of Management Personnel*3*4

Gender Distribution of Employees■ Female ■ Male
Total / 30,620
8,922

Total / 55,064
21,69834,45820,606■ Professional andTechnical personnel*1■ Operators (Including
Production Line
Assistants)*2
35.7%

Total

85,684
Professional and Technical
Personnel*1

Operators (Including Production Line Assistants)*2

64.3%■ Female Managers■ Male Managers■ Female ■ Male
14.0%

Executive Management
Positions

86.0%

Entry-Level Management
Positions

49.9%

All Management Positions
Revenue Generating
Management Positions

2,393
5,092

50.1%

32.0%
68.0%

Head Count

Total

7,485

21.5%
78.5%

*1 Definition of Professional and Technical personnel:Management coordinators or engineers directly related to production activities such as quality management administrators, materials management administrators,
R&D engineer, sales and marketing specialists, human resources administrators, and others.
*2Operators (including production line assistants) are defined as: Employees directly related to production activities such as system assembly personnel, quality management personnel, warehouse management
personnel, production technicians, and others.
*3Managerial roles are defined as the supervisors who are responsible for the leadership and management of subordinates. The executive management positions are above the manager level, entry-level management
are senior Foreman or Foreman; revenue generating management positions: Managerial roles involving business planning and operations.

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6.2
Diversity and Inclusiveness

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Americas

Total

Appendix

Total Distribution of Employees According to Region, Gender, and Type*1
RegionTaiwan

China

APAC

EMEA

Percentage

Contract Type

FemaleMale

FemaleMale

FemaleMale

FemaleMale

FemaleMale

FemaleMale

Permanent Employees

5,689

8,597

17,74524,855

18,699

6,066

905

2,059

256

647

43,29442,224

99.8%

Temporary Employees

67

53

0

0

12

21

6

5

1

1

86

80

0.2%

RegionTaiwan

China

APAC

EMEA

Americas

Total

Percentage

FemaleMale

FemaleMale

FemaleMale

FemaleMale

FemaleMale

FemaleMale

Full-time Employees

5,729

8,633

17,74524,85518,709

6,087

868

2,044

257

648

43,30842,267

99.9%

Part-time Employees

27

17

0

0

2

0

43

20

0

0

72

37

0.1%

Hiring Type

*1: Employees without non-guaranteed hours employee.

2022 Delta Electronics ESG Report

136

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Diversity and Inclusiveness

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Distribution and Ratio of Employees in the United States by Race/Ethnicity*1
Ethnicity
Employee Category

Management

Technical Personnel

All Other Employees

Total

FemaleMale
Head Count
Percentage
FemaleMale
Head Count
Percentage
FemaleMale
Head Count
Percentage
Head Count
Percentage

AsianBlack/African
AmericanHispanic/Latino

White

Others(Native/
Multiracial)More than Two
Ethnicities

Not Disclosed/Not
Applicable

Total

7
33
40
8.2%
7
18
25
5.1%
68
114
182
37.4%
247
50.8%

0
3
3
0.6%
0
1
1
0.2%
3
11
14
2.9%
18
3.7%

0
0
0
0.0%
0
5
5
1.0%
12
25
37
7.6%
42
8.6%

4
28
32
6.6%
3
9
12
2.5%
18
66
84
17.3%
128
26.4%

0
0
0
0.0%
0
0
0
0.0%
1
5
6
1.2%
6
1.2%

0
2
2
0.4%
0
0
0
0.0%
2
14
16
3.3%
18
3.7%

3
2
5
1.0%
0
0
0
0.0%
10
12
22
4.5%
27
5.6%

14
68
82
16.9%
10
33
43
8.8%
114
247
361
74.3%
486
100.0%* 1 This table discloses the distribution and ratio of employees in the United States by race/ethnicity in accordance with the SASB Standards, including: The management is defined in accordance with the EEO-1 job
categories and includes executive/senior level officials and managers and non-executive (senior) management.Technical personnel refers to employees classified as Group 15-0000 (Computer and Mathematical
Occupations) or Group 17-0000 (Architecture and Engineering Occupations) in the 2018 U.S. Bureau of Labor Statistics Standard Occupational Classification System; all other personnel are not classified as theaforementioned management or technical personnel; The "ethnicity of employees in the United States" shall be disclosed in accordance with the classifications in the EEO-1 Survey: Asian, Black/African American,
Hispanic/Latino, White, Other (Native/Multiracial), more than two ethnicities, or not disclosed/not applicable.

Age Distribution

Distribution of Workers Who are not Directly-hired Employees

85,684

Total

40

0

574

882

0

0

882

168

383

22

17

590

EMEA

201

126

0

0

327

Americas

105

21

0

8

134

Total

549

1,871

62

25

2,507

Dispatched workers≥ 50 years old

Taiwan75459

61.1% / 52,338

China

0

APAC

5.3%
Total

Interns who are not in official
internship programs*2

Onsite personnel of outsourced
Consultants
service providers and suppliers

Region/ 4,510

Age 30-49

33.6%/ 28,836<30 years old*2 Interns who are not in official internship programs are generally short-term workers during winter and summer vacation.

2022 Delta Electronics ESG Report

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Sustainable
Management

Overview

Communication
with Stakeholders

Employee Relations
and Social
Participation

Devoted to Environmental
Protection and Energy
Savings

Corporate
GovernanceAppendix

Delta's 2022 monthly average turnover rate of 2.9% was a 0.18% decrease compared to 2021 that was due to manpower adjustment factors stemming from the upgrade of smart
production lines that is accelerating year after year. In the future, the Company will continue to offer professional training for all roles and create better workplace environments andfacilities to retain exceptional talent.

Average Monthly New Recruit and New Hire Rate: All Employees by Region, Gender, and Age*2 *3
RegionGenderFemaleMale

Taiwan

China

APAC

EMEA

Americas

Total

Age

Head Count

Rate

Head Count

Rate

Head Count

Rate

Head Count

Rate

Head Count

Rate

Head Count

Rate≥ 50 years old1< 0.05%

0

0.0%

< 0.5

< 0.05%1< 0.05%

1

0.1%

3

< 0.05%

Age 30-49

64

0.5%

393

0.9%

174

0.8%

8

0.3%

3

0.4%

642

0.8%

<30 years old

76

0.6%

325

0.7%

633

2.8%

4

0.1%

1

0.1%

1,039

1.2%

≥ 50 years old

3< 0.05%1< 0.05%1< 0.05%

3

0.1%

2

0.2%

10

< 0.05%

Age 30-49

70

0.5%

569

1.2%

52

0.2%

17

0.6%

5

0.6%

713

0.8%

<30 years old

56

0.4%

722

1.6%

149

0.7%

9

0.3%

2

0.2%

938

1.1%

270

2.1%

2,010

4.4%

1,009

4.5%

42

1.5%

14

1.7%

3,345

3.9%

Monthly Average2022 Delta Electronics ESG Report

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Sustainable
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Overview

Communication
with Stakeholders

Employee Relations
and Social
Participation

Devoted to Environmental
Protection and Energy
Savings

Corporate
GovernanceAppendix

Average Monthly Resigned Employees and Turnover Rate: All Employees by Region, Gender, and Age*2*4
RegionGenderFemaleMale

Taiwan

China

APAC

EMEA

Americas

Total

Age

Head Count

Rate

Head Count

Rate

Head Count

Rate

Head Count

Rate

Head Count

Rate

Head Count

Rate≥ 50 years old1< 0.05%3< 0.05%2< 0.05%1< 0.05%

1

0.1%

8

< 0.05%

Age 30-49

36

0.3%

410

0.9%

65

0.3%

4

0.1%

3

0.4%

518

0.6%

<30 years old

20

0.2%

310

0.7%

155

0.7%

1

< 0.05%

1

0.1%

487

0.6%

≥ 50 years old2< 0.05%2< 0.05%2< 0.05%

4

0.1%

3

0.4%

13

< 0.05%

Age 30-49

49

0.4%

596

1.3%

28

0.1%

8

0.3%

5

0.6%

686

0.8%

<30 years old

20

0.2%

674

1.5%

34

0.2%

2

0.1%

1

0.1%

731

0.9%

128

1.0%

1,995

4.3%

286

1.3%

20

0.7%

14

1.7%

2,443

2.9%

Monthly Average* 2 The calculations of global new recruits and turnover are based on the average monthly number of employees, which is the total annual number of employees in each value divided by 12 and rounded to thenearest integer, excluding the following non-voluntary turnover such as: employment termination due to retirement, severance, or dismissal, in accordance with laws, and the expiration of employment contract
or internship program; or Operators (including production line assistants) who have not stayed with the Company for more than 30 days since they first joined, or professional technical and management units
personnel who have not stayed with the Company for more than 90 days since they first joined.
* 3 Average monthly percentage of new employees = average monthly number of new employees / average number of employees in the year; The average number of employees in the year is defined as (initial headcount + end head count) /2, initial head count is the end head count of the previous period (previous year).
* 4 Average monthly turnover rate = average monthly turnover / average number of employees in the year; The average number of employees in the year is defined as (initial head count + end head count) /2, initialhead count is the end head count of the previous period (previous year).

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A Word from
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Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Turnover Rate Analysis of the Past 3 Years
Average Monthly Turnover Ratein 2020

Average Monthly Turnover Ratein 2021

Average Monthly Turnover Ratein 2022Full-time Employees

3.4%

3.3%

3.7%

Dispatch and Temporary Employees

0.7%

0.8%

< 0.05%

Voluntary Turnover

2.3%

3.0%

2.9%

Non-voluntary Turnover

1.8%

1.0%

0.9%

Operators(including production line assistants)

3.9%

3.7%

3.4%

Professional Technical and Management
Units Personnel

0.3%

0.4%

0.4%

4.1%

4.1%

3.7%

Item

Employment Category

Turnover Category

Categorization by Direct/
Indirect

Uncategorized Total Turnover*1* 1 The scope of statistics of the total turnover is the Company's direct employees and does not include those who have not stayed with the Company for a certain number of days; Employees who have not stayedwith the Company for a certain number of days are defined as Operators (including production line assistants) who have not stayed with the Company for more than 30 days since they first joined, or professional
technical and management units personnel who have not stayed with the Company for more than 90 days since they first joined.

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About theESG Report

A Word from
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Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Employee Relations
and Social
Participation

Devoted to Environmental
Protection and Energy
Savings

Appendix

6.2.2 Equal Workplace Opportunities
Gender Equality and Voluntary Role Transfer
Delta strives to build an equal and inclusive workplace by providing various measures thatexceed the standards set forth by laws and regulations:that originally require standing, dormitories for pregnant women, and reserving thebottom bunk in dormitories.
• The total number of female managers has reached 32.0% as female colleagues with

• In order to improve birth rates and relieve the stress of childcare for working parents ingreat potential are provided with various channels for education.

Taiwan, Child Care Subsidy was initiated in October 2022. As of the end of 2022, this• Performance and remuneration are evaluated based on employees' duties and work

has benefited 2,234 Delta babies and resulted in a 63.8 times expenditure increase

performance. The ratio of male to female remuneration is regularly analyzed andcompared to 2021.

tracked on a year-by-year basis.
• Employees who have worked for more than a year may apply for transfer to otherChild Care Subsidy
Amount of Contributions

Before Implementation(2021/1~2021/12)

After Implementation(2022/10~2023/10)

US $65.12 per child

Maximum subsidy of US$12,300 per child

Eligibility

Newborns

Ages 0-6

Delta Babies

274

2,600

Cost Expenditure/Year

US $17,800

US $5,270,000• Implemented a supply station in the workplace for parents that consolidated benefits
and health information; a total of 130 persons in Taiwan participated in the motherchild care program throughout the year, resulting in a 100% consultation rate.
• Comfortable breast-feeding rooms as well as information to childcare facilities andsimilar institutes are provided in factories.
• Implemented measures such as accessible parking spots and meal priority for
individuals with mobility impairments.
• Colleagues may apply to work remotely due to operations or other special
requirements. Flexible work hours have been implemented in regions such as Europe
and Thailand while plans for Taiwan shall be implemented in 2023.
• Factories in the China Region offer childbirth gifts and the occasional organization of
events attended by charitable individuals.
• Hazard evaluations for workplace environments and operations are conducted forfemale employees of childbearing age in order to adjust the content and environment

departments within the Company, group affiliates, or foreign regions.

Statistics for Parental Leave in Taiwan
Statistical Item

Number of employees qualified for*1
Numberof employees
qualifiedfor unpaid
unpaidparentalleave in 2022(A)parental leave in 2022(A)*1

Number of employees applying for
Numberof employees
applying for unpaid
unpaidparentalleave in 2022(B)parental leave in 2022(B)Subtotal/ 1270Male
Female

990

28

38

Number of employees applying for
unpaid parental leave and reinstateNumberof employees applying for unpaid
ment
in 2022(D)25

Number of employees reinstated after
Number of employees reinstated after unpaid
unpaid parental leave in 2021(E)9parental leave and reinstatement in 2022(D)parental leave in 2021(E)

Number of employees reinstated after
Numberof employees
reinstated after unpaid
unpaidparentalleave in 2021 and2working
for noless than
one year(F)parentalleavein 2021and *continued
working

for no less than one year(F)*2

28

51

51

65.8%

90.5%

Subtotal / 101

Number of employees expected toapply
for unpaid
parental leaveexpected
andNumberof employees
to apply forreinstatementin 2022(C)unpaid parental
leave and reinstatement in2022(C)280

990Subtotal
280
/ 79

38

63

63

Subtotal / 82

25

6

66.7%

78.6%

42

42

Subtotal / 39

6

Subtotal / 81.2%

57

57

Subtotal / 51

9Return to Work Rate(D/C)

33

33

Retention Rate(F/E)
Subtotal / 76.5%■ Male ■ Female*1 N umber of Taiwan employees qualified for unpaid parental leave in 2022 (A): Employees who applied
for maternal leave of more than 56 days and paternity leave for more than 1 day in the 3 years fromJanuary 1, 2020 to December 31, 2022.
*2 Number of Taiwan employees reinstated after unpaid parental leave in 2021 and continued working
for no less than 1 year (F): Number of reinstated employees who continued to work no less than 1
year after reinstatement from parental leave in 2021.

of their work. For instance, measures include implementing seated positions for jobs
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A Word from
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Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Care for Migrant Workers•• In response to global manufacturing strategies andin all internal and external dormitories. The provided

customer demands, production lines in Taiwan's

standards exceed specifications set forth by thefactories employ more than 1,900 Thai and Vietnamese

government mandated Service Plan for the Care ofworkers. The Company upholds the spirit of diversity

Foreign Workers, and dormitory competitions are

and inclusion by offering immediate, unobstructedorganized to encourage stay as well as maintaining

channels of communication, a Zero Placement Fee

clean environments. Additionally, the production of

upon employment, venues for religious practice, anda podcast for interviewing migrant workers allows

dormitories for migrant workers within factory areas.

colleagues to better understand their emotional

Rooms with air conditioning, antibacterial chambers,

experiences. Dedicated festivals are also planned to

antibacterial lighting, hand sanitizers, and other high-integrate the cultures of Taiwan, Thailand, and Vietnam

tech facilities as well as dedicated gyms are provided

to convey the compassion of the Taiwanese people.

Unobstructed Channels of Communication
Delta values communication with every employee regardless of nationality, ethnicity, andgender. Workplace environments are friendly and provide comprehensive care throughmeasures such as communication channels that are efficient, accessible and without
obstruction, quarterly seminars, and 24-hour Thai and Vietnamese life counselors
stationed in dormitories.

Diversity and Inclusion, Building Migrant Worker Villages of Happiness
Events corresponding to Taiwanese, Vietnamese, and Thai holidays are organized toenhance employee's sense of belonging and morale, improve relationships with supervisors, and relieve feelings of homesickness. These events include: Dragonboat racing
during the Dragonboat Festival, Mid-Autumn Festival lantern crafting, Southeast Asia
Carnival (Songkran), and New Years blessing events; Additionally, external events organized by the government are also attended: events such as talent competitions, model
migrant workers offer celebrations that allow the shared experience of cultures, establishes platforms for communication, and creates migrant worker villages of happiness.

Zero Placement Fee, Secure Employment
Delta practices the Zero Placement Fee of RBA and offers secure employment guarantees
by providing full payment of all pre and post employment costs when hiring migrant workers. Each worker results in an additional appointment cost of approximately NT $1.3 million
but has resulted in an increased number of applicants and their willingness to extend at theend of their 3 year period. During the COVID-19 pandemic, the Company provided payment
for PCR testing, transportation, and COVID-19 insurance to ensure safety and health inboth work and daily life.

▲Delta's high-tech facilities installed at dormitories for migrant
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Overview

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Management

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GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Performance Feedback and Development
At the start of every year, departments establish organizational objectives in alignment• Per formance records are utilized as the basis for subsequent training andwith the company's strategy. The supervisor aids colleagues in understanding theirdevelopment. Employees are trained based on their ability to enhance organizationaljob responsibilities and establishes individual goals for employees that align withperformance. Delta uses comprehensive performance management to closely

the organizational goals. Throughout the year, supervisors maintain communication

integrate the goals of the organization and individuals with talent development, andwith employees to provide feedback and support them in reaching their goals. Our

jointly pursue performance improvements for the Company.

performance management is based on annual and quarterly evaluations of individual
performance indicators (IPI) as well as the shared values and competencies (CPI) to• Leadership Development Committee(LDC) and Talent Development Committee(TDC)

measure individual performance and team contribution, which provide continuouscomposed of diverse committee members are utilized to evaluate salary adjustments

feedback to ensure that targets are met. Employees may utilize a system to initiate

and promotions to prevent bias and unequal pay for identical work.

or offer work evaluations, provide 360 degree feedback, and request affirmation orsuggestions from others. Managers may utilize the system to comprehensively evaluate
and manage talent.

Performance Management Procedures for Delta Employees

Year-end Asessment

Q1

Q2

Q3

Assessment

Assessment

Assessment

December of the previous year
to January of the current year

April

July

October

Performance Evaluation

Setting Performance Expectations

Performance Follow-up

Performance Follow-up

Review the performance andjointly discuss future development and improvement plans

Supervisors help employees clarify
job responsibilities and establish performance standards

The employee implements self-management and the supervisor helps theemployee resolve issues

The employees implement self-management and the supervisors maintaincommunication with employees toprovide feedback helps the employee
resolve issues

2022 Delta Electronics ESG Report

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A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.2.3 Happy and Inclusive Workplace
The "3E Strategy" (Employee, Empower, and Earth) was planned for 2022 to maintainemployee autonomy, embrace and practice the philosophies of diversity and inclusion,

innovative employee experiences, expand participation to all employees, increase

and create a friendly workplace environment.

eyeHome Court for Employees

power
Em

Prioritize employees and strive to provide better benefits
and careEmploPhysical and Mental Health

Emphasize the concept of "My Workplace, My Home
Court" and increase employee autonomy, allow employees
to participate in the completion of activities

Social Participation
Corresponds to Delta's values of co-existence with our
Earth and an emphasis on the philosophies of giving backto society and upholding diversity and equality

Ear

th

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Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Establish Diversity and Inclusive Thinking
Delta strives to promote the values of gender equality, diversity, inclusion, and wasawarded the 2022 Excellent Enterprise Award of Taoyuan City for Welfare Benefits andGender Equality. In 2022, the "Exceptional Thinking, Journey of the Heart" series ofseminars was attended by 1,461 people across all factory areas and received a highlevel of praise from employees. They acknowledged the Company's inclusion of varying
differences and care for diverse groups and offered employees new perspectives tointernalize their experiences into a part of their personal lives.
New employees attended the Master's Adventure Program and completed a map
exploration, gaining experience points to understand ethical corporate management,
human rights policies, and the Code of Conduct to quickly adapt to the work environment.
•• Since 2021, the Thailand factory has organized the "Say It Out Loud" Pride Monthevent in June.
LLGBT colleagues from the Company were invited to share their personal experiences on
the significance of Pride Month as well as equality and respect in their work environments.
Each individual enjoyed the right to freedom of expression and individuality. A harmonious
workplace atmosphere can be established through better mutual understanding.
•• A themed event for women was organized for the 2022 International Women's Day tocelebrate and thank women for their many accomplishments and contributions•• In Taiwan, the "I See Brave Women" article and video submission event wasorganized•• In India, health examinations and a healthcare conference were organized for all
female employees•• EMEA Round Table Conference - Female executives share stories of their careers

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Management

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with Stakeholders

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GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

AppendixComprehensive Health Management andPromotion
Delta strives to care for the mental and physical health

events by hosting the first "Power Dragonboatof all employees. The Company's new diverse andRace" and became the industry's only enterprisegroup-based health promotion plan expands employee

to host a dragonboat racing competition.

participation and allows employees to enhance their

The feat showcased Delta's innovative andhealth empowerment and individual management tounconventional spirit and saw participation

become the leaders of their healthy lifestyle.

of 22 teams with more than 300 colleagues
from various business divisions who worked■■ Innovative Employee Experiences

together to achieve glory for their teams. In

In continuing the online sports courses of 2021, Delta

addition to having approximately one-third

utilized dedicated cloud software in 2022 to organize

female participants, more than 30 Thai andthe "Delta Ironman Online Games". Participants wereVietnamese migrant workers also applied. Clubs

given group missions without restrictions on time

were encouraged to gather manpower andor location to challenge online sports missions, andresources for the company event to showcase

a reward program was designed for middle-aged

Delta's diverse and collaborative culture throughemployees (50 or above) in the hopes of universal

company-wide attendance to the sporting event.

par ticipation. Employees took action to suppor tt he trend of spor ts technology and it became
the sports event with the highest ever number ofapplicants—1,293 employees, who lost the combined
weight of 1085.5Kg.
■■ Balancing Life and Work

Employee Engagement Survey and Optimization Actions
Every two years, Delta conducts a global employee

6 months. The survey was outsourced to a professional

D e l t a h a s m a i n t a i n e d t h e C o m p a ny ' s o r i g i n a lengagement survey and takes actions on important issues

global consulting company to achieve independent andintention to care for employees, spread kindness

based on survey results to increase employee rapport.

fair analysis. A total of 21,188 effective surveys wereand compassion, and empower employees so they

In 2022, the survey covered 88% of all employees andreceived for an 82% response rate. The questionnaire

may realize their passion for work as well as enjoy

achieved a 90% response rate. The questionnaire items

items cover 14 aspects, and the engagement score washappiness in their lives.

include job satisfaction, clear purpose of job, happiness,

87 points. With a market value of 83 points ahead ofworking stress, and others. The overall engagement scoreglobal high-tech companies, it is close to the market

is 88 points (meaning that 88% of the positive feedback

value of global high-performance companies with ais above 4 points on the 5-point scale).

market value of 89 points. Because of the excellent•• Build Morale and Embark on the Pursuit of Dreams
Delta celebrates the athletic spirit by hostingoverall engagement score, Delta has become one of theenterprise events such as sport matches, marathons,and cycle sports to meet the needs of various groups

Of the subjects, surveys were only issued to technical andglobal high-professional consulting company's benchmark

and generations. In 2022, Delta expanded its scope ofmanagement personnel who have worked for more thanenterprises.

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Savings

Employee Relations
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Participation

Appendix

Engagement Score of Technical and Management Personnel

75%

89%

87%
High Performance 89%
High Tech 83%

PurposeSupport

Delta
2018

Delta
2020

Delta
2022

Retention

Strengthen our vision and direction, as well as make improvements based on past survey results

Committed to enhancing our ability to respond quickly andefficiently through the application of technology

Seek to provide more personalized welfare and systems, alongwith more support for career transitions

Employees from around the world provided feedback to the Company's innovation, culture

Operators (including Production Line Assistants) working for more than three monthsof diversity and inclusion, competitive remuneration, and resources for development

were also targeted in this engagement survey with the scope expanding from China two

and training. They also expressed the hope of improving their understanding of theyears ago to now include Taiwan, Southeast Asia, and India. 30,022 people responded

Company's strategic targets. As such, managers in various regions and business divisions

for a response rate of 97%. Survey results indicate that 89% of employees exhibit positive

have enhanced strategic communications. In addition, the Chief Brand Officer createdfeedback on issues of engagement and more than 90% of employees are satisfied witha brand training course for colleagues, guiding employees to review the Company's

their environments. This indicates that the Company has implemented effective andfounding era, mission, and core values. Subsequent improvement plans shall focus on

tangible efforts to improve work, leisure, living, and housing environments.

advancements in the following three aspects:

2022 Delta Electronics ESG Report

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6.3
Talent Attraction

About theESG Report

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the Management

Overview

Sustainable
Management

Communication
with Stakeholders

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GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.3 Talent Attraction
Delta promoted talent solutions for the post-pandemic era and integrated industry, government, and academia resources
to organize recruitment activities. Integrating virtual and real channels to create a high-quality work environment withcompetitive salaries and benefits, Delta increased its global offer letter acceptance rate* to 89.4% in 2022, which was
higher than that of the previous year.
* 1 Offer letter acceptance rate = the number of people who accepted offers for global professional technical and management personnel
openings/ number of issued offers.

6.3.1	Flexible Use of Social Media to Enhance Delta's Employer Branding
Delta continues to manage official accounts on platforms such as Facebook, LinkedIn, and WeChat with an increasing
number of followers each year, with 2022 reporting growth of 23% compared to the previous year. Posts are published

Delta’s chairman speaks at National Taiwan University's campus
recruitment event.

according to a series of themes encompassing recruitment, employee training and education, benefits, and events. The
Delta 360 online showroom allows participants to understand the Company's principles and view exhibits. A brandedbimonthly magazine is published regularly to enhance exposure and interaction with target groups and improve employer
branding.

Global Recruitment Activities - Flourishing Development
In 2022, Delta organized a total of 140 in-person or online campus recruitment activities at job fairs around the world.
Events such as career forums, enterprise briefings, or live-streamed seminars invited Delta's Chairman, CEO, CHRO, andhigh-level executives from various business divisions to share their experiences and offer students worldwide a glimpse
into Delta as well as explore its career opportunities.
Delta's human resources team in Europe traveled to Poland for the first time in 2022 to attend a job fair at Warsaw
University of Technology to recruit talent in information communication, attracting many students to submit theirresumes. The recruitment team for Japan attended the Ministry of Economic Affairs' first talent recruitment delegationand conducted activities in Kyushu University, Osaka Institute of Technology, Kyoto University, and more, while alsoestablishing direct channels of communication with career centers to strengthen relationships with each campus. In
India, Delta programs were implemented in six universities to cultivate 81 cooperative education students. In Thailand,
the human resources team proactively participated in recruitment seminars and achieved exceptional results at several
renowned universities such as Chulalongkorn University and Mahidol University.
Delta EMEA attends job fair at Poland's Warsaw University ofTechnology.

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6.3
Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.3.2 Diverse Internship Programs - Cultivating Future Cross-border TalentInternships in all regions have recovered due to the global pandemic. Compared to 43
interns in 2021, the global internship program grew by 272% in 2022 with a total of 160
interns. Aside from regularly organizing internship activities in each region, the easing ofborder restrictions has allowed Delta to work with foreign units and excellent domestic
universities to provide cross-regional internship programs.
In addition to an increase in the number of overseas internship positions and partner
universities, the general manager and human resources of Delta EMEA personallyvisited Taiwan to sign internship agreements and conduct interviews at Taiwan's best
universities, welcoming exceptional students to their overseas internship opportunities.
Additionally, attendance at events such as the "NTU International Mentorship Program"organized by National Taiwan University, "IT-Connects 2022" organized by the
Taipei Economic and Trade Office of Jakarta, Indonesia, and the "2nd Annual NTUSTInternational Alumni Gathering in Taiwan" organized by National Taiwan University of
Science and Technology allowed Delta to engage with international students and alumni
and continue to cultivate high potential talents in sustainability and innovation.

Delta EMEA internship event.

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149

6.3
Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.3.3 Build Upon R&D Capacities and Create a Talent Ecosystem
Delta established joint R&D centers for artificial intelligence, smart manufacturing, electricTaiwan University were awarded subsidies from the National Science and Technology

vehicles, energy storage, and information and communication technologies with renowned

Council's Academia-Industry Research Center(AIR Center) and forward-looking industry

domestic universities to expand its innovation and increase R&D capacity. In 2022,

plan.

Delta worked with more than 56 professors and 179 graduate students in 41 research
programs. We invested an average of more than NT$100 million each year (equivalent toDelta also provided the R&D scholarship, overseas internship opportunities, and favorable

3.256 MUSD*) to create an environment on campus similar to that of the industry, staffedsalary offers for talents, to attract students with high potential to join the R&D Center.

by Delta personnel. The environment ensures that industrial and academic developments

We create Master of Industry Programs with different schools to train students throughare on the same track and the R&D centers also serve as internship sites that help

the industrial and academic projects of the R&D Center. In 2021, Delta partnered withstudents on campus grasp the keys to the future. The outstanding achievements from

National Cheng Kung University to construct the "Academy of Innovative Semiconductor

the joint research center between Delta and National Taiwan University of Science andand Sustainable Manufacturing" and partnered with the National Taiwan University ofTechnology as well as the results of the electric vehicle project established with National

Science and Technology in 2022 for the "Industry-Academia Innovation College" in a joint
venture to cultivate key R&D talents.

Overview of Joint R&D Centers Established with Top Universities
Industry-academia
ProgramPartner Institution• National Taiwan University• National Tsing Hua University• National Cheng Kung
University

Joint R&D Center• National Taiwan University of
Science and Technology• National Taipei University ofTechnology• National Yang Ming Chiao
Tung University

Partner Department

Target Candidates

Resources Committed

Partnership Overview• Department of ElectricalEngineering• Undergraduate Students• In 2022, the amount of
NT$100 million (equivalent to3.256 MUSD) was invested
into R&D partnerships

We conduct joint researchon related R&D topics withprofessors and students. We
also recruit students of the
Master of Industry Programand provide them with R&D
scholarships.

• Department of Computer
Science and Information
Engineering• Department of MechanicalEngineering• Department of Biomedical
Engineering• Graduate Students• Students of Master ofIndustry Program• For industry graduate
students jointly cultivated with
universities, an investment of
NT$300,000 (approximately
US$ 9,770) was invested ineach student, totaling 46
students in the last 3 years• National Central University

2022 Delta Electronics ESG Report

150

6.3
Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Cultivation of Diverse Talents Through Partnerships with 200 Global Universities
Delta has been dedicated to universities across all regions in recent years, contacting a total of 130 schools in 2021 and increasing that number to 193 schools in 2022 for a growth rateof 48%. Through partnerships with each university, Delta targets outstanding local talent and enhances employer branding within campuses to greatly improve the Company's ability to
attract global talents.
Total

Institutions in Delta's Global Industry-Academia Collaboration

103

Europe Delft University of Technology
 Eindhoven University of Technology
 Warsaw University of Technology
 Paderborn University

Total

13

China
 Peking University
 Hubei University of Technology
 Heilongjiang University of Science andTechnology Xi'an University of Science and Technology

USA
Total

9

India

 Massachusetts Institute ofTechnology
 Virginia Tech University of California,
Berkeley University of Texas at Dallas

Total

 Indian Institutes of Technology National Institutes of Technology Indian Institute of Science B.M.S. College of Engineering

23

Total

Thailand
Joint R&D Center/
Laboratory/
Training Room

Joint Industryacademia R&D

Cooperative
Education
Program/Internships

Campus
Recruitment

Number of
Universities
Engaged

Year

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

Taiwan

7

8

10

10

3

3

9

25

12

27

China

2

3

4

15

32

23

60

103

70

103

Japan

0

0

1

1

0

0

1

5

1

5

Thailand

8

8

1

1

8

11

11

11

11

11

India

0

0

0

0

7

12

11

11

18

23

Singapore

1

1

2

2

0

0

2

2

2

2

Europe

0

0

2

3

4

7

7

11

9

13

USA

0

0

3

2

0

0

5

7

7

9

Total

18

20

23

34

54

56

106

175

130

193

Growth
Rate

11%

48%

4%

65%

 King Mongkut's Universityof Technology
 Chulalongkorn University Asian Institute ofTechnology
 Kasetsart University

11

Total

27

Total

5

Total

 The University of Tokyo Kyoto University
 Kyushu University
 Osaka Institute ofTechnology

2Singapore Nanyang Technological
University
 National University of Singapore

Japan

Taiwan National Taiwan University
 National Cheng Kung University
 National Tsing Hua University
 National Yang Ming
Chiao Tung University
 National Taiwan Universityof Scienceand Technology National Taipei Universityof Technology

48%2022 Delta Electronics ESG Report

151

6.3
Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

AppendixCreate an Employer Brand with Multiple Global Honors
Delta received multiple awards across the world in 2022 for the results of our continuous
investments in employer branding with the most iconic awards listed below:Selected for the Dow Jones Sustainability Indexes for 12 consecutive years, and the
Dow Jones Emerging Markets Index for 10 consecutive years. For social scores, Delta
received full marks in the category of global electronic equipment industry, attaining
the highest score in the criteria of "attracting and retaining talent".

D elta India earned distinction as the "Best Employer Brand" in the "APAC HRM
Congress Awards" organized by The Times of India.

Received the "2022αi Quality Workplace Model Enterprise Award" organized byPeople's Daily Shanghai, CIIC Shanghai, and CIIC Guanaitong for the third consecutive
year.



Awarded the distinction of "China Top 100 Model Employer" by China's largest
recruitment website "51job.com".

▲ Delta India earned distinction as the "Best Employer Brand" in the "APAC HRM Congress Awards"
organized by The Times of India.

Awarded the "Greater China Outstanding HR Awards - 2022 Greater China
Outstanding Employer" by China's human resources website "HRoot".

Awarded the "1111 Happy Enterprise Award" for technology research and developmentby the Taiwanese website 1111 Job Bank.

▲ Through diverse recruiting and training pipeline, emphasis on performance and actively promoting
employee’s welfare, Delta was recognized by HRoot, and awarded with “2022 Greater China
Outstanding Employer”.

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6.4
Talent Learning Development

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.4 Talent Learning Development
Average Training Hours Per Person, Total Hours, and Total Expenses*1 in All Global Regions
Delta is dedicated to promoting online courses globally, increasing the variety of courses in 2022 and optimizing student learning experiences. Compared with 2021, the average numberof hours per person grew by 34%.
Classification
Gender

Employee
Category

Management
Roles / NonManagement
Roles

Age

Taiwan

China

APAC

EMEA

Americas

Male

15.3

18.4

8.7

4.8

3.6

Female

7.2

33.6

9.1

4.0

2.2

Operators (Including Production Line
Assistants)

2.7

25.5

8.7

0.3

6.5

Professional, Technical and Management
Units Personnel

16.1

16.7

11.0

6.4

2.8

Senior Level

15.6

8.5

31.7

11.7

1.9

Mid-Level

22.2

19.9

12.8

7.3

5.1

Junior Level

13.7

15.9

14.4

3.7

0.1

Non-management

10.8

24.5

8.9

4.3

3.1

≥ 50 Years Old

6.8

38.9

8.7

4.3

3.8

Age 30-49

12.5

23.4

9.4

5.1

3.2

<30 Years Old

13.7

24.6

8.8

3.2

3.0

Total Training Hours

2,609,644.1 hours*2

Global Average Training Hours per Person
Total Expenses

18.2 hours
1,914,616 USD* 1 The main components of the training fee are the teacher's hourly fees, education material fees, and lecturers and employees' travel fee for training. The fee does not include the cost of time for training across theglobe; total training expenses are calculated based on the foreign exchange rate of each currency against the USD on December 31, 2022.
* 2 Calculations based on total training hours for the year show global average hours of training per person = total hours/total number of individuals employed by Delta in the year (143,021); all regions and categories
have adopted the same calculation logic.

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153

6.4
Talent Learning Development

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.4.1 Pipeline Readiness and Transformation Drivers
Advanced Preparation of Global Organization and Management
Mechanisms

Selection of Solution Business Talents as Transformation Drivers

In order to accelerate overall talent development at the Company, a joint discussion

model focuses on becoming business consultants to our customers. As such, Delta

was held in mid 2022 with each business division to plan the "Global Expatriate Rotation

has planned a 3-year talent development program and began selecting ten of global

Policy" which was officially announced in January 2023. The Company offers the option

emerging Solution Business Talents based on the development focuses of "cross-of a dual career system that allows employees to confirm their career advancement

regional" and "sales" capabilities. The program's goal is to rotate 50% of talents totowards managerial or purely technical roles based on the Company's requirements orsolution teams or promote them to managerial roles in relevant teams upon completion

personal will and capability. The policy's purpose is to allow those with the potential ofof the program. As of the project completion date in June 2022, 48% of the talent haveadvancement to key managerial roles to gain the necessary expatriate rotation experience

successfully completed rotations or promotions and become ambassadors advocating

required prior to promotion. Experience is classified into three major categories: cross-for headquarters’ solution frameworks and systems. Additionally, they act as sources forfunctional, cross-organizational, and cross-regional. This policy will be combined with thefrontline feedback to ensure the successful promotion of collaborative solutions between

promotion system and included in the review conditions for year-end promotions. This

headquarters and all regions.

will establish indicators to determine promotions into professional roles and act as a basisof reference for the technical and human resource committees during their review.

Continuous Development of the Pipeline Talents Readiness

Solution businesses are important development strategies of the Company. This businessOpen Recruitment and Selection of New Business Talents to Power
Future Growth
New Business Development (NBD) has become an important strategy for the growth of

The management and senior executives convene meetings of the Leadership

Delta. We developed the 3-year " NBD Leader Incubation Program " in 2021. The initial

Development Committee (LDC) once every six months for talent development plans andprogram adopted an open recruitment system with three stages of selection, ultimately

pipeline talents. The LDC’s business strategy and enterprise development perspectives

resulting in dozens of talents being selected. The goal is to ensure that project talents

facilitate rotations and overseas assignments and increase the talent readiness for key

can be rotated to NBD or promoted to managerial roles on the NBD team. Development

roles. The headquarters’ LDC model was successfully duplicated in Business Groups andactivities officially began in March 2022 through online and in-person courses that

regions who formed their own Talent Development Committee (TDC) to enhance theirhelped employees understand the history and future developments of new businesstalent readiness.

units. A new business proposal competition was organized for teams with the CEO, COO
and new business units executives appointed as judges and sharing information on "A

Steady Increase in Pipeline Development

Good Business Recognized by Company”. General activities in 2022 achieved an average

38%

38%

41%

70%

70%

72%

2020

2021

2022

2020

2021

2022

Rotation Ratesatisfaction score of 4.7 out of 5 points.

Promotion Rate

*The rotation and promotion rates are average values in the past 3 years

2022 Delta Electronics ESG Report

154

6.4
Talent Learning Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.4.2 Key Training Programs and Diverse Learning Resources
Focus on Leadership Professionalism, Sales & Marketing

01

Leadership In response to the Company's transformation strategy and a new edition of Leader Quality, comprehensive adjustments were made to the structure of learning and development by focusing onleadership at different levels, professionalism, mental resilience of managers, and digital productivity.
An announcement was made to the six major global regions to plan courses and offer learning
resources based on this new structure.
 A 96% achievement rate in 2022 was completed for the continued promotion of courses/sharedobjectives for personnel at the manager level and above.

Delta's comprehensive training system won the following
honors in the year:•• 2022 Taiwan Corporate Sustainability Awards - Leader
in Talent Development•• Gold Globee Winner, 2022 Globee Business ExcellenceAwards - Achievement in the Use of Blended Learning•• Silver Globee Winner, 2022 Globee Business ExcellenceAwards - Achievement in Learning Technology
Implementation•• Silver Globee Winner, 2022 Globee Business Excellence02

ProfessionalismAwards - Achievement in the Most Innovative Learningand Development Program In 2022, 11 Global TrainingCommittee participated in the promotion of courses for an achievement
rate of 90%, 200% growth rate, and an average of 15 hours per person. Moreover, ESG Committee
completed the training road and became Delta's 12th core committee.
 Define and provide the 4 major Core Proficiency and learning resources of Delta: Problem Analysis &Solving, presentation skills, Project Management, Digital Transformation & Tools Application.

03

Sales & Marketing The Global Sales and Marketing Committee strengthens shared skills in the six major regions ofbusiness and sales. There are 11 e-courses with topics such as consulting sales, brands, and sales
procedures. We have achieved 3,251 learning hours in total.
 In 2022, smart search functionality was optimized for the internal knowledge management platform(DMS) to effectively assist employees in quickly identifying key knowledge and management documents out of the 220,000 pieces of data in the Sales Enablement community.

Delta received the 2022 Taiwan Corporate Sustainability Awards Leader in Talent Development.

2022 Delta Electronics ESG Report

155

6.4
Talent Learning Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Delta Provides Diverse Learning Channels to Enhance Employees'
Knowledge and Skills.

Diverse Learning Channels

Delta provides employees with diverse channels of learning and continues to promote
global online learning resources, perform systematic optimizations of the online learning
platform, and actively integrate offline events and expert sharing to further learning.

Work Site
Training

Training Courseand Seminar

DMS Platform(Knowledge
Management)

In 2022, Delta Academy has accumulated 332,146 users for an annual growth rate of
212%. The number of unique courses has reached 1,227, a growth of 54%. The numberof individuals who have completed training in the year reached 253,778, a 31% growthfrom the previous year and indicative of the popularity of Delta's global resource sharing.
Delta also organizes course competitions or diverse learning formats around the world.
For instance, Taiwan Delta's E-course online competition [Exceptional Talent] attracted

Delta Academy(e-learning)colleagues to form 35 teams with more than 3,500 people studying themes ranging from

Learning
Resource News

professional technologies to general management. Diverse learning methods have been
maintained in 2022 due to COVID-19. For example, Delta Book Club hosted 11 sessions foran overall satisfaction rate of 4.6 points (out of 5 points). Delta's Podcast encompassed
themes such as "Voice of Delta" or the newly launched "Green Technology Charging
Station " in 2022. The new theme was also available to the public and accumulated

Key Talent
Development

External
Training
Allowance

12,714 listeners, both internal and external, and allowed the public to learn about Delta's
Delta MOOCx

latest environmentally-friendly technologies. At the end of 2022, the Company extended
a special invitation to the Chief Brand Officer to record a course of Delta's brandtransformation, guiding employees to review Delta's founding and early stages while also
reminding them of the Company's

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2022 Delta Electronics ESG Report

156

6.5
Competitive Employee
Compensation and Benefits

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.5 Competitive Employee Compensation and Benefits
Delta attracts and retains exceptional talent through a competitive remuneration structure and rewards employee performance with a reasonably designed relevance between the
Company's operating performance and employee salaries. Dynamic adjustments are implemented according to demand for talent as well as conditions of market supply and demand toensure that general remuneration is superior to the levels in the tech industry. In 2022, Delta remained in the Top 100 Index for the highest salaries.

6.5.1	Performance and Compensation of the Senior Management TeamThe salary structure of senior managers is highly correlated to the Company's performance. The Company determines the managers' salary proposals in accordance with the Company's
performance indicators and submits the proposals to the Remuneration Committee for review and to the Board of Directors for resolution. Starting in 2023, an employee share purchaseplan with 5 year vesting period and clawback policy shall be used as a long-term initiative for senior managers(CEO included) to ensure that the Company's long-term performance andshareholder's interests are aligned.
Since 2021, we have included the achievement rate of the RE100 initiative as a performance indicator for the top executives in each region, and it accounts for 5% of the total score. The
ESG indicators of the chairman's performance indicators included DJSI, CDP, MSCI ESG with a weight of 15% and RE100 with a weight of 15%. The results are reviewed starting in 2022.
The CEO's total remuneration is approximately US $2,483,452, the ratio of the CEO's annual salary to the median annual salary*1 of US $10,488 for all employees excluding the CEO isapproximately 237:1. The ratio of the CEO's annual salary to the mean annual salary of US $22,276 for all employees excluding the CEO is approximately 111:1.

60%

20%

20%

Company Performance
Indicator

Annual Key Strategic
Target Achievement Rate

ESG Indicators*2

Annual ROE, annual net interest
rate, and annual revenue
achievement rate

Original brand manufacturer(OBM) revenue ratio, key strategic business operation target
achievement rate, and increasein productivity per capita

 External Evaluation: DJSI, CDP,MSCI ESG with a weight of 10%
 Autonomous Initiatives:
Achievement rate of RE100
initiatives with a weight of 10%* 1 The employees' annual salaries refer to theactual salary amount for the current year
paid to all employees, and include the basic
monthly salary, fixed cash remuneration,bonuses, and cash dividends.
* 2 T he ESG indicators from the table above
can be applied to the vice chairman, CEO,and COO, but not the chairman; The ESG
indicators of the chairman's performanceindicators included DJSI, CDP, MSCI ESG
with a weight of 15% and RE100 with aweight of 15%.

2022 Delta Electronics ESG Report

157

6.5
Competitive Employee
Compensation and Benefits

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

6.5.2 Long-term Retention Plans for Key R&D Talents

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.5.3 Flexible Benefits for International Transfers

Talent retention measures for key R&D talents across the world are taken according tolocal market rates. The R&D and sales team in Shanghai were offered special retention

The planning of global labor strategy and flexible expatriate measures is for the purpose

plans while R&D managers were offered retention bonuses based on individual andof increasing the attractiveness of assignments in response to continuing globalorganizational performance. Key R&D talent in regions such as India and Europe are also

expansion of the organization.

offered retention plans while the starting salary standards and general remuneration of
R&D talent in Taiwan have been continuously raised to remain competitive.

Increasing Salaries in Manufacturing Plants
In April 2022, Delta implemented annual salary adjustments based on the performanceof all employees, with 6% to 8% in plants in Mainland China and 3% to 5% in the otherplants. Increasing the fixed salary market positioning of indirect personnel in Chinese

Each year, the salary and benefits of expatriates are reviewed toensure they meet market standards In 2022, expatriate salaries wereincreased, subsidies for family members in aspects such as children's
education, transportation, and housing were also increased topromote talent mobility and employee willingness, allowing expatriates
to work overseas without worry.

plants effectively retained manufacturing talent. Besides fixed monthly wages/salaries,
employees in Taiwan are eligible for three major bonuses including year-end bonuses,
performance-based bonuses, and profit sharing. The salary structures of specialists
and above were adjusted for two consecutive years in order to retain high-performing
employees and recruit exceptional talent to assist with organizational expansion,

We provide employees and their family members with comprehensive
group insurance and 24-hour international medical assistanceservices.

transformation, and technology upgrades. A portion of variable salary was converted to
fixed salary plus adjustments to year-end bonuses, which resulted in employees with M
grade (achieved target) or above receiving average salary adjustments of more than 17%
in 2022. Production plants in Dongguan, Wujiang, Wuhu, and Chenzhou provided a salarystructure adjustment in 2022 for OPs, converted quarterly and annual bonuses to monthly
salaries, and increased the subsidies for evening shifts. In addition, the basic salaries of
production plants in Dongguan, Wuhu, and Chenzhou are superior to those required by
local regulations.

We increased the hardship allowances for areas with lower living
standards. We increased the allowances for assigning employees fromplants in Mainland China to India, and increased the allowances for
assigning mid-level managers from Taiwan to Mainland China. We also
increased insurance coverage for employees assigned to plants in
Thailand.

As risks of the COVID-19 epidemic rose, we increased the allowancesfor employees assigned to plants in India to support employees'
relocation across borders despite pandemic risks.

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6.5
Competitive Employee
Compensation and Benefits

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Global Annual Salary Ratio Based on Gender
Executives
Executives
RankedRankedManagers and Managers and
Above
Above
(basic salary)(full salary)

Other
Management
Personnel(basic salary)

Other
Management
Personnel(full salary)Nonmanagement
Personnel(basic salary)

Communication
with Stakeholders

Corporate
Governance

1

1

1

1

1.0

0.9

0.9

0.9

0.8

Salaries of Operators (including production line assistants)*1 Compared to Local
Minimum Wage at Major Regional Production Sites
TaiwanChina*2

APAC*3

1.1:1.0

1.1:1.2

1.2:1.2

9,749

9,758

10,364

497,109,152

537,846,100

574,177,271

People50,991
43,2332020

Average Annual Salary *4 for Professional, Technical and Management
Personnel at Major Regional Production Sites
Professional Technical and Management
Personnel
1

0.9

Taiwan

1

0.8

China

1

1.0

APAC*5

Operator (including production line assistants)●Male ●Female
1

0.9

Taiwan

1

0.9

China

1

1.1

APAC*5

Employee Relations
and Social
Participation

Appendix

Salaries for Full-Time Employees in Taiwan*6 *7 Who are Not in a
Management Position

People1

Devoted to Environmental
Protection and Energy
Savings

People55,11855,38946,7362021

46,3042022● Total salary● Average salary● Median salary

Unit:USD*1T
 he salary of Operators (including production line assistants) is defined as "average monthly salaryof Delta OPs (including production line assistants) in the region.
* 2 The minimum wage in Mainland China is different for each province and city. Therefore, the averageminimum wage for male and female OPs is used as the basis for calculation.
* 3 APAC region production sites are plants in India and Thailand.
* 4 The employees' annual salaries include the basic monthly salary, fixed cash remuneration, bonuses,
and cash dividends.
* 5 APAC Region production sites are plants in India and Thailand.
* 6 Full-time employees who are not in a management position: All employees minus managerial officers,
directors who serve concurrently as employees, employees of overseas branches, and employees
on reduced hours.
* 7 The information is disclosed in accordance with the "Rules Governing the Preparation and Filing ofCorporate Social Responsibility Reports by TWSE Listed Companies" promulgated by the Taiwan
Stock Exchange. The information was audited by PwC Taiwan.

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6.5
Competitive Employee
Compensation and Benefits

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Remuneration of President and Vice President*1

Salary16.10%

Pension

0.22%

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix2022 Composition of CEO Remuneration

Bonuses andAllowances,
etc

Employee
Remuneration

0.57%

83.11%

SalaryPension

Bonuses andAllowances

Employee
Compensation$336,106$4,566$0$2,142,780

A

B

C

D

Sum

$2,483,452
Unit:USDCEOPing Cheng*1 The percentage in this table was obtained through the total salaries of the Operating Strategy
Management Committee's chair, CEO, and vice president including Mark Ko, Ping Cheng, and Simon
Chang divided by three.

6.5.4 Encouraging Long-term Retention through Long-term Incentive Measures —Delta Encourages Employees to Stay with the Company
The Company established long-term incentives to retain key talents, encourage employees, and increase employee morale. We also calculate the number of shares allocated to employees
based on the Company's business performance, employee performance, and the stock prices of the current year. We then convert the bonus to cash based on the stock price in the yearof distribution.
We plan diverse long-term talent retention measures and create an environment for long-term development. We also identify and track young recruits with potential through our talentmanagement mechanism and pay attention to their development potential within our businesses. Delta also encourages employee participation through the annual Delta Innovation
Awards to generate an innovative spirit within the Company.

6.5.5 Stable Pension Provision Plan
Plants in Taiwan process retirement applications and pension provision standards in accordance with the Labor Standard Act and Labor Pension Act. The Company appoints an actuary tosubmit an actuarial report on the labor pension preparatory fund each year and appropriates the pension under the old system to the Trust Division of the Bank of Taiwan. After the launchof the new labor pension system, we allocate 6% of the employee’s monthly salary to their personal pension account under the new system. Employees may apply for retirement once
they meet legal retirement conditions. Pensions for overseas subsidiaries, branches, and affiliates use the defined benefit plan. Social security funds including pension and healthcare are
filed each month in accordance with regulations of local governments.

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6.6
Human Rights Protection

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.6 Human Rights Protection
6.6.1 Human Rights Risk Identification and Assessment
Delta complies with international labor and human rights standards as well as the laws and regulations in the country of operations. Suppliers are prohibited from modern slavery forany other purposes and the progress of human rights management is disclosed annually in accordance with The Modern Slavery Act of the UK. In response to ESG development trends,
Delta's human rights management policy added an article for "diversity and inclusion" in 2022, emphasizing a diverse and inclusive culture that respects gender equality and different
groups. Each year, a risk assessment is performed to identify human rights issues through regulatory-compliant self-assessments in factories, and third-party evaluations. Mitigation andcorrection measures are adopted based on the results of risk assessments and deficiencies discovered in internal/external audits, and improvements are made continuously to achieve
the purpose of risk management. The Company complied with local labor regulations and related rules and there was no violation of any regulations in 2022. RBA compliance training
was hosted in China to improve the industry chain's level of liability and social responsibility management capabilities to assist in creating sustainable development for "enterprise,environment, and society". Self-assessments of human rights risks were also conducted in affiliated companies and joint ventures, and the findings identified human rights risks as low
risk.

Human Rights Due Diligence Investigation and Mitigation Measures
Human Rights Policy Review
Topics of Concern

Freely Chosen
Employment andProhibition ofForced Labor

Identify Parties Concerned

Assess Management Risks

Targets and Actions
Formulate the Human Rights Policy, Code of Conduct, and Recruitment
and Hiring Management Regulations to allow freely chosen employment
and prevent non-voluntary labor services.
Regulate and promote freedom of movement policies in the workplace.
Establish a policy for requiring zero payment from foreign migrant workers.
Policy to ban the use of child labor.
 alary must meet the legal requirements for minimum wage, overtime, and S
benefits; salary deductions may not be used as a disciplinary measure.

Working Hours andSalaryRisk Mitigation Measures

Track Improvement RegularlyManagement and Mitigation Measures• Strengthen human rights management, implements the zero-payment
policy• Optimize the hiring process, provide payment for health examination fees of
new employees• Ban the employment of child labor, check the age documentation of new
recruits• Establish effective recruitment plans based on sales and marketing meetings,
update daily recruitment conditions, prepare labor reserves in advance.

 ater to the mental and physical health of employees by managing
C
extended work hours and ensuring that overtime pay exceeds thestandards of regular pay.

• Reinforce production line labor in phases to maintain operations for 6 out of
7 days of the week, rigorously manage working hours to below 60 hours per
week.

Provide sufficiently detailed payroll information for each payroll period.

• Employees in China agree to a social insurance payment base as required by
local laws and regulations

 omply with local laws and regulations in the hiring of temporary workers,
C
contractors, and labor outsourcing.

• Meetings cannot be scheduled before business hours.

Equal salary regardless of gender, age, or ethnicity.
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6.6
Human Rights Protection

About theESG Report

Topics of Concern
Diverse Recruitment
and Staffing andAnti-discrimination

Freedom of
Association

Sexual Harassment
Prevention
and Unlawful
Infringement in the
Workplace

Safety and Health

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceTargets and Actions

Devoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Management and Mitigation Measures

 R
 espect religious freedom and establish application procedures for employees' • Employ aboriginal people and provide more than the 3 days annual ceremonyleave as required by laws and regulations
religious venues
 hen executing M&A projects, identify whether the target company contains • Employ personnel with visual and hearing disabilities
W
human rights risks related to gender, ethnicity, or religious discrimination.
• Customize forums and events to care for the human rights of migrant workers
 C
 reate an environment with freedom of expression and communication and• All personnel are free to associate with or organize unions; collective bargaining
provide employees with the legal right to establish, participate in, or refuse to
may be conducted between union representatives and the Company
join associations or group agreements.
 Taiwan issues written statements for workplace violence preventionCreatea friendly workplace environment and set up sexual harassment
grievance hotline, mailbox, and heartwarming delivery services• Establish an online course for sexual harassment prevention and track thetraining employee completion rate
• Organize training for prevention of unlawful infringement and sexual harassmentin the workplaceEstablish
a global report management mechanism and execute the handlingand investigation procedures for unlawful infringements in the performance of• Revise Taiwan's management procedures for unlawful infringement in thedutiesworkplace by adding settlement procedures in cases where grievancecommittees are not convened
Establish the ISO 45001 Management System for all major plants across theglobe and implement preventive safety and health management.

• Posting GHS chemical labels and exhaust pipeline label.

• Protective equipment is placed in the designated temporary storage area, andPay attention to the safety and health of the work environment of workers and the wearing and storage regulations are publicized.
commit to creating a safe and healthy workplace.
• Check bulletin boards quarterly to ensure that employee policies are up to date.

2022 Human Rights Management Achievements
Employment of Employees with
Disabilities• We employed 1,144 people withdisabilities worldwide including,• 97 employees in the Taiwan plant.

Audit of Human Rights Standards
Global Sites• 24 internal audits• 101 external audits• Risk ratio*1 was approximately 2.6%

Human Rights Policy Training• 82,007 employees completed
training globally*2• 97.0% completion rate
• 10,934 training hours• 13,772 employees completed training in Taiwan• 96.8% completion rate
• 1,836 training hours* 1 The risk ratio calculation was based on the methodology of the Dow Jones Sustainability Indices.
* 2 The number of participants in training included Cyntec employees.

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6.6
Human Rights Protection

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.6.2 Employee Rights and Communication
Delta adopts open communications with employees and a good two-way communication

Delta also strives to expand diverse communication channels by implementing a goodmechanism, achieving a global group bargaining and union coverage rate of 53.6%.

and fast communication mechanism that swiftly deploys correct company information andallows the voices of employees to be heard and answered. As such, the expectations andCompared to the previous year, the coverage rate has decreased as new employees insentiments of both parties can be consolidated to solidify labor-management relations. In

Thailand and India have not yet been selected to join their respective unions. Remaining

addition, any reported information is kept confidential to protect the rights and interests

employees who "have not joined a union or are not covered by collective bargaining"of all employees. In 2022, Taiwan received 243 cases of internal suggestions or feedback,and those in "operating sites or subsidiaries without unions" enjoy work conditions and

29 of which were reports of labor standards violations. There are 5 cases of sexualemployment clauses that comply with local labor regulations, labor contracts, working

harassment among the reports of labor standards violations and only two of them wererules, or which have been confirmed by labor negotiation channels instated by law.

put on record. There were no other cases were reported as discrimination. All cases weredealt with at once and improvement measures were taken accordingly.

2022 Communication Channels and Statistics of Employee Feedback in Major Manufacturing Sites*1

47

Union and Labor-management
Meetings

 Organized quarterly to promote harmonious labor-management relations
 Assisted troubled workers with applying for holiday and condolence subsidies from unions

Welfare Related Meetings

 Organized quarterly to promote an exchange of ideas for welfare activities
 Improved dining environment (replaced tables and chairs) and added foreign cuisines
 Revised procedures for reviewing and managing clubs, added supplementary content, andencouraged clubs to engage in cross-plant competitions

187

Seminars Executive manager seminars conveyed the organization's vision, principles, and listened to
employee demands
 Dormitory seminars, face-to-face discussions clarified employee demands, and improved
dormitory environments (repaired air conditioning, hot water supply facilities)

337

Mailbox for Employee
Complaints and Suggestions

Cases

164
Cases

Cases

337

Cases

 Implemented an online and physical mailbox and provided a channel for anonymous suggestions
 A suggestion platform was implemented in the public areas of each plant (scan QR code formessenger service) Provided mechanisms for reports and complaints, and management of unlawful infringement in
the workplace*1. The main manufacturing sites include Taiwan, China, and APAC's Thailand and India plants.

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6.7
Social Participation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.7 Social Participation
6.7.1 Social Engagement
Complying with sustainable development goals in response to the world's shared values, continue to support socially innovative
enterprises on the path of mutual benefit with the environment to achieve the goal of a sustainable homeland.

Regional Revitalization
Delta insists on green procurement and has extended its walking events in Taiwan from previous years, organized short travel
vacations in the spring, improved the right to speak for local areas, supported regional revitalization, and contributed toprotecting the beauty of Taiwan. For three consecutive years, Delta has received the second-place award for "Socially Innovative
Procurement of Products and Services". In 2022, Delta combined the principles of social welfare and resource sustainability toconnect regions and collaborate to expand its social influence. As a result, Delta was awarded the Ministry of Economic Affairs'
Buying Power Special Charity Award and third place in charitable procurement.

Light Up! Spark Dreams and Revitalization
For four consecutive years, the charity donation program has spread love through the donation of quality second-hand goods andcrowdfunded purchases to help 15 charity organizations gather more than 5,300 supplies and more than NT $160,000 in donations. Collective
power was utilized to achieve improved supplies and spark dreams to create a better living environment.

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Social Participation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.7.2 Popularizing Green Buildings and Low-Carbon Transportation
Official Opening of Namasia Dist. MinQuan Elementary School and
Preschool Donated by Delta

buildings. Also, a 2021 project between Delta and the New Taipei City Government utilized

After Typhoon Morakot in 2009, Delta assisted in the reconstruction of Kaohsiung's

conditioning temperature of public buildings. Without the addition of any equipment, theNamasia District MinQuan Elementary School. Once completed, the project received

project achieved the benefit of 9% energy conservation. The case study was featured in

Taiwan's highest diamond-grade Green Building Label and it has since been used as an

issue 221 of the renowned international academic journal Building & Environment in 2022.

evacuation center for local residents during typhoons and heavy rainfall disasters. In

the temperature, humidity, and comfort analysis from weather forecasts to adjust the air

population grew, Delta Electronics Foundation has continued its commitment to the green

GreenBIM Microclimate Platform Completes ASHRAE Monitoring at
400 Sites Across Taiwan

campus by further donating to a preschool in 2021. The project was also designed around

GreenBIM Microclimate Platform, a joint venture between the Delta Electronics

the local environment and renewable energy to create an energy-conserving and safe

Foundation, Taiwan's Central Weather Bureau, Taiwan Architecture & Building Center,green campus; the project was completed and officially opened in 2022.

and International Climate Development Institute introduced an energy efficiency tool

2021, it became Asia's first school to obtain LEED Zero certification. As the indigenous

Further Evolution of LEED ZERO and WELL Building Standard
Coursesdeveloped by UC Berkeley in 2022 to build an energy efficiency standard "Taiwan
BETTER" that is more suitable for the island's buildings. The platform has implemented
paid ASHRAE data points across Taiwan, allowing architects and air conditioning

Delta continued to organize LEED ZERO certification courses in 2022, teaching thetechnicians to accurately utilize microclimate data to improve the energy efficiency of air

details of certification application and adding net zero smart building technologies toconditioning systems.

share viable pathways for reducing carbon in buildings. The content of the WELL Building
criteria to improve health management quality during epidemic prevention as well as

Promotion of Electric and Low Carbon Transportation Enters
Elementary Schools for the Third Yearprovide a universal standard for enterprise indoor environmental quality (IEQ). The two

By utilizing science experiments that can be done by elementary students, Delta

courses attracted more than 1600 applicants.

promotes the early teaching of low carbon transportation, and introduces the issues ofStandard course is constantly updated based on the latest health-safety evaluation

Delta Buildings Featured in UN Climate Report and Renowned
Academic Journaltransportation and air pollution as well as the scientific principles of electric vehicles.
In 2022, the lesson plan was revised to include air quality monitoring for roads as wellas air quality control zones to help children understand the importance of transitioning

In 2022, the UN Intergovernmental

to electric vehicles and the dangers of remaining idle. The efforts will hopefully allow

Panel on Climate Change (IPCC)

students and teachers to proactively drive changes to campus transportation policies toreleased its 6th Assessment Report

improve air quality.

(AR6), recognizing Delta's donationo f t h e N C K U Y. S . S u n G re e n
Building Research Center for its
exceptional performance in energy
conservation and one of the global
models for low energy consumption

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6.7
Social Participation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.7.3 Energy Conservation and Climate Education
Founded Coral Conservation Center - Trained Volunteers to Obtain
Monitoring License

in 2005, it has attracted submissions from 9,999 teams across the globe and received

From 2021-2022, Delta successfully

have been constructed to help make the designers' dreams come true.

2,044 eligible entries. After conceiving their detailed designs, five of the winning entries
Click heretransplanted 1200 fragments tothe conservation center under theguidance of a professional marine
conservation team, completing
the goal three years earlier than
expected. The project introduced
LED lighting and PLC equipment
developed by Delta to acceleratet he coral restoration process.
Volunteers arranged to undergo
training with the international coral monitoring network CoralNet to learn to identify coral,transplant fragments, and mark and monitor larvae. As of 2022, the number of licensed
Delta volunteers accounts for 80% of qualified volunteers in Taiwan; a portion of coralfragments have been transplanted to Chaojing Bay Resource Conservation Area

Delta Cup Themed on Research Station for Giant Panda - Exploring
Harmonious Development Between Humans and NatureFirst place entry "Light - Shadows - Alleys"

Continued Growth of Social Media Influence
Delta's long-term commitment to the "Low Carbon Life Blog" and Voice of IC "Climate
Battle in Taiwan" radio program has allowed the blog to accumulate 5.95 million views

The 2022 Delta Cup international solar energy building design competition was centeredand its exposure in major online media outlets with social media posts has accumulatedon the theme of "Sunshine & Station in the Scenery" by collecting design submissions

a reach of 13.23 million people. The radio program focuses on themes such as climate

for a research station in the nature conservation area for giant pandas located in Guanba

news, the AR6 climate report, carbon reducing technologies, and UN conferences relating

Village of Sichuan Province's Pingwu County. Guanba Nature Conservation Area is an

to the environment. Annual clicks have exceeded 65,000 or 58% growth while also taking

important protected habitat rich in biodiversity resources, including tens of precious

Taiwan's top spot in the "nature" category for many days on Apple Podcast.

plants and animals such as giant pandas. In 2021, it was selected into the "Convention
The competition received 171 valid entries and was ultimately won by the project "Light -Delta Produced Marine Documentary Receives Honors at the
Houston Film Festival

Shadow - Alleys" completed through collaboration by the Architectural Design & Research

Delta commissioned a professional Japanese photographer to travel to islands in theInstitute of Zhejiang University, the National University of Singapore, and the East China

Pacific Ocean to film 8K ultra high-definition documentaries "Life in the Coral Reefs" andArchitectural Design & Research Institute. The project cleverly combined active/passive"Swimming with Humpback Whales" to raise public awareness for marine conservation.

technologies and architecture design, utilizing a creative "light tower" design to win theBoth documentaries won gold awards at the 2022 55th WorldFest - Houston International

praise of the judges panel and stand out from other submissions. Since the contest began

Film Festival.

on Biological Diversity" to become the "100+ Global Cases of Biodiversity" at COP 15.

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6.7
Social Participation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Delta Earth Film Festival Tours Taiwan
In 2022, Delta initiated the "Earth Pulsing" Film Festival and toured Taiwan for showingsof all 13 episodes of the BBC's epic nature documentaries. Delta also partnered with
WildView Taiwan in environmental topics to raise public awareness of climate change andhow it has impacted Earth's ecosystems by touring museums and high school campuses.

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Federation of Industries". New courses related to foundational knowledge in climatechange, weather services, and energy conservation financing were added in response to
climate and financial trends. A total of two online training programs were held with a totalof 2,300 applicants and later, 75 individuals who applied for examination and obtained
licenses.

Additionally, an ecological concert of the fantastic music in the BBC's "Planet Earth II"
was once again organized. Together, the film festival and concert received more than
6,500 attendees.

Earth Pulsing - Nurturing Life Exhibition - Pioneering Use ofRenewable Energy
Delta and Asia University co-organized "Earth Pulsing - Nurturing Life Exhibition" which
not only included a BBC authorized still image exhibition of "Planet Earth II" and "Blue
Planet II", but also featured projection technology and ecological art to explore life onearth and sustainable development. All electricity used during the four-month longexhibition was sourced from renewable energy and the exhibition attracted more than
10,000 visitors.

Delta's Green Practices are Featured Once Again on the InternationalStage

6.7.4 Talent Cultivation
DeltaMOOCx Adds Flexibility to Learning Courses

DeltaMOOCx, developed with technical and vocational education at its core, combines
industry trends and industrial design automation curriculums to extend the learning fnatural science subjects in vocational high schools. Due to COVID-19, all open courses
on the platform allowed students to learn with more flexibility, accumulating more than 18
million views in 2022.

Cultivating Environmental Talent and Giving Back to Society

Delta has long fostered exceptional talent that benefits society through scholarships. Asof 2022, a total of 138 exceptional students from Northern Thailand area have received
overseas study scholarships. Over a hundred academic talents with Master's and Ph.D.

In 2022, Delta presented its latest coral restoration efforts at the world's largest

degrees have received scholarships to travel the world and study environment-related

sustainability forum Sustainability Research & Innovation (SRI). Additionally, Delta

subjects. In addition, the Delta Electronics Foundation also provides civil servants withattended the UN Conference of the Parties (COP) for the 14th time and organized sidescholarships for overseas studies and we have helped train more than 60 outstanding civil

events in the official area, offering its experience in enhancing power grid resilience withservants that have achieved awards. 2022 marks a decade since the Delta Electronics

the governments of the Balearic Islands, Canary Islands, and energy think tank RMI.

Foundation established the "Tseng Hsu-pai Journalism Award - Delta Energy and Climate

Delta also hosted its first action initiatives forum at COP, inviting experts such as Scripps

Special Award". Since then, the award has been issued to 38 news reports for climate andInstitution of Oceanography and UC San Diego Vice Chancellor Prof. Margaret Leinen andenergy-related topics and continues to award reporting on the climate crisis.

National Museum of Marine Biology and Aquarium Deputy Director Te-Hao Chen to takethe stage and speak on diverse topics such as coral restoration and the thermo tolerance
gene.

Energy Management Personnel Training Cultivates Green Talent for
the Industry

China Science Education Development Plan - New Power System to
Promote Energy Transformation
Established in 2000, Delta has since continued the "Delta Power Electronics Science

Education Development Program" and "Zhongda Scholars Program". Starting in
2023, the programs’ 10 original key universities, saw the addition of the North China

In 2022, Delta continued to organize training for energy conservation management

Electric Power University. The new "Power Electronics Power System" subject

personnel through partnership with Taiwan's largest industry group, the "Chinese National

encourages the cultivation of interdisciplinary talent

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6.7
Social Participation

About theESG Report

A Word from
the Management

Overview

Sustainable
Managementin science and technology innovation to achieve significant, next-generation

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

The 2022 "Science Education Program" sponsored research grants for 15

results in scientific research. In August 2022, Delta, organized the "2022 Delta

scientific subjects. "Zhongda Scholar Program" selected Professor Zeng Rong for thePower Electronics Technology Seminar" in Wujiang, Suzhou. The seminar marked thedistinction and title of "Zhongda Scholar". Associate Professor Professor Wang Yijie

first discussion on the key subject of building new power systems for energy

was awarded the "Zhongda Young Scholar Award". A total of 61 graduate students

transformation. The "Delta New Power Electronics Power System Summit Forum" wasfrom ten universities received scholarships. As of 2022, there were 317 innovative

organized, inviting expert scholars, faculty, and students in the fields of electronics andresearch subjects that have received grants; 41 received awards for exceptional

power to conduct meaningful exchanges.

research, with 33 outstanding professors receiving the distinction of being a "Zhongda
Scholar", 24 were selected for the "Zhongda Young Scholar Award", and 20

RecentResearch into
PowerElectronics
Systems –Timely andNecessarysponsored as "Delta Visiting Scholars". Scholarships have been awarded to 1,422
exceptional graduate students.

Delta Physical World Revised to Inspire Interest in STEM Education

The "Physical World" exhibit donated to the National Museum of Natural Scienceby Delta, completed small scale revisions in 2022 which included the use of Delta
robotic arms combined with the precise computation of Coriolis force as well as
experimental designs to enhance acoustics and optics. Since "Physical World" wasreinstated in 2014, it has attracted more than 10 million visitors and more than 442
student volunteers from Taichung First Senior High School who have been the primaryforce acting as guides for the exhibit. For nine consecutive years, the Delta Electronics
Foundation has partnered with the Wu Chien-Shiung Education Foundation toorganize annual science camps for high school students. The partnership has attracted
more than 1,200 high school students to the STEM camp and inspired their interest in

Luo An, professor and academician of the Chinese Academy of Engineering,fundamental science.

Zhongda Scholar in 2015, spoke at the seminar on behalf of the faculty andstudents of all universities involved in the "Dual Science Education Program". He
thanked Mr. Bruce C.H. Cheng for his unwavering support of Prof. Fred C. Lee
and initiatives from other senior scholars in power electronics to cultivate a group ofpractical talent to act as the backbone for the rapid development of power electronics
in China. This year, the addition of research in power electronics systems closely
follows this generation's context and is an important pathway to achieve the dual
targets of clean energy and carbon transformation. At a high level, this research istimely and necessary.

More than a Decade of Environmental Law Program Protecting Nature through the Power of Law

Since 2011, Delta has established the " Delta Environmental Law Scholar Program" and" Delta Environmental Law Education Promotion Program" in order to support

environmental resources and energy law subjects in eight key universities. In the decade
since

the

programbegan,

distinctions

have

been

awardedtonine"DeltaEnvironmental Law Scholars" and 21 " Delta Environmental Law Young Scholars". The" Delta Environmental Law Outstanding Thesis Award" has been issued to 60 people
while the "Thesis Scholarship" has been awarded to 362 people. A total of nineenvironmental law forums have been organized and the contributions of experts
and scholars on environmental topics have received affirmation from the academic
field of environmental law. On December 10-11, 2022, Delta Group, with support from
Zhengzhou University

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Social Participation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Law School and Zhengzhou University Institute of Natural Resources Protection Law,organized the "2020-2022 Delta Environmental Law Forum". The online event invited
experts in environment and natural resource protection law to join faculty and students
to explore topics such as "Research of Laws Relating to Ecological Protection and HighQuality Development of the Yellow River", attracting over 4,000 viewers to the forum's live
stream.

Supporting Education with Love -- Allowing Pearl Students to Shine
There is a group of "Pearl Students" who are academically exceptional but have trouble
completing their education due to special circumstances at home. Since 2008, Delta has
acted as a "Pearl Cultivator" through the "Hope For Pearl", providing subsidies towards
three years of high school life for Pearl students. As of 2022, a total of 980 students
from the five provinces of Fujian, Hebei, Shanxi, Anhui, and Hunan have received support
totaling RMB 7.35 million (approximately 1.057 MUSD).
Most students in the "Delta Pearl Class" have attained exceptional results in the National
College Entrance Examination after graduation through their own hard work and guidancefrom their instructors. In 2022, 90% of 130 Delta Pearl students sponsored by Delta
since 2019 from Anhui Suzhou No. 2 Middle School, Hunan Yiyang No. 1 Middle School,
and Ningde Nationality Middle School got admitted to the undergraduate university.
Upon entering university, Pearl students have comparatively few resources and lack
opportunities for growth but Delta has continued to show concern through events suchas freshmen welcoming parties, winter camps, and recruitment seminars. In 2022, Delta
participated in Xin Hua Education Foundation's first annual cloud recruitment event,
providing more than 100 positions to "pearl university students" across the nation. To
date, nearly 20 Pearl students have joined the Delta Wujiang plant and other locations,allowing Pearl students to continue showcasing their efforts.

2022 Delta Electronics ESG Report

169

6.8
Occupational Health and
SafetyAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

6.8 Occupational Health and Safety
6.8.1 Occupational Health and Safety
Occupational Safety and Health Management System

CNS 45001 certification and obtained the TOSHMS certification. We set up safety andProviding employees with a safe and healthy workplace is one of Delta’s mosthealth management units in all plants and appointed professional personnel to takefundamental obligations as a corporate citizen. The Company's main production plants

charge of safety and health management planning, implementation, supervision, andin Taiwan and Mainland China and the Thailand Plant comply with the P-D-C-A strategy

audits. Delta has established industrial safety departments in production-oriented

for the Occupational Safety and Health Management System to systematically promote

plants in Mainland China and Thailand which report directly to the highest-ranking local

occupational safety and health management tasks. Regions and plants with ISO 45001

supervisor. In R&D and administration-oriented units in Taiwan, an occupational safety

certification: Taiwan: Taoyuan Plant 1, 2, 3, and 5, Chungli Plant 1, 5, and RD Plant,

and health management department reports directly to the Chief Executive Officer. All

Pingzhen Plant, Tainan Plant 1, and Cyntec in Hsinchu.Mainland China: Dongguan Plant,

plants follow requirements of local regulations for labor and management to jointly form

Wujiang Plant, Chenzhou Plant, Wuhu Plant, and Huafeng Plant; DET Plant 1, 2, 5, and 6

an Occupational Safety and Health Committee which convenes regular meetings toin Thailand; Taoyuan Plant 1, 2, 3, and 5, Tainan Plant 1, and Pingzhen Plant also passed

review, coordinate, and propose recommendations for safety and health management.

Key Discussions of Delta's Regional Occupational Safety and Health Management Committees in 2022
Regions

Taiwan (Delta & Cyntec)• COVID-19 disease prevention

Key Discussion Topics• Extending production line controls• Review cases of occupational accidents

China (Delta & Cyntec)

Thailand• Strengthening the safety management ofmachinery and equipment• Strengthening inspection of unsafe
equipment• Rectify and prevent work safety incidents• Reinforcing emergency response drills inplants• COVID-19 disease prevention

Percentage of Total Employees

Supplementary Description

43%• Number of employee representatives: 98
people• Number of committee members: 226
people37%

54%• Number of employee representatives: 64
people• Number of committee members: 172
people• Number of employee representatives: 54
people• Number of committee members: 99
peopleNo applicable requirements

2022 Delta Electronics ESG Report

170

6.8
Occupational Health and
SafetyAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Risk Assessment and Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

To effectively prevent the occurrence of occupational hazards, the Company has

Management of Hazardous Chemical Substances and Workplace
Monitoring

established safety and health hazard identification and assessment procedures for

To prevent the use of hazardous substances from affecting employee health, plants mustrisks and opportunities to identify potential hazardous factors of the work environment,

prioritize the use of low-hazard chemicals and set up regional ventilation equipment toprocess, activities, products, and services. We identify potential hazards, assess theireffectively remove hazardous gases. If the plants need to purchase new chemicals or

risks, specify unacceptable risk levels, and prioritize engineering control measures for

replace chemicals used in the manufacturing process, they must follow the management

unacceptable risks. We identify and assess risks of contractor personnel and discuss

procedures of the plant for implementing changes. They must conduct risk assessments

operational risks and control measures in construction meetings or toolbox meetings. In

for hazard ratings for the use of such chemicals and obtain approval from related units

terms of the procurement of new equipment and process upgrades, we manage changes,

before they can be used in the plant. We use personal respiratory protection equipment

implement pre-purchase safety evaluations, and increase safety measures for mechanicalthat meets the requirements of local laws and regulations based on the conditions ofequipment. We also select low-hazard chemicals to replace high-hazard chemicals andthe use of chemicals. For processes with a higher risk of respiratory protection hazards,

adopt source control measures to ensure personnel and plant safety and health. We

we implement corresponding air-tightness tests to ensure their effectiveness. If a plant

implement regular hazard identification and risk assessment for work procedures andhas employees of other nationalities, the plant translates information on the hazardous

control unacceptable risks. The responsible units must file applications for operations

chemicals into the language used by the employees to ensure that all workers understandwith higher risks and levels of hazards, and the operations can only be carried out withrelated hazards. Our respective plants, pursuant to practical operational hazardous

the approval of related units. To ensure safe operations of power equipment and facilities,

situations and regulatory requirements, regularly appoint monitoring institutions to

our manufacturing plants regularly use an infrared thermal imaging camera to undertake

implement workplace monitoring to control the dispersion of hazardous factors in the

non-blackout inspections for early detection of any abnormalities and rapid response withworkplace. Delta then uses the results of these tests to carry out onsite improvements,

effective improvement measures.

thereby lowering the occurrence of workplace illnesses. Delta has implemented the

Occupational Health and Safety Assessment

monitoring of operating environments for both chemical and physical factors. After
collection and analysis, data sorting found the top four monitored chemical factors to be

The plants shall conduct automatic inspections and self-inspections in accordance withisopropanol, tin (IV) oxide, methanol, and carbon dioxide; the top three monitored physicalgovernment regulations and the Company's operation standards to ensure the safety offactors include noise, illuminance, and wind speed. Additionally, few workers in certain

employees and plants. Safety and health management department personnel shall carry

plants engage in radiation operations. We work to prevent employee workplace exposure

out routine occupational safety assessments and inspections. They must also perform

to hazardous elements and their causes according to local statutory regulations. As such,

sampling inspections on contractors' operational safety. Plants in each region shall

operators that handle hazardous materials undergo special health checks and the results

promote inter-industry health and safety inspection activities. Inspectors include safetyof the checks are used for tiered management.

and health management department employees of other plants, factory occupationalsafety and health personnel, and departmental occupational safety and health promotion

Training and Communication

employees. Through the observational learning of cross-industry inter-inspector

To improve workers' safety and health knowledge and ability to respond to emergencies,

activities, factory personnel safety and health management exchanges and interactions

we held safety and health education training in accordance with regulatory requirements.

were improved as were manufacturing plant audits. Certain main production plants shall

We used emails and bulletin boards to post or organize safety knowledge Q&A to increase

include inspection results in the safety and health evaluation activity. The units with theemployees' ability to identify hazards in the work environment and their safety and healthmost improvement shall receive commendations and bonuses as well as rewards for theknowledge and concepts for disaster prevention and response, and to thereby prevent

implementation personnel to encourage improvements in how employees practice safety

the occurrence of occupational hazards. In 2022, Delta Taiwan, Mainland China, andand health management in their work.
2022 Delta Electronics ESG Report

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6.8
Occupational Health and
SafetyAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

AppendixThailand (including the subsidiary Cyntec) implemented workplace safety and healthworkplace, they may address the concerns with employees of the Occupational Safety

training for new recruits and current employees (course contents included hazardousand Health Department of each plant at any time. The Company prioritizes the safety andchemicals, machinery and equipment operations, electrical safety, and respiratory

health of employees above all and continues to implement corresponding improvement

protection), emergency response and fire drills for licensed employees required bymeasures to ensure the safety and health of employees.

regulations (e.g., first aid personnel, forklift operators, fixed crane operators, and organic
solvent operations supervisors), and personnel safety training for the introduction of new

Delta's occupational hazard statistics are calculated based on the definitions in theequipment or new technologies. We recorded a total of 176,000 participants for related

Occupational Safety and Health Act and indicators of critical disabling injuries publishedinternal (external) on-the-job training who registered with more than 432,000 hours ofby the Global Reporting Initiative (GRI). Delta employees recorded more than 240

training. Courses are conducted in local languages or the languages used by non-native

million work hours in 2022. The statistics of occupational injuries and illnesses in

employees. We also administered post-training tests to evaluate the effectiveness of the

Delta operations in different regions are specified in the table below: The number oftraining. We established the safety, health, and environmental protection regulations foroccupational injury-induced deaths rate and recordable disease rate were both zero

contractors to enhance the safety and management of contractors in plants. We requirein the current year; the severe occupational injury rate was zero; the Lost- Time Injury

contractors to abide by occupational health and safety laws and Delta's regulations.

Frequency Rate (LTIFR) was 0.95, thus achieving the 2022 target of LTIFR 0.95, andContractor personnel who intend to enter Delta plants must receive the necessary

critical Disabling Injury Frequency Rate (FR) was 0.54. The LTIFR in terms of injury

occupational safety and health training, pass tests, and sign the hazard notice before

type consisted mainly of clamping or coiling injuries. To prevent the hazards of suchthey may enter the plants for operations. Contractor personnel in Taiwan, Dongguan,mechanical injuries, plants shall implement equipment source management, install safety

Wujiang, and Thailand Plants have recorded more than 36,000 hours of safety training.

devices when purchasing machinery, and list them as routine inspection items.

Occupational Accident Management

The occupational injury-induced death rate of other workers was zero; the severe

To ensure rapid response of related units in the event of an occupational accident,

occupational injury rate was zero; the LTIFR was 6.49 and critical Disabling Injury

the Company has established accident notification and processing procedures forFrequency Rate (FR) was 5.61; In 2022, an employee in Tainan Plant was burned by arc

employees and workers in plant areas under Delta jurisdiction. In the event of a near

flash as a result of a short circuit that occurred during test operations. It was a violation

miss, occupational injury, or occupational disease, first aid, reporting, investigations,of the Occupational Safety and Health Act and the Company was fined NT$110,000

and improvement measures must be implemented for each incident. The Company mustby the Southern Taiwan Science Park, National Science and Technology Council. The

also propose improvement measures for the root cause of the incident. All improvement

plant conducted a full review of related operations and adopted improvement measures

measures must be horizontally expanded to prevent the recurrence of similar incidents.

including installation of an emergency off device for the equipment, enhanced electrical

If employees who have returned to work after an occupational injury or occupationalsafety training for employees, and regional safety and management measures to ensure

disease still have concerns regarding occupational injuries or occupational disease in thethe safety of employees in operations.

2022 Delta Electronics ESG Report

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6.8
Occupational Health and
SafetyAbout theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Statistics of Occupational Injuries and Disease in 2022
Major Production Sites

Employees

All Workers
Who are Nonemployees
butWhose Workand/or Workplace isControlled bytheOrganization

Operations Sites and R&D Center

TaiwanChina

ThailandIndia

Taiwan

China

Other
overseasregions

Total

Occupational injuryinduced death rate

0

0

0

0

0

0

0

0

Severe occupational injury
rate

0

0

0

0

0

0

0

0

Lost-Time Injury
Frequency Rate (LTIFR)

1.63

0.37

2.37

0.11

1.04

0.00

2.31

0.95

Occupational diseaseinduced death rate

0

0

0

0

0

0

0

0

Recordable occupational
disease rate

0

0

0

0

0

0

0

0

Occupational injuryinduced death rate

0

0

0

0

0

0

0

0

Severe occupational injury
rate

0

0

0

0

0

0

0

0

= recordable number of occupational

Lost-Time Injury
Frequency Rate (LTIFR)

1.23

0

0

15.27

2.45

0

0

6.49

Occupational disease-induced death

Occupational diseaseinduced death rate

0

0

0

0

0

0

0

0

occupational illnesses/total hours worked

Recordable occupational
disease rate

0

0

0

0

0

0

0

0

Recordable occupational illness rate

FormulaLost-Time Injury Frequency Rate (LTIFR)=(recordable number of occupational
injuries + recordable number ofoccupational illnesses)/total work hours *1,000,000.
Occupational injur y-induced deat hrate = number of deaths caused byoccupational injuries/total hours worked* 1,000,000
Severe occupational injury rate = numberof severe occupational injuries/total
hours worked * 1,000,000
Recordable occupational injury rate
injuries/total work hours * 1,000,000

rate = number of deaths caused by* 1 Total work hours included overtime work hours.
* 2 The recordable occupational injuries do not include traffic accidents during commutes.
* 3 The occurrence rate is accurate to two digits after the decimal point and the third digit is rounded off unconditionally.

* 1,000,000= recordable number of occupational
illnesses/total work hours * 1,000,000

2022 Delta Electronics ESG Report173

Appendix

7

7.1

Environmental Data

7.2

Social Data

7.3

Index of GRI Standards Indicators and SASB Index

7.4

Summary of Information Assured (ISAE 3000)

7.5

TCFD Index

7.6

External Assurance Statement and Report

7.1
Environmental Data

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

7.1 Environmental Data
Attribute

Category

Energy

*3

Item

2020

2021

2022

2021

2022

Purchased non-renewable electricity (MWh)330,557

255,257

274,261

214,631372,911

262,482

23,231

25,322

31,06822,13025,23225,454Externally Purchased renewable electricity (MWh)170,000

285,000

357,990388,687389,796

421,548

Total electricity consumption (MWh)523,788565,579

663,319

625,448787,939

709,484

Purchased non-renewable electricity (GJ)

1,190,005

918,925

987,340772,672

1,342,478

944,936

Self-generated and consumption renewableelectricity (GJ)

83,632

91,159111,845

79,66890,833

91,635Purchased renewable electricity (GJ)

612,000

1,026,000

1,288,764

1,399,273

1,403,266

1,517,573

1,885,637

2,036,084

2,397,949

2,251,613

2,836,577

2,554,144

89,32989,522

113,952

139,116

149,824

199,196

8,162

7,321

28,337

13,322

41,663

27,613

Total electricity consumption (GJ)
Diesel (GJ)
Gasoline (GJ)
Liquid petroleum gas (GJ)
Purchased heat (GJ)
Total energy consumption (GJ)
Tap water (Megaliters)
Groundwater (Megaliters)
Rainwater (Megaliters)
Water Resources

2019

Global Operation Sites*2

Self-generated and consumption renewableelectricity (MWh)Natural gas (GJ)
Input

Overall Production Plants *1

3,371

5,128

5,615

4,848

12,182

12,423

154,092

154,944

4,700

1,804

5,286

2,292

0

0

0

0

508

489

2,140,591

2,292,999

2,540,553

2,410,703

3,046,040

2,796,157

3,753.2

3,854.6

4,160.2

3,922.1

4,564.2

4,306.6

-

-

-

-

2.9

3.7

37.1

37.1

48.7

50.9

67.4

92.8

3,790.3

3,891.7

4,208.9

3,973.0

4,634.5

4,403.1

Water productivity intensity (Metric ton/MUSD)

499.0

465.0

416.0

366.0

450.0

392.0

Total water recycled (Megaliters)

430.9

508.7

546.1

359.7

567.3

406.7

Recycled water usage rate (%)

10.3%

11.9%

11.6%

8.4%

11.0%

8.6%

Total water withdrawal (Megaliters)

2022 Delta Electronics ESG Report

175

7.1
Environmental Data

Attribute

About theESG Report

A Word from
the Management

Category

Overview

Sustainable
Management

Item
Scope 1 (metric tons CO2e)

GHG Emissions

Air Pollution
Emissions2021 *2

2020

Global Operation Sites
2022

2021

2022

14,18317,80819,33735,45638,807133,207

122,888

181,435

148,838

Scope 1 + Scope 2 (metric tons CO2e) marketbased

258,120

177,811

151,015

142,225

216,891

187,645

Scope 2 (metric tons CO2e) Location-based

378,648

390,868

415,448355,651482,842

395,447

Scope 1 + Scope 2 (metric tons CO2e) Locationbased

397,246

405,051

433,256

374,988518,298434,254

34.3

21.4

15.1

13.3

21.4

17.1

2,470.6

2,303.4

2,514.7

2,399.8

2,879.9

2,786.2

Process wastewater (Megaliters)

186.7

216.9

249.4

211.9

249.4

212.2

Total water discharge (Megaliters)

2,657.3

2,520.3

2,764.1

2,611.7

3,129.3

2,998.4

1,133.0

1,371.4

1,444.8

1,361.3

1,505.2

1,404.7

33.9

13.6

29.1

0

29.9

0

Landfill (Metric Tons)
Waste to energy recovery (Metric Tons)

481.4

366.4

7.3

567.8

983.9

1,137

6,737.8

7,297.8

7,074.2

5369.97,533.7

5,746

Recycling (Metric Tons)

31,989.9

28,081.9

38,931.6

39,414.5

39,900.5

40,889.0

Subtotal (Metric Tons)

39,243.0

35,759.7

46,042.2

45,352.2

48,448.0

47,773

383.2

231.0

143.3

0

145.0

117

Incineration without energy recovery (Metric Tons)

Waste

2019

Appendix

163,628

Incineration without energy recovery (Metric Tons)

Hazardous Waste

Overall Production Plants *1

Employee Relations
and Social
Participation

18,598Water Consumption Water consumption (Megaliters)

Non-hazardous
Waste

Devoted to Environmental
Protection and Energy
Savings

239,522

Domestic sewage (Megaliters)

OutputCorporate
Governance

Scope 2 (metric tons CO2e) market-based

Carbon intensity (metric tons CO2e/MUSD)
Water Discharge

Communication
with Stakeholders

Landfill (Metric Tons)

39.2

36.7

58.1

93.10

262.6

212

Waste to energy recovery (Metric Tons)

634.3

828.4

1,062.9689.0

1,110.3

964

Recycling (Metric Tons)

2,344.4

2,591.2

2,754.4

3,137.8

2,936.5

5,097

Subtotal (Metric Tons)

3,401.1

3,687.3

4,018.7

3,919.9

4,454.3

6,390

Total waste generation (Metric Tons)

42,644.1

39,447.0

50,060.9

49,272.1

52,902.4

54,162.9

Hazardous waste recycled rate (%)

68.9%

70.3%

68.5%

80.0%

65.9%

79.8%

Volatile organic compounds (Metric Tons)

128.2

135.9

308.9

439.1

327.4

462.9

* 1 Overall production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China; DET plant 1, 3, 5, and 6; Taoyuan plant 1, 2, 5 and Pingjhen in Taiwan; Cyntec Hsinchu and Huafeng plants; Eltek (Americas and India
plant) was merged in 2015
*2 Exclude Eltek (Americas and India plant) and add Taoyuan 5 and Pingjhen Plant due to production adjustment in 2021
*3 Energy calorific value is calculated with a fixed value; natural gas: 9,000 kcal/m3, diesel: 10,200 kcal/kg, gasoline: 10,300 kcal/kg; Unit conversion: 4.1868 kJ/kcal.

2022 Delta Electronics ESG Report

176

7.1
Environmental Data

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

GHG Emissions Scope 3
Item

Appendix

Unit: metric tons CO2e

2019

2020

2021

2022

13,274.1

7,855.45

921,240.26

1,568,772.62

Calculated by the weight of the purchased goods

C2 Capital Goods--

377,367.45

346,435.89

Calculated by the figure disclosed in the financial report

C3 Fuel- and Energy-Related Activities(Not Included in Scope 1 or Scope 2 )--37,628.54

51,990.43

Calculated by the fuel and energy consumption

C4 Upstream Transportation andDistribution

7,145.7

11,762.29

121,232.00

177,397.56

Calculated by the transportation expenditure

C5 Waste Generated in Operations

328.5

374.61

8,744.24

7,223.53

Calculated by the weight of the waste and the treatment

4,823.2

440.78

1,342.63

4,827.10

Calculated by the business travel distances

C7 Employee Commuting--

76,181.04

76,262.03

Calculated by the employee’s commuting transportation
and average distances

C8 Upstream Leased Assets

-

-

0

18.75

Calculated by the leased assets that are not included in
Scope 1 or Scope 2

38,561.7

69,786.25

112,709.35

151,809.80

Calculated by the distances and methods of the
products' transportation--

59,026.07

48,602.60

Calculated by the processing of the sold products

277,624.6

440,946.42

3,259,014.14

4,240,197.05

Calculated by the product power consumption andlifespan--

104,787.06

176,356.63

6,242.1

9,464.63

9,420.08

4,127.84

C14 Franchises

-

-

-

-

C15 Investments--

115,248.87

109,269.85

C1 Purchased Goods and Services

C6 Business Travel

C9 Downstream Transportation andDistribution
C10 Processing of Sold Products
C11 Use of Sold Products
C12 End-of-Life Treatment of Sold
Products
C13 Downstream Leased Assets

Calculation methodology in 2021 and 2022

Calculated by the global recycle rate
Calculated by the scope 1 and scope 2 of the leased
assetsNot applicable since Delta has no franchises
Calculated by the figure disclosed in the financial report

Note 1: The data calculated by the figure disclosed in the financial report refers to the UK Standard Industrial Classification of Economic Activities, the rest of the data refers to the IPCC AR5 GWP in SimaPro Ecoinvent
database.
Note 2: The Scope 3 emissions data has been verified as meeting the requirements of GHG protocol or ISO 14064-1.

2022 Delta Electronics ESG Report

177

7.2
Social Data

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Devoted to Environmental
Protection and Energy
Savings

Corporate
Governance

Employee Relations
and Social
Participation

Appendix

7.2 Social Data
Category

Item

2019

Education

Average hours of training per person (hours)*1

Employees Worldwide

Total number of employees worldwide (persons)Talent Attraction

Human Rights Protection
Social Participation

Diversity and Inclusion

Engagement Survey
Response

Engagement Score:
Employee Category *6

2020

2021

2022

47

27.2

13.6

18.2

80,54583,80485,59385,684

75.6

81.2

82.0

89.4

23.6

27.8

16.8

11.4

Retention rate of reinstated employees after parental leave (%)

93.0

97.8

90.6

76.5

Global humans rights course completion rate (%)

n.a.

85.2

96.1

97.0

Social participation and engagement (MUSD)

6.99

9.07

11.98

9.87

Percentage of female employees in the Company (%)

44.9

46.8

48.3

50.6

Percentage of female employees in all management positions (%)

29.8

32.8

32.3

32.0

Percentage of female employees in entry-level management positions (%)

50.5

57.8

56.7

50.1

Percentage of female employees in the highest management positions (%)

12.2

13.2

13.8

14.0

Percentage of female employees in revenue-generating positions (%)

18.7

20.1

20.5

21.5

Percentage of female employees in STEM positions (%)

21.7

21.9

21.8

21.3

Percentage of employees with disabilities in the Company (%)

0.7

1.1

1.7

1.3

Percentage of employees from ethnic minorities in the Company (%)

2.6

2.9

2.6

2.4

75

91

91

88

Coverage rate*4

26.8

64.3

64.3

88

*5

59

92

92

90

Senior executives

90

96

96

94

Mid-level managers

82

91

91

90

Entry-level managers (including production line assistants)-

79

88

88

87

General employees

74

88

88

87

OP (including production line assistants)-

-

93

93

89

Offer letter acceptance rate (%)
Percentage of vacancies filled by internal employees (%)

Total engagement score of all employees

Response rate*2

*32022 Delta Electronics ESG Report

178

7.2
Social Data

About theESG Report

A Word from
the Management

Category
Engagement Score:
GenderOverview

Sustainable
Management

Item

2019

2020

Employee Relations
and Social
Participation

2021

Appendix

2022

90

90

87

Female

92

92

88

89

89

89

94

94

89

93

93

89

31-40

92

92

87

30 and below

89

89

83

0

0

1

0

Employee- Number of Lost-Time Injury Cases

130

164

244

236

Employee - Lost-Time Injury Frequency Rate (LTIFR)

0.91

0.96

0.99

0.95

Employees' Disabling Injury Frequency Rate (FR)

0.59

0.38

0.58

0.54

Contractors - Fatalities

0

0

1

0

Contractors- Number of Lost-Time Injury Cases

0

0

16

37

Contractors- Lost-Time Injury Frequency Rate (LTIFR)

NA

NA

2.31

6.49

Contractors' Disabling Injury Frequency Rate (FR)

NA

NA

1.594

5.61

51-60
41-50

Employee - Fatalities

Occupational Safety and
Health

Devoted to Environmental
Protection and Energy
Savings

Corporate
GovernanceMale

61 and above
Engagement Score:AgeCommunication
with Stakeholders

No detailed
classification inpast years* 1. Calculated from annual training records, global average hours of training per person = total hours (2,609,644.1 hours)/total number of employees in the year (143,021 employees)* 2. Percentage of vacancies filled by internal employees is defined as: (Number of vacancies filled by internal transfers + number of employees promoted to management positions)/(number of internal and external
vacancies + number of employees promoted to management positions)" in the current year.
* 3. The total 2022 engagement score of technical and management personnel is 88 points, OPs (including production line assistants) scored 89 points; this is the average weight of the two* 4. Coverage rate is defined as: Employees who received the survey/(technical and management personnel working more than 6 months + OPs (including production line assistants) working 3 or more years) =51,210/56,646= 88%.
* 5. Response rate of technical and management personnel and OPs (including production line assistants) in 2022 were 82% and 97%, respectively; overall response rate of 90%* 6. Senior managers refers to executives and above, mid-level managers refers to section chiefs/senior associates, entry-level managers refers to team leaders/senior team leaders.

2022 Delta Electronics ESG Report

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7.3
Index of GRI Standards
Indicators and SASB Index

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

7.3 Index of GRI Standards Indicators and SASB Index
The 2022 Sustainability Report published by Delta Electronics is reported in accordance with the GRI Standards. The scope of data and information is sourced from the period of January 1,
2022 to December 31, 2022. The structure of this report is in accordance with the Global Reporting Initiative's (GRI) "GRI Sustainability Reporting Standards (2021)" (GRI Standards), GRI 1:
Foundation 2021. We also referenced the SASB Electrical Electronic Equipment Standard (2018) and Hardware Standard (2018).
The various GRI and SASB indexes have been verified by a third party (Refer to 7.5 Declaration of Third-Party Verification and Confidence Report).

GRI 1 version used GRI 1: Foundation 2021
Index No.

Disclosure Title

Chapter

Page No.

Description

GRI 2: General Disclosures 2021
Organization and Reporting Practices
2-1

Organizational details

About the Report
1 Overview

7-8

2-2

Entities included in the organization’s sustainability
reporting

About the Report22-3

Reporting period, frequency, and contact person

About the Report

1-2

2-4

Restatements of information

-

-

2-5

External assurance

About the Report2

No significant change

Activities and Workers
2-6

Activities, value chain and other business
relationships

4.5.2 Ratio of Localized Procurement and Materials

60-61

2-7

Employees

1 Overview
6.3 Talent Attraction

7148-152

2-8

Workers who are not employees

1 Overview
6.3 Talent Attraction

7148-152

Governance
2-9

Governance structure and composition

1.1 Delta Electronics Organizational Structure
2.2.2 Sustainable Promotion of Organizations

9
20-21
48-50
2022 Delta Electronics ESG Report

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Indicators and SASB Index

Index No.

About theESG Report

A Word from
the Management

Overview

Disclosure Title

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Chapter

Page No.

2-10

Nominating and selecting the highest governancebody

4.2 Enhancing the Board of Directors' Functions

48-50

2-11

Chair of the highest governance body

4.2 Enhancing the Board of Directors' Functions

48-49

2-12

Role of the highest governance body in overseeing
the management of impacts

2.2.2 Sustainable Promotion of Organizations
3.2 Materiality Assessment
4.2 Enhancing the Board of Directors' Functions

20-21
32-34
48

2-13

Delegation of responsibility for managing impacts

2.2.2 Sustainable Promotion of Organizations

20-21

2-14

Role of the highest governance body in sustainability
reporting

2.2.2 Sustainable Promotion of Organizations
3.2.1 Methodology

20-21
32-34

2-15

Conflicts of interest

4.2 Enhancing the Board of Directors' Functions

48

2-16

Communication of critical concerns

4.2 Enhancing the Board of Directors' Functions

49

2-17

Collective knowledge of the highest governance body

4.2 Enhancing the Board of Directors' Functions

48

2-18

Evaluation of the performance of the highest
governance body

4.2 Enhancing the Board of Directors' Functions

48-50

2-19

Remuneration policies

6.5 Competitive Employee Compensation and Benefits

157-160

2-20

Process to determine remuneration

4.2 Enhancing the Board of Directors' Functions

157

2-21

Annual total compensation ratio

6.5 Competitive Employee Compensation and Benefits

157-159

Employee Relations
and Social
Participation

Appendix

Description

Strategy, Policies and Practices
2-22Statement on sustainable development strategy

A Word from the Management

3-5

2-23

Policy commitments

2.2.1 ESG Policy and Mission
4.2.1 Board of Directors and Duties
6.6 Human Rights Protection

19
48-50
161-163

Embedding policy commitments

2.2.1 ESG Policy and Mission
3.1 Stakeholder Communication and Response
4.5.1 Overall Measures for Supplier Sustainability
Management
6.6 Human Rights Protection

19
27-31
57-59
161-1632-242022 Delta Electronics ESG Report

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Indicators and SASB Index

Index No.

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Disclosure Title

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Chapter

Employee Relations
and Social
Participation

Page No.

2-25

Processes to remediate negative impacts

3.3 Management of Material Topics
5.2 Climate Strategy
5.3 Energy Management
5.4 Water Resource Management
5.5 Resource Recycling
6.6 Human Rights Protection
6.8 Occupational Safety and Health

38-45
77-99
100-108
109-113114-115161-163
170-173

2-26

Mechanisms for seeking advice and raising concerns

4.2.2 Ethical Corporate Management
6.6 Human Rights Protection

50-52
161-163

2-27

Compliance with laws and regulations

4.8 Risk Management

73

2-28

Membership of associations

2.3.2 International Sustainability Initiatives
2.3.3 Participation in Associations

23-25
25

Appendix

Description

Stakeholder Engagement
2-29

Approach to stakeholder engagement

3 Communication with Stakeholders
3.2 Materiality Assessment

27-30
32-33

2-30

Collective bargaining agreements

6.6 Human Rights Protection

161-163

GRI 3: Material Topics 2021
3-1

Procedures for resolving material topics

3.2.1 Methodology

32-34

3-2

List of material topics

3.2 Materiality Assessment

35

3-3

Management of material topics

2.2.2 Sustainable Promotion of Organizations
3.3 Management of Material Topics

20
38-45

Index No.

Disclosure Title

Chapter

Page No.

Description

GRI 201 Economic Performance * 2016
201-1

Direct economic value generated and distributed

-

-

201-2

Financial implications and other risks and opportunities
due to climate change

5.2 Climate Strategy

77-91

Refer to the Delta Electronics 2022
Annual Report, English Edition pages 13-2022 Delta Electronics ESG Report

182

7.3
Index of GRI Standards
Indicators and SASB Index

About theESG Report

Index No.

A Word from
the Management

Sustainable
Management

Overview

Disclosure Title

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Chapter

Employee Relations
and Social
Participation

Page No.

Description

164-169

-

60

-

50-52

-

Appendix

GRI 203 Indirect Economic Impacts * 2016
203-1

Infrastructure investments and services supported

6.7 Social Participation
GRI 204 Procurement Practices * 2016

204-1

4.5.2 Ratio of Localized Procurement andMaterials

Proportion of spending on local suppliers

GRI 205 Anti-corruption 2016
205-2

Communication and training about anti-corruption
policies and procedures

4.2.2 Ethical Corporate Management
GRI 206 Anti-competitive Behavior 2016

206-1

Legal actions for anti-competitive behavior, anti-trust,and monopoly practices--

Delta was not involved in legal actions foranti-competitive behavior, anti-trust, andmonopoly practices in 2022.

-

Refer to the official website fordisclosures relating to tax policy andannual tax report

GRI 207 Taxation 2019
207-1

Tax payment method

GRI 301 Materials * 2016

301-1

Materials used by weight or volume

4.5.2 Ratio of Localized Procurement andMaterials

60-61

-

GRI 302 Energy * 2016
302-1

Energy consumption within the organization

5.3 Energy Management
7.1 Environmental Data

100-108
175

-

302-2

Energy consumption outside of the organization

5.6.4 Energy Saving Benefits of Products

122

-

302-3

Energy intensity

5.3 Energy Management

100-108-

302-4

Reduction of energy consumption

5.3 Energy Management102-2022 Delta Electronics ESG Report

183

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Index of GRI Standards
Indicators and SASB Index

About theESG Report

Index No.
302-5

A Word from
the Management

Overview

Disclosure Title
Reductions in energy requirements of products andservices

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Chapter
5.6.4 Energy Saving Benefits of Products

Devoted to Environmental
Protection and Energy
Savings

Page No.

Employee Relations
and Social
Participation

Appendix

Description

122-

GRI 303 Water * 2018
303-1

Interactions with water as a shared resource

5.4.1 Identification of Water Risks and Response
Measures109-110-303-2Management of water discharge related impacts

5.4.2 C onsumption and Effectiveness of Water
Resources111-113-

303-3

Water Withdrawal

5.4.2 C onsumption and Effectiveness of Water
Resources

112

-

303-4

Water Discharge

5.4.2Consumption and Effectiveness of Water
Resources

112

-

303-5

Water Consumption

5.4.2 C onsumption and Effectiveness of Water
Resources111-113-

GRI 305 Emissions * 2016
305-1

Direct (Scope 1) GHG emissions

5.2.3 Greenhouse Gas Inventory

96-97

-

305-2

Energy indirect (Scope 2) GHG emissions

5.2.3 Greenhouse Gas Inventory

96-97

-

305-3

Other indirect (Scope 3) GHG emissions

5.2.3 Greenhouse Gas Inventory

96-98

-

305-4

GHG emissions intensity

5.2.3 Greenhouse Gas Inventory

97

-

305-5

Reduction of GHG emissions

5.2.2 Net Zero Commitment
5.2.3 Greenhouse Gas Inventory

94-95
96-99

-

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions

5.8.2 Air Pollution Prevention and Management

129-

GRI 30 6 Waste * 2020
306-1

Waste generation and significant waste-related impacts

5.5.2 Waste Generation and Effectiveness

115

-

306-2

Management of significant waste-related impacts

5.5.2 Waste Generation and Effectiveness

115-

2022 Delta Electronics ESG Report

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Index of GRI Standards
Indicators and SASB Index

About theESG Report

Index No.

A Word from
the Management

Overview

Disclosure Title

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Chapter

Devoted to Environmental
Protection and Energy
Savings

Page No.

Employee Relations
and Social
Participation

Appendix

Description

306-3

Waste generated

5.5.2 Waste Generation and Effectiveness

115

-

306-4

Waste disposal and transfer

5.5.2 Waste Generation and Effectiveness

115

-

306-5

Waste directed to disposal

5.5.2 Waste Generation and Effectiveness115-

GRI 308 Supplier Environment Assessment * 2016308-1

New suppliers that were screened using environmental
criteria

4.5.1 Overall Measures for Supplier Sustainability
Management

57-59

-

308-2

Negative environmental impacts in the supply chain andactions taken

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

61-62

-

GRI 401 Labor Relations * 2016
401-1

New employee hires and employee turnover

6.2.1 Diverse and Inclusive Employee
Composition

134-140-

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

6.5 Competitive Employee Compensation and
Benefits
6.2.3 Happy and Inclusive Workplace

151-154
144

-

401-3

Parental leave

6.2.2 Equal Workplace Opportunities

141-

GRI 403 Occupational Health and Safety * 2018403-1

Occupational safety and health management system

6.8 Occupational Health and Safety

170

-

403-2

Hazard identification, risk assessment, and incident
investigation

6.8 Occupational Health and Safety

170-173-403-3

Occupational health services

6.2.3 Happy and Inclusive Workplace

144-147-

403-4

Worker participation, consultation, and communication
on occupational health and safety

6.8 Occupational Health and Safety

170-173-403-5

Worker training on occupational health and safety

6.8 Occupational Health and Safety

170-173-403-6

Promotion of worker health6.2.3 Happy and Inclusive Workplace

144-147-2022 Delta Electronics ESG Report

185

7.3
Index of GRI Standards
Indicators and SASB Index

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Chapter

Page No.

Employee Relations
and Social
Participation

Index No.

Disclosure Title

403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

6.8 Occupational Health and Safety

172

-

403-8

Workers covered by an occupational health and safety
management system

6.8 Occupational Health and Safety

170

-

403-9

Work-related injuries

6.8 Occupational Health and Safety173-403-10Work-related ill health

6.8 Occupational Health and Safety

173

-

153

-

Appendix

Description

GRI 404 Training and Education * 2016
404-1

Average hours of training per year per employee

6.4 Talent Learning Development
GRI 405 Diversity and Equal Opportunity * 2016405-1

Diversity of governance bodies and employees

6.2.1 Recruitment Diversity and Inclusion

134-138

405-2

Ratio of basic salary and remuneration of women tomen

6.5 Competitive Employee Compensation and
Benefits
6.2.3 Happy and Inclusive Workplace

159
145

Refer to the Delta Electronics 2022
Annual Report, English Edition pages 24-

GRI 406 Non-discrimination * 2016406-1

Incidents of discrimination and corrective actions taken--

No discrimination occurred

GRI 408 Child Labor * 2016

408-1

Operations and suppliers at significant risk for incidents
of child labor

4.5.3 Supplier ESG Risk Assessment and Due
Diligence Research on Conflict Minerals
6.6.1 Human Rights Risk Identification andAssessment

62
161

-

61-62
161-162-

GRI 409 Forced or Compulsory Labor * 2016409-1

Operations and suppliers at significant risk for incidents
of forced or compulsory labor

4.5.3 Supplier ESG Risk Assessment andConflict Minerals
6.6.1 Human Rights Risk Identification andAssessment

2022 Delta Electronics ESG Report

186

7.3
Index of GRI Standards
Indicators and SASB Index

About theESG Report

Index No.

A Word from
the Management

Sustainable
Management

Overview

Disclosure Title

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Chapter

Page No.

Employee Relations
and Social
Participation

Appendix

Description

GRI 414 Supplier Social Impact Assessment * 2016414-1

New suppliers that were screened using social criteria

4.5.2 Ratio of Localized Procurement andMaterials

58-59

-

GRI 415 Public Policies 2016
415-1

Political donations

NA-

No political donations-

No lawsuits or fines received due tocustomer privacy in 2022

GRI 418 Customer Privacy * 2016
418-1

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data-

Note: Topics marked with * are considered material topics

SASB
Theme

Calculation Index

Percentage of Tier 1 supplier facilities audited
in the RBA Validated Audit Process (VAP) or
equivalent, by (a) all facilities and (b) high-risk
facilities

No.

Measurement Unit

The suppliers who voluntarily introduced RBA VAP accounted for
10.8% of the effective questionnaires.
TC-HW-430a.1%(a)10.8%*91% = 9.828%(b) No high-risk facilities (The suppliers who voluntarily introduced
RBA VAP did not have a score lower than 65 points)

Supply Chain
Management

Procurement ofMaterials

Corresponding GRI & Delta's Response

4.5.4 Value Chain GHG Emissions

Tier 1 suppliers’ (1) non-conformance ratewith the RBA Validated Audit Process (VAP)or equivalent, and (2) associated corrective
action rate for (a) priority non-conformancesand (b) other non-conformances

TC-HW-430a.2

Description of the management of risks

TC-HW-440a.1

associated with the use of critical materials

RT-EE-440a.1

Rate

for Key Suppliers(a) The supplier improvement rate with mentoring provided by
Delta was 82% in 2022

NA

5.6.2 Hazardous Substance Policy and Management

2022 Delta Electronics ESG Report

187

7.3
Index of GRI Standards
Indicators and SASB Index

Theme

Business Ethics

Product Information
Security

Product Safety

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceCalculation Index

No.

Measurement Unit

Description of policies and practices forprevention of: (1) corruption and bribery and(2) anti-competitive behavior

RT-EE-510a.1

NA

Total amount of monetary losses as a resultof legal proceedings associated with bribery
or corruption

RT-EE-510a.2

Total amount of monetary losses as a resultof legal proceedings associated with anticompetitive behavior regulations

RT-EE-510a.3

ReportingCurrency
ReportingCurrency

Devoted to Environmental
Protection and Energy
Savings

4.2.2 Ethical Corporate Management

0 USD (4.2.2 Ethical Corporate Management)

0 USD (4.2.2 Ethical Corporate Management)
All DNI units have passed ISO 27001 certification with processes
including systems development and the handling and protectionof customer data. Aside from the cyber security incident at the
beginning of 2022, Delta has not suffered any other cyber security
incidents. Nor have there been any cyber security vulnerabilities ordata security incidents related to products provided to customers.
In addition to ISO 27001 external audits conducted annually toverify the effectiveness of data security measures within theorganization, customers also have security requirements for theirproducts. Contracts include provisions requiring regular annual
audits to ensure the security of products delivered by Delta.

TC-HW-230a.1

Na

Number of recalls issued, total units recalled

RT-EE-250a.1

Number

4.8 Risk Management

Total amount of monetary losses as a resultof legal proceedings associated with productsafety

RT-EE-250a.2

ReportingCurrency

4.8 Risk Management

Percentage of products by revenue that
contain IEC 62474 declarable substances
Product Lifecycle
Management
Percentage of eligible products, by revenue,m e e t i n g t h e r e q u i r e m e n t s f o r E P E AT
registration or equivalent

RT-EE-410a.1

TC-HW-410a.2

Appendix

Corresponding GRI & Delta's Response

Description of approach to identifying andaddressing data security risks in products

TC-HW-410a.1

Employee Relations
and Social
Participation%

We selected the Power Supply Business Group for an evaluation
based on "revenue from products of Power Supply BusinessGroup compliant with IEC 62474 / revenue from products of Power
Supply Business Group in 2022" and found that all products
complied with IEC 62474 requirements. Please refer to 5.6.2
Hazardous Substance Policy and Materials Management for
related management policies%

Most Delta products are sold to other businesses and the
EPEAT product categories do not apply. Therefore, Delta is not
responsible for applying for certification and does not compile
statistical data.

2022 Delta Electronics ESG Report

188

7.3
Index of GRI Standards
Indicators and SASB Index

Theme

About theESG Report

A Word from
the Management

Overview

Calculation Index

Percentage of eligible products, by revenue,
meeting ENERGY STAR criteria

Product Lifecycle
Management

Sustainable
Management

No.

TC-HW-410a.3

Percentage of eligible products, by revenue,
that meet ENERGY STAR criteria

RT-EE-410a.2

Weight of end-of-life products and e-waste
recovered, percentage recycled

TC-HW-410a.4

Revenue from renewable energy-related andenergy efficiency-related products

RT-EE-410a.3

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Measurement Unit

Corresponding GRI & Delta's Response%

The compliance of Delta's UPS products is calculated based on"UPS product revenue with ENERGY STAR certification shipped to
the US market by OBM in 2022 / overall product revenue shippedto the US market by OBM in 2022" and 41% of products met
requirements for ENERGY STAR certification.
The compliance of Delta ventilation fans is calculated based on"ventilating fan product revenue with ENERGY STAR certificationin 2022 / overall ventilating fan product revenue in 2022" and73.7% of the product revenue met requirements for ENERGY STAR
certification.

Metric Tons%

As most Delta products are sold to other businesses, collecting
information in the current stage remains difficult.

% by Revenue

As most Delta products are sold to other businesses, collecting
information in the current stage remains difficult.

ReportingCurrency
Gigajoules (GJ),

5.6.4 Energy Saving Benefits of Products
7.1 Environmental Data
(1) Total energy consumption was 2,796,157 GJ

EnergyManagement(1) Total energy consumed, (2) percentage
grid electricity, (3) percentage renewable

RT-EE-130a.1

Percentage (%)(2) Grid electricity totaled 2,462,509 GJ, which accounted for
88.1% of total energy consumption(3) Delta utilizes nearly 63% renewable electricity in global sites(by kWh)

Hazardous Waste
Management

Amount of hazardous waste generated,
percentage recycled

RT-EE-150a.1

Metric Tons (t),5.5.1 Enhancing Circular Recycling and Reuse

Percentage (%)

7.1 Environmental Data
Overall plants and buildings: 3,919.9 metric tons, recycling: 80.0%

Number and aggregate quantity of reportablespills, quantity recovered

RT-EE-150a.2

Number,
Kilograms (kg)

4.8 Risk Management

2022 Delta Electronics ESG Report

189

7.3
Index of GRI Standards
Indicators and SASB Index

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Theme

Calculation Index

No.

Measurement Unit

Employee Diversity
and Inclusiveness

Percentage of gender and racial/ethnic
group representation for (1) management, (2)technical staff, and (3) all other employees

TC-HW-330a.1%

N u m b e r o f u n i ts p ro d u c e d by p ro d u c t
category

Activity Indicator

TC-HW-000.A
RT-EE-000.A

Devoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Corresponding GRI & Delta's Response
6.2.1 Diverse and Inclusive Employee Composition

NumberTrade secret not disclosed

Area of manufacturing facilities

TC-HW-000.B

Square Feet (ft²)

Trade secret not disclosed

Pe rc e n t a g e o f p ro d u c t i o n f ro m ow n e dfacilities

TC-HW-000.C

Percentage (%)

Trade secret not disclosed

N u m b e r o f u n i ts p ro d u c e d by p ro d u c t
category

RT-EE-000.A

Number

Refer to the Delta Electronics 2022 Annual Report, pages 128

Number of employees

RT-EE-000.B

Number6.2.1 Diverse and Inclusive Employee Composition

2022 Delta Electronics ESG Report

190

7.4
Summary of Information
Assured (ISAE 3000)

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

7.4 Summary of Information Assured (ISAE 3000)
No.

Assured Item

Information Assured

Page

Reporting Criteria
The annual energy savings is calculated by assuming that end-users replace
existing Magnetic Ballast with Electronic Ballast, for shipments of Delta
Electronic Ballast (excluding High-Intensity Discharge), for Fluorescent
Lamps to 7 major customers in 2022.

1

Electronic Ballast
annual energy
savings in 2022

Electronic Ballast annual energy savings were 32 million kWh.

122

Annual Energy Savings (kWh) = [Σ(A×B) ×C] ÷1000 × 8 (hr) × 365 (day).
A: M
 aximum input voltage (W) of different models of Electronic Ballast
installed in the compatible Fluorescent Lamp based on the data from
customer’s product brochure.
B: Q uantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
C: Energy Savings=10%.
The annual energy savings is calculated by comparing the efficiency of Delta
Computer & Networking Power to that of 80 Plus Bronze requirements, foreach product model total shipment quantity over 15K in 2022.

2

Computer &Networking Powerannual energy
savings in 2022

Computer & Networking Power annual energy savings were 3.39
billion kWh.

122

Annual Energy Savings (kWh) = [∑(A×B×C) ×D] ÷1000×24 (hr)×365(day).
A: Rated output power (W) of each Delta server power model.
B: A
 t the 50% load condition, efficiency difference between Delta server
power and 80 Plus Bronze requirements.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
D: Percentage of load=50%
The annual energy savings is calculated by comparing the efficiency of Delta
Ventilating Fans (Bathroom Exhaust Fans) to that of USA Energy Star or
Taiwan Energy Label requirements, for shipments of products that have beencertified by the USA Energy Star or Taiwan Energy Label in 2022.

3

Ventilating Fans
(Bathroom ExhaustFans) annual energy
savings in 2022

Ventilating Fans (Bathroom Exhaust Fans) annual energy
savings were 31 million kWh.

122

Annual Energy Savings (kWh) = ∑(A×B×C) ÷1000×1671 (hour/Year) *1.
A: R ated output power (W) of each Delta ventilating fan model at 0.1 in w.g.
static pressure
B: E nergy saving rate (efficiency difference between Delta ventilating fan
and USA Energy Star/Taiwan Energy Label requirements divided by that of
USA Energy Star/Taiwan Energy Label requirements).
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
*1 Usage time of 1671 hours/year refers to Japanese Industrial Standards (JIS C 9921-2 ).

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Assured (ISAE 3000)

No.

4Assured Item

LED Street Lights
annual energy
savings in 2022

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Information Assured

Communication
with Stakeholders

Page

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Reporting Criteria
The annual energy savings is calculated by assuming that end-users
installed Delta LED Street Lights to replace mercury street lights, for the
shipments of LED street lights to Taiwan in 2022.

LED Street Lights annual energy savings were 44 million kWh

122

Annual Energy Savings (kWh) = ∑(A×B) ×12 (hr)×365 (day)÷1000.
A:Power consumption (W) difference between Delta LED street lights andtheoretical replaced mercury street lights.
B:Quantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
The annual energy savings is calculated by comparing the efficiency of Delta
AC-DC adapters to that of EU eco-design requirements for External Power
Supplies (EU 2019/1782), for shipments of the 76 main AC-DC Adapter
models*1 in 2022.
Annual Energy Savings (kWh) = {[∑(A×B) ×C×39.9 (hr/week) ×52 (week)] +[∑(D×B) ×56.05(hr/week) ×52 (week)] *2} ÷1000
A: O
 n charge mode, power loss (W) difference between Delta product and
EU requirements at corresponding average efficiency.
B: Q uantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
C: Percentage of load=56% (Refer to (EC) No 278/2009 analysis report *3).
D: On no load mode, efficiency difference between Delta product and EU
requirements.

5

AC-DC Adapter
annual energy
savings in 2022

AC-DC Adapter annual energy savings were 115 million kWh.

122

*1 M
 ain product models are ADP-45BG BA, ADP-45BG BC, ADP-45BW Z2M, ADP-45DG
BB, ADP-45EG AB, ADP-45EG BB, ADP-45FE FA, ADP-45FE FC, ADP-45FE FD, ADP45HG BA, ADP-45KE BA, ADP-45ZE BE, ADP-60BW NTA, ADP-63AW BTA, ADP-65AE
BA, ADP-65AE BB, ADP-65CE BC, ADP-65CE BE, ADP-65DE BA, ADP-65DW Z2M,
ADP-65FD BH, ADP-65GD D2L, ADP-65HW CA, ADP-65JW BZT, ADP-65KE BA, ADP65KE BB, ADP-65ME BA, ADP-65ME BC, ADP-65TH KB, ADP-65UE BA, ADP-65XD AD,
ADP-65XD AF, ADP-65XD BB, ADP-65XD BD, ADP-65XD BF, ADP-65XD BH, ADP-65YD
BA, ADP-90DE BC, ADP-90DE BE, ADP-90FE DA, ADP-90LD FA, ADP-90LE BA, ADP90LE BC, ADP-90LE BD, ADP-90ME BA, ADP-90RE BA, ADP-90WH KR, ADP-90XD BD1,
ADP-90XD DA, ADP-100FR AE, ADP-100WB BA, ADP-110EB BA, ADP-120CR AE, ADP120VH BB, ADP-120WH BB, ADP-120WH BF, ADP-120WH BG, ADP-180MB DB, ADP180MB DD, ADP-180MB PA, ADP-180MB PB, ADP-180TB BA, ADP-180TB FR, ADP180TB HA, ADP-180TB HB, ADP-180TB HM, ADP-240AB DB, ADP-240AB FA, ADP240AB FB, ADP-240CB BA, ADP-240CB BB, ADP-240EB BC, ADP-240EB BD, ADP240EB DB, ADP-240GB BA, ADP-240GB BB*2 Usage time refers to Page 22, Additional assessment in the frame of the review study
on commission regulation (EC) No. 278/2009 External Power Supplies.
*3 Percent loading of 56% refers to Page 21, Additional assessment in the frame of thereview study on commission regulation (EC) No. 278/2009 External Power Supplies.

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7.4
Summary of Information
Assured (ISAE 3000)

No.

Assured Item

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Information Assured

Communication
with Stakeholders

Page

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Reporting Criteria
The annual energy savings is calculated by comparing the efficiency of Delta
PV Inverter (PVI) to the minimum average efficiency 97.5%*1 of the ENERGYSTAR Market and Industry Scoping Report, for the shipments of three phase
PVI models*2 to North America and main sales countries of Europe*3 in 2022.

6

PV Inverter (PVI)
annual energy
savings in 2022

PV Inverter (PVI) annual energy savings were 5.5 million kWh.

122

Annual Energy Savings (kWh) = Σ(A×B×C×D×T) ×365 (day)÷1000
A: Rated output power (W) of each Delta PVI model.
B: Efficiency difference between Delta PVI and the ENERGY STAR market
investigation.
C: Percentage of load=100%.
D: Quantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
T: Usage time of various hours/day refers to NASA Daily solar radiation of
the Delta PVI’s shipping destination.
*1 ENERGY STAR Market and Industry Scoping Report*2T hree phase product models and series are M125HV, M125HV_110, M125HV_111,
M60U 121, M60U 122, M80U 121, M80U 122, M88H_121, M88H_122, RPI M10A, RPI
M15A_220, RPI M20A_220, RPI M30A_230, RPI M50A_260, RPI M6A, RPI M70A, RPI
M8A.
*3 Main sales countries in Europe are Germany and France. US states of shipments toNorth America are Arkansas, Arizona, California, Colorado, Minnesota, New York,
Tennessee, Oregon.

The annual energy savings is calculated by comparing the efficiency of Delta
EV DC Charger to the minimum efficiency 90% regulated by CHAdeMo, forthe shipments of EV DC Charger in 2022.

7

EV DC Charger
annual energy
savings in 2022

EV DC Charger annual energy savings were 42 million kWh.

122

Annual Energy Savings (kWh) = Σ(A×B×C) ×D×8 (hr)×365 (day)÷1000
A: R
 ated output power (W) of each Delta EV DC Charger model.
B: E fficiency difference between Delta EV DC Charger and CHAdeMo
requirements.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
D: Percentage of load=100%.

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7.4
Summary of Information
Assured (ISAE 3000)

No.

8Assured Item

LED High Bay annual
energy savings in
2022

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Information Assured

LED High Bay annual energy savings were 5.5 million kWh.

Page

122

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Reporting Criteria
The annual energy savings is calculated by Assuming that end-users
installed Delta LED high bays to replace Metal Halide high bays, and bycomparing the efficiency of Delta LED high bays to the minimum efficiency
requirements for the procurement of Metal Halide high bays (Distribution:
Direct, LER: Closed) issued by the United States Department of Energy, forthe shipments of LED high bays in 2022.
Annual Energy Savings (kWh) = Σ[(A÷B) ×C] ×12 (hr)×260 (day) ÷1000
A: Rated lumens (Im) of each Delta LED high bay model.
B: E fficiency difference between Delta LED high bay and United States
Department of Energy’s HID high bay requirements.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
The annual energy savings is calculated by comparing the efficiency of Delta
Uninterruptible Power Supply (UPS) to that of EU Code of Code on Energy
Efficiency and Quality of AC Uninterruptible power supply systems (EU UPS
CoC Version 2.0, 2021), for the shipments of the main UPS models*1 in 2022.

9

Uninterruptible
power supply (UPS)
annual energy
savings in 2022

Uninterruptible Power Supply (UPS) annual energy savings
were 192 million kWh.

122

Annual Energy Savings (kWh) = Σ[(A×B)×C×D]×24 (hr)×365 (day) ÷1000
A: Rated output power (W) of each Delta UPS model.
B: O n charge mode, weighted efficiency difference between Delta UPS
product and EU CoC requirements on different load mode.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
D: Weighted percent of load.
*1 M ain product models and series are the single-phase UPS models which contains “RT”
in the part number, and the three-phase UPS models which contains “DPH”, “DPM”,“DPS”, “HPH”, “NH”, “NH+” and “RT” in the part number.

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7.4
Summary of Information
Assured (ISAE 3000)

No.

Assured Item

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Information Assured

Communication
with Stakeholders

Page

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Reporting Criteria
The annual energy savings is calculated by comparing the efficiency of Delta
Open frame TV power to that of the minimum energy efficiency required bycustomer’s specifications *1, for shipments of the 33 main Open frame TV
power models*2 in 2022.

10

TV Power annual
energy savings in
2022

TV Power annual energy savings were 108 million kWh.

122

Annual Energy Savings (kWh) ={[Σ(A×B×C) ×D×2.9(hr)]+[Σ(E×C)
×21.1(hr)]}*1×7(day) ×52(week)÷1000
A: Rated output power (W) of each Delta TVP product
B: O n charge mode, power loss (W) difference between Delta TVP productand the customers' minimum efficiency specifications.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022.
D: Percent of load required for the customer's specifications for
performance.
E: On no load mode, efficiency difference between Delta product and thecustomer's minimum efficiency specifications.
*1 The minimum energy efficiency requirement of customer specifications mentioned
above is 80%-85%, varied by the customer.
*2 Main product models and series are AP-P130AM A, AP-P239AM A, AP-P239AM B,
AP-P239AM-1 A, AP-P265AM A, AP-P265AM-1 A, AP-P313AM A, AP-P313AM B, APP321AM B, AP-P341AM C, AP-P397AM-1 A, AP-P397AM-2 A, AP-P397AM-3 A, APP410BM B, AP-P410BM C, AP-P412BM A, AP-P412BM B, AP-P419AM A, AP-P479AM
B, AP-P479AM D, AP-P484BM B, AP-P510AM B, AP-P510AM D, AP-P525AM A, APP527AM B, AP-P527AM C, AP-P527AM D, AP-P547AM A, AP-P597AM B, AP-P597AM C,
AP-P597AM D, AP-P662AM A, AP-P89AM A*3 Usage time refers to the result of AMERICAN TIME USE SURVEY.

The annual energy savings is calculated by comparing the efficiency ofDelta LED driver to that of EU eco-design requirements for light sources andseparate control gears*1, for the shipments of the Delta OBM and 1 EU major
customer in 2022.

11

LED Driver annual
energy savings in
2022

LED Driver annual energy savings were 58 million kWh.

122

Annual Energy Savings (kWh)= Σ(A×B×C) ×D×8(hr)×365(day)÷1000
A: Rated output power (W) of each Delta LED driver model
B: Efficiency difference between Delta LED driver and the EU requirements.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2022 to 12/31/2022
D: Percentage of load=100%.
*1 laying down eco-design requirements for light sources and separate control gears
pursuant to Directive 2009/125/EC of the European Parliament and of the Council andrepealing Commission Regulations (EC) No 244/2009, (EC) No 245/2009 and (EU) No
1194/2012.

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7.4
Summary of Information
Assured (ISAE 3000)

No.

12

Assured Item

Electricity intensity
in 2022 and 2020

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Information Assured

2022 EI was 53,847 kWh/MUSD for Delta’s overall production
plants.
2020 EI was 68,697 kWh/MUSD for Delta’s overall production
plants.

Page

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Reporting Criteria
Delta’s 2022 and 2020 overall production plants include China (Dongguan,
Wujiang, Wuhu, Chenzhou and Cyntec in Huafeng), Taiwan (Taoyuan Plant 1,
Taoyuan Plant 2, Taoyuan Plant 5, Pingzhen and Cyntec in Hsinchu) and DET(plants 1, 3, 5 & 6).

101

Electricity intensity = [Annual electricity usage (kWh) - electricity usage (kWh)of excluded areas] / Production value (million USD).
Annual electricity usage refers to purchased non-renewable and renewableelectricity extracted from energy bills.
Global average= average PUE of four Delta data centers (Taiwan
Headquarters, Wujiang, DET Plant 5 and American Headquarters).
PUE is calculated with methodology provided by The Green Grid as follows:
PUE=Total Data Center Energy (kWh) /IT Equipment Energy (kWh)13

Data center powerusage effectivenessin 2022(Power Usage
Effectiveness, PUE)

The PUE was 1.29 for Delta's 4 data centers in 2022.

101

IT equipment energy includes the energy associated with all of the IT
equipment (e.g., compute, storage, and network equipment) along with
supplemental equipment (e.g., KVM switches, monitors, and workstations/
laptops used to monitor or otherwise control the data center).
Total data center energy includes all IT equipment energy as describedabove plus everything that supports the IT equipment using energy, such as:
A: P ower delivery components, including UPS systems, switchgear,
generators, power distribution units (PDUs), batteries, and distribution
losses external to the IT equipment
B: Cooling system components, such as chillers, cooling towers, pumps,
computer room air handling units (CRAHs), computer room air conditioning
units (CRACs), and direct expansion air handler (DX) units
C: Other miscellaneous component loads, such as data center lighting2022 Delta Electronics ESG Report

196

7.4
Summary of Information
Assured (ISAE 3000)

No.

14

Assured Item

Electricity savingsof green plants andbuildings in 2022

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Information Assured

In 2022, Delta’s global certified green plants and buildings
collectively saved, in total, 25.14 million kWh of electricity.

Page

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

Reporting Criteria
The seventeen green factory/office buildings are the following: Taiwan
Headquarters, Taoyuan Technology Center, Taoyuan Plant 5, Tainan Plant
Phase I, Tainan Plant Phase II, Chungli R&D Center, Chungli Plant 5, Taichung
Plant, India Rudrapur Plant, India Gurgaon Plant, India Mumbai Office,Shanghai R&D Center, American Headquarters, Beijing Office Building,Thailand Plant 5, EMEA Headquarters and Japan Ako Energy Park.

106

Electricity savings (kWh) = (EUI in literature cited – Actual EUI of green
buildings) * Floor area of green buildings
EUI = A nnual Electricity usage (kWh)/Floor area (m2). Annual electricity
usage refers to purchased non-renewable and renewable electricity
extracted from energy bills. Floor area is based on area as ofDecember 31, 2022.

15

Electricity savingsof donated green
buildings in 2022

The five donated green buildings are the following: the Delta Building andthe Y. S. Sun Green Building Research Center at National Cheng Kung
University (NCKU), the Kuo-Ting Optoelectronic Building at National Central
University (NCU), the Delta Building at National Tsing Hua University (NTHU),
as well as the Namasia Ming Chuan Elementary School.
In 2022, Delta Group’s five donated green buildings reduced, in
total, 1.77 million kWh of electricity.

108

Electricity savings (kWh) = (EUI in literature cited – Actual EUI of green
buildings) * Floor area of green buildings.
EUI = A nnual Electricity usage (kWh)/Floor area (m2). Annual electricity
usage refers to purchased non-renewable and renewable electricity
extracted from energy bills. Floor area is based on area as ofDecember 31, 2022.

16

Water productivity
intensity (WPI) in
2022 and 20202022 Water productivity intensity (WPI) was 366 metric ton/
MUSD for Delta’s overall production plants.
2020 Water productivity intensity (WPI) was 465 metric ton/
MUSD for Delta’s overall production plants.

112

Delta’s overall production plants include China (Dongguan, Wujiang, Wuhu,
Chenzhou and Cyntec in Huafeng), Taiwan (Taoyuan Plant I, Taoyuan Plant II,
Taoyuan Plant V, Pingjen Plant, Cyntec in Hsinchu) and Thailand plant (plants
1, 3, 5 & 6). Statistics are exported from tap water bills.
Water productivity intensity = [Annual purchased water usage (metric ton)/
Production value (million USD)

2022 Delta Electronics ESG Report1977.5 TCFD Index

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

7.5 TCFD Index
Dimension

TCFD Disclosure Recommendation

Chapter

Page

Describe the board’s oversight of climate related risks and opportunities.
Governance5.2.1.1 Governance79

Describe the climate-related risks and opportunities the organization has identified over the
short, medium, and long term.

5.2.1.2 Climate Strategy
5.2.1.3 Climate Risk Management

81
86

Describe the impact of climate-related risks and opportunities on the organization’s businesses,
strategy, and financial planning.

5.2.1.2 Climate Strategy
5.2.1.3 Climate Risk Management

81,85
88-90

Describe the resilience of the organization’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario.

5.2.1.2 Climate Strategy

82-85

Describe the organization’s processes for identifying and assessing climate-related risks

5.2.1.3 Climate Risk Management

86

Describe the organization’s processes for managing climate-related risks.

5.2.1.3 Climate Risk Management
5.2.1.4 Metrics and Targets

91
92

Describe how processes for identifying, assessing, and managing climate-related risks areintegrated into the organization’s overall risk management.

5.2.1.3 Climate Risk Management86

5.2.1.4 Metrics and Targets

92

Describe management’s role in assessing and managing climate-related risks and opportunities.

Strategy

Risk Management

Disclose the metrics used by the organization to assess climate-related risks and opportunities
in line with its strategy and risk management process.
Metrics & Targets

Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, andthe related risks.
Describe the targets used by the organization to manage climate-related risks andopportunities and performance against targets.

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7.6
External Assurance Statement
and Report

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

7.6 External Assurance Statement and Report
SGS Assurance Statement - GRI Standards, AA1000 and SASB

2022 Delta Electronics ESG Report

199

7.6
External Assurance Statement
and Report

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix2022 Delta Electronics ESG Report

200

7.6
External Assurance Statement
and Report

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceDevoted to Environmental
Protection and Energy
Savings

Employee Relations
and Social
Participation

Appendix

ISAE 3000 Limited Assurance Report

2022 Delta Electronics ESG Report201

w w w. d e l t a w w. c o m