Contents
About this Report

1

Corporate
Governance, Smart
Innovation

2

Diverse Inclusiveness,
Employee Satisfaction

3

Healthy Workplace,
Safety Adherence

3

Corporate Governance20

Employee Overview

44

Occupational Safety and Health

56

Letter from our Chairman

4

Ethical Management

27

Compensation and Benefits

46

Employee Health Promotion

61

Awards5Innovation Management andPatents

30

Protection of Employee Rights
and Employee Communication

47

ESG (Environmental, Social,and Governance) Achievementsfor 2022

6

Sustainability Committee

35
36Company Overview

7

Stakeholder Identification,
Communication, andResponsibilities

Company Profile

7

39

Management Policies

9

Scope of Material Issues andMateriality Analysis

Sustainable Operational
Goals and Strategies

9

Global Operations

17

4

Business
Sustainability,
Beneficial Partners

5Green Solutions,
Circular Economy

6

Social Contribution,
Win-Win Strategy

Policies for Sustainable
Management of Suppliers

66

Climate Change

79

Support for the Disadvantaged

98

Technology Education

104

70

Environmental Management
System84

Sustainable Supply Chain
Impacts

Support for Sports

107

Water Resource Management

84

Social Contributions

108

Promotion of Mutual Growth75

Waste Management

86

Chemicals Management

897

Appendix

Appendix I：GRI Standard
Reference

110

Appendix II：SASB Standard
Comparison Table

115

Appendix III：Independent
Assurance Statement118

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

About this Report
Hon Hai Precision Industry Co., Ltd. (hereinafter referred to as "the Group" and "HonHai") issued its first CSR Report in 2009, and renamed these reports "sustainability
reports" starting in 2022. As a good corporate citizen, we are committed to
implementation of sustainable actions that serve as our response to the United
Nations Sustainable Development Goals (SDGs) and disclose all financial and nonfinancial sustainable governance achievements to our stakeholders to convey ourdetermination in continued sustainable development. The Group will continue toissue annual reports in the future.

Scope
This Report covers the period between January 1 to December 31 of 2022 andcontains information on Hon Hai Precision Industry Co., Ltd. (also known as Foxconn
Technology Group; hereinafter referred to as "the Group" or "Hon Hai") and majorityowned subsidiary companies, controlled entities, and all affiliates (hereinafter"affiliated businesses"), encompassing the Group's offices in Taiwan and campuses in
China, including ABCDES business units and 3F(FIH、FII、FIT) associated business.
The scope of this report is the same as for the 2022 Hon Hai Annual Report. A note ismade where global information or data is included. This report is based solely on theactivities of the legal entities controlled by the Group. The scope of this report is thesame as for our 2021 report and no significant changes have been made to company
information.

Management ProceduresThis report was prepared by the Hon Hai Sustainability Committee. Following review
by the heads of all departments, the content of this report was independently verified
by the British Standards Institution (BSI) according to AA1000AS v3 assurance
standards and Type I moderate level Account Ability Principles to ensure compliancewith the GRI Standards Core option and SASB disclosure metrics. For more
information, please refer to the Independent Assurance Statement.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Reporting Principles and Guidelines
The Group has compiled and studied important domestic and overseas economic,
environmental, social, and other issues of concern to our stakeholders. Followinginterviews with personnel from various departments, these issues were included
in materiality analysis, and the resulting material topics were used as the core
disclosures in this report. This report was prepared in accordance with the Core
option of the GRI standards published by the Global Reporting Initiative and the
SASB Standards.

Publication date
The Group publishes sustainability reports on annual basis. This is our 15th
Sustainability Report. In order to save energy, reduce carbon emissions, and protect
the environment and the earth, the Group is fully committed to paperless operations.
Similar to previous issues, this report is published in digital form on our official
website for reader reference.
• Current issue：Released June 2023
• Previous issue：Released June 2022
• Next issue：To be released June 2024

Contact Information
If you wish to provide any feedback on this report, please contact：

Hon Hai Sustainability Committee
Address：No. 2, Zihyou Street, Tucheng
Industrial Park, Tucheng District,
New Taipei City, Taiwan
Phone：+886-2-2268-3466, ext. 560-25859
Email：fgsc-03@foxconn.com

3Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Letter from our Chairman
As one of the top 20 enterprises in the world, Hon Hai has 173 campuses and offices around theworld and employs more than one million employees during seasonal peaks. In addition to being a
multinational company and huge economic entity, we are also an important corporate citizen subject
to public attention and benchmarking. In an era filled with constant change, it is our responsibility asa corporate citizen to promote positive economic growth and sustainable environmental development
through innovation.
Hon Hai proposed 6 major ESG strategies and formulated 32 long-term goals in 2022. Since then,all of our employees have made every effort to advance towards these goals. We clarified division oflabor by establishing three ESG teams that respectively oversee environmental sustainability, social
participation, and corporate governance. These teams work with relevant departments and lead all
employees in building diverse, inclusive, happy, development-oriented, healthy, and safe workplaces.
We also implement eco-friendly measures to build green, smart, and circular economies as well as leadour entire supply chain in making progress on green issues. We use smart technological innovations todrive economic growth while making social and environmental contributions to create mutual prosperity.
Hon Hai has set clear sustainability targets and is on track to achieve sustainable management. In termsof smart green technologies, we actively invest in electric vehicles and work with industries all aroundthe globe to reduce reliance on fossil fuels, reduce carbon emissions, and jointly achieve net zero
goals. We hope our efforts in the electric vehicle industry can promote industrial aggregation, generatemutual prosperity for our supply chain, drive economic growth in local communities, and create more
job opportunities as we work to form sound partnerships worldwide and create prosperous economic
ecosystems within global industry chains.
Employees are Hon Hai's most important business partners. This marks the third year of our Childcare
Subsidies for 0 to 6 Year Olds Program. We have created the best workplace environment for employees
to care for their children and employee postpartum retention rates reached 90%. Our corporate
contributions help to alleviate the increasingly serious issues of declining birth rates and labor shortages
in Taiwan while also enhancing future national and industrial competitiveness.
Hon Hai attaches great importance to talent cultivation. We established the "Foxconn Technology
Awards" in line with core development needs. In 2022, we awarded 250,000 NTD and priority internships
to 18 winners. Additionally, we plan to host our first "Summer Internship Program" in 2023 to give
students a chance to serve as interns at our core central units, experience corporate environments, andobtain practical industrial experience. We will also provide priority hiring opportunities to these interns
and encourage them to formally become Hon Hai employees.

This April, we officially obtained verification for our SBTi 1.5 ℃ targets, indicating that our commitments
and efforts in response to climate change have garnered international recognition. In future, we willcontinue to advance toward our goals and enhance corporate sustainability and competitiveness. We
have released our TCFD Net Zero Vision Report and actively work to reduce greenhouse gas emissions
and increase usage of green energies through energy-saving operations as well as construct, purchase,and invest in green electricity equipment. This year, Hon Hai joined forces with the financial industry
to establish a green energy investment platform which uses an innovative model to provide funds andresources supporting future green energy developments. We combined industrial electricity demands,
the financial expertise of investment institutes, and developer green power supplies to achieve mutual
benefits for all.

As part of our contributions to environmental sustainability, we seek to maintain sound and diverse
ecosystems, and have identified potential issues that require our help. We worked with National Taiwan
Ocean University to invest in marine environmental protection as well as sustainable and circular
resource utilization, transforming land waste into useful marine resources, thereby restoring marine
ecosystems and enhancing biodiversity.
As the biggest technological manufacturing service provider in the world, we are working to ensure that
our supply chains and industries understand the importance of sustainable management. The Internet
now makes it possible to disclose our corporate information using diverse, public, and transparent
methods. We maintain sound interactions with our stakeholders through management of our Facebook,
LinkedIn, Twitter, and YouTube accounts, and we also continue to optimize our corporate website tobuild diverse communication channels that enable smooth information flows and motivational impacts.
Our ability to generate record-high revenues is based on the efforts of multiple parties, including thededication of our employees, the trust of our clients, the collaborations with our supply chain partners,
the support from our shareholders, and the supervision of local governments. Hon Hai operations are
spread out all over the globe and we have a responsibility to care for local communities and maintainclose collaborative relations to drive continued economic growth. We also consider it our duty tocontinue investments in environmental sustainability, social participation, and corporate governance.
We fulfill our social and sustainability responsibilities
through our innovative collaboration model of"Share, Collaborate, and Achieve Mutual Prosperity."
We pursue economic growth while contributing toenvironmental protection, optimizing ecosystems,
and working with our industry chain partners
and economic peers to move toward sustainable
development and achieve our vision of "Sustainable
Management = EPS+ESG." Hon Hai believes
that sustainable management can create infinite
opportunities for the future. We hope that this report
can inspire your continued trust in Hon Hai as we
continue to set high standards and advance towarda brighter future.

Hon Hai Technology Group
Chairman Young Liu
June 2023

4Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

AppendixAwardsSustainalytics(Global)10.4 Low Risk

MSCI ESG Rating(Global)B GradeFortune Magazine(USA)

Ranked at #94 in the world's top 2000
companies

Clarivate Analytics(Global)award for the sixth consecutive year

(Global)(Global)Constituent of Taiwan ESG Index

Taiwan Corporate
Sustainability Award(Taiwan)Received eight awards, including
the Top Ten Sustainability ModelEnterprises Award in Taiwan andSustainability Report Platinum Award(Global)Common Wealth Magazine
Sustainable Citizen Award(Taiwan)

Sustainability Reporting- Gold Award
Two Best Practice Awards, Environmental
and Governance

Ranked at #25 in Large Enterprise
category

Asia-Pacific Sustainability
Action Awards

Corporate GovernanceEvaluations(Asia-Pacific)(Taiwan)Received 7 awards

6~20%

Fortune Magazine

Major human resource
evaluations

Received Top 100 Global Innovators

World Economic Forum (WEF)
FTSE4Good FTSE Russel

Global Corporate
Sustainability Award

Obtained 5 Global Lighthouseawards, the highest number of awards
held by any enterprise in the world

Institute of Public andEnvironmental Affairs(China)Received first rank in Green Supply Chain
CITI Evaluation for the Greater China region
Received second rank in the CATI
Evaluation Report (IT Industry)(USA)

Ranked at #20 in the world's
top 500 companies

CSR & ESG Award under
the Electronic Technology
Industry category by Global
Views Monthly(Taiwan)Top prize(Global)Received awards from 10 humanresource evaluation institutes

Institutional Investor(Asia)

Received seven awards, including
our Chairman Young Liu awarded No
1 for Best CEO, No 1 for Best IR Teamand Best IR Professional, No 2 forBest ESG

5Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

ESG (Environmental, Social, and Governance) Achievements for 2022

E

G

Environment• Supported the Science Based Targets initiative andreceived verification on our science-based carbon
reduction targets.
• Implemented 1,877 energy-saving projects withtotal carbon reductions of 306,204 tCO2e.
• Achieved actual energy-saving rate of 5.74%
and successfully met our annual target for energy
savings.
• Our Longhua Factory obtained UL 2799 GoldLevel Certification , becoming the world's firstcomprehensive eco-park.
• Assisted a cumulative 123 suppliers in implementing
carbon inventories and 59 suppliers in completingverification, resulting in carbon reductions of
225,500 tCO2e from 2021 to 2022.

• 12 key electronics suppliers signed a renewableenergy agreement committing to use 10 0%
renewable energies to produce Group products.
• Assisted a cumulative 10 suppliers in obtaining
UL2799 Zero Waste to Landfill certification.

• In 2022, employee salaries and benefits wereapproximately 333 billion NTD, and we hosted
24,823 employee activities attended by 2.114 million
participants.
• A total of 1,015 babies born to Hon Hai employees
benefited from the Group's "Childcare subsidies for 0 to
6 year olds program" and more than 470 million NTD
have been paid out in subsidies over the past three
years.
• Invested a total of 151 million NTD in Foxconn University
and provided 69.49 million hours of training, resulting
in an average of 75.05 hours of training for each Group
employee, helping 1,873 employees graduate with
undergraduate degrees and above.
• Hosted health and safety training courses for employees
and contractors which were attended by 754,906
participants, as well as 121 health promotion activities.
• Invested a total of 118 million NTD in social welfare
projects focused on supporting the disadvantaged, rural
education, technology education, diversified education,and support for physical education, with a focus oncommunity contributions.

Governance• Our revenues reached 6.62 trillion NTD, making us Taiwan's
biggest company in terms of revenues, equivalent to 29% of
Taiwan's GDP.
• Taiwan's second biggest company in terms of market value.
• Group operations supply nearly 40% of electronic products
worldwide.
• Rapidly launched two more self-developed EV models andour first self-developed mass-produced EV with our trademark
efficiency.
• Accumulated a total of 61,489 global patents, ranking at #17
in the world in terms of patent numbers.
• Provided intellectual property incentives to encourage
innovative development from our colleagues, distributed
16.34 million NTD in incentives to 4,561 people, and utilized
our patent start-up program to support collaborations with twostart-up companies.
• Our Taoyuan Namkam Factory obtained ISO 22301 BusinessContinuity Management System verification.
• Obtained ISO 37001 Anti-Corruption Management Systemverification to strengthen corporate operations and ethicalmanagement.
• Obtained ISO27001 Information Security Management Systemverification and hosted 468 information security training
courses to establish a culture focused on information security.

Social• Assisted and suppor ted 32 suppliers in improving
environmental violations; and assisted and supported 148
suppliers with high environmental impacts to report anddisclose Pollutant Release and Transfer Register (PRTR) data.

S• Achieved digital transformation through digital experiences,smart decision-making, digital acceleration, information
security, and operational benefits.

6

Corporate Governance,
Smart Innovation

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

AppendixCompany Overview
Group Vision
Work with Leading Clients
Around the Globe to Build

Company Profile
Company Name

Hon Hai Precision Industry Co., Ltd. (hereinafter"Group")Headquarters

No. 2, Zihyou Street, Tucheng Industrial Park,
Tucheng District, New Taipei City, Taiwan

Ticker Symbol

2317.TW

Date of Establishment

Geographical
Distribution

Number of Group Employees
Worldwide

Smart Living Platforms

February 20, 1974
The Group is headquartered in Taiwan, and has
established business locations all over the world
to serve our customers in China, the US, Canada,
Mexico, Brazil, the Czech Republic, India, Vietnam,
and many other locations. (Please refer to our
website for further details.)
925,890

Paid-In Capital

138.6 billion NTD

2022 Revenues

6.627 trillion NTD

As a leading global manufacturer in the computer, communications, and consumer
electronics (3C) industry, the Group supplies the most competitive manufacturing
technologies and solutions, and we continue to serve our clients, employees, and otherstakeholders around the globe. Established in 1974 and under the guidance of founder Terry
Gou, we have developed a Group strategy composed of "time to market," "time to volume,"and "time to money," as well as the innovative "IIDM-SM" strategy, namely a comprehensive
integration, innovation, design, manufacturing, sales, and marketing services solution for the
3C industry. We established a foundation in the molds industry and gradually grew from a
local OEM company to an international high-tech services provider. The Group is responsible
for supplying nearly 40% of electronic products worldwide.
Under the leadership of Chairman Young Liu, the Group's revenues for 2022 reached arecord high of 6.627 trillion NTD, achieving 10.47% of growth compared to the previous year.
Our four main product lines (cloud and networking products, computing products, smart
consumer electronics, components and other products) all maintained positive growth.

NO.1

NO.2

Taiwan's largest
enterprise interms of revenue

Taiwan's second biggest
company in terms of29%market valueof Taiwan's GDP#20

Revenues for 2022
were equivalent to

Ranked atout of the world's top
500 companies byFortuneRanked at#94

out of the world's top
2000 companies byForbes7

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Product Categories

Smart Consumer Electronics

Cloud and Networking Products(Smartphones, TVs, and game consoles)(Servers and network communications products)

Consumer electronics for personal use, encompassing consumer
electronics products and communications products within the scope of 3C
product categories as defined by external parties.

Cloud infrastructure required for network communication and cloudstorage by enterprise and individual users.

Computing Products

Components and Others(Computers and tablets)(Connectors, mechanical parts, and services)

Includes electronic computing equipment required for work and daily life,
as well as electronic computing products required for office and workplaceuse, encompassing computing products within the scope of 3C productcategories as defined by external parties.

Includes key components and technical components for the supply
chain as well as logistics warehousing, software development,
healthcare services, and integrated services.

8 8Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Management Policies
The Group not only commits to further development of precision manufacturing andvertical integration, but still strives for innovation, and continues the core transformationfrom "brawns" to "brains" by following the roadmap from "Foxconn 1.0" Existing business
optimization; "Foxconn 2.0" Digital transformation; and "Foxconn 3.0" Transformation to newindustries, striving towards the goal of continuous improvement and solid progress.

F1.0
Existing business
optimization

F2.0
Digitaltransformation

F3.0
Transformation to
new industries

The Group has implemented the four key areas of "governance structure, sharing
system, margin maximization, and lean management" under our principle of"strengthening the core while enriching the branches," drawing up clear divisionsof labor between our parent company, subsidiaries, and sub-groups as we actively
promote real-time internal sharing of various information and experiences. Additionally,
the Group has implemented systematic procedures in the procurement process,eliminating potential abuses caused by human factors, reducing unnecessary costs,
and increasing shareholder profits, thereby achieving margin maximization and leanmanagement.

The Group has utilized digital technology to increase the efficiency and effectivenessof operations. For example, we have optimized our website and related platforms
for improved communications with our shareholders and investors. We have alsoestablished a supply chain management platform to streamline upstream anddownstream information transparency. This increase in information transparency
enhances supplier management, and enables us to achieve increased agility andtimeliness to satisfy changes in customer demands. The Group has established several
big data databases and takes an objective statistical approach to management,
effectively formulating smart, automated strategic procedures. Additionally, in terms ofboth manufacturing and performance, the Group has embraced a scientific, metricsbased approach. This has enabled us to achieve "Increased Quality and Efficiency, andDecreased Cost and Inventory", maximizing returns for the Group.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Sustainable Operational Goals and Strategies

Sustainable
Management

EPS

ESG

The Group believes that true industry leaders are not only leaders in a business sense, butalso leaders of society. We have incorporated the United Nations Sustainable Development
Goals in our operational strategies and proposed a new philosophy： "Sustainable
management = EPS + ESG." Implementing ESG concepts lowers hidden costs forenterprises during corporate restructuring, upgrading, and product promotion processes.
Advanced deployments in ESG trends can also create business opportunities such asenvironmentally friendly green electric vehicles and energy storage system which areactively being developed under the Group's "3+3" strategy.
In the future, the Group will continue to keep abreast of international ESG trends and executeadvanced deployments while exerting our influence on sustainability issues as we work withall value chain partners and various stakeholders to achieve the SDGs for joint achievementof sustainable management and a brighter future.

The Group will leverage R&D capabilities and investments in new industries to achieve
the restructuring and upgrades of our "Foxconn 3.0" goal. As mentioned above,
we will be investing in "electric vehicles, digital health, and robotics industries," andalso "artificial intelligence, semiconductors and next-generation communication
technologies," forming our key "3+3" (industry and technology) strategy. Using
electric vehicles as an example, the Group has a formidable global supply chain, andpossesses key component manufacturing capabilities, structural R&D capabilities, andsystem integration services. This unique set of proficiencies allow the Group to verticallyconsolidate services, and also provide services on smart platforms. The Group will
maintain its core ethos of sharing, and continue its dedication to innovative technologies
to propel the sustainable development of our automotive ecosystem.

9 9

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

E Mid-Term and Long-Term Target in Environment

Green Solutions

Smart environmental protection is deeply
rooted in our core strategy, driving clean
production and green energy manufacturing.

Circular Economy

Enhancing resource utilization efficiency
Committed to creating a zero-waste
ecological park

Total completed

75%

Core
strategy2022
implementation

Core
SDGs

In Progress

Mid-Term and Long-Term Target

Please refer tochapter 5
2 items

6 items

Completed

2022
TargetProgress

Percent Complete

StatusAchieve net-zero greenhouse gas emissions by 2050, with a baseline year of 2020. By 2025, aim
to reduce emissions by 21%. By 2030, aim to reduce emissions by 42%. By 2035, aim to reduce
emissions by 63%.

-8.4%

5.13%

-61%

In Progress

By 2030, strive to have renewable energy account for over 50% of the energy consumption.

13%

8.28%

59%

In Progress

By 2025, aim to reduce water intensity by 6%.

1.595

1.38

100%

Completed

By 2025, strive for a plastic circularity rate within the manufacturing facilities of over 60%.

40%

40%

100%

Completed

2

2

100%

Completed

85%

85.2%

100%

Completed

By 2025, establish at least 3 demonstration manufacturing facilities with air quality monitoring systems

0

1

100%

Completed

Number of significant environmental pollution incidents (unit：cases)

0

0

100%

Completed

By 2025, aim to achieve a minimum of 5 manufacturing facilities with Gold-level verification (UL 2799)
for zero landfill waste.
By 2025, strive for a 100% implementation rate of industrial wastewater discharge water quality
monitoring systems in the manufacturing facilities

10Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

S Mid-Term and Long-Term Target in Society
Employee
Satisfaction

Safety, health, and equitable development
Cultivating and empowering employees toenhance their rights and benefits

Win-Win Strategy

Nurturing the generation of technology
education
Practicing charitable initiatives to fulfill social
responsibilities

Total completed

91%

Core
strategy2022
implementation

Core
SDGs

In Progress

Please refer tochapter 2、3&6

2 items

Mid-Term and Long-Term Target

8 items

Completed

2022
TargetProgress

percent complete

StatusFoster a culture of inclusivity and attract talent from all backgrounds, providing equal employment opportunities while
ensuring zero incidents of unfair employment practices.

0

0

100%

Completed

Value employee feedback and continuously improve the quality of the work environment to promote talent retention, withthe goal of achieving a high retention rate for skilled professionals.

83.2%

81.9%

98%

In Progress

Adhere to United Nations international human rights conventions, guidelines, and declarations, extending theseprinciples to all workers in the value chain, promoting their collective adherence. Increase the annual labor rights audits
within the group, including all campuses and suppliers in the supply chain, from the existing 30 to over 50 per year.

30

39

100%

Completed

Maintain a record of zero major labor rights incidents that could harm the company's and customers' reputation.

0

0

100%

Completed

Cultivate innovative thinking and work habits, encourage continuous learning and growth among employees, and create
products and technologies that contribute to human well-being. Aim for an average of 60 hours of professional training
per year for each skilled professional.

48

86.06

100%

Completed

Maintain a record of zero cases of occupational diseases caused by chemical exposure.

0

0

100%

Completed

Set a target of achieving a disability injury frequency rate ≤0.14 incidents per million working hours, significantly
surpassing industry standards.

0.2

0.127

100%

Completed

Reduce the severity rate of disability injuries to ≤6.88 days per million working hours.

8.97

5.48

100%

Completed

Provide guidance to high-risk contractors to implement ISO 45001 Occupational Health and Safety Management
System certification, with a target implementation rate of ≥70%.

30%

41.2%

100%

Completed

Embrace the concept of shared prosperity and promote employee social service rewards, setting a target ofaccumulating ≥5000 hours of volunteer service in Taiwan facilities.

715

384

54%

In Progress
11Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

G Mid-Term and Long-Term Target in GovernanceCore
strategy2022
implementation

Business
Sustainability

Operational Innovation, Transparent
GovernanceDeepening Sustainable Partnerships for
Mutual Benefit

Corporate
Governance

Establishment of sound corporate governanceand a culture of corporate integrity

Total completed

100%

Core
SDGs

Please refer tochapter 1&4

In Progress

0 items

Completed

17 items

2022
Mid-Term and Long-Term Target

TargetProgress

percent complete

Status

0.02

0.18

100%

Completed

Public disclosure

Public disclosure

100%Completed

Establish a principle where over 50% of the board members are not concurrently employed by or
executives of Hon Hai

>50%

67%

100%

Completed

Increase the proportion of female directors on the board from the current 11% to 30%

>20%

22%

100%

Completed

Raise the performance evaluation targets for the board, directors, audit committee, and compensationcommittee to an average score of 4.8

Conduct performance evaluations annually

Conducted performance evaluations

100%

Completed

Conduct an external performance evaluation of the board and functional committees once every
three years

External evaluations have been conducted in the past
three years

External evaluations have been
conducted in the past three years

100%Completed

Continuously improve the ISO 27001 information security management system to assist business units inestablishing security systems

Obtain certification for the office areas and data
centers of the Central Information Plant in Tuchengand Kaoshiung Soft Plant.

certified100%

Completed

Conduct 10 significant system penetration tests annually to ensure no major cybersecurity incidents with
low impact cases

Establish Hon Hai's Blue Team and improve thecybersecurity incident classification table

Established Hon Hai's Blue Team andenhance the cybersecurity incident
classification table

100%

Completed

Achieving a RoHS declaration coverage rate of 100%

100%

100%

Completed

≧ 10

10

100%

Completed

≧ 12

12

100%

Completed

Conduct ESG (Environmental, Social, and Governance) performance evaluations annually for electronic
key suppliers based on commodity categories

Compile a list of underperforming suppliers

Compile a list of underperforming
suppliers

100%

Completed

Assess the coverage rate of performance evaluations for specific electronic suppliers implementing ESG
initiatives (including carbon neutrality, zero waste, and green products)

≧ 95%

100%

100%

Completed

Evaluate the performance of specific institutional suppliers in implementing ESG initiatives, coveringgreen products, social and environmental responsibilities, and carbon management

=100%

100%

100%

Completed

Utilize the group's app to publicly disclose cases of corruption and violations, with an annual growth rateof 10% in the number of disclosures
Disclose company tax policies

Electronic key suppliers must implement full substance declarations on the RoHS and REACH
management platforms
Increase the number of specific electronic waste zero landfill certified suppliers to more than 25
Commit to sourcing 100% renewable energy for the production of Hon Hai products from electronic key
suppliers, reaching a minimum of 45 suppliers

Conduct audits with a coverage rate of at least 90% every three years for institutional suppliers
Ensure a response rate for conflict minerals investigations from electronic key suppliers
Ensure a response rate for conflict minerals investigations from institutional suppliers

≧ 70%

73%

100%

Completed

=100%

100%

100%

Completed

=100%

100%

100%

Completed12Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Relationship Between the Overall Environment and Our
Operating Strategies
As we continue to expand our reach, we are also working to discover new drivers for growth.
The Group selects electronics products with growth potential and stable profitability basedon the principles of "right customers, right product, and right timing,"and therefore wasable to maintain steady revenue growth even during the coronavirus pandemic. Thanks
to continued developments in global 5G infrastructures, many of our clients have begun
launching new consumer products that will drive the next wave of growth. The coronavirus
pandemic boosted work-from-home, home entertainment, and other stay-at-home economy
needs, increasing demand for cloud servers and network communications, resulting insignificant growth for tablet computers, laptops, and game consoles. We believe that thestay-at-home economy, enterprise IT spending, and communications infrastructure willcontinue to drive ICT (Information and Communication Technology) growth in the postpandemic era.

EV

Digital Health

Robotics

Three New
Industries

However, the ICT industry is gradually reaching saturation and growth is slowing. Based on
our evaluations of future industrial environments, we believe automation, chips, digitalization,and intelligent systems are technologies that will develop rapidly, and new energies,
automation, and enhancement of individual values will be the main trends of the future. We
therefore incorporated our existing capabilities in precision manufacturing and officiallyannounced our three industries and three core technologies for the future in November 2019
to power our next stage of growth, with the three industries being "electric vehicles, digital
health, and robotics."The market size for each of these three industries could reach morethan three trillion USD. Additionally, the average compound annual growth rate (CAGR)
for these industries all exceed 20%. These opportunities for growth align well with our own
industrial expertise and advantages. Our three core technologies are "artificial intelligence,
semiconductors, and next-generation communication technologies"; all key technologies
which serve as our core competitive advantages for the three industries as we develop
leading technologies and products 3-5 years ahead of their time, helping the Group to
realize its F3.0 transformation to new industries goal.

Three New
Technologies

The Group's"3+3"Strategy

AI

Semiconductor

Next-generation
Communication
Technologies

13Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Response to International Initiatives
United Nations Sustainable Development Goals (SDGs)
As a leader in technology services, the Group has established operating locations all over the world, and therefore resolving global sustainable development issues is one of our critical issues.
The Group utilizes its core capabilities and resources to respond to the SDGs established by the United Nations, which serve as the Group's objectives for achieving sustainable management.
The Group adhered to the "Sustainable Management = EPS+ESG" principle for identification of major SDGs and refinement of targets. Our six main ESG strategies respond to the SDGs, and wework with our upstream suppliers, corporate businesses, and downstream customers to implement the SDGs and work jointly toward our 2030 Agenda.

SDGs

SDG Sub-Goals

Corresponding ESG Targets andStrategies

Response Strategies and Actions(Please refer to P11-12 for information on promotion targets)

1.2、1.3、1.4

Win-Win Strategy• We voluntarily initiated a variety of community activities for community contribution and epidemic prevention to improve theliving standards of our surrounding communities and maintain health and safety. We hosted 694 activities over a total of
53,782 hours.
• Organized the Foxconn Scholarship Program for five consecutive years, benefiting a total of 5,062 students, anddistributing a total of 230 million NTD to economically disadvantaged students.

3.4

Employee Satisfaction• Hosted 121 health promotion activities including health lectures, fitness center events, sports classes, and online healthlessons.

4.1、4.3、4.5、
4.7

Employee Satisfaction, Win-Win
Strategy• Founded Foxconn University to serve as our headquarters for talent development and innovation cultivation while training
in multiple fields. A total of 1,873 people have graduated from the university, and 77% of graduates received degrees
related to their current positions.
• Established a technology education system for Taiwan and compiled the first quantum science manga in Taiwan.
• Organized many education projects for disadvantaged groups and rural areas to provide appropriate resources andopportunities for exploring self-potential to achieve learning and growth.

6.3、6.4

Circular Economy• Actively engaged in wastewater recycling actions that reused treated domestic wastewater in production processes andenvironmental greening; we recycled a total of 4,796 thousand tons of water, equivalent to 5.24% of our total water usage.

Green Solutions• The Group achieved a total installation capacity of 397.2MW in 2022. Total global usage of clean energies reached 816
million kWh, and clean energy usage ratios were 8.28%.
• 12 key electronics suppliers signed a renewable energy agreement committing to use 100% renewable energies to
produce Group products.
• Successfully achieving the Group's annual energy-saving goal for 2022 by achieving an actual energy-saving rate of 5.74%.

7.2、7.3

14

Foreword

SDGs

SDG Sub-Goals

Corporate Governance,
Smart Innovation

Corresponding ESG Targets andStrategies

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Response Strategies and Actions(Please refer to P11-12 for information on promotion targets)

共贏共榮
Business
Sustainability• Ranked Taiwan's biggest business in terms of revenue; revenues for 2022 exceeded 6.627 trillion NTD, equivalent to 29%
of Taiwan's GDP.
• Added principles of equal employment, respect for human rights, employee diversity, bans on child labor, and prohibitionof forced coercion of employees to the talent recruitment protocols and activities of the Group.
• Provision of equal compensation and opportunities for advancement to all male, female, and disabled employees, with noexceptions.

Business Sustainability,
共贏共榮
Corporate Governance• Rapidly launched two more self-developed EV models and our first self-developed mass-produced EV with our trademark
efficiency, demonstrating our determination to be a global automobile manufacturer.
• The Group is the only enterprise in the world which holds 5 WEF Global Lighthouse certifications, the highest number ofawards held by any company in the world, demonstrating our solid capabilities and ability to lead the industry.
• Utilized the Group's core capabilities as well as internal and external resources to promote technology education andprovide learning resources for teachers as well as college, high school, vocational school, and junior high school
students, including quantum computing camps for high school and vocational school students, and compilation of thefirst quantum science manga in Taiwan.

12.2、12.4、
12.5、12.7

共贏共榮
Circular
Economy• Longhua Campus obtained UL 2799 Gold Level Certification, becoming the world's first comprehensive eco-park; weencourage our suppliers to obtain Zero Waste to Landfill certifications and assisted 10 suppliers in obtaining UL2799 Zero
Waste to Landfill verification.
• Required all suppliers to strictly comply with local environmental protection regulations, launched a green procurement
policy that required all suppliers to fully establish self-assessment procedures for RoHS 10 substances, and banned
discharges of untreated hazardous materials and supplies.
• Established a management system for chemicals and hazardous substances to assess and track chemical usage,
ensuring that said chemicals do not cause environmental or human damage.

13.3

共贏共榮
Green
Solutions• Invested 2.37 billion NTD in 1,877 energy-saving projects, achieving carbon reductions of 306,200 thousand tCO2e.
• Assisted a cumulative 123 suppliers in implementing carbon inventories and 59 suppliers in completing verification,
resulting in carbon reductions of 225,500 tCO2e from 2021 to 2022.

Business Sustainability,
共贏共榮
Corporate Governance• Adopted a zero-tolerance policy for regulatory violations, strictly prohibiting all forms of corruption, bribery, theft of corporate
funds, and profit from illicit activities. All employees receive at least two hours of anti-corruption training annually.
• Rejection of all forms of human trafficking and employment of slave labor, coerced labor, forced labor to repay debt,
indentured labor, and prison labor.
• No discrimination of employees on the basis of gender, age, nationality, place of birth, ethnic background, language,
disability, marriage, pregnancy, sexual orientation, religion, political views, or union membership. Child labor is also
prohibited.
• Prevention of all forms of corruption, discrimination, and unfair practices during the procurement process; strictprohibitions on supplier use of child labor and forced labor or prison labor; and strict adherence to fair operating
principles.

8.2、8.5、
8.7、8.8

9.4、9.5

16.2、16.3、
16.6、16.B

15

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

RBA Code of Conduct

The Group's "Code of Conduct" is based on the fiveaspects of the RBA (Responsible Business Alliance) Code of Conduct, and was formulated
rigorously and prudently to include content related to many international initiatives, including
responsible mineral procurement, anti-corruption, and anti-slavery, thereby aligning withinternational trends and ensuring comprehensiveness of our ESG implementations. As amember of the international business community and RBA, the Group strives to implementsocial responsibilities, ensuring that our employees
and suppliers around the world can carry out GroupThe Group's
operations based on ESG and Code of Conduct
Corporate
Socialprinciples.
Responsibility(CSR) Code of
Conduct

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Social Contribution,
Win-Win Strategy

Appendix

CDP Global Environmental Disclosure Platform
The Group joined CDP in 2015 and began measuring anddisclosing environmental information to assess, manage,
and reduce the impacts of climate change on corporate
operations. In 2022, we received a B ranking on the climatechange questionnaire and a B- ranking on the water security
questionnaire.

Task Force on Climate-Related Financial Disclosures (TCFD)
In 2022, the Group officially became a TCFD supporter andpledged to implement TCFD guidelines. The Group assessedlinks between climate change and business activities using
the TCFD framework, and has conducted scenario analyses
incorporating risk management and climate impacts to further
evaluate the resilience of our responses to climate change.
Relevant information has been disclosed in our Net Zero Vision
Report.

Climate Action 100+
The Group formally responded to the three goals proposedby the Climate Action 100+ Steering Committee. We not only
comply with Nationally Determined Contributions (NDCs) andcarbon emission policies of local governments, but also continue
to strengthen climate change governance, implement actions
on GHG emissions, and disclose information in accordancewith Task Force on Climate-related Financial Disclosures (TCFD)
recommendations to ensure that the GHG emissions throughout
the Group's value chain remain consistent with the targets of theParis Agreement as we strive to realize our goal of zero GHG
emissions by 2050.

Green Solutions,
Circular Economy

2022 HON HAI Technology
Group (Foxconn) TCFD Net Zero
Vision Report

For more information on the Group's responses to TCFD
disclosure requirements, please refer to "Climate Change"and
our "Net Zero Vision Report"

Science Based Targets Initiative (SBTi)
In January 2021, the Group committed to the Science Based
Targets Initiative (SBTi) Business Ambition for 1.5℃ initiative, anddisclosed our commitment on SBT and CDP websites. The Group
uses appropriate methodologies to formulate SBT-recognizedscience-based targets. We have obtained verification of our SBT
near-term targets, submitted our net zero commitments to SBTi,
and are in the process of planning our 2050 net zero pathway.

16

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

AppendixGlobal Operations
The Group is dedicated to enhancing research design and engineeringsolution capabilities to develop a global footprint that is based in Asia andexpanded to other parts of the world. "2 R&D Clusters"refers to the adoptionof a strategy that centers on R&D in Greater China and the US; "3 Designand Manufacturing Zones"refers to give priority to the mainland China regionin terms of strategic deployment ,establishing design and manufacturingin Asia, the Americas, and Europe with at least two manufacturing bases;"Global Assembly and Delivery"refers to complements of global assemblyand delivery to ensure that we convey values to clients with optimal timing,
quality and quantity.

2 R&D Clusters
The adoption of a strategy that
centers on R&D in Greater
China and the US

EU

JP
CN

3 Design and
Manufacturing Zones

Global Assembly and
Delivery

Give priority to the mainland China
region in terms of strategic deployment,
establishing design and manufacturingin Asia, the Americas, and Europe withat least two manufacturing bases

Complements of global assemblyand delivery to ensure that weconvey values to clients with
optimal timing, quality and quantity

U.S.

TW

17

1

Corporate
Governance,
Smart Innovation
Corporate Governance
Ethical Management
Innovation Management andPatents
Sustainability Committee
Stakeholder Identification,
Communication, andResponsibilities
Scope of Material Issues andMateriality Analysis
Key stakeholders：
Employees

Media

Clients

NGOs

Shareholders/investors
Suppliers/Contractors
Government agencies

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Management Guidelines for Material Topics
Financial Performance, Information Security and Customer Privacy, Corporate Governance and Risk Management, Ethical Management andLegal Compliance, Innovative Development and Low-Carbon Technologies

Meaning to the Group• Establishment of sound corporate governance and a culture of corporate integrity
which effectively safeguards the rights of all stakeholders and demonstrates
our corporate values. The Group endeavors to sustain a culture of integrity andethical management, and adopts a zero-tolerance policy toward any behaviors
or activities that violate local and international laws. The Group is also working toconsolidate its leadership in the technology industry and continues to invest in
research and development of advanced technologies.

Specific Actions• Continue to improve corporate governance performance, protect shareholder
and stakeholder interests, strengthen Board function, and enhance informationtransparency.
• The Group has accumulated a total of 61,489 global patents and ranks at #17 in
the world in terms of patent numbers.
• Rapidly launched two more self-developed EV models and our first selfdeveloped, mass-produced EV with our trademark efficiency.
• Provided intellectual property incentives to encourage innovative developmentfrom our colleagues, distributed 16.34 million NTD in incentives to 4,561 people,
and utilized our patent innovation program authorizing patents and collaborations
with two start-up companies.

Policies and Commitments• The Group complies with all domestic and overseas regulatory requirements andstrives to protect shareholder interests, strengthen Board functions, empowerfunctional committees, respect stakeholder interests, and enhance informationtransparency. Additionally, in order to achieve our F3.0 goal of transformation to
new industries, the Group focuses on the "3+3" development strategy and works
to lead all industries toward a future smart society.

Evaluation Mechanisms• Hosted annual shareholders meeting and quarterly investor conferences to share
ESG governance performance with external stakeholders.
• Organized annual management review meetings to discuss ways ofstrengthening performance and tracking target achievement rates for continued
excellence.
• Audited the Group's corporate governance procedures in accordance withannual audit plans.

19Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix⦿ Company Organizational

Corporate GovernanceGroup Structure and the Board of Directors
The Group has established a Board of Directors consisting of directors and independent
directors jointly responsible for corporate governance and management strategy
in accordance with laws and regulations. In addition to upholding shareholder
rights, the Board of Directors is also guided by principles that protect the rights ofother stakeholders, including employees, clients, suppliers, governments, and nongovernmental organizations. The general managers of each business group adhere to theguiding principles of the Board of Directors in directing the operations of each businessgroup. Internal directors of the Group receive no additional compensation. According
to the regulations governing the Board of Directors, individual directors should recuse
themselves from Group affairs when there is a conflict of interest. The remuneration of
directors is directly derived from the relevant remuneration for the management positions
held at the listed companies of the Group.
The Group's Board of Directors currently comprises nine directors, including fiveindependent directors and two female directors. We have also established an Audit
Committee and Compensation Committee, and the establishment of a Nomination Committee
was approved by the Board on March 16, 2022. Each director has extensive academic
backgrounds and work experience in engineering, finance, and other fields, and we fully
implement concepts of diversity in Board structure. Each director serves for a term of three
years and can be reelected for a consecutive term. Chairman Young Liu, who represents thecompany externally and also serves as Group President, is responsible for the supervision of
all important affairs.

Shareholders'Meeting
Audit Committee
Board ofDirectors

Compensation Committee
Nomination Committee

Auditing Division

Management Committee
Chairman's Office

ChairmanSustainability Committee

CEO

Central Management Function

Product Business Group

Cost Management

Business Group A

Financial and Accounting

Business Group B

Global Procurement

Business Group C

Human Resources
Legal and Intellectual Property

Directors
Biographies

Board
Resolutions

Director
Knowledge &Independence

Diversityof Board
Members

Business Group D

Information Technology

Business Group E

Safety and Environmental Protection

Business Group S

20

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

The Group insists on transparency in operations, emphasizes shareholder rights, and believes that a sound and efficient Board of Directors can establish a strong foundation for corporate
governance. Under these principles, an Audit Committee and Compensation Committee have been established to assist the Board of Directors in carrying out its supervisory duties. The Boardof Directors plays a supervisory and guiding role in our sustainable corporate management strategy, and the Sustainability Committee reports annually to the Board of Directors regarding
execution of ESG policies and initiatives. In future, we will continue to enhance director knowledge of sustainable developments. The Group hosts mandatory training for directors each year.
Please refer to our 2022 Annual Report for more information on director training. Key events within the Group are disclosed at annual shareholders meetings and investor conferences.
Additionally, in order to safeguard the rights of shareholders and other stakeholders, strengthen Board functions, and enhance information transparency, the Group has established the"Corporate Governance Code of Practice." In 2022, the Group ranked in the top 6% to 20% of companies in the 9th Corporate Governance Evaluations.

2022 Annual
ReportFor more information on our Corporate Governance
Code of Practice and remuneration (includingsalaries, bonuses, retirement pensions, andeducation and training hours) for directors (including
independent directors), general managers, and vicepresidents, please refer to our 2022 Annual Report.

AnnualShareholders
Meeting

Investor
Conferences

Audit Committee

Nomination Committee

The Group established an Audit Committee in July 2016 in compliance with the Securities
and Exchange Act. The Committee is comprised of all independent directors, who serve
three-year terms as Committee members. Committee members elect a convener fromamongst themselves; the current Committee convener is Independent Director James Wang.
The Committee convened three times in 2022.

To strengthen director selection mechanisms and build a Board with diverse and professional
members, the Board approved the establishment of a Nomination Committee in March
2022. The Nomination Committee is composed of three directors elected by the Board,and more than half of Committee members must be independent directors. All Committee
members possess professional capabilities and expertise in diverse fields such as business
management, operations and manufacturing, engineering technologies, finance andaccounting, financial investment, brand channels, and marketing. The main responsibilities of
the Committee include nominating and reviewing director candidate qualifications, reviewing
Board operations, formulating and amending functional committee charters, and reviewing
the Group's Corporate Governance Best Practice Principles. The Committee convened twice
in 2022.

Compensation Committee
A Compensation Committee was established in September 2011 in accordance withcorporate governance principles to strengthen salary and remuneration systems for directors
and managers. The three Committee members were appointed by the Board. The main
responsibility of the Committee is to assist the Board in assessing and regularly reviewing
the performance of directors and managers regarding the sustainable development
objectives set out by the Group, as well as review of policies, systems, standards, andstructures for Compensation. Independent Director James Wang currently serves as
Committee convener. The Committee convened twice in 2022.

Shareholder Rights and Equality
The Group encourages shareholders to participate in corporate
governance. Apart from our shareholders meetings, we have alsoestablished more effective ways to contact our shareholders so that
our managers and independent directors can receive shareholder
feedback, understand shareholder issues of concern, and provide
clear explanations for corporate policies to gain shareholder support.
The Group has commissioned a professional stock agency to handle
shareholder affairs so that shareholders meetings can be convened
legally, effectively, and safely. We have also established an Investor
Relations Office for dedicated handling of shareholder suggestions
and disputes.

Corporate
GovernanceBest PracticePrinciples
21

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Financial PerformanceTax Policies

The Group's revenues for 2022 reached 6.627 trillion NTD, a record high, and achieved
annual growth of 10.47%. Our four main product lines (cloud and networking products,
computing products, smart consumer electronics, components and other products) all
maintained positive growth.

The Group strives to achieve sustainable management and innovative transformation while
fulfilling social responsibilities, promoting local economic development, ensuring legal
compliance, and implementing tax governance and risk controls. All subsidiaries included
in our consolidated financial statements adhere to our "Tax Policies and Management
Regulations," which were established following Board approval. The Board is the highest
authority for tax management and is responsible for approving tax policies, supervising tax
management mechanisms, and ensuring that said mechanisms are operating effectively.

2020
Billion NTD

Revenues

2021

5,358

2022

5,994

6.627

II. Avoid
inappropriate tax
schemesIII. Transactions withaffiliated parties

Carefully evaluate all
investment schemes
and transaction models
to ensure that they
adhere to economic andreasonable businesstargets, avoid use of tax
havens to evade taxes,
and do not deliberatelytransfer profits tocountries or regions with
low tax rates

Adhere to theTransfer Pricing
Guidelines releasedby the Organization for
Economic Cooperation
and Development(OECD) to ensurethat transactions withaffiliated parties comply
with conventional
practices and transfer
pricing regulations

IV. Assess tax risks

V. Information
disclosures

VI. Relations with tax
authorities

All important corporate
decisions should
consider tax issues andassess tax risks andimpacts

Disclosure of tax
information should
adhere to relatedlaws, regulations, andstandards

Build mutual respect
and interactions with
tax authorities based on
mutual trust, transparent
information disclosures,and legal compliance

I. Legal compliance
Operating costs

Billion NTD

5,055

5,632

6,226

Employee compensation andbenefits

Billion NTD

281

303

333

Income tax

Billion NTD

26

29

31

Net profits

Billion NTD

102

139

141

NTD

7.34

10.05

10.21

Earnings (losses) per share2022 Annual
ReportGroup Financial
Summary

Comply with relevant tax
laws and regulations foreach operating site

22

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Risk Management
Risk and opportunity are two sides of the same coin. If risks can be prevented and impacts minimized in advance, risks can be transformed into opportunities. Faced with rapidly evolving
external environments, identification of risks and enhancement of response capabilities has become a key aspect of operational management for the Group, allowing us to keep abreast of
future opportunities and realize our vision of sustainable development.
The Group is focused on its main businesses relating to manufacturing, sales, and tech research and development, and does not engage in high-risk, high-leverage investments. Regarding
external and internal risks, the Group has established appropriate risk management mechanisms and firewalls according to internal organizational procedures such as the "Operational
Procedures for Work and Financial Transactions Involving Special Companies and Other Companies Within the Group," "Operating Procedures for Business and Financial Transactions,""Supervisory Procedures for Affiliate Companies," "Endorsement Guarantee Operation Procedures," "Fund Lending and Others' Operating Procedures," and "Procedures for Acquiring or
Disposing of Assets." We employ a comprehensive risk management and control system that identifies, evaluates, and controls the various risks we face, including market risks (foreignexchange risk, interest rate risk, and price risk), product risks, and operational risks.

Management Goals

Management Systems

1. The overall risk management policy for the Group is focused on the unpredictability of financial markets and operational
aspects, and seeks to reduce any hidden negative effects stemming from the financial status and operational
performance of the Group.

1. Risk management tasks shall be conducted according topolicies approved by the Board of Directors and in close
collaboration with other operational units in the Group to
identify, evaluate, and avoid relevant risks.

2. Apart from market risks, which are primarily controlled by external factors, all other risks can be managed internally or
eliminated through operational procedures, and therefore our management goal is to reduce such risks to zero.
3. Market risks must be closely analyzed, and the recommendations, implementations, and processes stemming fromsuch analyses shall take external trends, internal operations, and the actual effects of market fluctuations into accountas appropriate, then adjust overall operations to achieve optimal benefit.

2. The Board of Directors has listed risk management principles
in writing and has provided written policies for specific areasand items.

Scope of Risk Management and Response Strategies

Financial
Considerations

Market Risks

The Group is a multinational electronics contract manufacturer. The primary source of foreign exchange risk from operational activities stems from nonfunctional accounts receivable in foreign currencies and differences in account establishment times for accounts receivable that are affected by exchange
rates for functional currencies. A feature of contract manufacturers is that both revenues and expenditures are calculated mostly in foreign currency;
therefore, after matching assets and liabilities, the foreign exchange risk of the remaining sum is reduced. In addition, although some developing countries
we invested in have relatively large foreign exchange fluctuations, these make up only a small proportion of Group finances and the foreign exchange
risk from these countries remain manageable. The Group has established policies that require companies within the Group to manage foreign exchangerisks of their functional currencies. The effects of each functional currency on the primary reporting currency are uniformly managed by the main financial
department of the Group.

Credit Risks

The Group has established credit limits and channels for clients based on credit evaluation mechanisms, and we will continue to evaluate the statuses of
our accounts receivable. The status of each client and industry is evaluated monthly by the transactions unit of each financial department and advanced
preparations are made for any contingencies.

Liquidity Risks

The Group only works with mature financial products that are simple in structure, simply priced, transparent, and have numerous market participants, prices,and competing brokers. The funds of the Group are placed in high-liquidity instruments and diversity of revenue sources will be cultivated to avoid systemicrisks from financial markets.

23

Foreword

Operational
Considerations

Strategic
Considerations

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Procurement
and Sales
Consolidation

The Group cooperates with like-minded high-quality suppliers to manage global economic strategies, which not only reduces our procurement and sales
risks in single markets, but also assists our suppliers in reducing possible risks from independent responses to risks stemming from industrial changes. We
continue to establish strategic bases in important global markets and advantageous regions so as to fulfill the global delivery needs of our clients.

Information
Security

We have established risk assessment guidelines relating to information security risks. We implement risk controls and continued improvements at theorganizational and technical levels to reduce corporate information security risks, formulating protection mechanisms for confidential information that adhere
to legal regulations, client needs, and corporate management while also conducting regular reviews of information security risks for effective information
security management.

R&D andTechnology

The Group focuses on establishing leadership in high-tech products by effectively gathering outstanding R&D talents and investing the best R&D resourcesto achieve continued development and mass production of advanced technologies and processes. We also actively submit patent applications.

Corporate Image

The Group focuses on balanced expansion of all global businesses, assists strategic partners and clients in avoiding risks, and also facilitates global
promotion of corporate, social, and environmental responsibilities. The Group has established a global crisis management plan and will continue to run
simulations for major emergencies in the foreseeable future while formulating relevant plans to ensure protection of shareholder rights and customer interests.

Operational
Interruption Risks

To prevent asset losses, interruption of operations, and other force majeure events or accidents, the Group purchased various insurance policies following
a thorough evaluation of management costs and insurance fees to transfer risk to other risk-bearing institutions. The Group implemented the ISO 22301
Business Continuity Management System in 2021 to manage operational risks through active responses to emergency events, thus ensuring continued
operations and rapid recovery during crisis periods. We have since obtained ISO 22301 certification.

Operational
Risks

To prevent risks stemming from losses due to unintentional mistakes, intentional concealment, or damage by internal operating personnel, the Group's
organizational structure is designed to prevent personnel from concurrently holding posts in transaction execution, confirmation, and delivery; personnel
responsible for evaluation, supervision, and control are drawn from different departments and report to the Board or high-level executives who are either not
responsible for transactions or who hold decisional responsibility in their respective departments.

Technological
Changes

In recent years, the Group has actively committed to development of strategic technologies and is attentive of industrial changes. In future, we will continue
to implement research and development aligned with market trends and client needs.

R&D andTechnology

The Group focuses on establishing leadership in high-tech products by effectively gathering outstanding R&D talents and investing the best R&D resourcesto achieve continued development and mass production of advanced technologies and processes. We also actively submit patent applications.

Notes：
1. For information on occupational health and safety risks, please refer to the "Safety Audits andRisk Identification" section.

Taoyuan Namkam Campus obtained ISO 22301 Business Continuity Management System Certification

2. For information on supply chain risks, please refer to the "Policies for Sustainable Managementof Suppliers" section.

Our Taoyuan Namkam Campus obtained ISO 22301 Certification in 2022, indicating successfully
implementation of the Business Continuity Management (BCM) System. During the verification
process, the E business group at our Namkam Campus piloted the BCM system within wirelessrouter and related component assembly and manufacturing units. It took a year to conduct analysis
of operational impacts, establish risk assessment and identification systems, and formulate
corresponding strategies and options. We enhanced organizational and personnel response and recovery
capabilities through continued testing and drills to strengthen the effectiveness of our management mechanisms.

3. For information on climate change risks and opportunities, as well as TCFD recommendations
and analysis results, please refer to the "Climate Change" section.

The Group aims to use this certification process as an example for continued promotion of the ISO 22301 BusinessContinuity Management System in other business groups to prevent risks, improve current systems, ensure productand service stability, and continue optimization to achieve sustainable management goals. We also consider this an
important indicator of ESG and corporate governance.

24Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Information Security Management

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix⦿ Information Security Organizational Chart

Information Security Policy
To ensure effective information security management by our information security
organizations, we convene monthly meetings and review information security tasks such as
relevant plans, implementations, audits, and actions using the PDCA management cycle.
The Group has adopted the ISO 27001 Information Security Management System framework,
implemented the Information Security Management System (ISMS), and continued tomaintain validity of ISO 27001 Information Security Management System certification.
We continue to strengthen information security protections and implement digitaltransformation. We have established information security targets and strategies, personal
information protections, and network segmentation principles and standards, systemic
monitoring measures for information security, information security for cloud services,
identity authentication, access management, and other multi-layered information security
protections. We also protect the confidentiality, integrity, and availability of important
corporate assets through regular cyberattack simulations, penetration tests, and other drills.

Board/Chairman
Information Security
Governance Reports

Governance
Authorization

The Group has formulated regulations to manage control of organizations, personnel,
entities, and technologies. We regularly review and implement information security
measures, education and training, promotions, and other improvements based on the resultsof performance indicators, risk management, and information audits to ensure that importantand confidential information is not leaked.

Information Security
Governance Committee

Supervision

Secretariat

Supervision

Information Security Unit
In order to satisfy the information security needs of clients and safeguard client privacy
and intellectual property rights, we have established an Information Security Committee
under the Board which is headed by our chairman; members are composed of the highest
authorities, highest-ranking corporate information managers, and highest-ranking network
managers at specific subsidiaries, as well as the highest authority at the Hon Hai ResearchInstitute. The highest-ranking finance, human resources, legal, and audit managers attend
meetings as necessary according to project content. The Committee assigns leaders for
information security projects, provides necessary project support, reviews project results,
and regularly reports on information security governance issues, directions, and governanceresults to the Board.
An Information Security Governance Team and Information Security Maintenance Team
have been established under the Committee and have been tasked with the following
responsibilities：• Information Security Governance Team：Formulation of information security governancestrategies, guidelines, information security policies, and related procedures to ensure
legal compliance.
• Information Security Maintenance Team：Construction and maintenance of information
security frameworks, equipment, protection mechanisms, and risk assessment
mechanisms to ensure effectiveness of information security actions.

Information Security
Governance Team

Dissemination

Information
Provision

Collaboration

Information Security
Maintenance Team

Simultaneous
Management
Incident Notification

Hon Hai Information
SecurityInformation
Sharing Alliance

Incident
Notification

Central Information /Central Networks /Information Security Units of Business Groups

information
sharing25

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Information Security Risk Management
We have established risk assessment guidelines relating to information security risks. We
implement risk controls by assessing impact severity and probability of occurrence for risks
from important information assets and core systems at the organizational level in terms ofvalue, vulnerability, and threats. At the technical level, we conduct reviews of information
security technologies for system and software architecture, vulnerability scanning andreviews, and settings and maintenance. We lower threats to corporate information security
through risk management and continued improvements and have formulated protection
mechanisms for confidential information that adhere to legal regulations, client needs, andcorporate management.
We have established relevant regulations stipulating corresponding measures for major
information security incidents to serve as a basis for handing information security incidents.
To strengthen employee understanding of information security risks, we conduct regular
audits of information security risks to ensure the effectiveness of information security
management measures. No major cyberattacks impacting corporate operations or involving
infringements of privacy occurred in 2022.

Specific Management Plans
1. Cybersecurity• Utilize network segmentation principles and standards which prevent computerviruses and malicious attacks from spreading to different campuses.
• Design cyberattacks simulations and drills, techniques, and management of red, blue,
and purple teams.
• Continue to strengthen intelligence systems, next-generation firewalls, application
system firewalls, intrusion detection systems, DDoS defenses, network detection andresponse systems, and online behavior monitoring solutions for exception reportingand handling.
2. Endpoint security• Update patches for external devices, mobile devices, and other endpoint operating
systems; install anti-virus software; and implement scans.
• Establish endpoint detection and response mechanisms for important computers andcore systems to strengthen monitoring of malware behaviors.
3. Application security• Continue to strengthen application security controls, management of open source
software, and integration with development processes and platforms.
• Establish single sign-on (SSO) platforms and require multi-factor authentication (MFA)
for important application systems.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

4. Information security and protections• Use data annotations to add encryptions and appropriate controls for data basedon confidentiality levels, and utilize platforms to implement effective tracking of audit
trails.
• Anti-virus and anti-spam email controls, and flexible adjustments on policy based on
the content of external malicious emails.
5. Information security notification and awareness enhancements• Strengthen monitoring of internal threats, external threats, and software vulnerabilities,
and implement immediate information security notification and handling procedures.
• Regularly organize training and promotion to strengthen employee awareness.
• Strengthen employee vigilance against social engineering attacks and phishingwebsites.
6. Standard guidelines for ransomware responses• Formulate emergency response regulations for ransomware.
• Established stakeholder communication and collaboration agreements in response to
information security incidents.
• Established information security indicators to measure effectiveness of Group
responses.
• Promoted team responses, communications, and collaborations to strengthen
ransomware response capabilities.

Resources invested in information security management• Management personnel participated in more than 429 information security meetings
throughout the year.
• Completed risk assessments and information security technical audits for 248 items
related to core systems.
• A total of eight units and business groups within the Group completed annual information
security audits and information security maturity assessments.
• Added and amended 244 information security regulations.
• A total of 6 units and business groups within the Group encompassing 15 campuses
obtained ISO 27001 Information Security Management System certification.
• Joined the TWCERT/CC Taiwan information security alliance and the Taiwan Chief
Information Security Officer Alliance.
• Hon Hai Research Institute worked with National Taiwan University of Science andTechnology to provide special training for Group IT personnel, transforming them into
information security professionals. A total of 20 people completed training in 2022 and weplan to continue this collaboration to meet our talent training needs.

26Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Ethical Management
The Group upholds a corporate culture of integrity and ethical management, adopts a zerotolerance policy toward any behaviors and activities violating these regulations, and is committed
to full compliance of international and domestic anti-corruption and anti-bribery regulatory
requirements. All employees must sign the "Honesty, Integrity & IP Protection Agreement,""Confidentiality Agreement," and "IP Confidentiality Agreement" when entering the company. The
Group also provides new employees with training in employee guidelines, management policies,
corporate ethics, and codes of conduct on their first day to clearly communicate employee
rights and obligations. We also require our suppliers and other collaborators to sign "Partner
Commitment Statements" prior to initiation of all collaborations and rigorously implement thestrictest anti-corruption policies for all partners.
In order to thoroughly implement corporate integrity and ethical management, the Group has
established effective internal control systems and organizes annual training for employees. The
Group did not incur any legal violations relating to anti-competition, anti-trust and monopolization,or corruption in 2022.

Group Code of Conduct

Responsible
Sourcing ofMinerals

AntiCorruption
Policies

In 2005, the Group joined the Responsible Business Alliance (RBA) and became an official
member. As an RBA member, the Group adheres to all RBA codes of conduct, promotes andimplements sustainability regulations, and audits relevant suppliers to ensure that they also
comply with the Group's sustainability policies and Code of Conduct.

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

The Group adheres to international standards and governmental and nongovernmental regulations on conflict minerals. The Group does not accept anddoes not use conflict minerals in any operations. The Group requires suppliers totrace the origin of products potentially containing conflict minerals, including gold
(Au), tantalum (Ta), tin (Sn), and tungsten (W), and to provide all relevant information
regarding the sources of those minerals. We require all our downstream suppliers tocomply with legal regulations prohibiting use of conflict minerals, and violators are
excluded from the Group's list of suppliers.
The Group upholds a corporate culture of integrity and is committed to fullcompliance with local and international anti-corruption and anti-bribery laws andregulations. The Group has a zero-tolerance policy towards activities or behaviors
that are in violation of anti-corruption policies. Corruption, bribery, embezzlement,
and improper activities are strictly prohibited. All employees undergo at least twohours of compulsory anti-corruption training every year. In addition, all partnerships
with suppliers, vendors, and customers must strictly comply with our anti-corruption
policy. The Group implements anti-corruption actions every year while also promotingthe "Employee Statement of Integrity" to all employees. Employees who engage
in corrupt behaviors or who obtain improper gains through participation in joint
corruption are rigorously investigated and handled. Employees, clients, and suppliers
can also report grievances through the following channels:
Email for external communications: renrenjubao@163.com; jubaofoxconn@gmail.com
Email for internal communications: hfj.justice@foxconn.com
Phone number for external communications: +86-183-1699-4246 (China); +886-906586-086 (Taiwan)
If we discover corruption in employees who have not actively reported such
behaviors, they will be severely penalized in accordance with the law and Groupregulations. We encourage our employees to report any corruption through the abovechannels and we keep all personal information of informants strictly confidential.

(For more information on The Group's Supplier Social and Environmental Responsibility Code of
Conduct that we require our suppliers to comply with, please refer to the section on Policies for
Sustainable Management of Suppliers.)
The Group upholds principles of fairness, honesty, and integrity when participating in competitionand conducting business, and we have also established a legal compliance system at all of ourcampuses worldwide. As an RBA member, we not only actively participate in RBA activities andassume our member obligations, but also work with our peers in the electronics industry andour various partners in compliance and promotion of sustainability. The Group's Sustainability
Committee used the RBA Code of Conduct as a basis to formulate the first version of the Group
Code of Conduct (CoC) in June 2008, which encompasses eight main aspects：ethics, laborand human rights, health and safety, environment, management systems, responsible sourcingof minerals, anti-corruption policies, and anti-slavery
policies. The Group's top executives signed off onand began fully implementing the revised Code of
the Conduct, actively fulfilling the Group's corporate
Group Code ofsocial responsibilities. Our Code of Conduct training
Conduct
course is mandatory for all recruits that enter theGroup each year, and we continue to promote Codeof Conduct compliance to existing employees.

Business Sustainability,
Beneficial Partners

Anti-Slavery
Policies

Mechanism
for Reporting
Grievances

The Group does not accept human trafficking or employment that involves any formof slavery, forced labor, debt bondage, indentureship, or prison labor, and does notprovide payment to any persons who transport, hide, recruit, transfer, or receive
personnel who are controlled by threats, compulsion, coercion, abduction, fraud, orother means of control.

The Group encourages reporting of any illegal behaviors, protects the confidentialityof informants, and allows for anonymous reporting to ensure that the identities ofwhistle-blowing suppliers and employees are kept confidential. The Group's point ofcontact immediately notifies dedicated units upon receiving reports and organizes a
special team to investigate the suspected malpractice described in said report. The
Group keeps informant identities and report contents confidential, and provides theresults of its investigations via email.
Address: No. 2, Zihyou Street, Tucheng Industrial Park, Tucheng District, New Taipei City
Phone: +886-2-2268-3466 ext.560-117
Email: hfj.justice@foxconn.com

27Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Internal Controls and Audits
Internal Audit Training

CIA (Certified Internal Auditors),
CEAP (Certified ERP Audit Professional),
CPA (American Institute of Certified Public Accountants),
CCSA (Certification in Control Self-Assessment),
CISA (Certified Information System Auditors)

2,401 hours

Internal Audit Organizations
The internal audit unit of the Group is subordinate to the Board and is dedicated to internal
audit tasks. In accordance with company size, business conditions, management needs,
and other relevant regulations, the Group appoints an audit officer and an appropriate
number of competent internal auditors. The appointment and dismissal of internal audit
managers must be approved by the Audit Committee and be submitted to the Board
for resolution. Additionally, to ensure that the qualifications of internal auditors adhere to
regulatory criteria and enhance personnel functions, the Group requires internal auditors toundergo continued training for a specific number of hours.

Deficits for the previous
year and manager
suggestions areintegrated into audit
plans
Risk assessment
Formulation of annual
audit plans

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Internal Audit Operations

Professional Certifications

Assess/Plan

Healthy Workplace,
Safety Adherence

Implement Audits
Design audit items andprograms
On-site observations/interviews
Application of automatedaudit programs (such as
RPA)Internal auditors adhere to principles of independence and adopt an objective and fair
viewpoint when implementing their duties and ensuring that they complete due diligenceprocedures. Audit managers regularly report audit matters to the Audit Committee and theBoard.
Internal audit units periodically conduct risk assessments and formulate audit plans whichclearly specify audit items, times, processes, and methods. Relevant audits are implemented
in accordance with these plans. Additionally, auditors conduct routine audits and planned
audits on both a regular and irregular basis while urging all internal units and subsidiaries
to conduct regular self-assessments regarding the effectiveness of internal control systems.
Audit results are attached to working papers and related materials for compilation of audit
reports to ensure that our internal control systems continue to be effectively implemented.
The Group's internal self-assessment procedures are conducted using digital platforms.
The self-assessment managers in each unit assess design and effective implementation ofinternal control systems based on internal control risk databases. Internal audit units review
self-assessment reports from all units and subsidiaries, as well as improvements of internal
control defects and abnormal items discovered by audit units, to provide a reference for
the Board and the CEO when evaluating the effectiveness of internal control systems andissuing statements on internal control.

Audit Conclusions/
Reports
Convene conclusion
meetings
Compile audit
reports/deficits list
Implement quarterly
follow-up of deficits until
they are corrected

Report submission
Submit a report to theBoard and Audit
Committee
Prepare a business
report for submission to
the Board28

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Internal control defects and abnormalities discovered by internal auditors during internal
audit procedures, listed in statements on internal control, discovered during selfassessments, or discovered through CPA review should be disclosed in audit reports.
Following submission of said reports, relevant items should be tracked through quarterly
follow-up reports to ensure that associated units have adopted appropriate improvement
measures, and the results of follow-up should also be listed as important performanceindicators for all units. Following submission of audit reports and follow-up reports,
completed audit items should be submitted to the Audit Committee for review before the endof the following month. If internal auditors discover major violations or find the company to be

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

at risk of serious damage, they should immediately prepare and submit a report, as well as
notify the Board and Audit Committee.
Additionally, the Group has obtained the ISO 37001：2016 Anti-Bribery Management System
certification and uses the PDCA framework to consolidate anti-bribery policies, executive
responsibilities, risk assessments, disclosures of gifting information, personnel training,
management of business partners, cross-functional audits, and corrections and continued
improvements in financial and non-financial mechanisms to realize internal controls ofcorporate operations and ethical management as well as enhance awareness of anti-bribery
and anti-corruption concepts in our employees.

▲ ISO 37001 certification ceremony▲ New Taipei City Government Ethics DepartmentCorporate Governance Information Exchange andSharing Seminar▲ New Taipei City Smart City Integrity Platform
Enterprise Services Cross-Domain Forum▲ Executive Yuan Directorate General of Budget,
Accounting and Statistics-Promotion andDevelopment of ESG and Internal Audits Event▲ Invited to be the keynote speaker at the 2022
Asian Confederation of Institutes of Internal
Auditors Annual Conference▲ 2022 IIA International Conference-Chicago

29

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Innovation Management andPatents
Innovative R&D Policies and Strategies
The Group continues to focus on delivery of smart technology solutions through Innovative
Integrated Design and Manufacturing (IIDM) services, and is committed to creation of smart
manufacturing solutions that provide our supply chain with integrated software and hardware
options for our global customers. Under our F3.0 transformation to new industries goal, theGroup actively invests in three emerging industries ("electric vehicles, digital health, androbotics industries") and three technologies ("artificial intelligence, semiconductors and nextgeneration communication technologies"), setting "3+3" as a long-term development strategy
while supplying solutions to our clients and serving as a comprehensive provider of smart
life products.
In recent years, the Group has invested a large amount of resources in R&D. A total of 114.2
billion NTD was invested in R&D in 2022 (1.7% of revenues in 2022). Following years ofdevelopment, the Group now has a professional research and development network withsites in Asia, America, and Europe. The network is staffed by a top-level elite research anddevelopment team with a proprietary innovation platform that has accumulated numerous
core technologies and key technologies with broad competitive potential. This buildup ofcore technologies has allowed the Group to achieve major breakthroughs in nanotechnology,
metallurgy, plastics, ceramics, and heat conductors, and established the Group's industrial
leadership in precision machinery, molding, semiconductors, cloud computing, liquid
crystal displays, tri-network integration, computers, wireless communications, and Internet
technology, thereby making us the most important technology corporation in the field of
integrated optomechatronics.
In 2022, the Group became the only private enterprise in Taiwan to receive the "Clarivate
Top 100 Global Innovators" award for six consecutive years. We are also the only enterprisein the world to receive five World Economic Forum (WEF) Global Lighthouse certifications.
The Group once again verified its leading position in the global technology manufacturingindustry.
Looking to the future, the Group will continue to promote a corporate culture of innovation
to create synergies, reduce repetitive R&D efforts, activate intellectual property assets,
and strengthen strategies for new technologies, while formulating and implementing newmeasures (including new IP incentive measures) in response to the latest industrial trends
and Group development policies, so as to build our R&D capabilities, enhance IP quality,
and maximize the impacts of our R&D achievements.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix⦿ Group R&D expenses over the past 5 years
Unit: Billion NTD
2018

2019

2020

2021

2022

84

92

94

105

114

Hon Hai Technology Day (HHTD)
On Hon Hai Tech Day (HHTD) in 2022, we publicly launched two new selfdeveloped EVs：The Model B crossover SUV and the Model V all-terrain electric
pickup, demonstrating our commitment to development of electric vehicles.
We also displayed the Model C, which has gone into mass production and is
expected to be delivered to customers in 2023 by our brand clients in Taiwan.
The Group exhibited EPS electric power steering systems, solid-state batteries,
and key semiconductor components, and further announced that we would adopt
the contract design and manufacturing services (CDMS) business model for the
EV industry over the next ten years.
Additionally, to lower EV market entry barriers, we publicly launched the HHEV.
OS to simplify software creation and shorten development times. HHEV.OS
possesses excellent scalability, conforms to automotive safety regulations, andensures instant and reliable transmissions. The HHEV.OS software platform allows
EV designers to focus on
the most valuable aspects ofsoftware development andaccelerate product time tomarket. The Group will submit
a request to MIH asking for
HHEV.OS to be included in
MIH open platform standards.
Watch the full video for the HHTD event30

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Hon Hai Research Institute
The establishment of the Hon Hai Research Institute is an important step in the Group's
development strategy, moving us closer to our F3.0 transformation to new industries goal.
The Group established the Hon Hai Research Institute in 2021 to focus on developmentof prospective technologies over the next 3–7 years, thereby strengthening the Group's
technological and product innovations, supporting enhancements in core competitiveness,and moving us from "brawn" to "brains" while acting as a cradle for cultivating newtechnologies and patents within the Group, thus supplying the Group with competitive
innovative capabilities and serving as a foundation for sustainable development and growth.
Each research center has average of 40 R&D
professionals as well as top experts in artificial
intelligence, semiconductors, next-generation
Hon Haicommunications, information security, andResearch Institutequantum computing who serve as advisory
members for the Hon Hai Research Institute.

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Hon Hai Research InstituteExecutive Director of
Research Institute

Advisory
Committee

CEO of Research Institute

Artificial
Intelligence
ResearchCenterSemiconductor
ResearchCenterNext-Generation
Communications
ResearchCenterInformation
Security
ResearchCenterQuantum
ComputingResearchCenterPatents
As a primary holder of numerous patents and commercial partner of other patent holders,the Group is actively engaged in protecting the novel technologies and intellectual property
used in its global operations. The Group currently holds more than 60,000 global patents
encompassing computer components, 5G communications, semiconductors, robotics,
and other domains, making it possible for us to meet the rigorous requirements of different
clients. More than 20% of patents obtained over the past two years are associated with "3+3"technologies.
The Group was awarded the "Top 100 Global Innovators Award" for six consecutive years.
Our performance in various indicators have improved over the previous year, particularly interms of "influence indicators," demonstrating that our R&D and patent strategies have beenrecognized by external parties.

31

Corporate Governance,
Smart Innovation

Foreword

The Group has accumulated a total of 61,489 global patentapplications as of 2022, and was ranked at #17 in the "Top100 Global Patent Holders for 2022"by IFI Claims. Additionally,
we provide intellectual property training to our new employees
and organize irregular training activities each year to enhanceawareness of intellectual properties in our R&D personnel
across all levels. We hosted over 50 activities in 2022 whichwere attended by more than 25,000 people (in person andonline).

61,489Valid patents owned by Hon Hai
Technology Group⦿ Patents for Low-Carbon and Clean Technologies
Number ofpatents approvedin 2022

Cumulative
number ofactive patents

Energy-saving andenergy management
patents

60

746

Industrial automation
patents

284

1,404

Process/procedure
optimization patents

58

392

Pollution control
and environmental
protection patents

21

398

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

32.5%
TW
6,737

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

7.4%
22.4%

Others4,520

Appendix

27.3%

10.4%
US
19,987CN
13,797
JP
16,812

Intellectual Property Incentives
The Group provides specific rewards for invention patents, utility model patents, IC designs, trade secrets, andsoftware copyrights. Bonuses are given at the proposal and approval stages in accordance with legal regulations.
Additionally, we select outstanding patents from patents approved each year and provide higher bonuses toassociated inventors to encourage active innovation in our R&D personnel. In 2022, we distributed 16.34 million NTD
in incentives to 4,561 people.

Patent Support and Innovation Plan

Management Planfor Intellectual
Properties

Many start-up companies possess a considerable amount of creative energies but often overlook infringement risks,establishment of appropriate intellectual property management mechanisms, and correct presentation of R&D resultsfor patent applications due to limits in manpower and funds, resulting in extensive R&D efforts without good use ofpatent systems, thereby putting themselves at risk. The Group authorized free patent use at start-up companies for
specified periods of time, lowering initial development costs. We also provided free consultation to collaborating startups based on our expertise in patent application and management.
This sharing mechanism enables the Group to support start-up
companies and promote a culture of friendly patent sharing, generating
more value for the industry.
In 2022, we compiled 1,400 high-quality patents and signed
collaboration contracts to aid developments of two start-up companies,
respectively authorizing them to use our artificial intelligence patents
and air purifying design patents.

Plan Description

List of Patents

32

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

AppendixAchievements in Low-Carbon Technologies
Electric Vehicles
The International Energy Agency (IEA) stated that EVs hold advantages over traditional vehicles in terms of zero emissions,higher internal combustion efficiency, and major carbon-reducing potential combined with use of low-carbon electricity (orrenewable energies), and therefore all countries are actively developing EVs in line with national carbon reduction policies
and goals. Although mass production of EVs are still in the initial stages, the number of EVs in the world have grown from
17,000 in 2010 to 6.6 million in 2021, and many Western countries have announced bans on petrol cars starting from 2030,
so the number of EVs are expected to grow over the next three to five years.
The Group understands the huge market and carbon reduction potential of EVs, and has therefore incorporated EVs in our "3+3= ∞ " development strategy. Future EV growth opportunities are also highly integrated with our industrial experience andadvantages. The Group discovered three major challenges facing the traditional automotive industry：high development
costs, long lead times, and insufficient resources. In order to promote development of electric vehicles, the Group built an
open Electric Vehicle (EV) platform (MIH) with technical specifications available to all partners to form an EV ecosystemwith hardware and software components, thereby resolving the issue of insufficient EV resources in various countries. The
Group and Yulon jointly formed Foxtron to integrate Yulon's automobile development platform with our global supply chain
and advantages in technological manufacturing, design, and development, thereby providing a total solution to target clientsaround the world.

The Group believes that over the next five years, EVs havethe potential to become the next trillion-dollar industry. We
have established development plans and schedules which
include establishment of an industrial fund for alternativefuel vehicles, as well as development and manufacturingof lithium iron phosphate batteries, and seek to establish
global strategies, adapt to local conditions, utilize local
resources, and work with local governments and corporate
partners to adopt BOL (Build, Operate, and Localize)
models for continued expansion and to increase our
influence in the global EV industry

New EVs launched on 2022 Hon Hai Tech Day▲ Model B is an urban crossovervehicle that combines aesthetics
with handling performance▲ Model C is the first selfdeveloped electric vehicle in
Taiwan which has commenced
mass production▲ We continue to implement sustainable actions related
to carbon reductions, and our Model T shuttle bus hascommenced operations at our headquarters▲ Model V is the first selfdeveloped electric pickup in
TaiwanMIH Platformv

Foxtron Website

33

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

AppendixGlobal Lighthouse

The Group organized the first EV forum toaccelerate cultivation of industry talents
and talent recruitment
The Group hosted the "New Species. New Talent. Creating the Future | 2023
Electric Vehicle Industry Intercollegiate Talent Exchange Forum" in December
2022, inviting representatives from industry, government, and academic institutes
to discuss EV industry prospects in Taiwan, accelerate cultivation of industry
talents, and further create more future opportunities for the EV industry in Taiwan.
The Group organized an "EV joint recruitment zone" boothat the event for joint talent recruitment and consultations
so those interested in joining or learning about the EV
manufacturing industry could quickly understand the job
vacancies of different units and submit their resumes. The
popular and futuristic-looking Model T electric bus provided
shuttle services from the Xindian MRT station to the venue
on the day of the event. We hope that these promotions
increase interest and investment in Taiwan's EV industry andcreate infinite possibilities.

Joint recruitment
zone

The "Global Lighthouse" project is an initiative launched by the WEF in collaboration with
McKinsey & Company to select leading global enterprises that made have impressive progressin consolidated applications of advanced Fourth Industrial Revolution technologies. As of 2022,
there are a total of 132 WEF global lighthouses around the world. The Group is a leading global
provider of electronics manufacturing services, and is the only enterprise in the world whichholds 5 WEF Global Lighthouse certifications, the highest number of certifications held by asingle enterprise, demonstrating our solid capabilities and ability to lead the industry.
The Group received a new Lighthouse Factory certification in 2022 for the Shenzhen
Guanlan Campus, which received great acclaim from WEF for "large-scale deployments of
37 Fourth Industrial Revolution cases enabling agile new product incorporations, accelerated
capacity enhancements, and smart production in response to demand for rapid releasesof new smartphones and rigorous quality standards." We increased incorporation times for
new products by 29% and capacity enhancements in mass production by 50% while also
lowering defect rates by 56% and manufacturing costs by 30%.
Introduction of innovative technologies improved quality and efficiency, reduced costs andstorage needs, and also realized digital transformations enabling achievement of carbon
reductions and material recycling, reducing environmental impacts and providing innovative
solutions for green manufacturing.

34

Foreword

Corporate Governance,
Smart Innovation

The Sustainability Committee organizes internal audit activities eachyear and convenes personnel from dedicated units including humanresources, safety management, hygiene management, environmental
management, and administrative affairs. Internal audits for labor,
ethics, health and safety, environment, and management systems
are conducted at each campus in accordance with RBA standards
to ensure compliance with sustainability policies and guidelines. We
conduct internal campus audits each year to ensure that the Group's
sustainability policies and guidelines are implemented and executed at
all campuses.

Pl a n n i ng & Imp lem enta tion

The Group established the Group Sustainability Policies and Codeof Conduct to serve as the highest principle for promoting corporate
sustainability. We hope that raising the management level and theobjective professionalism provided by our directors can solidify
the Group's spirit of sustainability, strengthen decision-making andpromotion, expand associated coverage, and strengthen supervisory
mechanisms that assess whether action plans can be carried out.

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Board

Supervisors foreach region

St ra te g y

As an ethical and responsible enterprise, the Group strives to be agood corporate citizen and promote development of sustainability evenas we pursue profits, drive our operations, build our competitiveness,and realize our goal of sustainable management. The Group Global
CSR Committee was established in March 2007 and was renamed theSustainability Committee in 2022. The Committee is headed by Group
Chairman Young Liu, and has established a promotion office staffedwith a dedicated team responsible for compilation of sustainability
systems and regulations, monitoring of sustainability policies andplans, regular follow-up and evaluation of sustainability execution andperformance, and review of sustainability reports, as well as promotion
and internalization of sustainable development within the Group's
corporate culture. Additionally, each business group under the Grouphas established promotion sub-committees as well as a dedicated
ESG team composed of more than 1,000 people from campuses allaround the world to interact closely with clients, the government, andall sectors of society, enhancing corporate transparency as part of ourcomprehensive commitment to implementation of Group sustainability
policies which are monitored by the Sustainability Committee. The
Sustainability Committee reports periodically to the chairman, and,starting from 2023, reports implementation results of corporate
sustainability items to the Board at least once every quarter.

Healthy Workplace,
Safety Adherence

G ove r n a n ce

Sustainability Committee

Diverse Inclusiveness,
Employee Satisfaction

Energy saving
Environment
Human resources

Sustainability
Committee chair
Chairman Young Liu

Collaboration andsupporting units

Sustainability
promotion officePublic relations, humanresources, procurement,
environmental protection,
safety, hygiene, production
safety, energy saving, andgeneral affairs

Communication with public
associations
Policy planning
Professional training
Promotion of sustainability
projects

Institutional
investors

Group client ESG

Government

Institutional
investors

China
Asia-Pacific
Americas
EuropeTaiwanLegal entities/
representatives

Contact personnel
for various regions
and legal entities▲ The Group has established an ESG sustainability monitoring system to manage ESG performance
35Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Stakeholder Identification, Communication, and Responsibilities
The Group identified stakeholders and material topics in accordance with the AA1000 Stakeholder Engagement Standards (AA1000 SES) and determined the environmental, economic, and social
material topics of concern to our stakeholders so we could respond to their demands and expectations. Members of the Sustainability Committee assessment team identified stakeholders
based on their importance and relevance to Group operations, confirming our seven stakeholder groups to be employees, clients, shareholders/investors, suppliers/contractors, government
institutes, NGOs, and the media. In order to strengthen communication with all stakeholders, the Group has established various communication channels with our stakeholders to listen to their
feedback, understand their expectations toward the Group, and learn from their strengths. Selection of stakeholders, communication frequencies, issues of concern, and responses from theGroup are shown in the table below.

Employees

Clients

Suppliers/Contractors

Importance to
the Group

Employees are the most important Group assets
and help to enhance Group competitiveness.

Clients are our main revenue source. The Group
provides the best products and services based onclient needs.

Suppliers provide the raw materials needed for
production; we work to grow alongside our suppliers
and jointly build sustainable supply chains.

Communication
Channels andFrequency

We communicate non-periodically with our
employees through channels including employee
hotlines, seminars, mailboxes, satisfaction surveys,
and counseling• Quarterly and annual ESG activities• Non-periodic client visits and audits• Conference calls• Quarterly and annual audits• Annual supplier conferences• Supplier management platform• External grievance channels• Employee rights and diversity and equality• Ethical management and legal compliance• Occupational health and safety• Information security and customer privacy• Innovative development and low-carbon
technologies• Employee rights and diversity and equality• Supply chain management• Procurement practices and management• Ethical management and legal compliance• We employ those with mental and physicaldisabilities and expend our best efforts to help
disadvantaged groups.
• We have also established an employee
emergency fund, employee mutual assistancefund, and employee condolence fund to help
employees in need.
• The Group has established an accessible
communication system. We have established a
24-hour helpline that allows our employees toexpress their opinions and provide suggestions,and we have also set up a counseling centerand employee care center to provide mental
support and promote healthy growth for our
employees.

• We keep in close contact with our clients,
protect their privacy, and are open to client
reviews at all times.
• We report the management of Group, supplier,and ESG matters to our clients.
• We continuously strengthen our client services
and provide fast, convenient, highly efficient,excellent, economical, and innovative products
and services.
• We also implement energy-saving and carbonreducing actions in response to current trends
and provide our clients with products for
reducing carbon emissions.

• We host annual supplier conferences andconduct non-periodic ESG audits to convey our
supply chain requirements to our suppliers.
• We have also established a ESG management
platform which allows our suppliers to learn
about RBA regulations and Group ESG
requirements.

Issues ofConcern

Responses andResults

36

Foreword

Importance to
the Group

Communication
Channels andFrequency

Issues ofConcern

Responses andResults

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Shareholders/Investors

Government Agencies

NGOs

Media

Any party (including legal entities
or individuals) that has invested inor has an interest in investing in theGroup.

The Group's operating bases
actively adhere to all local
governmental regulations, andwe prohibit legal violations in all
forms.

In-depth exchanges with nongovernment organizations enablecommunication regarding issuesof concern within the local
community.

The Group maintains good relations with all
media outlets to facilitate communication ofGroup information.

• Annual shareholders meetings• Quarterly investor conferences• Annual release of Group annual
reports and sustainability reports• Establishment of spokesperson
platform• Non-periodic investor
conferences/investor forums• Non-periodic correspondence
via official documents,
email, and telephone
communications• Participation in policy forums,
seminars, and public hearings• Communications for drafting
industry standards• Non-periodic on-site
inspections• Non-periodic conference calls• Annual ESG activities andevaluations• Timely transmission of press releases• Non-periodic press conferences• Corporate governance and risk
management• Financial performance• Innovative development and lowcarbon technologies• Ethical management and legal
compliance• Corporate governance andrisk management• Financial performance• Ethical management and legal
compliance• Occupational health andsafety• Climate change responses• Financial performance• Innovative development and low-carbon
technologies• Ethical management and legal
compliance• The Group shares company
prospects, market trends,
growth strategies andprofitability information, and
ESG implementation throughshareholders meetings,
investor conferences, and othermeetings.

• We communicate with local
governmental institutes
through visits, meetings,
and official documents, andactively propose suggestions
in response to government
policies.
• We regularly provide relevant
reports or responses inaccordance with local
regulatory requirements.

• Participation in international
ESG forums and discussion of
ESG issues with NGOs.
• Participation in NGO activities
such as CDP and Climate
Action 100+.
• We work with NGOs topromote environmental issues(such as RoHS and WEEE).

• We use non-periodic media interviews
and press releases to convey information
on Group operations and future
developments, and also publish our press
releases on our official website.
• We compile issues of concern to themedia and news items in our reports
to the Group's management team,and these are used as references forenhancing Group operations.

37Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Key Engagement Results and Responses
The Group attaches great importance to all stakeholder feedback, which is used as a reference for operational plans. We continue to make advances in ESG and other aspects and haveproposed corresponding actions and projects. A brief excerpt of engagement results is provided below. Stakeholders with other suggestions and feedback are welcome to contact our team.
Environmental

SocialGovernance

What is the group's strategy to achieve net-zero carbon emissions
by 2050?

What is the group's definition of "forced labor" internally?
MSCI has referred to human rights incidents of forced laborwithin the company. How does the company respond to
this? What measures has the company taken? How will thecompany avoid similar allegations in the future?

The mechanism for board oversight of ESG implementation is not clear.
When will a supervision mechanism be established? Does the board
have a member dedicated to overseeing ESG or climate change-related
issues?

A

The Group has already undergone verification of its recent targets
by the Science Based Targets initiative (SBTi) and has made acommitment to achieve net-zero emissions through SBTi. The key
strategic plans for energy conservation and carbon reduction
include implementing energy-saving policies and regulations,promoting green manufacturing systems, conducting industrial
energy audits, implementing vocational skill enhancement
programs, achieving full coverage of energy management system
certification, and implementing key energy-saving projects. For
detailed information, please refer to Chapter 5 - Climate Change.

The Group places the highest priority on safeguarding
employee rights, and therefore has established a codeof conduct. Risk assessments and annual audits are
conducted based on regulations and company policies,and responsible units are required to address identified
issues promptly to ensure employee rights and welfare.
Relevant regulations and guidelines are also in place fordispatched workers and interns to protect the rights ofall employees. For detailed information, please refer to
Chapter 2 - Human Rights Policies.

The Group has established a Sustainability Committee to manage
ESG-related work across the organization, under the supervision andmanagement of the board of directors and chairman. The Sustainability
Committee reports its execution results to the board of directors ona quarterly basis. Additionally, the Sustainability Committee has an
Environmental Subgroup responsible for climate change initiatives
across the Group, also under the supervision of the board of directors
and chairman. For detailed information, please refer to Chapter 1 Sustainability Committee and Chapter 5 - Climate Change.

Q

As the supply chain is a major source of carbon emissions in the
Hon Hai value chain, what is the next phase of planning after the
carbon inventory? How will the supply chain be guided to reducecarbon emissions?

Regarding the Zhengzhou incident at the end of 2022,
what does the company consider to be the main causes?
What measures will be taken in the future to prevent similar
incidents?

Is the compensation of the company's management linked to ESG key
performance indicators?

A

The supplier's net-zero carbon pathway is divided into fourstages：carbon inventory, carbon reduction, use of renewableenergy, and comprehensive carbon neutrality. From 2021 to
2022, suppliers achieved a total reduction of 225,500 tons ofCO2e through the implementation of carbon reduction plans,self-built photovoltaic solar energy projects, and green energy
procurement. For detailed information, please refer to Chapter 4 Supplier Energy and Carbon Reduction Management.

The Group initiated immediate communication andresponse measures following the incident. For detailed
information on the company's response and explanation,please refer to Chapter 2 - Protection of Employee Rights.

ESG key performance indicators have been incorporated into
the compensation metrics for the company's management. The
Compensation Committee assists in formulating and regularly reviewing
the policies, systems, standards, and structures of director andexecutive compensation, as well as evaluating the performance of
directors and executives in various aspects of sustainable development
within the Group. For detailed information, please refer to Chapter 1 Corporate Governance.

Q

What is the current progress of the Task Force on Climate-related
Financial Disclosures (TCFD) project, and what is the expected
timeline and content for disclosing the Net Zero Vision Report?

Is there a desire to enhance the expertise of board members in any
particular aspect, or is the current composition considered sufficiently
diverse?

The Group has adopted the recommendations of the TCFD andwill issue an annual Net Zero Vision Report covering the four coreareas of governance, strategy, risk management, and targets. For
detailed information, please refer to Chapter 5 - Climate Change.
2022 HON HAI Technology Group (Foxconn) TCFD Net Zero
Vision Report

The Group has established the "Corporate Governance Practice
Guidelines" to guide board members in formulating diversification
policies and ensuring their implementation. The Group also has a
Nomination Committee responsible for nominating and reviewing thequalifications of board candidates. The current composition of theboard is considered diverse, with backgrounds and work experience inscience, technology, finance, and other relevant fields. Additionally, theGroup conducts annual director education and training to continuously
enhance directors' capabilities in various aspects of ESG.

Q

A

Contact information for stakeholder
communications personnel

38

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Scope of Material Issues and Materiality Analysis

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Topic

Positive
ImpactRank

Negative
ImpactRank

Sum ofRanks

Appendix

Ranking

Aspect1

SocialEmployee rights anddiversity and equality

2

1

3

2

Governance

Information security andcustomer privacy

1

3

4

Compiled topics of concern-17 topics of concern

3

Environmental

Climate change responses

3

5

8

The Group compiled sustainability topics relating to international regulations and standards,
industrial regulations and standards, industry peers, and the Group's annual targets. These
were narrowed down to 17 topics following internal discussion：

4

SocialOccupational health andsafety44

8

5

Governance

Financial performance

5

9

14

6

Governance

Ethical management andlegal compliance

6

8

14

7

GovernanceCorporate governanceand risk management

13

2

15

8

Environmental

Energy and greenhousegas management

9

7

16

9

Governance

Innovative development
and low-carbon
technologies

12

6

18

10

Environmental

Hazardous substancesmanagement

8

10

18

11

Environmental

Water resource
management

10

12

22

12

GovernanceSupply chain management

10

13

23

13

SocialCommunity investment
and participation

7

16

23

14

Environmental

Waste management

15

11

26

15

Governance

Procurement practices
and management

14

14

28

16

SocialEmployee training

15

15

30

17

SocialTalent attraction andretention

17

17

34

The Group adheres to GRI guidelines and the four principles of inclusiveness, materiality,
responsiveness, and impact in identifying and analyzing material economic, environmental,
and social (including human rights) topics and their positive and negative impacts. These
topics are used to review the Group's sustainability conditions, calibrate strategies andlong-term goals for sustainable management, and promote continued enhancement of allorganizations to create shared value for society and the Group.

Economic

Environmental

Social (including human rights)• Corporate governance and risk
management• Financial performance• Ethical management and legal
compliance• Innovative development andlow-carbon technologies• Information security andcustomer privacy• Supply chain management• Procurement practices andmanagement• Climate change
responses• Energy andgreenhouse gas
management• Water resource
management• Waste management• Hazardous
substancesmanagement• Talent attraction and retention• Employee rights and diversity
and equality• Employee training• Occupational health and safety• Community investment andparticipation

Quantified impact levels of the 17 topics
The Group adopted the expert evaluation method and distributed questionnaires to internalsenior executives to survey the "economic, environmental, and social (including humanrights)" impact levels of the 17 topics, including positive and negative impact levels andprobabilities of occurrence, which were given ranks of 1 to 5 from low to high.

Confirmed material topics
After internal senior executives filled out questionnaires, the Sustainability Committee
analyzed the quantitative results of the 17 topics. Following weighted calculations andinternal discussion, our 10 material topics were determined to be employee rights anddiversity and equality, information security and customer privacy, climate change responses,
occupational health and safety, financial performance, ethical management and legal
compliance, corporate governance and risk management, energy and greenhouse gas
management, innovative development and low-carbon technologies, and hazardous
substances management. Compared with the previous year, one new material topic(hazardous substances management) was included.

39

Foreword

Material TopicGRI Disclosures

Employee rights anddiversity and equality

Self-defined topic

Information security
and customer privacy

GRI 418

Climate change
responses

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

SASB Disclosures

Corresponding Sections

ESG Impact Description (Note)

TC-ES-310a.1

Chapter Two：
Communication andProtection of Employee
RightsEmployee rights and diversity and equality mainly have positive and negative social impacts. Protection of
employee rights enhances operational efficiency and lack of these protections may affect our corporate reputation,
leading to other negative issues.

Chapter One：Corporate
Governance

Information security and customer privacy mainly have positive and negative governance impacts. If our information
security measures meet with client approval, this can help to maintain our sales relationships, and lack of thesemeasures may affect our corporate reputation, leading to other negative issues.

Chapter Five：Climate
ChangeClimate change responses mainly have positive and negative environmental impacts. With increasing global
emphasis on climate change issues, advance climate mitigation and adaption measures help to enhance
operational competitiveness, and lack of these measures will result in non-compliance with government and client
requirements, affecting our operations.

Chapter Three. Healthy
Workplace, Safety
Adherence

Occupational health and safety mainly has positive and negative social impacts. Protection of employee andcontractor occupational health and safety enhances operational efficiency and lack of these protections may affectour corporate reputation, leading to other negative issues.
Financial performance mainly has positive and negative governance impacts. Financial performance is thefoundation of sustainable development, and therefore the Group must focus on this issue to meet stakeholder
expectations.

(Not SASB material
topics)Self-defined topic

Occupational healthand safety

GRI 403

Financial performanceGRI 201

Chapter One：Corporate
Governance

Ethical management
and legal compliance

GRI 205
GRI 206

Chapter One：EthicalManagement

Ethical management and legal compliance mainly have positive and negative governance impacts. Ethicalmanagement and legal compliance are the Group's most fundamental corporate social responsibility, and therefore
the Group must focus on this issue to ensure that operations meet stakeholder expectations.

Corporate governanceand risk management

Self-defined topic

Chapter One：Corporate
GovernanceCorporate governance and risk management mainly have positive and negative governance impacts. Sound
corporate governance and risk management aids promotion of ESG tasks, and lack of these systems may affect our
corporate reputation, leading to other negative issues.

Chapter Five：Climate
ChangeEnergy and greenhouse gas management mainly have positive and negative environmental impacts. Energy andgreenhouse gas management are priority tasks for climate mitigation, and all global stakeholders are required toachieve the 2050 net zero emissions target.

Energy andgreenhouse gas
management

GRI 302
GRI 305

TC-ES-320a.1(Not SASB material
topics)Innovative development
and low-carbon
technologies

Self-defined topic

Chapter One：Innovation
Management and Patents

Innovative development and low-carbon technologies mainly have positive and negative governance impacts.
Promotion of innovative development enhances operational efficiency and increases revenues.

Hazardous substancesmanagement

Self-defined topic

Chapter Five：Chemicals
Management

Hazardous substances management mainly has positive and negative environmental impacts. Improper
management and disposal of chemical used during operational processes may damage surrounding environments
and societies, and therefore the Group must focus on this issue.

Supply chain
management

TC-ES-320a.2
TC-ES-320a.3

Chapter Four：Business
Sustainability, Beneficial
Partners

Supply chain management mainly has positive and negative environmental, social, and governance impacts. The
Group has established ESG targets related to supplier management to demonstrate our industrial leadership whileworking on ESG tasks.

Procurement practices
and management

TC-ES-440a.1

Chapter Four：Business
Sustainability, Beneficial
Partners

Procurement practices and management mainly have positive and negative environmental, social, and governanceimpacts. The Group prohibits use of conflict minerals and other restricted chemicals to ensure protection of humanrights and compliance with other social issues.

TC-ES-140a.1

Chapter Five：Management of Water
Resources

Water resource management mainly has positive and negative environmental impacts. Group operations mainly use
municipal water and discharged wastewater. Improper management and disposal of water resources may affect our
corporate reputation, leading to other negative issues.

TC-ES-150a.1
TC-ES-410a.1

Chapter Five：Waste
Management

Waste management mainly has positive and negative environmental impacts. Domestic and hazardous waste
are generated during operational processes, and improper management and disposal may damage surrounding
environments and societies, so the Group must focus on this issue.

Water resource
management
Waste management(Not GRI material
topics)Note：Impacts include both positive and negative impacts, as well as actual and potential impacts

40

2

DiverseInclusiveness,
Employee
Satisfaction
Employee Overview
Compensation and Benefit
Communication andProtection of Employee Rights

Key stakeholders：
Employees
Clients
NGOs

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Management Guidelines for Material Topics
Employee Rights and Diversity and Equality

Meaning to the Group• E m p l o y e e s a re t h e G ro u p ' s m o s t i m p o r t a n t a s s e t s . T h ro u g himplementation of incentive systems and performance appraisals,
we encourage continued self-enhancements and personal careeradvancements in our employees. We provide competitive compensation
to all employees to boost their morale and enhance our operational
performance.

Specific Actions• A total of 1,478 "Employee Month Activities," including mental health promotions,counseling, training, free health clinics, and marriage mediation were held at 28
campuses; 2.119 million people (person-times) participated in these activities.
• A total of 1,015 babies born to Group employees benefited from our "Childcare
Subsidies for 0 to 6 Year-Olds Program," and more than 470 million NTD has been paidout in subsidies over the past three years.
• Implemented labor rights audits at 19 campuses and discovered 238 deficits.
Rectification measures have been formulated and confirmed, and we will continue to
track and improve upon uncorrected deficits.
• The Group invested a total of 151 million NTD in Foxconn University and provided 69.49
million hours of training. On average, each employee underwent 75.05 hours of training.

Policies and Commitments• The Group adheres to principles of legality, fairness, impartiality, equality,
voluntary actions, honesty, and credibility. We actively protect the basic
human rights of our employees and abide by national laws, the RBA
Code of Conduct, and various international human rights conventions
while providing competitive, safe, and comfortable work environments.

Evaluation Mechanisms• We hold management review meetings each year to discuss and track our target
achievement rates.
• We convened personnel from our Human Resources, Safety, Hygiene, Environmental
Protection, and General Affairs units to conduct Labor Protection Supervision Audits
relating to labor, ethics, health and safety, environment, and management systems.
• We conducted employee satisfaction surveys to obtain employee feedback and guide
future improvements.

42Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

The Group adheres to principles of legality, fairness, impartiality, equality, voluntary actions, honesty, and credibility. We actively comply with the UN Declaration of Human Rights, the RBA
Code of Conduct, and national regulations, and enhance our human resource policies, protect legal rights of our employees, and provide healthy and safe work environments in accordancewith local regulatory requirements. For matters relating to recruitment, promotion, performance evaluations, salaries, and training opportunities, we do not discriminate on the basis ofgender, age, nationality, birthplace, ethnicity, language, disabilities, marital status, pregnancy, sexual orientation, religion, political affiliation, or union membership. We also prohibit childlaborers from engaging in work. The Group strives to provide a fair working environment where all employees are treated equally. We provide equal salaries and promotion opportunities
based on employee merits.

⦿ Awards and recognitions received from various HR assessment activities.

▲ BOSS Zhipin-2022
Favorite Employer Award▲ Zhaopin-2022
Campus
Recruitment
Case Award▲ Haitou-2022 Most
Influential Employer
Award▲ Dayee-2022 Model
Brand Operations
Employer Award▲ 51job-2022 Outstanding Human
Resource Management Award▲ Zhaopin-2022
Best Employer in
China▲ HR Magazine-Best Companies To Work For In
Asia Award▲ Prague, Czech Republic-Second place in Best
Employer of the Decade Award▲ 1111 Job BankHappy EnterpriseGold Award▲ CommonHealth Magazine-Healthy Corporate
Citizen Award
43

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Employee Overview
Employee Numbers
The Group has a total of 925,890 employees worldwide, including 4,332 people with disabilities and 33,434 people of ethnic minorities. The Group upholds principles of talent localization, so
employees at our campuses are mostly composed of local residents. The proportion of senior management personnel (ranked at director level or above) at our campuses in China who are
Chinese nationals is approximately 11.50%. No incidents involving discrimination, use of child labor, or forced labor occurred in our campuses in 2022.
Category
Number of employees

Number of permanent
employees
Number of temporary
employees
Number of nonguaranteed hours
employees
Number of full-time
employees
Number of part-time
employees

GenderChina

TaiwanMale

489,052

5,448

Female274,992

1,604

Male

-

5,318

Female

-

1,406

Male

-

31

Female

-

17

Male

-

99

Female

-

163

Male

349,791

5,395

Female207,836

1,597

Male

139,261

53

Female67,156

7

Vietnam

India

Other regions in Asia

North America

South America

Europe64,20536,083

4,847

38,524

3,444

7,691

61,726

7,661

4,491

35,012

3,386

6,803

-

-

-

-

-

-

2,479

28,422

356

3,512

58

888

-

-

-

-

-

-

-

-

-

-

-

-

Notes：
1. These figures reflect employee numbers as of December 31, 2022
2. We were unable to obtain information on employee gender from other countries/regions apart from China and Taiwan.
3. These classifications may not applicable in certain countries/regions.
4. In China, part-time employees are composed temporary personnel; in Taiwan, part-time employees are composed of external consultants and interns.
5. Group workers who are not employees include personnel from external companies who work in our campuses, such as caterers, security personnel, cleaning staff, and electrical maintenance personnel. Our
campuses in Taiwan have a total of 232 workers who are not employees. We have not yet obtained relevant figures for other regions as our campuses are located all over the world.

44

Corporate Governance,
Smart Innovation

Foreword

Number of Employees in China and Taiwan
Gender Distribution

Male

FemaleAge Distribution

36%

Under 30

37%

Junior highschool or below

39%

30-50

62%

High school or
vocational highschool42%

College/undergraduate

19%

Graduate and
above

1%

Over 50

1%

China

2020

2021

2022

New hire rates

12.80%

16.90%

17.52%

All

12.70%

11.80%

18.20%

Voluntary
termination
rates

11.80%

10.20%

16.70%New hire rates

6.50%

6.10%

5.80%

All

5.80%

5.70%

5.56%

Voluntary
termination
rates

5.60%

5.50%

5.39%

Turnoverrates

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Due to the comprehensive level of care provided by the Group, reinstatement rates following parental leaveand retention rates in recent years were close to 100%. In order to further enhance retention rates, theGroup conducts interviews with exiting employees to understand and improve upon the specific reasonsfor termination. In terms of retention policies, the Group actively communicates with entry-level personnel
to understand the true needs of employees, implement employee care, provide good communication
channels, and establish sound communication platforms. In terms of environmental aspects, we continue toimprove basic facilities, refine working environments, and build harmonious work atmospheres between allunits and organizations.

2020
FemaleEmployee recruitment at the Group is conducted through open recruitment
and on-campus recruitment channels, as well as several job fairs hosted
specifically for people with disabilities. Concepts relating to equal
opportunities, respect for human rights, and workplace diversity havebeen integrated into our talent recruitment principles and processes.
We prohibit use of child labor and forced labor. We attract talent throughcompetitive salaries and benefits, rewards for outstanding performance,
and appropriate personnel rotations. In order to maintain a low turnoverrate, the Group actively works to understand and improve upon the reasonsfor employee resignation. Furthermore, the continued addition of new
personnel helps to promote diversity within the Group.

Turnoverrates

Business Sustainability,
Beneficial Partners

Reinstatement Rates Following Parental Leave and Retention Rates in China and Taiwan

Distribution of New and Terminated Employees

TaiwanHealthy Workplace,
Safety Adherence

Reinstatement Rates Following Parental Leave and Retention Rates

Education Level Distribution

64%

Diverse Inclusiveness,
Employee Satisfaction

Reinstatement
99.84%
rates
Retention
81.00%
rates

2021

2022

Male

Total

Male

Female

Total

Male

FemaleTotal

99.57%

99.67%

99.37%

99.43%

99.41%

99.00%

99.00%

99.00%

83.89%

82.74%

88.99%

86.59%

87.37%

84.70%

83.50%

84.10%

Workplace Diversity
The Group upholds principles of fairness, impartiality, and equality as part of our commitment to build
diverse, inclusive, and employee-friendly workplace environments that provide consistent compensation,
promotion, and training for all employees, and we actively create a diverse and inclusive culture of mutual
respect in the workplace. As an electronics manufacturing company, the Group has a higher proportion ofmale employees and male executives. We therefore consider the proportion of female executives to be anindicator of workplace diversity. Two female directors were elected to our Board in 2022, accounting for 22%of all directors, thereby strengthening Board diversity and corporate governance.
The Group has also hired 33,434 minority-group employees in different regions, including members of theZhuang and Miao tribes. These employees accounted for 3.6% of all employees in 2022 and receive equal
treatment in terms of compensation, promotion, and training. Among employees who are members of the
top five minority groups, 6.5% hold executive positions.
Proportion of Female Executives for 2022

Note：New hire rates and turnover rates were calculated using the total number of
employees on December 31 for each year.

All executives

21.23%

Executive positions relating to revenue generation

42.54%

Junior executives

21.78%

Executive positions relating to R&D and engineering

14.79%

Senior executives

9.88%

Note：Senior executives include vice presidents and above; junior executives
include managers and lower ranks.

45

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Compensation and Benefits
Compensation System
The Group adheres to principles of legality, fairness, impartiality, equality and voluntaryactions, honesty, and credibility. Our compensation system not only complies with local
laws but also references external market research reports. We regularly review our salarystandards, and our compensation performance exceeds industry standards, providing astable workplace environment, compensation, and benefits for our employees.
We commence payments of social insurance and provident funds according to local
government regulations for Chinese employees who sign formal employment contracts
with the Group on the day they start working with the company. All insurance benefits at
our campuses comply with local social insurance regulations. In Taiwan, we provide our
employees with labor insurance, health insurance, and group insurance in accordance withgovernment regulations. Our employees at overseas campuses are all insured according
to local government regulations. In 2022, starting salaries for entry-level employees at all
our campuses were 10-25% higher than local minimum wage requirements. There were nodifferences between the basic salaries of our male and female employees. Additionally, theratio of total compensation for the highest-paid individual to the median total compensation
for all other employees was 56.6.
In order to establish effective incentive mechanisms and adopt a forward-looking approachfor employee management, the Group formulated the "Regulations Governing Annual
Promotion Procedures for Group Employees." We conducted annual performance reviews
and appraisals on new employees who passed their probationary period and regular fulltime employees regardless of gender and rank. The ratio of employees who underwent
appraisals was 100%. The Group adjusts compensation according to promotions andpersonnel performance, with no differences between male and female employees. We havealso established bonuses, dividends, and incentives based on personnel performance. Our
Board approved the distribution of 8.17 billion NTD in employee compensation in 2022.

Employee Welfare Program
We have implemented a series of employee welfare measures to promote and protect thehealth of our employees and their families, including the aforementioned social insurance
and group insurance; pensions; subsidies for weddings, funerals, and other special
occasions; travel allowances; year-end party raffles; and other subsidies. The Group hopes
to establish a comprehensive employee care network that allows all employees to achieve
career advancements while working all around the world. In 2022, the Group's employee
salary and benefits expenses were approximately 333 billion NTD.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

To promote work-life balance for employees, all our campuses have been fitted withintegrated sports stadiums, basketball courts, swimming pools, libraries, banks, retail
shopping areas, bookshops, gymnasiums, and other recreational facilities. Group employees
can freely participate in the activities of nearly 210 employee clubs. We organized a total of
24,823 employee events attended by 2.114 million participants to enrich employee lives.

Childcare Subsidies for 0 to 6 Year Olds
To allow employees to live and work with peace of mind, the Group began promoting amaternity policy and announced an optimized childcare subsidy program, "Childcare
Subsidies for 0 to 6 Year Olds," in early 2020, setting a precedent in Taiwan. The Group
provides a comprehensive range of subsidies to expectant mothers before, during, andafter pregnancy, including a monthly subsidy of 15,000 NTD and taxi commute allowancesof 15,000 NTD for three months prior to the expected delivery date. Expectant mothers whowear an identification badge during their pregnancy are given
priority when riding elevators, picking up meals, or when
taking shuttle buses.
In 2022, a total of 778 employees applied to participate in thisprogram; 1,015 babies born to Group employees benefited
from the program; and more than 470 million NTD has been
paid out in subsidies. These subsidies make employees feel
more secure when facing childbirth and also raise employee
retention.

Retirement System
The Group's retirement system, including employee retirement applications, pension
payments, and employee pension reserves, adheres to local laws and regulations. We havealso established a Supervisory Committee of Labor Retirement Reserve in Taiwan. To ensure
the rights of Group employees, Committee members are re-elected every three years and are
responsible for reviewing pension reserves, savings, expenditures, and pension payments.
Designated banks ensure that pension fund assets adhere to entrusted ratios and amounts
set by the fund's annual investment plans, are categorized according to monthly laborpension reserve fund or individual pension contributions, and are not used for assignments,
seizures, offsetting, or guarantees. The Group takes custody of and invests pension fundassets in domestic and overseas listed, overthe-counter, and private equity securities or
For more information
real estate securities following the Regulations
on the distribution of
for Revenues, Expenditures, Safeguard andemployee pensions in
Utilization of the Labor Retirement Fund. Fund
2022, please refer toutilization is monitored by the Supervisory
our 2022 annual report.
Committee of Labor Retirement Reserve.
46Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Protection of Employee Rights
and Employee Communication
Human Rights Policies
The Group has established work rules based on relevant labor and human resource
regulations to protect the legal rights of our employees. As an RBA member, the Group
referenced the RBA Code of Conduct, the Universal Declaration of Human Rights (UDHR),
and the standards of the International Labour Organization (ILO) when formulating our
Corporate Social Responsibility Code of Conduct, which discloses our human rights policies
for labor protection that safeguard employee rights and provide them with dignity andrespect. The Group conducts annual risk assessments and audits based on law and Group
policies, and we also require relevant units to implement timely improvements to ensure therights and benefits of our employees.

Labor Protection and Services for Daily Living
The Labor Protection Supervisory Committee established under the Group's Labor Union
has formed project teams composed of professional talent in the fields of human resources,
safety, health and safety, environmental protection, and general affairs. These teams conduct
inspections of ethical, health and safety, environmental, and management systems at all
campuses to ensure that they comply with law, the RBA Code of Conduct, and corporate
policy. All campuses are required to fill out self-assessment questionnaires (SAQs) and risk
assessments for on-site review. To ensure protection of employee rights, the Group does notconsider investigations to be concluded until campuses have proposed corrective action
programs (CAPs) and improvement plans for all discovered deficits within specified time limits.
A total of 19 campus inspections were carried out in 2022 and 238 deficits were discovered.
Rectification measures have been formulated and confirmed, and we will continue to track
and improve upon uncorrected deficits. The Group also emphasizes the working conditions ofinterns and strives to ensure that all interns get the treatment they deserve.

Monitoring and Management of Staffing Agencies
To ensure that our temporary employees enjoy the same level of protection granted to fulltime employees, the Group has signed an "Agreement for Dispatching Temporary Personnel"
with staffing agencies used by all campuses. The Agreement stipulates the responsibilities
and duties of both parties, and guarantees equal pay for equal work, equal work
environments, and work safety measures. We conduct irregular audits on staffing agencies
and continue to survey employee entry and exit conditions to reduce possible risks. Our
management measures include on-site audits, employee interviews, and written reviews. We
not only ensure implementation of our policies which prohibit discrimination and forced labor,
but also publicly released our reports and announced grievance channels; we have further
integrated these actions with employee training to protect our staff from discrimination basedon different job characteristics.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Protection of Employee Rights
Our latest "Group Collective Agreement" protects employee rights and states that employees
should be notified 30 working days in advance of bylaws and major decisions related totheir vital interests. Relevant articles on consultations and negotiations are stipulated in the"Summary of the Collective Consultation Letter" and the "Reply on the Collective Bargainingof the Trade Unions Association of the Company." Additionally, to protect freedom of
association for our employees, the employee handbook clearly stipulates employee rights.
The Group has established a Labor Union encompassing employee unions with fourmanagement levels and five ranks. Labor Union Unit leaders are elected in a bottom-up,
open, and democratic manner by union members from voluntary candidates, and union
representatives at all levels are elected at member representative conferences. Employees
are asked about their willingness to join unions when they enter the Group, and are allowed
to join voluntarily. In 2022, 98.1% of our employees were union members. The Labor Union
signed the "Foxconn Technology Group Collective Agreement," which covers the 96 legal
entities of the Group and provides basic protection of employee rights. In 2022, our 14
campus unions convened a total of 14 labor delegates meetings to vote on issues relating toemployee rights and obligations.
Furthermore, the Group promotes intelligent transformation within our labor unions to form
comprehensive smart systems such as the Intelligent Union Establishment Project Team,
which uses "Internet + Union" cloud service models to link desktops and apps, establishinga comprehensive service platform that encompasses union constructions, labor protection,
employee discounts, skills training, and employee grievances.

⦿ Labor Union Organizational Chart

27

Campus unions：

60

Business group unions：

325

Business department unions：

1.9K

Labor Union units：47

Foreword

Corporate Governance,
Smart Innovation

Employee Communication and Grievance
Channels
In order to collect more employee feedback and suggestions, listen
to employee voices, and quickly resolve employee difficulties, theLabor Union has integrated all resources to establish employee care,rights protection, and assistance hotlines, as well as office phonelines for various functional departments. Integration of labor union
mailboxes, union chairman mailboxes, union chairman hotlines,
rights protection hotlines, assistance hotlines, union websites, and 26
other rights protection mechanisms in 6 categories make it possible
for Group employees, employee family members, and suppliers tocontact unions, providing employees with convenient and efficient24-hour services that protect the rights of our employees at work andin their daily lives.

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Employee Month Activities

Employee Satisfaction Surveys

In 2022, the Group implemented
mental health promotions focusedaround the two themes of "maintaining
stability and security" and "empowering
growth," and planned themed monthly
activities. A total of 1,478 "Employee
Month Activities," including mental
health promotions, counseling, training,f re e h e a l t h c l i n i c s , a n d c o u p l e s
mediation were held at 28 campuses;
2.119 million people (person-times)
participated in these activities.

We distributed surveys to employees in key campuses(including temporary employees) and collected a total of
51,983 responses, 38,608 of which were valid, achieving
a validity rate of 74.3%. Our surveys included questions
on catering, safety, accommodation, entertainment, andwork environments. The overall average satisfaction
score was 60.1. Satisfactory levels were highest forsafety, followed by work environments, accommodation,entertainment, and catering. The Group will continue toimprove and review operations to enhance employee
engagement.

Communication and Grievance Channels
Dispute Mediation

Committee on labor dispute mediation

Seminars and Visits

Seminars and on-site visits (restaurants,
dormitories, production lines)

Mailboxes

Mailboxes for feedback to labor unions
and union chairman

Telephone Hotlines

Employee care hotline, rights protection
hotline, union chairman hotline

Legal Aid
Website Visits

Corporate lawyers

Zhengzhou Foxconn incident on November 23, 2022
1. On the evening of the 22nd, a number of new recruits at our Zhengzhou Campus requested clarificationof an issue associated with work allowances. Our managers emphasized that all allowances would
be provided in accordance with contract clauses and continued to communicate with all affected
employees.
2. We hereby declare that all Internet rumors stating new recruits were placed in accommodations with
Covid-positive colleagues at our Zhengzhou Campus are false. All dormitories are sterilized andapproved by government units before new recruits can move in, and no new recruits were asked toroom with existing employees.
3. The Group will continue to communicate with employees and the government to prevent similar
incidents of violence from reoccurring.

Union network, employee care center

The Group provides 24/7 year-round communications hotlines thatcan be called if assistance is needed.
• Employee care hotline 78585• Spiritual care hotline 25885• Marriage mediation hotline 18675578585

48

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Corporate Governance,
Smart Innovation

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

AppendixTraining
The Group is making transformations towards the "3 industries" and "3 technologies." In orderto actively cultivate the human capital needed for the digital era, we have established an
E-Learning zone to expand our many learning resources and channels, support the Group's
long-term growth, and meet the lifelong learning needs of our employees.
The Group established Foxconn University to cultivate talent, integrate theory with practicalexperience, promote knowledge application and lifelong learning, and enhance mutual
learning. The University serves as our incubator for cultivating talent and innovation, andbears the important responsibilities of enhancing human capital development, transformation
to new industries, development of corporate culture, and establishment of operational

missions within the Group. To encourage employee learning, the Group links employee
training credits with annual performance appraisals, and references this information when
considering employee promotions and bonus distributions.
The Group has established an "E-Learning zone" which contains professional, general, andmanagement courses taught by internal and external lecturers, allowing our employees toenjoy an abundance of training resources without constraints on time and place. Additionally,the "E-Learning zone" analyzes employee learning behaviors and majors; data analysis
results and customized information presentations are used to provide a personalized
experience for employees.

⦿ Human Resource Development and Training Strategies“3+3” technical lectures
・Quantum computing ・5G/6G ・Semiconductors
・Information security ・Electric vehicles ・Digital medicine ・Metaverse

Occupational ethics literacy
・Skills literacy ・Strategic literacy

・Management literacy

Occupational skills
・PMP certification ・Logistics management ・HR management
・Visualization ・Office software ・Six sigma

Senior executive training

Group
Strategies

・Cultural literacy ・Economic policies
・Leadership enhancement ・Digital concepts

Academy collaborates
with business groups

Plant manager training
・Cultural incorporation ・Management and transformation
・Enhancement of professional skills ・Peer observation

Business Groups Achieve
Performance Targets
Academy adheres to the needs of business group projects
and supplies resources and support

Supervisors and managers
・Cultural readings ・Implementation skills
・Management skills ・Professional literacy

Production line and team managers
・Cultural commitment ・Skills improvement
・Communication skills ・Data reports

Four Cores of smart manufacturing
・Lean IE ・Automated robots
・Information technologies ・AI and big data
・Karakuri ・IoT

Aid Employee
人才發展平台: Growth
Academy supports business group talent needs

Talent development platform:

Employees and elite employees
・Corporate culture ・Bylaws ・Self-management
・Mental health ・Office skills ・Academic education

1. Build an environment conducive for learning to form a learning-oriented organization
2. Complete digital and professional learning platform
3. Continue to develop professional courses and class materials

49Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix⦿ Comprehensive Talent Development System
Talent management and training structure
Entry training

General training

Production line
and team manager
training

Sectionchief training

Group culture

Career enhancements

Role awarenessManagement
enhancement

Group overview
Group history
Corporate culture
Development strategies
Workplace environmentsCore values

Career development
Project management
Official documents
Business English
Business etiquette
Cognitive enhancements

Management
techniques

Regulations and bylaws
Human resources policies
Malpractice prevention
Information security
Industrial safety
Fire safety
Epidemic prevention

Excel, PPTChart and data visualization

Self-management

Occupational
certifications

Team collaboration
Effective communication
Positive attitude
Effective implementation
Mood and stress management

Work duties
Code of conduct
Routine management
On-site management

Office skills

High-quality communications
Conflict management
High-performancework instruction

Organizational role andcommunication techniques
Problem analysis and problem
solvingOn-site safety management

Professional
capabilities

Lean thinking and basic
methodology
Six sigma yellow belt

Improvement
techniques

PMP certification
Internal auditor certification
HR management
Economist
Internal lecturer certification

8S and visual management
Problem discovery andproblem solving
Eight aspects of wastage
Equipment management
Quality control
Capacity management

Internal lecturer resources

Digitaltransformation

Data thinking
Common data analysis
methods

Supervisor
training

Senior executive
training

Corporate culture

Culture and values

Corporate culture and corevaluesSER code of conduct andsafety management

Building and managing
corporate culture
Research on corporate
culture and values

Policies andregulations

Operational
management

Leadership potential
Corporate digital transformation
Smart manufacturing and leansystems
Rational management andtabletop simulations

Guangdong-Hong Kong-Macao
Greater Bay Area policy
interpretation
Corporate social responsibilities
Regulations, polici

Operational
management

Corporate strategies
Organizational transformation
Innovation design, Mini-MBA
Interpretation of three financial
statements
Visits to benchmark digitaltransformation enterprises

Benchmarking
visitsVisits to industry
benchmark enterprises
Visits to lighthousefactories

External lecturer resources

Online learning platform + physical classes

In 2022, the Group invested a total of 151 million NTD in Foxconn University, and provided
69.49 million hours of training. On average, each employee underwent 75.05 hours of general,management, technical/professional, and academic training. In terms of academic education,
Foxconn University began collaborating with 41 colleges and universities to implement on-thejob academic programs at 19 Campuses, providing our employees with convenient channels toreceive on-the-job training for enhancement of comprehensive skills and professional capabilities.
The Group worked with many colleges and universities to provide continued learning opportunities
for our employees. In 2022, a total of 1,873 employees graduated from these programs and a totalof 757 graduation theses were published, 77% relating to current employee job duties, achieving a
win-win situation in terms of Group and employee career development.

⦿ Course Categories, Course Hours, and Participant Numbers
Course Category

Hours

Number of Participants

General education

41,392,259

21,728,701

Management

6,414,089

2,765,416

Technical/professional

20,952,873

10,059,354

Academic education

732,000

488,000

69,491,221

35,041,471

Total

50

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix⦿ Training Items for 2022

The ESG course is made compulsory for all employees.
CSR / ESG: New Thinking,
New Challenges and New Opportunities

Industrial and Fire Safety
Production Safety in Various Processes
ESG Chemical Safety
KYT Hazard Prevention Training
CSR/ESG New Thoughts, New Challenges
and New Opportunities

Executive
Training

5 phases, 176 persons

Safety Training for
Factory Managers

5 courses
46,568 attendances

Specialized Training
for Security Officers

Industrial Safety Technology
Practice
Fire Safety
ESG Chemical Safety
KYT Hazard Prevention
Training
Production Safety in 2022
Continuing Education
Training for Field Auditors

12 courses
342,279 attendance

CSR / ESG Internal
Auditor Certification
6 sessions, 367 attendances

ISO 14001 Environmental Management
System Internal Auditor
ISO 45001 Occupational Health and Safety
Management System Internal Auditor
SA8000 Corporate Social Responsibility
Management System Internal Auditor
ISO 37001 Anti-Bribery Management System
Internal Auditor
ISO 14064 Greenhouse Gas Inventory
Standard & ISO 14067 Product Carbon
Footprint Standard

Knowledge dissemination training for all staff

Required Criteria: CoC, Anti-Corruption
CSR/ESG: Labor, Environment, Ethics, Health and Safety, Management System; 88 courses, 2,384,000 attendances.
Production Safety Zone: Production Safety, Workplace Safety Policy, Human Factors Engineering and Occupational Injuries, Proposal Improvement; 157 courses, 7,941,000 attendees.
Lectures: Carbon Peak/Carbon Neutral and Corporate Carbon Management, Technology Enabling Eco-Environmental Protection, Photovoltaic and Energy Saving; 3 sessions, 32,000 attendees.

51Foreword

Diverse Inclusiveness,
Employee Satisfaction

Corporate Governance,
Smart Innovation

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

We established the "Four Core" talent cultivation system for intelligent manufacturing in accordance with our "F3.0 Transformation to new industries" goal, providing online and offline training forour employees to build an intelligent and digital culture while cultivating talent for the future.

Organizational management• Digital operational strategy • Digital performance management • Digital value flowchart • Digital agile organizations • Digital talent acquisition

Lean

Automation

IE technicians
IE engineers
Lean improvement instructors

Lean
Smart andlean IE

Quality
Six sigma yellow belt
Six sigma green belt
Six sigma black belt

SCM
Lean logistics
technicians
Lean logistics
engineers

Machinery andcomponents

Machineryengineers
Machinery
designengineers
Equipment
maintenanceand assembly
personnel
KarakuriControlCommunication

Automated
controlengineers
Industrial
robot
engineers
Machinevisualizationengineers

Industrial IoT
engineers
IoT
communications
engineers

Informationization

Smart

Androiddevelopers

Data
processing
engineersiOSdevelopers

Needs
analysts

ERP/MES/WMS
UI/UX
designers

HTML 5developers
Front-end
webdevelopers

Big data
visualizationengineers

Equipment
Big data
healthdevelopers
Image
recognition
Data mining

Industrial AI
engineersDataminingengineers

Automation project engineers

Cultural experience
・Digital literacy(ethics/confidentiality/openness/sharing)・Digital culture and environment(office/bulletin boards/forms)

・Prevalence of cultural concepts(lectures/forums/competitions)・Benchmark / lighthouse campuses

52Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

AppendixTraining for “Four Cores” of smart manufacturing
Lean training

Training
items

IE technicians
IE engineers
Lean improvement instructors

Karakuri training

Training
items

Robotics training

Training
items

Software simulations
Robot drills
Tracking modules
High-speed positioning modules
Display modules

Training items
Training in lean techniques and skills
Lego smart manufacturing simulations
3D component models

IoT training

Training
items

Industrial IoT & key IoT certifications
IoT assembly personnel/engineers
Industrial IoT deployment
personnel/engineers

Automation training

Training
items

Industrial software training
Data communications training
Automation hardware
installation and adjustment training

Informationization and AI

Training
items

Big data architects
Big data analysts
Data visualization53

3

Healthy
Workplace,
SafetyAdherence
Occupational Health and Safety
Employee Health Promotion

Key stakeholders：
Employees
Suppliers/Contractors
Government agencies
NGOs

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Management Guidelines for Material Topics
Occupational Health and Safety

Meaning to the Group• We provide a safe and healthy workplace environment that enables
our employees to be relaxed and comfortable. As this also helps toimprove operational performance, the Group has always been committed
to compliance with international occupational health and safety
management systems and standards in our realization of corporate social
responsibilities.

Policies and Commitments• The Group has invested much effort into the management of employee
health and safety. Apart from complying with laws and regulations, theGroup pursues a goal of zero accidents, injuries, and occupational
diseases through principles of "risk assessment, full participation,
continuous improvement, and zero hazards" to build a safe and healthy
work environment.

Specific Actions• Our Huyue Campus participated in the zero hazard working hours challenge andaccumulated 12,236,697 hours of zero hazards by the end of 2022; our Dingpu
Campus accumulated 2,636,758 hours of zero hazards.
• Investigated a total of 25,339 hidden dangers and achieved a rectification rate of
100%. Organized production safety training attended by 301,061 employees andcontractors.
• Organized firefighting skills contests, safety knowledge contests, safety knowledge
quizzes, and fire drills for employees and contractors over a total of 754,906 hours.
• Handled and collected a total of 118 safety innovation and improvement proposals.
• Hosted 121 health promotion activities, including health lectures, fitness center
events, sports classes, and online health lessons.

Evaluation Mechanisms• Our campuses implement daily, monthly, and specific safety audits. We communicate
with internal employees and external contractors to ensure that all internal andexternal workers abide by our occupational safety regulations.
• We have conducted external audits such as ISO 45001.
• Management representatives convene management review meetings each year to
discuss and review our occupational health and safety performance.

55

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

The Group complied with international occupational health and safety management systems
and local laws in formulating our occupational health and safety policies, which are applicablefor all employees and suppliers/contractors, and we are committed to a goal of zero injuries,
occupational diseases, and accidents as we work to build the best workplace environment for
all employees. To fully implement our occupational health and safety policies, we established afire safety unit, labor safety unit, health and hygiene unit, and other functional units. Additionally,
the collective agreement signed by our Labor Union also covers issues relating to health andsafety, protection of employee health and safety rights, and enhancement of health and safety
management at all campuses. We established quantifiable goals; implemented management
plans; introduced advanced detection and monitoring systems; executed source prevention andcontrol systems; heightened employee drills, awareness, and emergency response capabilities;
and carried out a variety of safety inspections to improve upon hidden hazards and create thebest workplace environment for all employees.
The Group continues to invest in resource planning and the creation of a safe and healthy
working environment by using our cloud computing advantages, food safety cloud services, andhealthcare cloud services to build a healthcare network that aims to combine smart technology
with precision healthcare. We seek to protect Group employees and their families all around theworld through food safety and physical health monitoring capabilities.

Occupational Safety and Health
The Group's 16 main business groups have all implemented ISO 45001 Occupational Health and
Safety Management Systems and have been verified by third-party institutes. These management
systems are applicable to all Group employees and all suppliers and contractors working in Group
campuses. The Group convenes global epidemic prevention and production safety meetingseach month which are headed by our chairman. The general managers of all business groups andall campus managers attend the meetings online. The highest safety authority presents weekly
reports covering global production safety information, Group
production safety conditions, regional production safety
conditions, and production safety knowledge (including
research on domestic and overseas safety management
and technology case studies, safety management tools, andmethodologies) while also deploying major production safetytasks throughout the Group and solving major problems within
the Group. A total of 56 reports were presented throughout
the year to build a culture of safety in the Group. The Grouphas established a Health and Safety Committee composedof labor and management representatives, which convenes
quarterly to review our occupational health and safety
performance for continued optimization of occupational healthreceived the "New Taipei Cityand safety management systems. We have also established ▲ We
Industrial Safety Award：Excellent Unit
Production Safety Management Organizations at all campuses
Award" and "New Taipei City Industrial
Safety Award：Individual Dedication
which convene weekly production safety meetings for
and Commitment Award" from the New
discussion and analysis of production safety conditions at all
Taipei City government in 2022.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

campuses and subsequent implementation of all production safety tasks.
The Group assists employees and units responsible for managing occupational health and safety
in communicating relevant issues through internal platforms, industrial safety officers in all units,
and labor representatives. We also organize "health and safety month" activities each year andstrengthen employee safety awareness and safety conditions of work environments through"online scavenger hunts," "themed lectures," "spreading positive energies," and "emergency
response" activities, thus establishing sound occupational health and safety systems for employee
participation, consultation, and communication. In 2022, our Huyue Campus participated in thezero hazard working hours challenge following establishment of the "Implementation Guidelines for
Zero Hazard Work Hours in Business Institutes" and accumulated 12,236,697 hours of zero hazards
at the end of 2022, while our Dingpu Campus accumulated 2,636,758 hours of zero hazards.

Safety and Hazard Prevention Center
The Group has established a Safety and Hazard Prevention Center in Taiwan which collects
safety information from all campuses in real time. We have also set up typhoon response andepidemic prevention teams to provide relevant and timely information regarding typhoons,
epidemics, and other natural disasters; training is provided for response personnel to strengthen
disaster and epidemic prevention systems. We manage safety equipment at our campuses
through establishment of industrial safety clouds and other modules which ensure that all
campuses have sufficient security hardware, software, and management mechanisms.

CCTV
Fire Notification System
Anti-Intruder System

Monitor &Control System

Emergency Response Team (ERT)
Equipment Training

Training &Practice

SafetyManagement
App & Device

Safety andHazardPrevention
CenterERT Registration
Motor Vehicle Cloud

SafetyInformation
District Distribution

Practice Safety Course

Meeting &Decision-making

ERT Members
Safety Standards
Standard Operating Procedures (SOP)

Emergency Response CenterCollect Safety Information Related to the Group
More Information and Higher Standards, Less Harm

56

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Safety Audits and Risk Identification
The Group formulated the "Hazard Identification, Risk Assessment, and Risk Controls Planning
Procedures" for management of occupational health and safety management systems. The
first article in the production safety chapter of the Group's Employee Manual, "Employee
safety rights and duties," stipulates that employees have the right to refuse illegal commands
and the right to adopt emergency risk prevention measures. Interpretations of this article
were provided during routine employee training and training for new employees; employees
were informed that they had the right to refuse illegal commands and adopt emergency risk
prevention measures. When emergencies affecting personnel safety (such as severe fires orincidents) occur, employees and contractors have the right to immediately depart from thescene, and do not bear responsibilities for any corporate or personnel damages incurred.

Our main business groups have formulated regulations for identification ofoccupational hazards and risk assessments, and all business groups carry out
regular hazard identification, risk assessment, and risk control procedures. The Grouphas formulated the "Regulations for Implementation of Process Safety Assessments
and Final Inspections" and requires all new/ converted/expanded processes toundergo safety assessments. Hazardous processes must pass assessments
and verifications conducted by campus-level industrial safety teams and generalprocesses must pass assessments and verifications conducted by business groupindustrial safety teams before commencing production to ensure a safe, healthy, andeco-friendly workplace environment for our employees.

All units carried out risk identification and risk assessment procedures according to risk types
and unit characteristics for formulation of scientific safety risk identification algorithms andmethodologies. Safety risk identification procedures were carried out for different job positions
to compile and classify safety risks, following which the LEC assessment method was used todetermine risk levels. Safety risks are categorized from high to low as major risk, relatively highrisk, medium risk, and low risk, and are labeled using four different colors (red, orange, yellow,
or blue). Safety risk categories and levels are used to establish a safety risk database and arisk assessment matrix visualized with four colors (red, orange, yellow, or blue). Management
is implemented according to risk levels. For example, major risks must be controlled bybusiness groups, which are responsible for formulating control measures, while medium risks
are controlled by team leaders. We continue to optimize and advance our occupational healthand safety management system using the PDCA cycle.

The Group has formulated safety assessments and verification procedures forvarious newly established, converted, and expanded manufacturing processes
and hazardous processes. Manufacturing processes are categorized based on
production procedures for analysis and assessment of dangerous and hazardous
factors; manufacturing processes include pre-production preparation stages, inproduction stages, post-production equipment maintenance, hazardous substances
produced during production processes, and supplementary systems (such as
exhaust systems, ventilation, dust removal systems, and exhaust gas and wastewater
treatment). The Group adopts effective preventive control measures to identify
and control risks at the source, thereby ensuring safe production processes andoccupational health and safety for employees. We adhere to the principle of "design
first, then assess, and then commence work."

Risk
Identification

Risk
Assessment

Risk
Analysis

RiskManagement

Comprehensive
identification of
all hazards that
could cause
personnel injury
or accidents

Assess andanalyze risk
levels inaccordancewith severity
and probabilityof safety riskhazards

Establish asafety risk
database anddraw fourcolor safety
risk spatial
distribution
charts andsafety risk
comparison
chartsFormulate risk
management
measures basedon risk analysis
results

The Group hired employees with expertise in safety management who hold safetyengineer licenses to establish professional audit teams that conduct daily, monthly,and specific safety audits for electrical safety, management of combustible
materials, maintenance of information control precision machining, and managementof hazardous chemicals for promotion of safety production processes at all our
campuses in China. We investigated a total of 25,339 hidden dangers in 2022.
We uploaded information on all hidden dangers following audits, requested that
rectifications be completed within specific time limits, and achieved a rectification
rate of 100%. These hidden dangers were publicly shared with all campuses during
our "Global Epidemic Prevention, Safe Production, and ESG Action Meeting." Allcampuses were asked to extrapolate on this information to ensure that similar hidden
dangers did not reoccur.

57

Foreword

Risk categories

Corporate Governance,
Smart Innovation

Item description

Diverse Inclusiveness,
Employee Satisfaction

Identified hidden
hazards

Class C
warehouses andinformation security

Storage safety of Class C materials and control of
information servers.

226

Hazardous items
and safety of
flammable gases

Storage safety of hazardous materials, transportation
safety, usage safety, and waste handling.

1,414

Process safety

Management of polishing, grinding, cutting, drilling
processes that may involve flammable dust, paint,
covered processes, SMT processes, and washing of
flammable and explosive solvents.

1,760

Fire safety

Requirements for use of fire-resistance construction
materials, construction safety requirements, maximum
fire resistance of construction components, and fire
prevention segments.

5,336

Operations andequipment safety

Management of firefighting control rooms, firefighting
power sources, automated warning systems,
firefighting pools and pumps, and automatedfirefighting systems.

6,592

Electrical safety

Safety management and requirements for all sites
using electricity and specific sites within the Group.

6,868Management andtraining

Management of training and emergency responses.

3,143

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Reward System for Reporting Hidden Hazards Relating to Fireand Industrial Safety
To further strengthen safety management, the Group has formulated the "Regulationsof Rewards for Reporting Hidden Fire and Industrial Safety Dangers," which state that
employees can report hidden dangers or safety recommendations through letters,
phone calls, emails, or our corporate app. Reports substantiated by relevant units are
rewarded, and informants and related information are kept confidential. In 2022, wereceived a total of 226 effective hidden hazard reports and distributed 68,000 NTD
in rewards. Over the past five years, we have received a total of 1,193 reports anddistributed 460,000 NTD in rewards.
Employees can submit their reports through the following two ways
1. Employees can report non-compliance with standard operating procedures tothe production safety supervision and management department, upon which theindustrial safety department will retrieve relevant CCTV footage and admonish
violators according to regulations. Information on informants is not disclosed, andtherefore informants suffer no retribution.
2. Potential occupational hazards can be reported to the occupational health andsafety managerial departments of each business unit by calling our hotline or
through direct reports. On-site safety audit personnel will investigate situations
reported by employees and provide feedback to relevant employees. To
encourage such reports from our employees, informants of substantiated hidden
dangers are rewarded and not punished.

Statistics on Disabling Injuries
We set "100% safety and zero hidden dangers" as our main safety target and haveformulated the "Production Safety Incident Management System" to clearly stipulate theprocesses and responsibilities for incident reports, incident investigations, and investigative
personnel levels. Upon occurrence of any incident, we require on-site personnel and unit
managers to file an immediate report and record said incident in our "Industrial Accidents
Declaration System," following which an incident investigation team responsible for theinvestigation, handling, and compilation of incident reports is instantly established.
Analysis of work-related injuries for 2022 showed that the stamping, machining, forming/
die-casting processes held the highest risks within the Group. Additionally, upgrading of
automated machinery, adjustments of equipment and facilities, and complex maintenanceenvironments increased risks of crush and collision incidents. The most common injuries
were mechanical injuries, other injuries, and physical impacts, with the main reasons forinjuries being ineffective shutdown of machinery due to mechanical failure, failure to execute

LOTO (lockout and tagout) procedures when repairing equipment, and placing all or somebody parts in hazardous regions during machinery adjustments and repairs. To eliminate
these hazards and reduce risks, we implemented improvement procedures including
strict execution of operational safety regulations for equipment maintenance, periodic
inspections of safety facilities, ensuring that our equipment and facilities are in goodand effective working condition, continued strengthening of LOTO implementations, andhosting safety training for professional equipment operators. Our contractors incurred nohigh-consequence work-related injuries. The Group will continue to strengthen contractor
operational safety and prevent accidents through safety announcements, education andtraining, and audits.

58Foreword

Fatalities as a result ofwork-related injuries

Full-time
employees

Contract
employees

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

High-consequence work-related
injuries (excluding fatalities)

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Recordable work-related injuries

Social Contribution,
Win-Win Strategy

Near misses

Appendix

Total number ofhours worked

Incidents

Rate

Incidents

Rate

Incidents

Rate

Incidents

Rate

2022

1

0.000600.0000225

0.131241

0.02391,714,711,800

2021

4

0.002400.0000189

0.1151140.0085

1,642,760,216

2020

1

0.000500.0000227

0.1187

N/A

2022

0

0.000000.000015

0.020890.0125

720,378,100

2021

0

0.000000.000080.013600.0000589,180,800

2020

1

0.001100.0000170.0191N/A

1,913,011,143

889,596,240

Notes：
1. The aforementioned rates are calculated on a basis of 1,000,000 working hours.
2. Rate of fatalities as a result of work-related injury = Number of fatalities as a result of work-related injury /Number of hours worked * 1,000,000
3. Rate of high-consequence work-related injuries (excluding fatalities) = Number of high-consequence workrelated injuries (excluding fatalities) * 1,000,000 / Number of hours worked

4. Rate of recordable work-related injuries = Number of recordable work-related injuries (excluding fatalities) *1,000,000 / Number of hours worked
5. The Group began recording near misses in 2021.
6. The figures above are only for the China/Taiwan region.

Innovation Evaluations and Promotions
To reduce potential safety issues in operational sites and prevent occurrence of safetyincidents, the Group continues to introduce technology transformations that facilitate safety
optimization through improved processes, material substitution, foolproof equipment, andother safety technologies and mechanisms. Additionally, the Group is planning to build aproduction safety warning and emergency response system which will be used for realtime monitoring of fire alarm systems at all campuses and buildings. The project is currently
in the software development stages and is expected to provide substantial supervisionthat will enable thorough implementation of production safety tasks. We continue topromote implementation of safety guidelines and training for our five highly hazardous
production processes. We have carried out safety innovation and improvement projects toimprove various manufacturing processes and reduce waste processing risks. Our safety
technologies and management standards were significantly increased.

technologies to provide risk warnings, safety performance appraisal, analyses of personnel/
accidents/hidden dangers/materials, and a variety of other valuable production safety
information. Advantages and disadvantages of risk controls are interpreted from multiple
dimensions including the administrative organization aspect (campuses/business groups/
business units/factories), geographical aspect (campuses/buildings/floors), and professional
capabilities aspect (operational risks/supply chain risks/management performance) for onestop management and comprehensive monitoring of routine operations and fire safety tasks
through the Group's dashboard, management website, and mobile application. A prototypeof the platform has been designed, and the system is currently undergoing development.

The Group established a production safety information management platform which
integrates the Internet and intelligent big data analytics to build a foundation of production
safety information related to our technology, process, equipment, and other human,machinery, materials, legal, and environmental aspects. We use big data processing
59Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Shared platform for safety improvement and innovation
To encourage active participation of all units in innovative safety technologies andmanagement procedures, as well as submission of practical and valuable safety
innovation proposals, the Group formulated the "Procedures for Implementing
Fire and Industrial Safety Management Evaluations," which served as a basis forthe establishment of our shared platform for safety improvement and innovation
proposals. We encourage all units to continue enhancing safety management andsafety technology standards so as to ensure employee occupational health andsafety. Outstanding improvement proposals are uploaded to the Group's internal
website for promotion to other campuses. We collected a total of 118 safety
innovation and improvement proposals in 2022. Following assessments based oncompliance, innovation within the Group, professionalism, and promotional value,
a total of 27 proposals were deemed to possess promotional value after they
were revised in accordance with suggestions for improvements. These projects
encompassed innovative improvements of technologies and management processes
relating to CNC, stamping, anodes, wave soldering, lithium batteries, cranes, hotwork, and smart controls. In February 2023, the "Group Global Safe Production
Work Report" shared ten outstanding innovative safety improvement proposals
with our chairman and senior executives related to improvements in switch cabinet
packaging and manual modification procedures, improvements in warehousing
safety for lithium batteries, a smart anti-charging safety feature for lithium batteries,
an anti-tipping safety feature for cleaning crane baskets, and a safety feature foroverheated CNC machines.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Health and Safety Training and Drills
The Group strives to build a harmonious campus environment where all personnel is focused onsafety. To enhance employee and contractor safety awareness and capabilities, the Group has
formulated "Safety Training Systems" and "Procedures for Management of Supplier Production
Safety" with clear stipulations for Group employee and contractor training. The Group formulates
training plans at the beginning of each year and conducts training in accordance with saidplans. We have established three educational systems at the campus, process, and production
floor levels, and implement training based on plans formulated at the beginning of the year toprovide various forms of safety training for our employees.
In 2022, Group campuses hosted production safety training for new employees, special
operators, construction supervisors, safety management personnel, on-site audit personnel,
campus managers, and suppliers. Total training hours amounted to 301,061 hours.
Item

Training hours

Preparatory three-level (factory, process, and production floor levels)
safety education for new employees (including temporary workers)

293,287

Certification training for personnel with dangerous jobs involving
combustible dust, hazardous chemicals, and lithium batteries

1,208

Advanced capability training for safety management personnel

1,007

Safety training for suppliers/contractors prior to factory entry

566

Training for special operations personnel and special equipment
operators

2,460

Other training

2,533

To ensure that employee and contractors can respond in a timely fashion upon occurrenceof emergencies and avoid employee safety incidents, the Group conducts emergency
training and drills, with no fewer than two fire response drills each year and no fewer than
two drills a year to practice responses to chemical leakage/poisoning incidents, suffocation/poisoning in confined spaces, electric shocks, and incidents involving personnel trappedin elevators. We achieved a completion rate of 100% for our planned drills. Our campuses
regularly organize safety promotion activities in June and November each year. In 2022,
we hosted firefighting skills contests, safety knowledge contests, safety knowledge
quizzes, and fire drills over a total of 754,906 hours. In 2022, we received 2,774 fire safetyassessment applications across our campuses. Our overall approval rate was 93%, anincrease of 87% over the previous year.
60Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Health and Safety of Suppliers and Contractors
To strengthen supplier safety management, eliminate illegal behaviors, and prevent accidents
from occurring, the Group formulated the Procedures for Management of Supplier Safety andrequired all suppliers/contractors to comply with environmental, occupational health and safety,
and safety laws and regulations. Suppliers/contractors are also required to possess nationallyrecognized certificates of personnel qualifications and safe production certifications before they
can become qualified Group suppliers/contractors.
The Group requires all suppliers/contractors to undergo relevant safety training before entering
campuses. Resident personnel are required to complete additional safety training once
every six months and attend emergency drills, which is why Group plans for emergency drills
encompass supplier/contractor personnel. We supervise and inspect suppliers/contractors andpenalize those with hidden hazards in accordance with our management procedures. Suppliers/
contractors who do not comply with our requirements have to cease work on all projects or are
expelled from our campuses, thereby ensuring that our suppliers/contractors completely abide
by our safety management regulations.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Employee Health Promotion
Health Promotion Activities
To provide a balance between work, physical health, and mental health for our employees,
as well as implement the concepts of preventive medicine, the Group provides subsidies forhealth checks at a number of excellent institutes (with an annual budget of 72 million NTD).
The health services provided by the Group encompass the three main aspects of medical
assistance, health education and guidance, and nutrition and food safety. Our service
venues include health management centers, fitness centers, factory consultation offices, andfood safety laboratories. We hosted 121 health promotion activities in 2022, including healthlectures, fitness center events, sports classes, and online health lessons.

The Group convenes collaborator meetings each quarter to inform our suppliers/contractorsof Group requirements. Suppliers/contractors have to undergo training and testing procedures
before they can enter our campuses, and we check relevant information such as the preparationof personal protective equipment and information on company supervisors. We also organize
health lectures for our suppliers/contractors. Suppliers/contractors are required to swipe accesscards when entering and exiting campuses. The Group conducts irregular inspections ofsupplier/contractor safety procedures. Issues are reported to our supervisors each month, andour system delivers notifications and requests improvements from responsible units. To enhance
supplier/contractor epidemic prevention awareness and ensure the health and safety of relevant
workers during the pandemic, the Group provided PPE and training for suppliers/contractors andconvened quarterly supplier/contractor negotiation meetings. Additionally, suppliers/contractors
are required to complete relevant training and all project applications.

Contractor Hazard Notification Training and Quizzes▲ "2022 I Sports Enterprise" certificationfrom the Sports Administration,
Ministry of Education
Basic information

Quiz-General affairs▲ "2022 Influenza Prevention AllianceGold Award" from the Taiwan
Immunization Vision and Strategy

Quiz-Engineering

For more information on supplier training associated with chemicals/hazardous
substances, please refer to CH4 Business Sustainability, Beneficial Partners
61Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Health and Care

Food Safety and Nutritional Diet

The Group has established a multidimensional team composed of doctors, nurses,
pharmacists, nutritionists, exercise coaches, and physical therapists to build a"Comprehensive Health and Care" service model for our employees that offers on-site
medical, nutritional, sports, and physical care; integrated individualized health and disease
management; and comprehensive planning
services (we also provided remote services
during the pandemic). Employees can also
obtain internal health knowledge encompassing
epidemic prevention, health, medical care, foodsafety, and nutrition through the iCivet channel toenhance their health awareness. These services
embody our commitment to "use Group resourceson Group personnel."To ensure that our employees and on-site contractors can enjoy clean and safe foods, wehave formulated procedures for monitoring food safety which are thoroughly implemented
to provide safe foods for our employees. We conduct comprehensive assessments ofcatering units and select legitimate, rigorous, and high-quality suppliers. We also require
our caterers to provide traceability records for full management of food sources. The Group
conducts thorough inspections of employee canteen ingredients and caterer operations.
This, paired with our real-time notification platform, allows us to monitor food safety in realtime and provide counseling, guidance, and food safety training relevant catering units toensure improvements if abnormalities are discovered. Our food safety training includes
courses on COVID-19 operational requirements and pollution prevention. The Group's foodsafety laboratory has obtained ISO 17025 certification, strengthening incident handlingefficiency and risk prevention capabilities. Food safety inspection procedures are conductedin accordance with quality system regulations to provide safe foods for our employees andensure rigorous control of food safety.

Starting in 2013, we installed H2U Health ATMs
with health monitoring devices in all stairwells ofGroup offices and Campuses. We are currently on
the fifth generation of these devices. Employees
can use these ATMs to measure, understand, andmanage their health indicators.

PhysicianNutritionist

Coach

Item

Nurse

Cross
Profession
Teams

Sampling
checksThe Group tests all ingredients and monitors ingredient conditions
using a real-time notification platform. In 2022, sample checks wereconducted on 4,201 ingredients. A total of 13,246 items were tested andwe achieved a pass rate of 96.4%.

Visits andconsultations

We visited our catering units 70 times over the year. The averageassessment score was 86.5 and we achieved an improvement rate of
76.7%.

Supply chain
management

We used supplier evaluations to select suppliers that complied with legal
requirements, adhered to strict procedures, and provided safety foodproducts. We completed audits on 70 suppliers throughout the year,
achieved a compliance rate of 98.6%, and eliminated one food supplierwith inadequate hygiene conditions.

Food safety
education

We provided online food safety classes for a total of 304 participants
covering ractopamine (leanness-enhancing agent) testing, pesticide
residue testing, and heavy metal testing.

Handling offood safetyincidents

We formulated our Handling Procedures for Food Safety Incidents basedon our food safety targets, which are rigorously implemented. We also
formulated regulations to prevent risks relating to food safety issues.
We implemented strict traceability measures on ingredients relating toAfrican swine fever, ractopamine pork, and American beef. We incurred
no major food safety incidents in 2022.

Pharmacist

Physical therapist

Description

62Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Food Safety Lab
The Group has invested more than 100 million NTD in establishing a "food safetylab" that adheres to national standards. We hired food safety professionals to headinspections and adopted various measures to ensure employee food safety. We are
not in the food industry, but are the first major cross-Strait technological enterpriseto establish employee food safety inspection institutes. We have already completed
construction on and obtained ISO 17025 certification for our Taipei lab.
Testing supplemented with audits and traceability measures enabled us to build
a complete food safety supply chain. We not only continue to expand the testing
capabilities of our labs, but have also established professional food safety audit teams

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

to conduct health and safety audits on catering production environment and dining
environments. We are also planning to establish a food safety database which provides
integrated analysis of ingredients, foods, and audit targets, thereby helping us to filter
high-quality suppliers and foods, strengthen food safety measures, and enhance foodsafety standards.
Food Safety Implementation Guidelines
Risk Analysis
Prevention Measures

High-Quality Testing
Problem Identification

Guidance and Visits
Improvement Guidelines

Management of Nutrition in
Employee Meals
The Group has formulated regulations relating
to food content and nutrition of campus meals toensure compliance with healthy dietary conditions.
We established clear plans and regulations
regarding calorie counts, nutrients, and meal
content, and restrict the use of processed andpickled foods. Additionally, we offer clear nutrient
information to our employees while also helping
them to learn about portion sizes and selectionof healthy foods. Nutritionists formulated healthymenus for those requiring additional health andcare to control calorie intake and adjust nutrient
ratios.
▲ ▲ Healthy Menu Design▲ Food Content andNutritional Procedures for
Factory Catering▲ Nutrient Information for
Employee Meal

63

4

Business
Sustainability,
Beneficial
Partners
Policies for Sustainable
Management of Suppliers
Sustainable Supply Chain
ImpactPromotion of Mutual Growth

Key stakeholders：
Clients
Suppliers/Contractors
Government agencies
NGOs
Media

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Management Guidelines for Material Topics
Supplier Management, Procurement Practices and Management

Specific Actions
Meaning to the Group• The Group is actively engaged in implementation of supply chain
management practices to develop efficient long-term collaborative
relationships with suppliers, as well as environmental, social, andgovernance risk assessments and audit verifications which allow joint
fulfillment of corporate social responsibilities by suppliers. This serves tostrengthen the resilience of our supply chain, reduce operational risk, andensure sustainable management.

Policies and Commitments• The Group requires suppliers to comply with local laws and regulations
and the Group's Supplier Social and Environmental Responsibility Codeof Conduct. Furthermore, the Group fully considers social responsibilities
and environmental benefits and gives priority to environmentallyfriendly products and services, seeking to balance both economic andenvironmental benefits. The Group continuously optimizes and improves
green procurement standards and management systems, and works
with upstream and downstream manufacturers to implement ESG actions
such as environmental protection, energy conservation, and carbon
reduction to create a sustainable supply chain.

• Encouraged our suppliers to implement net zero actions. A total of 123 suppliers completed
carbon inventories, resulting in carbon reductions of 225,500 tCO2e from 2021 to 2022.
Additionally, 12 key electronics suppliers signed a renewable energy agreement committing
to use 100% renewable energies to produce Group products.
• Encouraged our suppliers to implement zero landfill actions. A total of 10 suppliers haveobtained UL2799 Zero Waste to Landfill Operations certification, 39 suppliers have formulated
and executed carbon reduction plans, and 75 key suppliers have been registered on our
supplier green management platform and completed zero waste performance evaluations.
• Assisted 32 suppliers in improving environmental violations, and helped 148 suppliers withhigh environmental impacts to report and disclose Pollutant Release and Transfer Register(PRTR) data.
• Hosted two seminars promoting supplier green product management which were attended
by 267 suppliers, 75 key suppliers have been registered on our supplier green management
platform and completed green product management performance evaluations, and we also
encouraged these suppliers to complete RoHS+HF Declarations of Conformity on the RoHSREACH platform.
• Completed conflict minerals surveys for 2002 suppliers, achieving a response rate of 100%.
No use of conflict minerals was discovered.
• Encouraged 43 suppliers to undergo CSR Code of Conduct reviews; 16 of these suppliers
underwent third-party RBA VAP audits.

Evaluation Mechanisms• We host management review meetings every year to discuss continued strengthening of
supplier management performance, track target achievements, and continuously improve
performance.
• We communicate with suppliers on different ESG issues and work to understand our
performance through ESG audit and assessment results.
65Foreword

Corporate Governance,
Smart Innovation

As a leading global electronics manufacturer, the Group actively works
with suppliers to carry out various sustainable actions as well as guide
suppliers in continuous improvement of social, environmental, and economic
aspects to enhance our sustainability and competitiveness as we strive
to realize sustainable development in our supply chain. The Group fully
considers social responsibilities and environmental benefits and prioritizes
environmentally friendly, energy-saving, low-carbon, and easy-to-reuse
supply chain products to create products and services that balance both
economic and environmental benefits, thereby creating virtuous cycles in our
industry and supply chain. In 2022, the Institute of Public and Environmental
Affairs (IPE) awarded us first place in the Greater China area in the Green
Supply Chain Corporate Information Transparency Index (CITI) Evaluationand second place in the IT Industry category. We also ranked fourth in the
Climate Action Transparency Index (CATI) Evaluation for the IT Industry.

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Policies for Sustainable
Management of Suppliers

Social Contribution,
Win-Win Strategy

Appendix

Our raw material suppliers arefurther divided into electronic materials
and component suppliers, and materials
are respectively classified by product into
active components, passive components,
circuit boards, modules, connectors,
machinery parts, and packaging materials.

The Group is the largest electronics manufacturer in the world, with many brand clients and suppliers fromall over the globe. The Group realizes corporate social responsibilities by shouldering heavy responsibilities
and influencing sustainable developments within supply chains. The Group and its suppliers work together toenhance capabilities in sustainability issues, and a comprehensive and systematic Responsible Supply-Chain
Management (RSM) system has been established to achieve digital management and internal data sharing.
Each stage of supplier development, qualification assessment, performance evaluation, and elimination ofunder-performers is managed and controlled to ensure that suppliers meet the requirements of the Group so that
we can grow alongside our suppliers.

Supplier Management System Structure

Organizational
functions

Supplier
certification

Promotion ofrequirements

Standardized
operations

Incorporation of supplierinformation
Supplier legal
compliance assessments
Evaluation andrequirement communication
Publication of evaluation
results

Promotion of online
learning for suppliers
Convene supplier conferences
Publication of management
regulation documents
Real-time disclosures ofmanagement policies

Supplier Certification
Processes
Incorporation of
Supplier Information,
Supplier Needs, andAuthority Levels

Quality Management
Requirement
Teaching Materials
Green Procurement
Management
Requirement
Teaching Materials

Riskmanagement

Audit
verification

Guidance andimprovement

Quality risk
management
ESG risk assessments
GP risk assessments
CFM risk assessments
GHG risk assessments
Contract management

Establishment ofaudit expert pools
Annual audit
coordination
On-site audits
Review of audit
reports

Guidance of audit
defects
Promote supplier
CAR closure
Handling of quality/
environmental
abnormalities

Regulations
Governing Supplier
Risk Assessment
Procedures
RBA standards
RoHS/REACH regulations
National energy andcarbon reduction policies

ISO 9001
IATF 16949
QC 080000
ISO 14001
SA 8000
ISO 14064/
ISO 50001

Seven QC techniques
Five major tools
8D report
Handling anddocumentation ofquality/environmental
abnormalities

Performancemonitoring

Qualityselection

Promotion of
Scorecard frameworks
Big data analysis
performance
Supplier performanceranking

PSL recommendations
RSL guidance andimprovements
High-risk supplierfreezes and elimination

Regulations Governing
Supplier Performance
Assessment Management Procedures
Regulations Governing
Management Procedures for
PSL Suppliers
Regulations Governing Management
Procedures for RSL Suppliers

Supplier Freeze
ProceduresGreen Supply Chain Legal Compliance Intelligence Platform
Platform
supportSupplier
evaluation
moduleSupplier
online learning
moduleSupplier ESG
management
moduleSupplier audit
management
moduleSupplier
Abnormal Quality
management
moduleRoHS-REACH
management
moduleSupplier
conflict minerals
management
moduleSupplier GHG
management
moduleScorecard
module66

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Supplier Management Processes

Regulatory Compliance

The Group adopts a circular mechanism for supplier management processes which includes the four major stagesof regulatory compliance, risk assessment, audit verification, and continued improvement. We implement social andenvironmentally responsible management structures in our supplier management processes and conduct data analysis of
supplier compliance with social and environmental responsibilities to assist suppliers in improving vulnerabilities, thereby
enhancing their social and environmental performance.

The Group has compiled the "Green Procurement
Management Manual" and "Supplier Management Manual" toserve as basic guidelines for supplier management at Group
units. New suppliers must pass risk assessments for socialand environmental responsibilities and sign "Procurement
Contracts" and "Environmental and Social Responsibility
Commitments" to ensure that they comply with our "SupplierSocial and Environmental Responsibility Code of Conduct"and "Supplier Management Requirements."

⦿ Circular Mechanisms of Supplier Management Policies and Processes

STEP

1

STEP

2

Regulatory
Compliance

Risk
Assessment

Implementation Principles

Implementation Principles

RBA standards
Legal requirements《The Group SupplierSocial and Environmental
Responsibility Codeof Conduct》《Supplier management
request》

Management measures
Suppliers must signand
comply with relevant
statements
Online learning

STEP

3

Audit
Verification

STEP

4

Continuous
Improvement

Implementation Principles

Implementation Principles

Request supplieron- site audits
Improve defects《Auditing Check
List for Supplier》

Innovation andGuidance
ESG Performance
Evaluation Standard
for Supplier
PSL/RSL Assessment Standards

Management measures

Management measures

Management measures

Self-assessments
vand improvements
Risk assessments

Audits
Improvement actions
Verification of
improvement results

Scorecard
performance review
PSL/RSL selection
FreezeThe Group use “the SupplierSocial and Environmental
Responsibility Code of
Conduct” as a standard for“self-assessment questionnaires” (SAQ)《GP Risk Assessment List》《CSR Risk Assessment lis》

Additionally, all suppliers are required to sign "Vendor
Commitments" and "Proactive Supplier Declarations,"
and pledge not to request, offer, or conduct any bribery
actions or provide improper benefits to Group affiliates,
related persons, and/or designated personnel. Suppliersalso pledge not to directly or indirectly benefit Group
employees, related persons, and/or designated personnel.
Suppliers must understand and strictly abide by theGroup's requirements for responsible supply chains.

67Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Risk Assessment
New supplier evaluations are an important part of our management system. The Group
collects the following information from new suppliers：basic information cards, component
recognition certificates, environmental protection and social responsibility commitments,
and due diligence for conflict minerals. We then use our "Supplier Evaluation System" toconduct ESG (Environmental, Social, and Governance) risk assessments of supplier quality,
green products, social and environmental responsibility, and product environmental impact
to determine risk levels, production capacities of new suppliers, and their enthusiasm
for transactions with the Group. In 2022, all 25 of our new suppliers in the electronics
procurement category passed environmental and social selection standards.

⦿ Group Supplier Risk Assessment Processes

Business Sustainability,
Beneficial Partners

Healthy Workplace,
Safety Adherence

Suppliers are strictly prohibitedfrom conducting any of thefollowing zero-tolerance actions：

Supplier
confirmation

Sign statement ofcommitment

Respond tosustainability
commitment

ESG-Related Basic
Requirements for New
Suppliers• Use of forced labor/prison Labor

Passed ISO 14001, ISO 45001,• Discharge of untreated toxic
and hazardous substances ormaterials

ISO 14064, and QC 080000 system• Actions and working
environments that can cause
immediate physical harm toemployees

Certification
ESG Risk Assessment
Working hours, salary and benefits,environmental assessment approval,
environmental violations, dangerous
procedures, and management
systems
ESG Audit
We use the RBA VAP Audit
Checklist

Periodic
assessments
and audits

when conducting audits

Audit Verification

In 2022, we conducted audits on a total of 107 major suppliers and discovered 1,833 deficits(including 662 major deficits and 1,171 minor deficits). The Group required suppliers toprovide deficit improvement plans and measures within allotted times. As of year-end 2022,
improvements have been implemented for a total of 1,604 deficits (including 536 major
deficits and 1,068 minor deficits), achieving an improvement rate of 88%. The Group willcontinue to track the remaining supplier deficits until improvements have been completed.

Appendix

Management System• Providing false information to
the Group

The Group conducts quality, process, social and environmental responsibilities, green
products, and greenhouse gas audits for medium- and high-risk suppliers. Audit or postaudit improvement results must meet the requirements of the Group before suppliers can be
included in our list of qualified suppliers. The Group also increases management oversightfor our top 15 suppliers in the commodity category and suppliers that were not designatedby our clients. Regular online surveys and on-site audits of suppliers are conducted throughour supplier management platform. If zero-tolerance deficits are found during audits,
suppliers will lose the right to be selected for new projects; for non-zero-tolerance deficits,
suppliers will be allowed to provide improvement plans and measures within a stipulated
deadline based on the severity of the deficit. Reviews are carried out for serious deficits.
Suppliers who do not complete improvements within allotted times will be included in our listof suppliers who were restricted for poor performance.

Social Contribution,
Win-Win Strategy• Use of child labor• Retaliation against employees
who provide factual information
Need fornew suppliers

Green Solutions,
Circular Economy

Results of supplier ESG audit assessments in 2022
Aspects and Standards

Supplier
Audit
Items

Audited suppliers

Pass Rate

QPA & QSA & SCM (Involving ISO 9000,
IATF 16949)

96

98%

GP (Involving QC 080000, RoHS, REACH)

44

100%

GHG (Involving ISO 14064)

5

100%

ESG (Involving RBA, ISO 14001, ISO 45001)

43

90%

Notes：QPA：Commodity Quality Process Assessment
QSA：Quality System Assessment
SCM：Supplier Chain Management Assessment
GP：Green Product Assessment
GHG：Greenhouse Gas
ESG：Environmental Social Governance68Foreword

Corporate Governance,
Smart Innovation

The Group's supplier ESG audits are conducted using RBA
VAP tools. Dedicated supply chain management personnel in
the Group's procurement department formed audit teams withexperts in the Human Resources, Industrial Safety, Environmental
Protection units. Audits encompass five aspects：Labor, Healthand Safety, Ethics, Environment, and Management System.
The Group encourages suppliers to complete third-party RBA
VAP audits; suppliers that have completed said audits within thepast two years can share their audit reports with the Group to
be exempt from repeated audits conducted by our audit teams.
In 2022, a total of 16 suppliers in the electronics procurement
category shared their RBA VAP audit reports with the Group.

⦿ Distribution of ESG audit deficits in 2022
1%

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Continuous Improvement
To motivate continued supplier enhancement of ESG management and performance, the Group launched ESG
evaluations for key suppliers in 2022. Priority evaluation items included net zero emissions, zero waste, and green
products. The Group formulated supplier ESG performance evaluation standards using international ESG evaluation
indicators, relevant standards, and client requirements. In 2022, we added an ESG performance evaluation module
on our online supplier green management platform, allowing suppliers to conduct self-assessments and upload
verifications, thereby enabling objective evaluations of supplier ESG performance. We determine supplier ESG rankings
based on annual supplier performance. Suppliers with excellent ESG performance are rewarded and we guide
suppliers with poor ESG performance in making improvements. Suppliers who do not implement said improvements will
be placed on the Group's Restricted Supplier List.
In 2023, the Group added "worker human rights" to supplier ESG evaluation items. We plan to gradually expand thescope of supplier evaluations.

12%
12%

41%
34%

Labor
Health and Safety
Environment
Business Ethics
Management System

Audits conducted in 2022 found no incidents relating to child labor, forcedlabor, or prohibitions of employee freedom of association.

▲ Supplier Green Management Platform

69

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Sustainable Supply Chain Impacts
Green Product Management
Policies and Commitments
The Group has implemented comprehensive internal management of green products,
adhering to the "Principle of Five Noes" ("No design, No procurement, No inflow, No
manufacturing, No outflow") for green product management across our supply chain. Of
these, "no procurement" is the key to green product development.
We prohibit use of chemical substances restricted by the green product regulations ofdifferent countries and regions, reduce the amounts of hazardous substances contained
within products, and fully disclose all product substances.
Targets

Results

Require 75 key electronics
suppliers to fully disclose all
production materials on our
supplier green management
platform by 2025.

In 2022, 75 of our key electronics suppliers completed
green product management performance evaluations
on our supplier green management platform and also
completed 100% of RoHS Declarations of Conformity.

Management Mechanisms

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

green product compliance management requirements to our upstream supply chain.
Additionally, the Group has formulated green product management guidelines andestablished a supplier green product management platform. We implement management
mechanisms for key processes including assessments, audits, verifications, performance
evaluations, and eliminations of underperformers starting from new suppliers. Thesemechanisms, combined with CITI, DJSI, and other internationally renowned ESG evaluation
institute indicators, are used to implement management of supplier green productperformance from five dimensions. We also regularly convene supplier green productmanagement seminars to convey the latest Group requirements to our entire supply chain
and track green compliance of raw materials starting with our upstream suppliers.

Digital Transformation and Management OutcomesOur supplier green management platform was launched in September 2022 to digitalize
evaluations of supplier green product management performance, enabling quantificationof evaluation results as well as real-time tracking and analysis. Supplier green productperformance evaluation rankings can be obtained for multiple dimensions. Supplierswith excellent ESG performance are rewarded and suppliers with poor ESG performanceare placed on our Restricted Supplier List. Visualization of evaluation indicators enable
continued promotion of supplier improvements and enhancement of green productmanagement performance.
In 2022, 75 of the Group's key electronics suppliers completed green product performance
evaluations, and we continue to guide 15 suppliers in increasing their green productperformance rankings. Our evaluation results indicate that 64 suppliers have implemented
the QC 080000 Hazardous Substances Management System and obtained third-party
cerification, 23 suppliers have established self-testing capabilities for ten RoHS 2.0
substances, and 32 suppliers have established green product management platforms andsystemic procedures.

The Group has established a dedicated unit and dedicated personnel to collect and researchvarious environmental requirements (RoHS, REACH, and HF) from existing legislation,clients, the industry, and society. We have also formulated Supplier Environmental Protectionand Social Responsibility Commitment Forms which suppliers are required to sign as partof their commitment to Group standards for environmentally friendly products. The scopeof this commitment includes but is not limited to the Group's "Specification for Hazardous
Substances and Materials Management ESD-A0RH-001" and the environmental protection
standards of our clients. We also require our suppliers to submit the "REACH Candidate Listof Substances of Very High Concern Declaration Form" and the "Environmental Management
Substance Composition or Component Breakdown Form." Additionally, the EU RoHS 10
controlled substances directive requires suppliers to submit periodically updated thirdparty test reports for corresponding materials. We require our suppliers to establish QC
080000 Hazardous Substance Process Management System requirements and self-testing
capabilities for hazardous substances, and have also extended our material declaration and70Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Responsible Mineral Procurement Management
The Group does not directly purchase raw materials from smelters or refineries, butpurchases components that possibly contain conflict minerals. To fulfill our social
responsibilities, we avoid minerals sourced from high-risk conflict and human rights disasterareas in the Democratic Republic of Congo and its surrounding countries to reduce suppliermanagement risks. The Group has established management processes for supplierprocurement of responsible minerals and issued the "Statement on Responsible Mineral
Procurement."
The Group does not accept or use tantalum, tin, tungsten, gold, or cobalt sourced from the
Democratic Republic of Congo and its surrounding high-risk conflict areas. As part of thiscommitment, we hereby declare：
1. Suppliers are required to fulfill their social and environmental responsibilities.
2. Suppliers must ensure that the components and products provided to the Group do notcontain tantalum, tin, tungsten, gold, or cobalt sourced from the Democratic Republic ofCongo and its surrounding high-risk conflict areas.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

3. Suppliers should establish responsible mineral procurement management systems inaccordance with the OECD Due Diligence Guidance for Responsible Supply Chains ofMinerals from Conflict-Affected and High-Risk Areas.
4. Suppliers must trace the sources of minerals used in their supply chains and regularly use
the CMRT and EMRT to fully disclose to the Group the content and sources of the tantalum,tin, tungsten, gold, and cobalt used in their products. Additionally, suppliers should ensurethat they are working with smelters or refineries which adhere to the Responsible Minerals
Assurance Process (RMAP) of the Responsible Mineral Initiative (RMI).
5. Suppliers should require the same of their upstream vendors.
As a member of the RMI, the Group is attentive to updates on responsible mineral sourcing
released by the RMI and has adopted the CMRT (Conflict Minerals Reporting Template) and
EMRT (Extended Minerals Reporting Template). We conduct due diligence on our suppliers
and require new suppliers to use smelters/refineries that adhere to the RMI RMAP (Responsible
Minerals Assurance Process). Suppliers also have to sign the "Environmental Protection andSocial Responsibility Commitment" form, pledge to comply with the Group's responsible
mineral procurement policies, and submit verified CMRT reports before they can become aqualified Group supplier.

Flowchart of Management Operations for Conflict Minerals

Hon HaiFirst-Tier suppliers

Survey notif ication fromconf lict minerals system

First-Tier suppliers f ill in CMRT

Periodic tracking
NotqualifiedNotqualified

Conf irmation of supplier management team

Upstream suppliers
SurveySecond-Tier suppliers

Suppliers upload CMRT toconf lict minerals system
Automated preliminary review

Response
SurveyResponse

Raw materials suppliers

QualifiedQualified
Conflict minerals system compiles CMRT reports

Submission of compiled CMRT to clients71Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

The Group has developed a management platform for conflict minerals. All our business
units use this platform to collect, review, and compile supplier conflict minerals due diligencereports, and the data is stored and tracked over time. Platform data was used to develop a
digital dashboard used for tracking supplier usage of conflict minerals and for disclosure toend customers.
In 2022, the Group completed conflict minerals investigations for 2,002 suppliers through ourconflict minerals management platform. Supplier response rates were 100%. We compared
supplier smelters/refineries against the list of qualified smelters released by RMI, and nonRMAP smelters/refineries discovered during the course of these investigations were required
to complete RMAP compliance within a specified time limit or face elimination from our
supply chain. As of 2022, the Group has not yet discovered supplier products containing
tantalum, tin, tungsten, gold, or cobalt from conflict areas in the Democratic Republic ofCongo and surrounding countries.
The Group worked with a total of 241 tantalum, tin, tungsten, gold smelters/refineries in 2022,
all of which were included in the list of qualified smelters released by RMI. Most of thesesmelters were located in Asia：
Area

Tantalum

Tin

TungstenGold

Cobalt

Total

Asia

30

49

32

82

12

205

Europe

0

3

0

7

4

14

Africa

2

4

3

6

3

18

Australia

2

0

1

0

1

4

Total

34

56

36

95

20

241

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Environmental Compliance Management
The Group has always emphasized environmental management for suppliers and requires
suppliers to strictly abide by local environmental protection laws and regulations, establish
and maintain an effective environmental management system, and obtain ISO14001
certification. When engaging a new supplier, the Group will assess the environmental riskof its manufacturing plants and review relevant legal certification documents for supplier
manufacturing environments. If the supplier is found to have incurred zero-tolerance
violations relating to "discharge of untreated toxic and hazardous substances or materials,"
or if environmental violations are not improved upon, the supplier will lose its status asa qualified supplier. The Group conducted environmental risk assessments on 25 new
suppliers in 2022. All suppliers were found to comply with Group requirements.
The Group fully understands the importance of public monitoring for environmental
compliance relating to supply chains. Therefore, we actively collaborate with external
parties such as the Institute of Public Environmental Affairs (IPE). We use the IPE Blue
Map application to monitor supplier environmental compliance performance and provide
improvement counseling for suppliers that incur environmental violations. Violation records
are removed from the Blue Map website for suppliers following environmental reviews
and verification of rectification effectiveness. In 2022, we assisted 32 suppliers withenvironmental violations in removing their records. To protect the public's right to know about
their surrounding environments, the Group guided 148 suppliers in filling out PRTR (Pollutant
Release and Transfer Register) data for public disclosure on the IPE website in 2022.

The United States passed the "Dodd-Frank Act" in 2011 and the European Union passed the"Conflict Minerals Regulation" in 2017. Since then, regulatory supervision of conflict minerals
has expanded. Apart from use of tantalum, tin, tungsten, gold, or cobalt, ESG issues suchas human rights and environmental damage incurred during mining processes are also
receiving attention. As lithium and nickel are important materials for battery electrodes, theGroup launched a pilot plan which used the RMI Pilot Reporting Template (PRT) to conduct
due diligence on lithium and nickel use at 10 battery suppliers. We discovered that these
suppliers worked with 13 lithium smelters/refineries and 18 nickel smelters/refineries. The
Group will continue to help suppliers in encouraging these smelters and refineries to obtain
Responsible Minerals Assurance Process (RMAP) certification.

72

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Supplier Energy and Carbon Reduction Management
In response to the 1.5˚C carbon reduction initiative of the Paris Agreement, all countries
around the world have actively formulated net zero emissions targets and taken
corresponding actions. The Group actively adheres to the Paris Agreement and participatesin Climate Action 100+ by committing to net zero emissions across our value chain by 2050.
As an important component of our value chain, suppliers are required to take immediate
action to reduce their carbon emissions. The Group has therefore formulated the following
supplier net zero policies and requirements：

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

The Group has always emphasized supplier carbon reduction actions and worked with
suppliers on low-carbon pathways. We continue to build our expertise in comprehensive
management mechanisms for supplier carbon management. Continued promotion of digitalmanagement and regular disclosures of supplier carbon reduction achievements help tosatisfy client and stakeholder expectations.

⦿ The Group's Supplier GHG Management Mechanisms

1. Apart from committing to achieve net zero emissions by 2050, suppliers are required
to formulate long-term carbon reduction targets, take active and effective measures toensure that said targets are met, and meet client requirements for end clients with stricter
standards.
2. Suppliers are required to disclose third-party verified carbon emissions data and carbon
reduction achievement on digital carbon management platforms each year.
3. Suppliers are required to implement energy and carbon reduction measures (such as
installation of solar power equipment, use of renewable energies, and zero waste tolandfill operations), reduce carbon emissions, and realize net zero emissions targets. The
Group conducts appraisals of supplier energy and carbon reduction achievements, theresults of which serve as a basis for adjusting supplier transactions and eliminating poorly
performing suppliers.
4. In compliance with Group net zero policies, we have formulated a net zero pathway forsuppliers as well as promoted supplier energy-saving transformations and use of green
electricity to achieve net zero goals.

⦿ The Group's Net Zero Pathway for Suppliers

Our suppliers are required to attend our annual seminars. We have established a selfdeveloped supplier carbon management system and require our suppliers to uploadcarbon emission volumes and relevant data each year, including annual carbon emission
volumes (categorized by Scope 1 and Scope 2 emissions), carbon emissions per unit ofoutput, achievements of annual carbon reduction targets, and updated data from net zeroevaluations. Compilation and analysis of this data allows for a clearer understanding ofannual supplier carbon emissions while enhancing supplier management efficiency andserving as a reference for decision-making.

⦿ Annual carbon emissions, carbon reduction, and estimated future carbon
emission volumes of key supplier
Annual carbon emissions, carbon
reduction, and estimated futurecarbon emission volumes of key
suppliers73Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

The Group plans to assist 175 suppliers in conducting energy and carbon reduction tasks
by 2025. In 2022, the Group assisted 123 suppliers in completing carbon inventories and
59 suppliers also completed ISO 14064-1 verification. From 2021 to 2022, our suppliers
implemented carbon reduction plans, installed photovoltaic equipment, and purchased
green electricity, lowering total carbon emissions by 225,500 tCO2e.
Additionally, we predict that clean energies will become a major trend in the future anda critical advantage for suppliers seeking to achieve net zero emissions. Therefore, theGroup will actively work with suppliers to promote use of renewable energies within our
supply chain, set an example for our suppliers, encourage our suppliers to commit to useof renewable energies when producing Group products, significantly decrease carbon
emissions generated during production processes, and work with our end clients to build
a zero emissions supply chain. Our long-term aim is to have more than 45 key electronics
suppliers pledge to use 100% renewable energies to produce Hon Hai products by 2025.
We formulated the supplier "Commitment to Renewable Energies" in 2022 which was signedby 12 of our key electronics suppliers.

Promoting the use of renewableenergy by 5 suppliers (suppliers
investing in photovoltaic solar
power plants or purchasing green
certificates)

Promoting 100% use ofrenewable energy in the
production of Hon Hai products
by 75 suppliers

Pilot Phase

Phase 2

2021

2022

2025

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

We extended net zero management items to our supply chain by formulating supplier net
zero performance evaluation mechanisms in 2022, using our supplier green management
platform to conduct monthly net zero management performance evaluations on 75 key
suppliers, and continuing to enhance supplier net zero management.

⦿ Supplier Net Zero Evaluation Indicators
PolicyStatement

CarbonInventory

EnergyManagement

External Disclosureof Carbon
Reduction Policies

Third-party
Verification

Establishment ofEnergyManagement
SystemEnergysaving
Solutions

Renewable
EnergyMajor Energy-consuming Investment in Photovoltaic
Equipment Retrofitting
Systems or Green Power
Procurement

In 2022, the Group launched a pilot supplier carbon reduction program which included
preliminary carbon inventory analysis and on-site energy conservation guidance. Ourconsultants and experts provided feasibility plans for five electronics suppliers; total carbon
reductions are expected to reach 27,500 tCO2e if suppliers execute all energy conservationand transformation plans.

2030

2050

Phase 1

Phase 3

Promoting 100% use of renewable energy in the production of
Hon Hai products by 45 suppliers

Promoting 100% use of renewableenergy in the production of Hon
Hai products by 100+ suppliers⦿ Snapshot of Group's Carbon Reduction Coaching Team's On-site
Communication with Suppliers

The Group’s carbon reduction consultant
team communicating with suppliers on site74Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Promotion of Mutual Growth
Net Zero and Zero Waste Management Training Seminarfor Electronics Suppliers
The Group hosted the online "Net Zero and Zero Waste Management Training Seminarfor Electronics Suppliers" on July 21, 2022, sharing outstanding Group energy-savingtransformations and zero waste management experiences in "Zero Waste Factories." We
also announced our green supplier management policies and requirements, and invited athird party (UL) to introduce zero landfill knowledge to our suppliers. A total of 61 electronics
suppliers attended the seminar.

Supplier Carbon Reduction Achievement Conference
The Group hosted the online "Supplier Carbon Reduction Achievement Conference" on
December 14, 2022. At the conference, we introduced common carbon emission hotspots
and recommended solutions. We also invited three suppliers with novel carbon reduction
techniques that had achieved significant results to share their specific practices and casestudies. The aim of the conference was to facilitate technical exchanges and help suppliers
brainstorm optimal solutions. A total of 146 suppliers attended the conference.

75

5

Green
Solutions,
Circular
EconomyClimate Change
Environment Management System
Water Resources Management
Waste Management
Chemicals Management

Key stakeholders：
Employees
Clients
Shareholders/investors
NGOs

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Management Guidelines for Material Topics
Climate Change Responses, Energy and Greenhouse Gas Management, Water
Resource Management, Waste Management

Meaning to the Group• Following the UN's adoption of the Paris Agreement, climate change
has become an issue of focus for all governments and enterprises.
As a world-class company, the Group has a duty to lead the industry
towards a low-carbon economy and society.

Policies and Commitments• The Group proposed the 1.5ºC carbon reduction initiative, put
forward three climate targets, and continues to advance energy
and carbon reduction measures and other environmental impacts
to mitigate the impacts of climate change, thereby achieving our
responsibilities of protecting the environment and caring for theplanet as we exert our influence on global industrial chains.

Specific Actions• The Group's energy-saving target for 2022 was 4.2%. The actual energy-saving rate was 5.74%,
successfully achieving our annual energy-saving goal.
• Invested 2.37 billion NTD in 1,877 energy-saving projects encompassing transformation of energysaving production processes, improvement of air-conditioning systems/air compressors/lighting
equipment, and other improvements. Total carbon reductions were 306,204 tCO2e.
• In 2022, Group's total installed capacity reached 260.55MW，and the usage of renewable energies
reached 816.13 million kWh and renewable energy usage ratios were 8.28%.
• Optimized production processes to reduce water consumption at the source and also actively
implemented wastewater recycling procedures.
• Nanning Campus obtained UL2799 Zero Waste to Landfill Operations Platinum-Level Certificationand Shenzhen Longhua Campus obtained UL2799 Zero Waste to Landfill Operations Gold-Level
Certification and Longhua Campus is making strides toward a zero-waste campus.

Evaluation Mechanisms• Our environmental protection division conducted quarterly and annual energy reduction
evaluations to achieve our energy and carbon reduction goals.
• We conducted external audits for management systems such as ISO 14001, ISO 50001, and ISO
14064-1.
• We held management review meetings each year to discuss and track our environmental
protection targets, and communicate with internal stakeholders such as business groups andemployees to understand actual situations and facilitate continued improvements.

77Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

The UN climate change report for 2021 stated that the climate
actions adopted by various countries are insufficient forcurbing global warming. Secretary-General Guterres urged
all countries to adopt more aggressive measures to achieve
the 1.5ºC carbon reduction target proposed by the Paris
Agreement. For this reason, the UNFCCC COP26 will befocused on the 1.5ºC target.

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

The Group's three climate targets

As a global leader in the electronics technology industry, theGroup supports the goal of limiting temperature increases
to less than 1.5ºC as proposed by the Paris Agreement. In
November 2020, the Group was the first Taiwanese enterpriseto propose the goal of a net zero emissions supply chain by
2050. In January 2021, we submitted our statement of carbon
reduction commitment for achievement of the 1.5ºC target to
the Science Based Targets initiative (SBTi). In June 2021, we
joined the Taiwan Alliance for Net Zero Emission, which wascomposed of industry leaders in Taiwan, thereby exerting ourindustrial influence and leading global industries in achieving
the 1.5ºC target of the Paris Agreement as we work towards azero carbon and sustainable society.

3

Business Sustainability,
Beneficial Partners

1• Comply with NDCs or carbon
emission policies of local
gover nments where Group
campuses are located.

2• Align GHG emissions ofour value chain with theParis Agreement andrealize our goal of zero
GHG emissions by 2050.

• Respond to and act upon the three targets proposed by the Climate
Action 100+ steering committee：(1) Strengthen climate change governance;(2) Implement actions relating to GHG emissions within the Group's
value chain;(3) Provide disclosures in accordance with the Task Force on ClimateRelated Financial Disclosures (TCFD).

78

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Climate Change
The Group emphasizes the urgency of climate risk management to ensure sustainability. We have implemented Task Force on Climate-Related Financial Disclosures (TCFD) using the four main
frameworks of governance, strategy, risk management, and metrics and targets for transparent disclosures of key climate risks, opportunities, and current management. During the first phase,
we released our first Net Zero Vision Report in 2023 to detail our climate governance, strategies, risk management, and targets and metrics. During the second phase, we aim to conduct
analyses and discussions of climate scenarios, as well as quantitative financial impacts. The third phase will integrate results from the first and second phases to generate standardized forms
and processes that extend the scope of climate-related financial assessments to the whole world. We also plan to release a Net Zero Strategy Report.
Category

Item

Implementations

Governance

1. Describe board and management oversight and governance of climaterelated risks and opportunities.

The Board is responsible for supervising management of climate change issues and the
ESG-E team established under the Sustainability Committee is responsible for planning andimplementation of said issues.

Strategy

2. The short-term, mid-term, and long-term impacts of climate-related risks
and opportunities on the organization's businesses, strategies, and financial
planning.

We segregate various risk management organizations according to the duties of each functional
unit, which are responsible for relevant risk identification and assessment, and for subsequent
formulation of corresponding management plans according to the levels and priorities of identified
risks and opportunities.

Strategy

3. Financial impacts from extreme weather events and transformation actions.

For more information on the material short-term, mid-term, and long-term impacts of climate risks
and opportunities on the Group's businesses, strategies, and financial planning, please refer to our2020 Net Zero Vision Report.

Risk Management

4. Processes for identifying, assessing, and managing climate-related risks, andhow they are integrated into overall risk management.

The main financial impacts from extreme climate events and transformation actions are mainly
increases in operational costs. Please refer to our 2020 Net Zero Vision Report for additional
information.

Strategy

5. Use scenario analyses to assess the resilience of climate change risks, anddisclose relevant scenarios, parameters, assumptions, analysis factors, andmain financial impacts.

The Group has established a hierarchical risk management process based on risk levels and unit
functions. We have built complete climate risk management processes at the Group, business/
entity, and factory level according to different management levels and impacts from risk issues.

Strategy

6. Transformation plans to manage climate-related risks, including the content
of said plan, as well as metrics and targets used to identify and manage
physical risks and transition risks.

Our first phase was to incorporate the TCFD framework in 2022; for the second phase, we plan toanalyze and discuss climate scenarios, as well as quantify the financial impacts of climate-relatedrisks.

Metrics and Targets

7. If internal carbon pricing is used as a planning tool, the basis for pricing
mechanisms should be disclosed.

The Group has established the two core concepts of "clean production" and "resource
management" aligned with three major climate goals, formulating corresponding net zero andcarbon reduction management and monitoring mechanisms for our value chain. The Group is
taking gradual steps to achieve net zero through actions mitigating climate change, value chain
management, promotion of smart and green transformations, creation of emerging industries,
enhancing operational resilience, and other core concepts.

Metrics and Targets

8. If climate-related targets have been established, included activities, scope ofgreenhouse gas emissions, scheduled progress, and annual achievements
should be disclosed. If carbon offsets or renewable energy certificates (RECs)
are used to achieve targets, the source and quantity of carbon offset credits
or quantity of RECs should be disclosed.

The Group has not introduced internal carbon pricing.

Metrics and Targets

9. Greenhouse gas inventories and verifications

The Group aims to achieve net zero greenhouse gas emissions by 2050 using 2020 as the baseyear, reducing emissions by 21% before 2025; by 42% before 2030; and by 63% before 2035.

79Corporate Governance,
Smart Innovation

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Our verified scope 1 and 2 greenhouse gas emissions in 2022 were 5,738,144 tCO2e, an increase of 4.77 compared with base year 2020 (5,476,802 tCO2e), mainly due to revenue growth andeconomic expansion, which raised electricity usage and carbon emissions. However, the Group continued to be active in implementing carbon reductions and utilizing renewable energies. We
will continue to work toward net zero GHG emissions in our value chain by 2050.

⦿ Scope 1 and Scope 2 GHG Emissions in 2022
China

TaiwanUnit：tCO2e
VietnamIndia

North America

South America

EuropeTotal

Market-Based
Scope 1

208,377

1,032

975

565

7,975

1,975

1,397

222,295

Scope 2

4,909,236

196,881

236,91371,72999,0582,032

19,476

5,535,324

Total

5,117,613

197,913

237,888

72,294

107,033

4,007

20,873

5,757,620

Note：Scope 2 emissions are market based.

Due to the widespread operational scope of the Group, we are still compiling data on Scope 3 GHG emissions for 2022, and aim to disclose this information at the end of 2023. The Group hascompleted inventory of Scope 3 GHG emissions for 2021, which amounted to 28,742,200.63 tCO2e.

Scope 1

Total Emissions(tCO2e)Intensity (tCO2e/
thousand NTD)

ParentCompany

9.90

2.60E-09-

Subsidiary

222,285.10

7.87E-05

222,295

3.35E-05

Total

Verification
Institute

Scope 2

Total Emissions(tCO2e)Intensity (tCO2e/
thousand NTD)-

ParentCompany

11,217.00

2.95E-06

-

-

-

-

Subsidiary

5,524,107

1.96E-03

-

-

-

-

Total

5,535,324

8.35E-04--

Verifications

Verification
Institute

Verifications

Note：Intensities were calculated using revenues for the year and the unit used was NTD.

80

Corporate Governance,
Smart Innovation

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix⦿ Work Plan for Energy and Carbon Reduction Measures

Energy Management
We s y s t e m a t i c a l l y m a n a g e o u r e n e r g y u s e t h ro u g himplementation of the ISO 50001 Energy Management Systemand third-party verifications to identify risks and opportunities
for reducing energy use and enhancing energy efficiencies.
Additionally, the Group has formulated the "Audit Proceduresfor Energy-Saving Projects" and "Audit Procedures forEnergy-Saving Management" for continued implementationand transformation of energy-saving technologies. We arealso actively developing new energy and carbon reduction
technologies, products, and business models; exploring
our energy-saving potential; and promoting transformation
and upgrades to increase benefits. Furthermore, in line withgoals relating to global energy transformation and low-carbon
economic development, we continue to increase installation
capacity by installing and purchasing rooftop and groundmounted solar stations. We also directly purchase otherclean energies to raise our usage volumes and ratios of clean
energy while reducing GHG emissions.
At the beginning of each year, the Group formulates energysaving goals and communicates these to business subgroups.
Incentive measures are also implemented to enhance thedevelopment of energy-saving technologies in each subgroup.
The Group's energy-saving target for 2022 was 4.2%. The
actual energy-saving rate was 5.3%, successfully achieving
our annual energy-saving goal.

⦿ Achievement of Energy-Saving Targets for
2018-2022
2018

2019

2020

2021

2022

Target value

5%

5%

4.5%

5%

4.2%

Achieved value

5.77%

5.33%

5.18%

5.56%

5.74%

Key tasks

Description/requirements

Purpose/meaning

Implement
energysaving
policies andregulations

We use governmental policies and regulations as a basis
for mandatory tasks such as promoting energy andcarbon reduction measures; coordinating management;
implementing energy management plans; reporting energy
usage; obtaining certification for energy management
systems; establishing energy management centers;
auditing energy usage; formulating energy-saving plans;compiling energy-saving self-assessments, and evaluating
new, converted, and expanded energy-saving projects.

We respond to governmental laws
and policies through supervision andevaluation measures which help toimprove our credit ratings.

Promotionof green
manufacturingsystems

We continue to implement our "Action Plan for Evaluationsof Green Campus Construction Projects," promoteestablishment of key campuses, and apply for national
certifications relating to green manufacturing facilities,
green supply chains, green campuses, and green
products.

We have established green
manufacturing management systems
and applied for certifications to enhance
our corporate brand image and obtaingovernment funding and incentives.

Diagnosis
of industrial
energysaving
measures

We diagnose main processes, key energy usage systems,
key technologies and equipment, and promote technicalconsultations and technological transformations andupgrading.

Explore energy-saving potential andpromote implementation of energy-saving
measures to reduce costs and enhance
efficiency.

Action planfor enhancing
professional
skills

We host training for professional skills, job skills, andnew apprenticeships, and organize training for entrylevel workers, mid-level workers, senior-level workers,
technicians, and senior technicians.

Enhance climate change awareness in
employees and cultivate professionalenergy and carbon reduction talent.

Fullcertificationof energy
management
systems

We encourage Group entities to obtain and maintain
ISO 50001：2018 systems as well as commence
implementation of systematic energy and carbon
reduction tasks.

Improve energy management systems
to ensure long-term implementation ofenergy management mechanisms.

Executekey energysaving
projects

We focused on optimizing processes, upgrading andreplacing equipment, and installing power generators
which use renewable energies.

Reduce energy waste, improve energy
efficiency, achieve annual energy andcarbon reduction targets, and complete
government and Group evaluations ofenergy and carbon reduction targets.
81Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix⦿ Global energy consumption in 2022
Natural gas/Liquefied naturalgas (NG/LNG)

Purchased power
kWh

GJ

m3

China

8,642,255,996

31,117,721

Taiwan361,565,976

1,301,872

Vietnam

375,158,616

India
North
America

Gasoline

GJ

m3

76,658,768

2,988,090

432,584

16,862

1,350,814-

114,708,174

413,024

263,984,668

SouthAmerica

DieselLiquefied petroleum gas

Energy consumption

GJ

m3

2,240

69,5501,462

51,8210034,227,182

34

1,061

14

498

14

723

1,321,016

-

1

16

316

11,18641

2,081

1,364,097

-

-

-

-

67

2,372

131

6,566

421,961

950,516

3,162,394

123,267

101

3,136

181

6,416

298

14,972

1,098,307

39,748,119

143,119

2,400

94

10

310

106

3,757

565

28,387

175,667

Europe57,277,967

206,238

446,110

17,389

137

4,267

65

2,309

-

-

230,203

Total

9,854,699,517

35,483,303

80,702,256

3,145,702

2,523

78,3402,211

78,3591,049

52,72838,838,433

GJ

Tons

GJ

GJ

Notes：1. Heating values for all energy sources were calculated using local coefficients.

⦿ Electricity Usage in 2018-2022
Unit

2018

2019

2020

2021

2022

Power consumption

Million kWh

8,930

9,583

8,423

9,364

9,855

Energy intensity(Power consumption/
revenues)

Million kWh/million NTD

0.001690.001790.001570.001560.00148

Energy-Saving Technological Transformations
In 2022, we invested 2.37 billion NTD in 1,877 energy-saving projects encompassing
transformation of energy-saving production processes, improvement of air-conditioning
systems/air compressors/lighting equipment, and other improvements. Total energy savings
were 495,796 MWh, equal to total carbon reductions of 306,204 tCO2e.

Energy-Saving Incentive Mechanisms

Inputs

Outputs

We calculated our total investments andcommenced our energy-saving projects
Total investments：2.37 billion NTD
Total number of projects：1,877

Total energy savings：495,796
MWhTotal carbon reductions：306,204 tCO2e

Transformationof energy-saving
production processes

Invested amount：1.79
billion NTD
Number of projects：1,877

Air-conditioning
systems/air
compressors/lighting
equipment

Invested amount：440
million NTD
Number of projects：492

Other improvements

Invested amount：140
billion NTD
Number of projects：150

Total energy savings：330,306
MWhTotal carbon reductions：
203,997 tCO2e
Energy savings：83,645 MWh
Carbon reductions：78,725
tCO2e
Energy savings：38,021MWh
Carbon reductions：23,482
tCO2e

To enhance employee emphasis on climate change and internalize relevant concepts into the core cultures of each department, we formulated annual "Appraisal Items and Scoring Guidelines
for Energy Management" for use in our Chinese campuses. Appraisal items included energy management, energy reduction systems, implementation of energy-saving measures, supervision ofenergy reduction measures, and energy-saving KPIs. Detailed quantitative scores were presented for each item, and those ranking within the top three for the quarter/year and units that obtained
high scores on specific items were awarded bonuses and incentives. We provide team and individual cash rewards for outstanding energy-saving technological transformation projects that82
enhance energy efficiency. In 2022, we awarded 278,000 NTD to 4 teams and 10 individuals with outstanding energy-saving contributions.

Corporate Governance,
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Foreword

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Green Solutions,
Circular Economy

Business Sustainability,
Beneficial Partners

Social Contribution,
Win-Win Strategy

Appendix

Development and Usage of Clean Energy
Clean energy has become one of the most important international issues, and governmentsfrom all countries have formulated clean energy usage targets to reduce usage of highpollution fuels while making strides toward low-carbon energy structures. As a leader in theelectronics industry, the Group has a duty to promote low-carbon developments. Therefore,
the Group is actively increasing installation capacity by installing and purchasing rooftop

and ground-mounted solar stations, while also directly purchasing other clean energies. In
2022, our total installed capacity was 260.55 MW and we generated 289.6908 million kWh ina year. Our usage of clean energies reached 816.1311 million kWh, equivalent to 2,938,601
GJ, achieving a clean energy usage ratio of 7.67%.

⦿ Clean Energy Usage for 2022
Unit

China

TaiwanVietnamIndia

North America South America

EuropeTotal

MW259.61

0.74

0.06

-

0.1368--260.55Generated power

10,000 kWh

28,847.72

109.59

5.74

-

6.03

-

-

28,969.08

Direct purchases of clean energies at
Chinese campuses

10,000 kWh

3,139.42

-

-

-

-

-

-

3,139.42

Renewable energy certificates from power
trading and purchases of clean energies in
Chinese campuses

10,000 kWh

46,094.00

-

-

-

-

-

-

46,094.00

Purchases of other clean energies (windpower or biomass)

10,000 kWh-

236.00-1,118.85

193.68

1,798.70

63.39

3,410.62

Total clean energy usage

10,000 kWh

78,081.14

345.595.74

1,118.85

199.71

1,798.70

63.39

81,613.11

8.29%

0.96%

0.02%

9.75%

0.76%

45.25%

1.11%

8.28%

Total installed capacity of clean energies%

Proportion of clean energy usage

⦿ Clean Energy Usage Volumes and Proportions for 2020-2022
Unit

2022

2021

2020

Total clean energy
usage

10,000kWh81,61348,388104,857

Proportion of clean
energy usage

%

8.28%

5.17%

12.45%

Signed an MOU for green power procurement to achieve 50% renewableenergy usage in Taiwan campuses by 2030
The Group signed a green power procurement MOU with
Shinfox Energy. We planned to purchase 2.36 million kWh of
green electricity in 2022, then gradually increase our procured
volumes every year, and we expect to accumulate 70 million
kWh of green electricity by 2030, equivalent to around 35,140
tons of carbon emissions, the amount that would be absorbed
by 2.92 million trees. We mitigate the impacts of climate change
through practical actions.
83Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Environmental Management System
We have given priority to environmental protection principles since our establishment.
The Group has implemented and completed verification of ISO 14001 Environmental
Management Systems at all campuses starting from the construction phases, and we also
use the "Plan, Do, Check, and Action (P-D-C-A) model" to promote continuous improvements.
We confirmed environmental considerations arising from our production processes,
activities, and services; assessed all environmental considerations and their impacts on
the environment; and compared their severity and other factors through comprehensive
evaluations to ensure prior identification of major potential factors, then formulated improved
measures and operating processes that reduced and prevented the impacts from thesefactors. Additionally, we simultaneously operate environmental treatment facilities andcampus production processes to ensure that our wastewater, exhaust emissions, and wastematerials comply with local regulatory requirements. We incurred no major environmental
protection violations in 2022.
To realize our low-carbon and green manufacturing targets, we gradually implemented green
campus and green supply chain management measures into our operational locations inaccordance with green manufacturing standards in China, and were recognized as national/
provincial green campuses.

Water Resource Management
Municipal water is the main water source used in all our campuses. We do not impact surrounding water sources. Our campuses conduct reviews of water-saving plans and water facilities
each year to reduce water consumption. Additionally, we actively promote recycling and reuse of water resources, and have incorporated renewable/biodegradable components into our
production materials to effectively reduce environmental impacts of production processes. Following identification of water resource risks, we began promoting various water-saving measuresand reducing discharge of standard wastewater to achieve our goals relating to effective usage of water resources, reduce wastewater discharge, and decrease environmental impacts.
Unit：Thousand tons

China
Water
withdrawal

Discharge

Recycled water

TaiwanVietnamIndia

North America

South America

EuropeTotal

Municipal water

85,505

848

1,542

762

386

4

78

89,124Ground

2,064

-

-

-

224

58

-

2,346

water

87,568

848

1,542

762

610

62

78

91,471

Total water withdrawn

70,055

678

1,058

610

488

45

32

72,966

Domestic wastewater

13,887

293

17

-

67

-

41

14,303

Industrial wastewater

83,941

971

1,075

610

555

45

73

87,269Total discharge

4,287

-

483

67

107

-

-

4,944

Recovery ratio

4.90%

0.00%

31.30%

8.81%

17.55%

0.00%

0.00%

5.40%

Note：Domestic wastewater volumes in China, Taiwan, India, and North America were calculated using water consumption volumes multiplied by 0.8.

84Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Green Solutions,
Circular Economy

Business Sustainability,
Beneficial Partners

Social Contribution,
Win-Win Strategy

Appendix

Wastewater Management
The Group works to optimize production processes to reduce water consumption at the source. We also actively implement wastewater recycling procedures and reuse treated domestic
wastewater in production processes and environmental greening, greatly reducing our impact on external environments. Additionally, to ensure that our wastewater does not cause
environmental pollution, all campuses have wastewater treatment facilities that are regularly inspected and maintained by dedicated personnel. Discharged wastewater complies with sewage
standards and is periodically inspected by qualified external institutes. No environmental pollution incidents occurred in 2022.

⦿ Wastewater Management & Water Reuse System

Organic
wastewater

Anaerobic Anoxia

MBR
Anaerobic
Organic MBR

Aerobic

Reclaimedwater pond

Inorganic
wastewater

Carbon filter+ sand filter

Primary
precipitation

Sludgepond

Municipal
waterFirst Level
RO

RO pond

A2/0

Inorganic
MBR

Pretreatment

Secondaryprecipitation

SecondLevel RO

Third
Level ROpH
adjustment

EDI

Ultrapurewater tank

Manufacturing

Domestic wastewater

Flushing,
greening

Organic
refluxDischarge

Sludge pond85

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Appendix

Waste Management
Since the industrial age, large amounts of solid waste have been generated due to theneeds of manufacturing processes and private individuals. Waste that is not properly
disposed of can enter the soil, water sources, and the air; cause pollution to the environment;
and produce large amounts of waste that take a long time to decompose, affecting future
generations. Waste has become an environmental issue of increasing importance. Becauseof this, the Group has implemented "zero waste" policies at all key campuses in China
to gradually reduce amounts of incinerated and landfill waste, ensuring compliance withmaximum limits of 100% waste conversion rates and 10% incineration rates. Our "zerowaste" policies have become one of our most important strategies. These policies minimize
generated waste through source reduction of raw materials; we are also actively engaged inrecycling and reuse of inner and outer packaging materials which enhance waste recycling
and reuse rates.
To ensure that all waste is legally and effectively disposed of, all campuses comply withinternal waste management procedures to secure bids for waste handling. The legal
qualifications of waste disposal companies are reviewed according to open, fair, andimpartial principles. We use the above procedures to screen and select waste management
vendors with the lowest level of risk to conduct appropriate waste disposal and recordkeeping. The Group periodically audits waste disposal vendors to ensure that our waste ishandled in compliance with regulatory requirements. All waste managed by external vendors
are disposed of using legal processes.
Unit：Tons

China

Waste
categories

Disposal
methods

TaiwanVietnamIndia

North America

South America

EuropeTotal

Total hazardous waste

139,416

58

1,814

32

447

166

17

141,950

Total solid waste

433,420

1,445

31,18474,82530,392

2,628

14,567588,461

Total domestic waste

42,573

2,296

3,855

490

3,264

119

360

52,957

Total kitchen waste

29,602

160

1,842

933

2,191

357

0

35,085Landfill

6,333

0

11

475

5,957

59

243

13,078Recycling and reuse

537,576

1,224

35,97675,19929,885

2,267

13,491

695,619

Anaerobic / Composting
decomposition

27,019

119

3

559

290

420

6

28,416

Incineration

54,680

2,306

1,829

47

42

374

1,080

60,358Other(such as physical or chemicaltreatment/storage/production ofsolid fuels)

19,403

310

876

0

120

150

123

20,98286Foreword

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Healthy Workplace,
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Win-Win Strategy

Appendix

Zero Waste Factories

Air Pollution Governance"Circular economy" is a key strategy in the Group's
promotion of sustainable development and enhancementof resource usage efficiency. Our core goal is to build zerowaste campuses that implement "zero landfill" policies.
We have signed memorandums of cooperation with
UL international verification institutes and aim to build"Zero Waste Pilot Campuses" through incorporation of
Turbo Waste management systems, digital managementof waste using cloud technologies, and quantitative
systems that enable waste reduction. Apart from tracking
improvements, we have also extended these policies
throughout the entire corporation to achieve our goal of"Zero Waste Campuses," building upon our philosophyof "Sustainable Management=EPS+ESG" and setting an
example for the industry.

The Group has established comprehensive scientific air pollution management regulations. We select the best available
technologies based on the composition and characteristics of waste emissions and actively adhere to all government air
pollution management measures. We have formulated practical and feasible contingency measures, regularly maintain andimprove treatment facilities for waste emissions, and ultimately achieve waste emissions that 100% adhere to discharge
standards.

To ensure that our products and the products of ourclients meet the highest environmental specifications, wehave included our supplier partners in this memorandumof cooperation. Our central procurement and supply
chain management departments have already convened
suppliers for systematic training based on the framework
laid out in this memorandum of cooperation to enhance theirprofessional skills and technologies.
We have incorporated the Turbo Waste system into ourLonghua and Yantai Campuses for accurate tracking ofwaste processes and volumes. System response rates were100%. In 2022, our Shenzhen Longhua Campus obtained
UL 2799 Gold-Level Certification, becoming the world's firstcomprehensive eco-park. During the certification period,
our waste conversion rate was 99% and energy recovery
rate from incineration was 7%, fulfilling the criteria for goldlevel certification. In future, we will continue to increase
our conversion rates and work to achieve platinum-level
certification.

Current status of the Group's waste gas treatment
In respect of the Group's internal emissions, we initially consider the appropriate treatment method based on thecomposition, characteristics and concentration of the emissions, and finally decides on the treatment technique to be usedby taking into account the economic and practical situation.
According to the data, the activated carbon adsorption method is currently the most popular treatment method used by theGroup for the following two main reasons：
1. Most of the Group's internal emissions have already met the emission standards without treatment, so in order to further
optimize and regulate the emissions, the simple activated carbon adsorption process is usually chosen. To further
optimize and regulate emissions, simple activated carbon technology is usually chosen;
2.The activated carbon adsorption method is less costly due to a combination of economic factors and the actual situation.

Installation of automatic monitoring equipment
For example, at our plants in Mainland China, the Group strictly complies with relevant laws and regulations and cooperates
with environmental protection government agencies to install automatic pollution source monitoring equipment at theemission outlets of key pollution sources.
The installation of automatic pollutant source monitoring equipment, an automatic monitoring system capable of automatic
data monitoring and network uploading, and the timely disclosure of pollutant emission data to the community in accordancewith regulations not only fulfilled the Group's corporate obligations, but also enhanced the Group's own environmental image
and environmental credibility, as well as fulfilled the Group's corporate social responsibility to protect the environment.

87Foreword

Management of
exhaust pipes：
Scientific numbering

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

We have carried out comprehensive inventory of all pollutants
at our Shenzhen Longhua Campus and numbered all exhaust
pipes using scientific codes to ensure that all pipes have a unique
number code and are linked to our systems for timely tracking ofwaste emission concentrations. We plan to gradually implement
this framework at all campuses to form a scientific exhaust pipe
management system.
Analysis of our survey results show that the Group's main waste
emissions come from cleaning, spraying, dispensing, and othermanufacturing processes.

7%

8%
8%

Waste emission
treatment：Diverse
processes

60%

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

AppendixInnovative measures：Smart environmental protection
monitoring platform
The Group has created a smart environmental protection monitoring platform toestablish a real-time monitoring mechanism that meets government requirements
and lowers disaster risks. The platform enables centralized information monitoring,
real-time monitoring of air quality, instant notifications and feedback for abnormality
handling, risk classifications, and creation of visual maps.
The environmental protection monitoring platform is composed of a sensor layer,
a data integration layer, and decision-making layer. All three layers are intertwined
and complement each other. With the help of this smart environmental protection
monitoring platform, we are able to compile environmental protection information,
manage different classifications of environmental pollution risks, implement digital
audits and real-time warnings to reduce environmental impacts, effectively control
pollution, intelligently track carbon emissions, and display emission concentration
changes in an intuitive manner.

17%

RTO
Dosing + Washing
Ultrasonic Tunnel Cleaningotherabsorption
In order to improve the treatment efficiency of waste emissions,
Enhancing treatment we implement multi-stage treatments for different processes using
composite treatment measures that can be adjusted flexibly based
efficiency：Multistage processing
on the components of different waste emissions for better adaption
to actual emissions treatment conditions.

88Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Chemicals Management

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Assessments and Verification Implementation Management Regulations" to incorporaterisk controls throughout our product life cycles and provide comprehensive protections
for safe chemical usage to manufacture safe and reliable products.

Employee health and safety is the foundation of the Group. We strictly abide by chemicalsafety regulations of all local governments and client requirements
related to restricted substances. We monitor all processes and adhere
to the five-noes principle of "no design, no procurement, no inputs,
no manufacturing, no outputs." We classify and manage chemical
substances used in production and operational processes, and work
to minimize reductions, control, and eliminate impacts of hazardous
substances on employee health and safety as we move toward ourgoal of "zero hazards and zero pollution."
ChemicalNo chemical leakages or other related incidents occurred in 2022.

Healthy Workplace,
Safety AdherenceManagement
Policies

Chemical Management Regulations
The Group strictly abides by 23 international regulations and national standards in China,
including the EU Restriction of Hazardous Substances in Electrical and Electronic Equipment
Directive (RoHS); EU Registration, Evaluation, Authorization, and Restriction of Chemicals(REACH); POPs Regulation; Toxic Substances Control Act (TSCA); AfPS GS 2019：01 PAK(PAH); California Proposition 65; Limits for Volatile Organic Compounds Content in Cleaning
Agents; Limit of Volatile Organic Compounds Content in Adhesive, and 23 projects ofChinese national standards.
To effectively control chemical usage, the Group has established a Chemical Management
Committee to coordinate chemical management tasks within the Group, including：• Dynamic adherence with environmental protection/health laws and regulations/standardsof different countries as well as regular review of compliance with chemical regulations sointernal regulations can be updated in a timely manner.

• Formulated and released prohibited, restricted, and controlled chemicals lists.
• Conducted comprehensive inventory of all chemicals used in production processes,
non-production processes (including wastewater management, operating equipment
and facilities, cleaning procedures, and so on), and laboratories, and implement unified
management of chemical purposes, usage volumes, types, hazard levels, and content
information.
• Established an audit team which conducts annual audits of chemical usage andreplacement conditions in all campuses around the world (no fewer than three audits ayear for Chinese campuses, no fewer than one audit a year for European and American
campuses, and no fewer than two audits a year for other campuses), closely monitors
implementations by all units, ensures compliance of chemical usage, records noncompliance and hidden danger items in our electronic management system, requires
corrections within specific time limits, and conducts reviews following said time limits.
Established "Chemical and Substance Control List" based on related regulations, client
requirements, and the Group's self-conducted risk assessment results.
• Inclusion in the Prohibited List：immediate phase-out• Inclusion in the restriction list：confirm whether the restriction conditions are met, andreplace if not.
• Inclusion in the control/monitoring list：to strengthen the use control and gradually
implement the phase-out plan

We have identified 100% of the chemicals used, proactively managed hazardous substancesand deployed elimination plans in advance for substances under restriction/monitoring. In
addition, we will regularly disclose the "Hazardous Substances Improvement Checklist" on
the Company's official website.

• Active responses to client proposals regarding chemical substance management thatexceed legal regulations to ensure that our products adhere to client requirements.
• Formulated a series of internal bylaws, including "Specification for Hazardous Substancesand Materials Management," "Chemical/Substances Management System Regulations,""Chemicals/Substances Registration Management Regulations," "Chemicals/Substances
Risk Assessment Regulations," "Chemicals/Substances Classification and Management
Regulations," "Chemicals/Substances Replacement Management Regulations,""Hazardous Chemicals Safety Management Regulations," and "Process Safety89Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Hazardous Substances Replacement Progress andAchievements in 2022
Improvement methods include substance replacement (using no/low-hazard substances toreplace high-hazard substances) and process changes, including
Replaced
Substances

Replacement Achievements

Completion Time

Paint remover

Dichloromethane is harmful to human health

Fungicides

Fungicides used for wastewater treatment contain PCP,
which is harmful to human health

April 2022

Used FSA-C-03
detergent to replace
FSA-C-01

Cleaning processes use detergents that contain boron,
which can poison humans if accumulated. We therefore
replaced these agents with boron-free FSA-C-03.

April 2022

Used FTY-C01
surfactant to replace
Ram-HZThe surfactant used for anode processes contained theSVHC substance polyoxyethylene ether. We therefore
replaced it with the non-SVHC surfactant FTY-C01 tolower exposure risks of anode personnel and reduce
environmental pollution

November 2022

Replaced BTEX
chemicals

Our PCBA processes use the UV glue PC-40 whichcontains toluene and xylene, substances that are harmful
to human health. We therefore replaced it with NG T7 toreduce occupational health hazards.

April 2022

Used EC326
detergent to replaceacetoneDispensing stations use acetone (a class A or B,
flammable, and explosive substance with a low flash
point) for cleaning, which carries a high explosive risk. We
therefore used EC326, a class C non-flammable detergent,
to replace this class A/B detergent.

May 2022

Used a copper surface
micro-etching solution
to replace sulfuric
acid and hydrogen
peroxide mixture

PCB pre-processing procedures use sulfuric acid, a highrisk precursor chemical, which we replaced with a copper
surface micro-etching solution which contains 15% sulfuric
acid, greatly lowering risks compared with the original
formula.

September 2022

Used carbon dioxide
foaming machines
to replace ST-710
detergent

Used eco-friendly carbon dioxide foaming machines toclean production materials, replacing ethylene glycol
ether solutions, resulting in no solvent residuals and nosecondary pollution.

October 2022

Healthy Workplace,
Safety Adherence

Green Solutions,
Circular Economy

Business Sustainability,
Beneficial Partners

VOC Reductions

Social Contribution,
Win-Win Strategy

Appendix

Reduction Achievements

Replacement of flux
agentsUsed the methanol-free F6812 flux agent to replace EF-6103,
lowering methanol content from 38.1% to 0%.

Lowered VOCs incovered production
lines

Ink production requires A/B agents with respective VOC emission
rates of 8.7% and 3.3%. We replaced these agents with waterbased UV eco-friendly inks, lowering overall VOC emission rates
to 3.7%.

Used cutting fluid toreplace cutting oil

Replaced flammable, oil-based cutting oil used in CNC
processing procedures with non-flammable, water-based cutting
fluid to eliminate fire hazards and reduce VOC emissions, andpromoted use of this agent to all campuses with CNC processing
procedures.

February 2022

Chemical inventory results over past three years：
Year

Production
use/tons

Non-production
use/tons

Laboratory use/
tons

Total
usage/tons

2020 年///

106,556

102,061

35,59822

137,681

92,312

44,766

66

137,1442021 年2022 年

Note：The figures for 2020 only included data from China; figures for 2021 and 2022 included global data.

VOC Reduction Actions in 2022
We formulated reduction plans for VOCs used in production processes (detergents, coating
agents, adhesives, and inks) and promoted use of water-based detergents, water-based
coating agents, UV coating agents, hot-melt adhesives, UV inks, and other eco-friendly
solvents. We encourage use of solvents with environmental certification labels to reduce
generation of VOCs at the source, including

In February 2023, the EU released an amendment to the POPs Regulation which
included PFHxS in Attachment I, Section A of said Regulation. This amendment
would take effect 20 days after being passed, and would increase the numberof POPs prohibited/restricted substances from 28 items to 29 items. The Group
completed inventory of raw materials in March 2023, meeting these regulations
ahead of schedule.
ECHA officially released the 28th batch of 9 SVHC items on its corporate website in
February 2023. We will continue to track and keep informed of regulatory updates,
and incorporate these new substances into the Group's existing list of controlled
substances.

90

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Source Management：Green Chemicals
The Group collaborated with clients to increase transparent disclosures of chemicalcomposition and safe chemical usage. Starting from the end of 2020, we began collecting
information on process detergents/degreasing agents and SDS certifications from ourcomponent vendors to conduct evaluations based on GreenScreen® and the US EPA Safer
Choice Program for selection of eco-friendly chemicals to use in our production lines.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Case StudyIn March 2022, the Group initiated the "Green Chemical" project at the Chengdu
Campus and conducted comprehensive investigation and composition analysis of allseven detergents and degreasing agents used in a product process, then assessed
their impacts on human health, the environment, and safety. The project lasted foreight months (including the introductory technical verification stage), following which
we replaced one anode cleaning and degreasing agent with a safer and green
chemical agent (HW-10104), which was officially introduced into production process
in November. (This chemical agent passed campus evaluations, and can also be
used for stamping and CNC cleaning processes.)⦿ Project Implementation Schedule

Detergent/degreasing
agent confirmation

Detergent/degreasing
agent screening andassessment

Compositions and ratios list
1 SDS (Safety Data Sheets)
2 TDS (Technical Data Sheet)
3 Third-party component
testing reports(Note: We sign NDAs with
suppliers if confidential
formulations are involved andalso provide composition lists toclients)

Adheres to specifications
1 Client controlled substancespecifications
2 Local regulated limits on
VOCs (GB 38508-2020)
Assessment methods
1 GreenScreen®
2 EPA Safer Choice Program▲▲

On-site surveys and collection of
the following information:
1 Detergent/degreasing agent
types
2 Chemical manufacturer
information
3 Process information:
Techniques and methodologies

Disclosure ofchemical safety
information

Incorporate green
chemicals into
production
processes
1

2

Chemical composition andphysicochemical properties
adhere to process
conditions.
Confirmation of production
yield and use conditions.

91Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Management of Hazardous Substance Life Cycles
1. Design

2. Procurement

3. Registration

We adhere to green design concepts and comply with the "General
Guidelines for Product Eco-Friendly Designs" and "General
Guidelines for Eco-Friendly Product Design Evaluations." Our ecofriendly product designs adhere to the four main requirements of"harm-free, energy-saving, waste reduction, and easy to recycle."
During the product design and development stages, we systemicallyconsider the environmental/health impacts of all stages fromselection of raw materials, production, sales, use, recycling, andtreatment; minimize use of materials containing toxic and hazardous
substances; reduce generated and discharged pollutants; and strive
to minimize product environmental/health impacts.

To ensure "no procurement" of materials with hazardous substances,
the Group formulated the "Green Procurement Management
Manual" and "Supplier Management Manual," and also used ourhazardous chemical management platform to incorporate green
product management requirements into all supplier management
processes.

The Group adhered to the "Global Chemical Unified Classificationand Labeling Regulations," "Chemical Classification andManagement Manual," and "Guidelines for Registration of
Existing Chemical Substances," and other industry standards/
regulations in formulating our internal "Chemicals/Substances
Registration Management Regulations" and we also referenced
RoHS, REACH, TSCA, POPs, and other international chemical
control regulations to formulate the Group's controlled chemicals
lists (prohibited substances list, restricted substances list, andcontrolled substances list). Chemicals that enter campuses arestrictly reviewed, classified, and managed, and we also establish
corresponding disposal processes.

4. Assessment
We have established the "Chemicals/Substances Risk Assessment
Regulations" and require all units to form professional risk
assessment teams composed of members from the industrial safety
management, production, and product development departments.
We conduct at least one comprehensive risk assessment of all
chemicals each year and adopt corresponding control measures
based on risk grades to maintain risks within acceptable levels.
We determine hazard groups, dispersion conditions, and usageof existing chemicals to confirm risk grades and corresponding
management methods. New chemicals are required to undergo
the procedures listed in the "Chemicals/Substances Registration
Management Regulations" to confirm that they comply with theGroup's controlled hazardous substances list, following which we
conduct risk assessments.
Risk levels
Grade 1
Grade 2

Grade 3

Grade 4

Management Measures
Overall air exchange procedures; access control
for non-essential personnel
Process controls such as partial air exchanges/
ventilation; access control for non-essential
personnel
Segregation, including containment processes,
planning of operational spaces, area identification;access allowed for trained essential labor
Reference occupational safety management
documents established by the International
Labour Organization or other countries, andestablish specific management methods
complying with expert guidanceNote：Grade 4 chemicals have been included in the Group's "Controlled
Chemical Substances List"

The Group has formulated supplier environmental protection
and social responsibility commitment forms which suppliers are
required to sign as part of their commitment to Group standards forenvironmentally friendly products. We also require our suppliers to
submit the "Environmental Management Substance Composition
or Component Breakdown Form" and declare the hazardous
substances contained within products or components. EU RoHS
10 controlled substance directives require suppliers to submit
periodically updated third-party test reports for corresponding
materials, which must also pass Group verification.

5. UseWe register all chemicals used in production and non-production
processes to manage their hazard characteristics. New or updated
chemicals with uncertain hazard properties are required to undergo
comprehensive safety assessments; classification, labeling, andsegregated management of eco-friendly materials and equipment;
and compliance confirmation of hazardous substances to prevent
production of non-eco-friendly products.
Operational sites for hazardous chemicals reference relevant FM
standards, and we have established special storage cabinets andanti-leakage measures. Chemical use strictly adheres to standard
operating procedures, and we have established emergency drills
and on-site disposal plans to ensure employee health and safety.

6. Outputs
The Group has established a large-scale testing institute with 24
professional laboratories in different fields and 8 branch institutes.
Our chemical analysis laboratory is responsible for testing andverification of hazardous substances. The lab is equipped withmore than 50 types of chemical analysis equipment (including
ICP-MS, ICP-OES, GCMS, PYGCMS, and LCMSMS equipment).
The lab obtained CNAS certification in 2006 and also has testing
capabilities for RoHS2.0, REACH, halogen, VOCs, and otherhazardous substances.
Since its founding, the lab has completed more than 500,000 testsof hazardous substances and assisted business units in monitoringchemicals used in all processes from material selection, material
inputs, manufacturing processes, finished products, wastewater,
waste emissions, and treatment of solid wastes to protect the healthand safety of personnel working on Group materials, products,
and waste, and also to ensure that all processes adhere toenvironmental requirements.
The Group has initiated inventories of materials used in end
products. In 2022, 100% of products adhered to RoHS controls,of which 94% have obtained testing reports and 6% of products
adhere to client requirements. Additionally, 100% of products
adhere to Group REACH controls, of which 17% have obtained
testing reports, 16% adhere to client requirements, and 67%
have submitted applications to be verified for non-hazardous
substances. Furthermore, current information and data obtained
from our business groups confirm that Group products contain lessthan 0.1% of SVHC substances. Detailed inventory reports andproduct SVHC information have been released on our corporatewebsite.

92

Foreword

Corporate Governance,
Smart Innovation

IECQ QC080000 Hazardous
Substance Process Management
System Requirements
The Group used ISO9001 as a foundation for promoting
establishment of the IECQ QC080000 Hazardous Substance
Process Management System Requirements, ensuring thatmanagement of all hazardous substances used in products
from client proposals to finished goods have been controlled,
enabling us to achieve Hazardous Substance Free (HSF)
status.
As of the end of the reporting period, the Group's 26
subsidiaries have obtained IECQ QC080000 system verification,
and we continue to promote this management system at ourother subsidiaries.

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Chemical Safety and Technical Data Sheet Review
To ensure effective and accurate audits of chemical information, the Group requires suppliers to submit REACH SVHC
declaration forms, environmental management substance compositions, and component forms, as well as complete andcorrect chemical SDS documents. Suppliers are also required to undergo third-level audits for specific items conducted bybusiness group product development departments, business group industrial safety departments, and the Group's central
industrial safety department. We use information technologies to collect/review chemical SDS documents, accurately grasp
chemical hazard properties and compositions, and provide data to support graded management of chemicals. The Grouprequires suppliers to update SDS documents once every three years (or within a month if substance classification labelschange) and undergo third-level audits conducted by business group product development departments, business groups,
and the Group's central industrial safety department prior to initiating use.
The Group is also developing an SDS digital collection platform which used the same material numbers as our procurement
systems, allowing us to keep informed of all material compositions and hazard properties.

Personnel Cultivation and Corporate Culture
To strengthen employees and contractors understanding of chemicals, the Group formulates detailed training planseach year and continues to invest in chemical safety training for employees and contractors encompassing green
material management policies, client requirements, and implementation requirements for the latest laws and regulations.
We organized 724 hours of training associated with chemicals in 2022. We also organize at least two annual chemical
emergency drills each year as well as training on personal protective equipment for on-site vendors and contractors withchemical exposure risks.

93

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Improve Innovation Evaluations and Promotions

External Collaborations to Strengthen Industrial Actions

We encourage all units to actively replace/reduce use of hazardous substances andenhance management of hazardous substances. The Group has established incentive andassessment mechanisms based on professional, technical, and promotional indicators. In
2022, we received 63 outstanding innovative improvement proposals from our campusesaround the world and distributed 46,030 NTD in rewards. Outstanding cases were sharedwith all units worldwide.

Collaborations with External Industry Associations

Improvement Proposals
Replacing alcohol with UV sterilizers to clean IC chips
Some products require IC surfaces to be cleaned before coating. Currently, cleaning
processes are implemented manually using paper towels and alcohol. However,accidents occur easily as alcohol is flammable and explosive. We use UV sterilizers andultraviolet cleansing in accordance with product quality needs to reduce risks of ignitionand explosion, use of chemicals, and even manufacturing costs. We estimate that wesave 770,000 NTD each month in manpower and material costs, amounting to a total of
9.24 million NTD each year.

UV furnace

before improvement
artificial alcohol test

In addition to pioneering use of green chemicals, the Group also actively cooperates
with external industry associations to establish industry standards based on our own
experiences. In March 2021, we were invited by our clients to work with other international
enterprises and the IPC in formulating the Standard for Green Cleaners Used in Electronics
Manufacturing (IPC-1402), which was released on November 1, 2022. The new standard ismainly focused on regulation of detergents/degreasing agents and cleaning chemicals usedin electronics manufacturing processes, providing a standard that adheres to environmental,
health, and safety requirements.

Online Supplier Seminars
In June 2022, the Group's General
Procurement Division convened the"Green Product Management Conference,"
guiding 276 Group suppliers in organizing
systemic training on chemical regulations.

In March 2022, the Group invited 64
suppliers to participate in the "Green
Supply and Sustainable Development
Policies and Requirements Conference" topromote the Group's carbon neutral, zerowaste, and green product policies andrequirements.

Improvement plan
UV furnace ultraviolet disinfection
instead of artificial alcohol wiping

Reductions of cleaning chemicals for molds
Chemicals are used for routine mold repair, maintenance, and cleaning. Due to thelarge quantities of molds involved, we use large amounts of chemicals which impact
operational environments and endanger personnel health.
We therefore implemented oil-free lubrication technologies. Mold components are madeof high-strength copper alloys and graphite materials rather than high-carbon chromium
bearing steel materials. The surfaces of thimbles and other moving parts are covered withtitanium coating to enhance wear resistance and eliminate the need for oiling during use,
thereby reducing monthly chemical usage volumes from 36 bottles to 2 bottles, achieving
a reduction rate of 94.4%.
946SocialContribution,
Win-Win
Strategy
Support for the Disadvantaged
Technology Education
Sports Sponsorship
Community Engagement andContributions

Key stakeholders：
Employees
NGOs
Media

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Management Approach

Meaning to the Group• The Group believes in "caring for local communities to build a hopeful future." In
the spirit of giving back what we have taken from society, we have participatedin many social welfare activities, and look forward to facilitating the creation of asociety for the common good, in which everyone can enjoy a safe and prosperous
life, and work together to build a sustainable future.

Policies and Commitments• The Group believes that "life knows no limitations" and therefore works to integrate
Group resources and deploy the core capabilities of our innovative technology
manufacturing business, support education efforts for disadvantaged groups,
provide resources for rural areas, strengthen the foundations for the Group's
technology education programs, promote innovation and multidimensional
development, and sponsor sports activities in order to fulfill the social
responsibilities of the Group.

Specific Actions• The Group is focused on axis items which include suppor t for the
disadvantaged, rural education, technology education, multidimensional
education, sports sponsorship, and giving back to the community with individual
projects for each item.

Evaluation Mechanisms• We host annual management review meetings. Following discussions withcollaborating partners and relevant social welfare units, we incorporate internaland external feedback into our reviews to refine subsequent events, and discuss
effective ways to deploy resources and expand the depth and breadth of oursocial influence.

96Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

AppendixSocial Influence of the Group
Examine Internaland External
Needs

Assess theProfessional
Capabilities andResources of theGroup

Axis Items

Targets

Social Influence• In 2022, the Foxconn Scholarship Program awarded a total of 54.78 million NTD to 2,000 students to assist themin their studies.

Support for the
disadvantaged• UnitedNations
Sustainable
Development
Goals(SDGs)• Hon Hai
Sustainable
Management
Policy• Actual needsof society

Increase educationlevels for disadvantaged
groups to assist them intapping their unlimited
potential and in moving
forward with their dreams
and aspirations.

• In 2022, the Taiwan Hope Primary School tutoring classes for disadvantaged students provided instruction foraround 5,000 people.
• Organized after-school classes and English classes for disadvantaged students with hearing impairments.
• Organized the Word Therapy Program to assist wayward youth at Hsinchu Chengjheng High School, helping
them to find strength through words as they explored their inner needs.
• Supported the Jiamei Care Association and provided multiple learning channels for junior high school dropouts,
helping them obtain certificates, return to school, and advance to high school.
• Supported the Agape Love and SST Caring Program for Youth in helping to provide placements and care fordisadvantaged students with dysfunctional families and psychological trauma.
• Supported the Silver Grass Cultural and Creative Association charity tour and the KIST intensive summer English
course to provide learning resources for disadvantaged children.

• Total funding of
118 million NTD
in 2022• Regular annual
reviews of all
projects forcontinuous
optimization andimprovement

Technology
Education

Support forSportsSocialContributions

Provide advance
preparation for novel
technology education
based on global trends
observed by the Groupto strengthen the sciencecapabilities of the next
generation.

Provide systematic
long-term training tocultivate outstanding
young athletes who cancompete on a global
stage.

Contributed tosurrounding communities
in the spirit of giving backto society.

• Organized the Foxconn Technology Awards to cultivate more technology talent, awarding 18 winners with 250,000
NTD each and an internship at the Group.
• Organized a series of AI themed activities to strengthen urban and rural AI education standards, including seedteacher coaching camps, training camps for rural junior high schools, promotion of high school micro-courses,
and AI interactive technology platforms.
• Published Studious League：Quantum Crisis, the first quantum manga in Taiwan, and hosted a camp for highschool students to lay the foundation for quantum education in Taiwan.
• Organized multidimensional local and international competitions that received wide acclaim to cultivate thetemperament and skills needed to face future challenges.
• Supported the Yucheng Senior High School Boxing Team and facilitated the cultivation and training of more
outstanding talent. Continued to implement our 10-Year Table Tennis Seed Project to support Team Taiwan
athletes.
• Achieved a stellar record of medals and awards in international competitions.

• Focused on communities around Group campuses and organized 6+1 (cleaning assistance, disability assistance,transportation assistance, medical assistance, learning assistance, legal assistance, and happiness projects)
community activities.

97Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Support for the Disadvantaged

Goals of the Group

Solutions Provided by
the Group

According to statistics from the Ministry of Health and Welfare, more than 650,000
people across Taiwan are listed as being from low-income or middle-low-income
households, and there are many other borderline families that are unable to receive
governmental support as they do not meet certain criteria. Besides these economicallydisadvantaged groups, there are other disadvantaged parties that need help due
to disabilities or dysfunctional families. In light of this, the Group seeks to provide
resources to assist these disadvantaged groups in overcoming their difficulties andrealizing their aspirations.

The Group works to provide assistance directly to those in need, as well as support
local front-line groups to help disadvantaged groups overcome the limitations imposedby their economic situations, physical or mental disabilities, or family situations, andassist them in moving forward with their dreams and aspirations.

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Agape Love and SST Caring for Youth Projects
The Taichung Municipal Shan-Shui Primary and Secondary School is the firstresidential placement school among the newly established alternative education
schools in Taiwan, and specializes in the care of students who dropped out ofschool due to dysfunctional family situations (single-parent families, skippedgeneration families, or other disadvantages), or students unable to receive
adequate care due to single-parent or intergenerational upbringing, leading to a
detrimental impact on learning. Students live and study at the institute, and are
guided in returning to conventional schooling as soon as possible. It is necessary
to hire professional counselors to provide year-round professional psychologicalcounseling and help for these traumatized and high-risk students.

Silver Grass Cultural and Creative Association
Charity TourThe Group supported the Silver Grass Cultural and Creative Association's charity
tour of rural regions lacking in art and cultural resources. For many children inrural areas, this was the first arts performance they had seen, which opened up
their imaginations and created endless possibilities. In 2022, the Silver Grass
Cultural and Creative Association performed 37 shows around Taiwan, including
at rural elementary schools in Orchid Island, Green Island, Kinmen, and Penghu.
The total number of spectators reached 2,341 people.

KIST Intensive Summer English Course

Contributions to the
SDGs by the GroupWe collaborated with the KIST Chengzhi Education Foundation to organize
summer English workshops at four junior high schools. All participants camefrom low-income, single-parent, or skipped-generation families. In 2022, a
total of 62 disadvantaged schoolchildren from rural regions received one-onone online English tutoring and presented a self-produced talk show in English
at the end of the semester. These students had no one at home to help themwith their schoolwork and found it hard to keep up in class. Their fundamental
English abilities were also poor compared with their urban peers, so theyurgently needed to attend remedial classes during the summer. The Grouphelped these disadvantaged children so that they were no longer afraid oflearning English. After the intensive summer English course, 98% of students
stated that their English had improved.

98Foreword

Corporate Governance,
Smart Innovation

Foxconn Scholarship Program
2022
recipients

2,093
students

Total award
amount in 2022

54.78 million
NTD

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

5,062
students

Cumulativeaward
amount

NTD

College students(Whale)Legend has it that whales of a particular species are the loneliest whalesin the world, because their calls are at an unusual frequency of 52 hertz
that is higher than that of other whale species, and thus they cannot
be heard by other whales. Even so, these whales continue to breachand call in the hope that they can be seen by the world and that thefrequencies of their dreams and aspirations will be heard.
This is why the Group chose to name the scholarship program theFoxconn Whale Scholarship Program, as it represents the "whale" as wellas the "ocean" concept contained in the Hon Hai name, providing deeper
meaning to the scholarships awarded by the Group. Every student has awide ocean that they hope to explore, just like the whale, but some mayfind it challenging to proceed with their explorations due to their family
environments. In light of this, the Group is willing to support them in theirbrave efforts to forge ahead, pursue their dreams, and conquer the blue
oceans before them.
SDG1 and SDG4 are the key focus areas for the Foxconn Whale
Scholarship It aims to assist economically disadvantaged young students
in pursuing their education with peace of mind and concentration. Hon
Hai does not restrict eligibility based on government-issued certificates
for low-income or middle-to-low-income households. Instead, if there isa fair third-party recommendation to assist with certification, Foxconn
Whale Scholarship is open to accepting applications.

Social Contribution,
Win-Win Strategy

Appendix⦿ Quadruple Significance Levels of the Foxconn Scholarship Program

230 million

Naming and origins of the Foxconn Whale Scholarship
Program：

Green Solutions,
Circular Economy

In 2022, we expanded the scope and reward amounts for the sixth year of the Foxconn Scholarship Program,providing support for more targets, expanding our scope, and increasing our reward amounts. Elementary
school, junior high school, and high school students can now apply for our scholarships, and we increased thenumber of recipients to 2,093 people a year from several hundred people a year. Total scholarship amounts
increased from 40 million NTD to 54.78 million NTD, making us the biggest scholarship program in Taiwan.

Recipients

Cumulative
recipientsBusiness Sustainability,
Beneficial Partners

elementary, juniorhigh, and high schools
Students(Junior whale)

Foxconn
Scholarship
Program

1. Not simply giving fish

2. Bringing together
comrades3. And providing ameans to set sailWe provided
scholarships to reduce
the heavy financial
burden of students,
allowing them to reduce
part-time work and focus
more time and effortson their studies anddreams.

Set up Facebook andLINE groups：We set up
Facebook and LINE groups
for college recipients sothat they could share theirthoughts with others who
understood them andassist each other as they
pursue their dreams.

Provided linkages withscholarship judges
and resources acrosssociety, including priority
enrollment at Foxconn andother renowned brands,
giving recipients morechances to sail toward theblue oceans.

Enabling secondaryand elementary school
students to enjoy normal
school lives withoutworrying about money

Organized motivational
sharing sessions forelementary and secondary
school winners, enhancing
the courage andconfidence of scholarship
recipients, and helping
them become self-reliant in
futureSecondary andelementary school
students successfully
pursue further
education, explore
opportunities, chasetheir dreams, andconquer new frontiers.

Click to view the Foxconn Whale
Scholarship Program video99

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Hon Hai Starlight Program
There are many disadvantaged children in Taiwan who are alone in their homes after school,or who are home with adults that cannot offer them guidance with their homework, which
can cause them to fall behind in their studies and eventually give up studying. To help thesedisadvantaged children with their schoolwork so they could turn their lives around througheducation, we launched the "2022 Hon Hai Starlight Program."
The Starlight Program has two major features. Firstly, it supports locations for after-schoolclasses so that disadvantaged children have a place to go after school where they caneat dinner and obtain help with their schoolwork. Secondly, we provide "one-on-one online
tutoring" as children who are behind in their studies often do not understand what they
are being taught in class but are too afraid to ask questions. These dedicated one-on-one
teachers let the children ask as many questions as they needed, filling knowledge gaps
before furthering their understanding. This program provides disadvantaged children with
exclusive tutors so they can change their lives through education and realize their dreams.

ProblemVulnerable families often have economic
problems or are dysfunctional,
and cannot care for these children or send
them to after-school centers or cram schools

SupportPhysical free after-school classes
for disadvantaged children

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

The 2022 Hon Hai Starlight Program worked with 17 after-school care units in seven regions(Hualien, Taitung, Keelung, New Taipei City, Changhua, Yunlin, and Kaohsiung), assisting
228 disadvantaged elementary and junior high school students in 2022, including 116
schoolchildren who participated in online one-on-one tutoring.
Online classes often lack warmth and require familiarity with technical controls. We
therefore organized a meet-and-greet activity prior to the classes so that the teachers andstudents could establish emotional connections through face-to-face interactions. We also
set up online after-school groups and teacher groups for each location, facilitating timely
communications regarding the children between online and offline teachers. These groups
also provided a platform for teacher sharing and support.

These children have low learning motivationand do not know how to learn
Lack of manpower in after-school classes for
disadvantaged children make it difficult forteachers to attend to students with special
needs
One-on-one online tutoring

Tutoring

Lifecoaching

Personalized
remedial
tutoring

Exclusive
companionship

Description

Provide a safe
and caring
after-school
space as well as
dinners for
disadvantaged
childrenSupervisechildren incompleting
schoolwork andhelp them with
their work

Diverse classes tocultivate reading,music, sports, andcharacterdevelopment
abilities

Provide personalized
tutoring to “fillknowledge gaps, thenadvance understanding”
based on the needs ofthese children

Exclusive
companionship, carefor children, andestablishment ofrelationships built on
trust

Support andcomplement
family functions

Help children
keep up with
their studies

Help children
build diverse
knowledge
capabilities andpositive values

Strengthen
knowledge
foundations forweaker subjects andhelp enhancelearning
effectiveness andwillingness

Enhance learning
motivations andself-confidence

Targets

Measures

After-schoolcare

Starlight
Program Video▲ Meet-and-greet event：2022 Starlight Meet-and-Greet

We encourage online students to study diligently and have established learning targets.
Students with perfect attendance, score improvements of 20 points or more, or those who
rank at the first or second place in their class are given award certificates and scholarships
after final exams to motivate them to work harder and maintain their good grades. Apart fromdonating funds to tutoring locations, we also invited volunteers from Hon Hai to serve as
online tutors.
Of the 116 students who received online tutoring, 22 students achieved score improvementsof 20 points or more on a single subject. Not every child displayed dramatic changes in theirscores, but most children felt that they had made progress.

100Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Achievements-Children (101 schoolchildren)
Proportion of children
who felt that theirgrades on a subject
had improved

Chinese 66%

English 50%

Mathematics 71%

Attitude

I like online
tutoring 88%

I like my online
tutor 92%

I have become moreinterested in learning
77%

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Feedback from both students and teachers strengthened our belief that everyone has
unlimited potential. The children did not know how to change, but were able to change dueto the care we provided. We hope that the opportunities of these children are not limited bytheir family situations. The Starlight Program aims to help all disadvantaged children achievebright futures.

Cards handwritten by children in this program：Cards & videos of online tutoring

We invited external experts to host teacher training and empowerment courses from time
to time to supplement the professional knowledge of online and on-site teachers, and also
explain teaching methods and coping strategies. Every semester, we organize sharing
sessions between on-site and online teachers which reinvigorate teachers, enable them tolearn from each other, and utilize different teaching techniques in the classroom.
Many on-site teachers stated that it is difficult to recruit new teachers in rural areas, andtherefore one-on-one online teaching resources helped to lighten their workloads and stress,
enabling them to focus on the physical needs of younger or special children who require onsite assistance.

⦿ Teacher Feedback

75% Online tutoring

helped the children feel
more confident

79% Online tutoring

helped the children withremedial learning

79% The children
enjoyed online tutoring

88% Online tutoring was▲ Online tutoring classes

Starlight
Program Video

beneficial in enhancing
learning motivations andattitudes101Corporate Governance,
Smart Innovation

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Taiwan Hope Primary School
Taiwan Hope Elementary School was founded more than ten years ago to help schoolchildren
overcome their environmental limitations by building upon past experiences in combination
with new frameworks to provide a dual-track tutoring system that encompasses social
workers and educators. Our professional after-school team includes tutors, social workers,
and educators who provide long-term and stable tutoring and companionship to aid learningin these children. This learning process not only helps the children progress in their studies,but also provides diverse extracurricular educational environments through peer interaction,teacher-student relations, and participation in activities, achieving education equality,
popularization, and diversity.

NTUE branch
National Taipei
University of Education

14 branchschools

NITA Branch-New Taipei
Teachers' Association

Cooperating
Organizations

NCU Branch
National Central University

Universities and organizations with

Yilan Branch
National Ilan
University

education, social work, andpsychology departments in Taiwan

Scope of Service
Elementary schools within 40
minutes drive from the branch
campus

Accumulated
Elementary Schools
380+ schools

NCHU Branch
National Chung
Hsing University
Yun Tech Branch
National Yunlin Universityof Science and Technology

NDHU Branch
National Dong Hwa
University

Chiayi-Nan Region Branch
National Chiayi University
NCKU Branch
National Cheng
Kung University
NSYU Branch-National
Sun Yat-sen University

Hope Primary
SchoolNTOU branch
National Taiwan
Ocean University

Taitung Branch
National Taitung University

KNU Branch-Kaohsiung
Normal University
Pingtung Branch-National
Pingtung University

Introductory Video of Hope Primary School

Teaching Results
Annual number of supported students

Around 8,500 person-classes

Cumulative number of supported students

Over 100,000 person-classes

Number of trained instructors

Over 20,000 person-classes

After one semester of after-school tutoring

Over 90% of schoolchildren saw
improvement▲ Taiwan Hope Primary School continues toplan a rich array of diverse local courses
to help children learn and understandtheir need to learn and study.

▲ Taiwan Hope Primary School uses tools
such as virtual reality (VR), coding, andboard games to help children learn andfocus.
102

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Employee Satisfaction

After-School Classes and English Classes for
Disadvantaged Students with Hearing Impairments
Social and educational resources for the hearing impaired are relatively scarce for children
older than 0-6 years old after early intervention. To support education of hearing-impaired
children from disadvantaged families, the Group worked with the Dandelion Hearing &Language Association to organize remedial classes for elementary and junior high school
schoolchildren with hearing impairments so that they could achieve better lives througheducation without being restricted by their hearing disabilities. We assisted a total of 238
people in 2022.

Word Therapy Program
The Word Therapy Program was established to assist wayward youth in strengthening their
psychological capabilities, learning to express themselves, and enhancing interpersonal
skills through adventure activities, rhythmic body movements, creative art and writing
workshops, and social dramas so that they can obtain warmth and love within a group. In
2022, 10 students from Chengcheng High School participated in this course and graduallychanged their lives. We hope that they can face future challenges on their life journeys withnew choices and practices, and work to create a brand new version of themselves.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Jiamei Care Association Project
We guided disadvantaged junior high school dropouts in returning to school through our"Professional Certification Course" and "Rural Training Course" so they could complete theirmiddle school education. We also helped these students obtain multiple certificates to better
their employment prospects.
In 2022, students in our "Professional Certification Course" obtained 4 floral art certificates, 1barista certificate, and 5 intermediate Pastel Nagomi Art certificates.
Our "Rural Training Course" worked with junior high schools lacking in resources. The school
counselor offices recommended students who were close to dropping out of school, students
with special needs, disadvantaged students, and disabled students to participate in our youth
gardener therapy camp. We worked with 7 rural schools over the course of the year andassisted 36 students.
The Group has supported this program for three consecutive years,
allowing the association to continue implementing its philosophies.
We were awarded the 2022 National Award for National Outstanding
Dropout Tutoring Units following nomination by the Kaohsiung
Education Bureau.

103Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Technology Education

Goals of the GroupAs technology continues to develop, what we consider to be "hi-tech"or "sci-fi" today may become a normal part of daily life in the future.
Therefore, the Group aims to strengthen the foundations of technology
education, shrink the technology gap for the next generation, and help
them to happily embrace technology now in order to become leaders oftechnological development in the future.

Solutions Provided by
the Group

The Group makes use of core capabilities and resources and collaborates
with renowned institutions, scholars, and experts to promote efforts toengage teachers and students to participate in technology education,with an emphasis on AI and quantum technology. The Group also
provides separate resources for teachers, college students, high school
students, vocational school students, and junior high school students,
and provides opportunities to connect with resources abroad, in order tostrengthen the foundations of technology education.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Foxconn Technology Awards
The number of applicants to graduate and doctoral programs have been declining in recent years,
to the point where even doctoral studies at some good departments in good schools have noapplicants. To encourage students in science and technology disciplines to pursue their dreams, andto cultivate more technological talent for the nation, the Group organized the "Foxconn Technology
Awards"; applications were open to all ROC citizens currently enrolled in local or foreign graduate
or doctoral programs in the fields of electric vehicles or robotics, with research and achievements
related to batteries, electric engineering, electronic control, AI, semiconductors, new-generation
communications, LEO satellites, information security, and quantum computers. The award was
originally set up for 15 recipients, but was later expanded to 18 recipients due to the large volume
of applicants, with an award of 250,000 NTD given to each award winner. In addition, winners could
undergo an internship at the Group to gain valuable practical experience in the industry.
Three of the first winners in 2022 successfully obtainedinternships or employment at the Group. Yuming Huang,
who had been studying at National Yang Ming Chiao Tung
University when he received the award, stated that he hadlearned a lot during his internship, especially as he had
published many papers in international journals (including
the top optoelectronics journal Photonics Research) withresearchers at the Hon Hai Research Institute, which werevery valuable experiences and achievements for him.

AI Workshops for Rural Secondary Schools

Contributions to the
SDGs by the GroupThe Group has organized workshops at ten rural secondary schools across Taiwan that use themanga, Studious League：Battle of the AI Sun Kingdom, as a starting point to broaden course
content and provide instruction in object detection and image recognition. In these workshops,
the manga is used as advance teaching material; students read the manga before listening to
instructor explanations on "image recognition" and other key points of knowledge. Instructors thenteach students how to construct an auto-driving robot car by themselves, as well as how to program
computer code to control their auto-driving cars. We also organized a "Pandemic Control Raiders
Learning Evaluation Competition" following these workshops, providing a means for students to selfassess their capabilities, as well as a stage for them to showcase the fruits of their learning, which
also gave them a goal that motivated them to learn.
In 2022, we assisted five schools which had participated in these workshops to form social clubsthat rooted technology education in daily life. We helped four junior high schools set up new clubs
and helped one school strengthen an existing club. The Foxconn Education Foundation sponsoredequipment used for training as well as training for teachers to enhance their capabilities. We
encouraged the students to participate in various competitions and helped interested students
continue to learn after the workshops had concluded.

104

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Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Promotion of the Introduction to Artificial Intelligence
High School Mini-Course
The Group compiled the first AI textbook for high schools and vocational schools,
Introduction to Artificial Intelligence, and organized an “Introduction to Artificial Intelligence
High School Mini-Course” at seven high schools, including Jianguo High School, Taipei
First Girls High School, The Affiliated Senior High School of Taiwan Normal University,
Chenggong High School, Zhongshan Girls High School, Lishan High School, and SongShan Senior High School. The mini-course provided simple but in-depth instruction to help
high school students gain advance knowledge of AI, enabling rapid and deeper learning incollege. A total of 80 students selected the mini-course as an elective. Additionally, four highschool touring lectures on artificial intelligence were respectively held in Taipei, Taoyuan,
Taichung, and Ilan, where the achievements and experiences of organizing the AI minicourse at seven high schools in Taipei City were shared, and preparations were made toconnect with more high schools and vocational schools to expand the mini-course in 2022.
At least ten schools offered the mini-course in 2022.
In order to assist high school and vocational school teachers across Taiwan with offering
AI courses in their own schools, the Group organized a “How to Create AI Courses inHigh Schools” lecture attended by a hundred teachers from all over Taiwan. The Groupannounced that a sharing platform would be established to provide teaching materials,
lesson plans, and workbooks to teachers, as well as building-block lesson modules
that teachers could select and assemble according to their own needs. The Group also
expressed a willingness to provide tailored counseling to help teachers create their courses.
In 2022, 9 schools offered multiple elective courses and 14 schools offered mini-courses to a
total of almost a thousand students.

Junior High School AI Seed Teacher Training CampIn the new era of artificial intelligence, teachers need to expand their knowledge and skills
related to technology so that they can provide students with more materials for learning
about AI and Internet of Things. The Group collaborated with the Taipei City and New Taipei
City governments to invite creative teams in Taiwan with practical teaching experience toformulate teaching materials related to AI and lesson plans alongside information technology
teachers in Taipei and New Taipei to create elective courses or information technology
courses for junior high school students. These two cities organized 6 training camps andtrained a total of 92 teachers. We aim to organize PAIA artificial intelligence mid-semester
student courses at seven technology centers in 2023.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

First Quantum Manga in Taiwan
We released Taiwan's first AI manga in 2021 (Studious League：Battle of the AI Sun
Kingdom) and worked Future plc to release a sequel in 2022, the first quantum sciencemanga, Studious League：Quantum Crisis. This manga continued the adventures of theStudious League characters and cleverly incorporated quantum concepts and knowledge
so that junior high school and even elementary school students could learn about quantum
science by reading manga.
“Being unafraid is an important condition for children to be willingto learn. We hope that this manga allows children to easily learn
about quantum science concepts and applications, inspiring theirinterest.” The Group hopes that learning through the entertainment
provided by manga can plant a small seed in the hearts of thesechildren which may sprout and thrive. Perhaps one day, a top
quantum scientist will tell everyone that they were inspired by thismanga.

Summer Quantum Computing Camp for High School
and Vocational School Students
2022 marks the third year of this camp. We selected 100 students to participate in online
and in-person classes from 270 applicants. The courses covered included the history ofquantum technology, fundamental quantum physics and mathematical principles, anddifferences in quantum and classical computing. We also helped students understandbasic advantages and characteristics of quantum algorithms, quantum communication
protocols, quantum transmission, quantum superposition, quantum entanglement, andquantum measurements through practice. The courses were designed and taught togive high school students a chance to clearly understand the advantages of quantum
technology and provide them with fundamental knowledge.

Support for AIGO Event
The Group offered three online AI courses (Introduction to AI, Basic
Architecture of Neural Networks, and Image Recognition) and one
practical course. A total of 1095 people from 126 high schools
completed these courses. We also assigned corporate lecturers totalk about “Hon Hai EV Voice Recognition and User Experience,”
explaining AI applications used in EVs to 98 outstanding students
who had completed the courses.

AIGO for HighSchool Students

105Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

FRC Regional Robotics Competition
The FIRST Robotics Competition is the world's most challenging high school robotics
competition, and is recognized by more than 100 universities around the world such as MIT
and Harvard. Seven-week regional competitions are held around the world every February
for around 100,000 high school students.
In the past, Taiwanese students wishing to participate in finals had to expend time andmoney to travel to other countries so they could join regional competitions to obtain theirticket for the final. However, the pandemic meant that competitors were unable to travel
abroad for two years. Hon Hai worked with the New Taipei City government to host the firstregional competitions in Taiwan so that students could compete for the final in Taiwan.
In March 2022, Foxconn Education Foundation and the New Taipei City government hosted
the first New Taipei City x Hon Hai Regional FRC competition in Taiwan, and also held aspecial problem-solving event the night before the competition, inviting all team instructors
to gather at Syntrend Creative Park to watch the live broadcast from USA as the topics wererevealed. We also invited professors from National Taiwan University to brainstorm withexperts.

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Chemistry Olympiad Exploration Camp and SCMS
Training CampThe Taiwan Normal University Department of Physics Alumni Association found that largerscale science competitions such as the SCMS, Olympiads often attended by high school
students were only accessible to a select handful of schools that had long-term resources.
Many students from other schools struggled to perform well during the competitions due toa lack of resources or competitive experience. However, each school has students worth
cultivating, and thus the Alumni Association hosted the Chemistry Olympiad Exploration
Camp and SCMS Training Camp to provide students from these other schools with morelearning opportunities. Foxconn Education Foundation provided funds to reduce fees for
disadvantaged students and enhance research quality (including recruitment of industry andacademic instructors as well as enhancements in lab equipment). The director of the Hon
Hai Research Institute Quantum School also gave a speech and interacted with students atthe camp.

The first regional FRC competition in Taiwan attracted 35 high school teams and morethan 1,000 teachers. Four teams were selected to represent Taiwan at the final held in
Houston. We provided training to these teams after the final to promote robotics and STEAM
education, helping students learn from and collaborate with each other to jointly improvetheir skills.

2022 Regional
FRC Competition106Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Support for Sports
The Group has long been attentive of needs in society and listened toopinions from different groups. We hope to help children discover theirown interests and skills so they can be their unique selves.

Goals of the Group

Solutions Provided by
the Group

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Contributions to the
SDGs by the Group

Support for the Yucheng Senior High School Boxing Team
Around 80% of students on the Yucheng Senior High School Boxing Team come fromdisadvantaged families. Coach Hans Lin, who has invested more than 20 years of his timein the Boxing Team, often had to pay training or competition fees out of his own pocket,
but cultivated many outstanding sportspeople. For example, Huang Hsiao Wen, a bronze
medalist in the 2020 Olympics, was a member of the Yucheng Senior High School Boxing
Team. The Group helped to provide funds for competition training, as well as food and board
when participating in competitions, to support the Yucheng Senior High School Boxing
Team. The Yucheng Senior High School Boxing Team participated in the national 2022
President's Cup Tournament and won 3 gold, 1 silver, and 6 bronze medals.

Social Contribution,
Win-Win Strategy

Appendix

10-Year Table Tennis Seed Project.
To discover and nurture superior youth sportspeople, the Group initiated the 10-Year Table
Tennis Seed Project in 2013, providing 6 million NTD annually for a total of 60 million NTD.
Systematic cultivation is provided through long-term professional table tennis training andcounseling, with the aim of improving individual performance. The project has fostered morethan 40 sportspeople to date, of which 21 are still undergoing training, and 17 of which havealready qualified to represent the Taiwan team.
Stage 1 (2013~2015)

The 10-Year Table Tennis Seed Project was initiated in 2013, andestablished goals for four major stages of development, with the aim ofsystematically cultivating superior youth talent to play stably at home andgradually move to compete abroad.
In 2021, it was discovered that the Yucheng Senior High School Boxing
Team had cultivated several outstanding boxers, but was encountering
difficulties in operations due to a lack of funds. The Group therefore
provided support, reducing the burden of the Yucheng Senior High School
Boxing Team and allowing them to focus on cultivating outstanding boxers.

Green Solutions,
Circular Economy

Stage 2 (2016~2018)

Stage 3 (2019~2020) Stage 4 (2021~2022)

Nurture elementary school players to
become junior sportspeople.
Nurture junior high school players to become youth (15 years old) sportspeople.
Nurture high school players to become youth (18 years old) sportspeople.
Nurture superior
players toparticipate in the
Taiwan team tryouts.

Nurture superior players to participate in the Taiwan team tryouts,
with the aim of becoming adult sportspeople.

Compete ininternational open
matches to rise in
the world rankings,
with the aim ofmaking the top 400.

Compete ininternational open
matches to rise in
the world rankings,
with the aim ofmaking the top 350.

Compete ininternational open
matches to rise in
the world rankings,
with the aim ofmaking the top 200.

Compete ininternational open
matches to rise in
the world rankings,
with the aim ofmaking the top 150.

Nurture players to compete for Taiwan in international matches.
Support from the Foxconn Education Foundation has yielded remarkable results. We havecompleted all our targets for all four stages in advance. Our athletes have won bronze
medals at the Taipei 2017 Summer Universiade, silver medals at the Napoli 2019 Summer
Universiade, bronze medals at the Asia Championship, bronze medals at the World JuniorChampionships, gold medals at the Asia Junior Championships, and were selected toparticipate in the 2017 and 2019 World Table Tennis Championships.
In 2020, during the third stage, three of our athletes were selected to be members of thenational team for 2021, making up a quarter of team members (or one-third of team members
including Chuang Chih-Yuan), achieving outstanding results and invigorating the table tennis
team. In the fourth stage, many of our young athletes achieved excellent results, including
Yeh Yi-Tian, the youngest female player to be selected as a member of the national team, as
well as other athletes who are working to participate in the 2024 Paris Olympics on behalf ofthe national team.
107

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Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

In the spirit of giving back to society, and to realize mutual prosperity within communities, theGroup organized 6+1 (cleaning assistance, disability assistance, transportation assistance,
medical assistance, learning assistance, legal assistance, and happiness projects) community
activities for regions around campuses or those who needed these services.

Social Contributions

Brand
In the spirit of giving back to society, the Group proactively organizes
multidimensional activities for surrounding communities, in the hope ofestablishing a mutually beneficial existence.

The Group proactively organizes activities to give back to the community,
such as organizing pandemic control activities and recruiting employees
to provide volunteer services during the COVID pandemic. It is hopedthat these activities can improve the living standards of surrounding
communities, and enhance their health and safety.

Volunteers

Service hours

694 sessions

9,608 people

53,782 hours

Key Promotions

Energy and carbon reduction
Cleaning activities
Disc recycling
Waste classification

Promoted UL2799 Zero Waste to Landfill

Disability
assistance

Ergonomic engineering
Increase employment
Enhance capabilities
Humanistic care

Helped to promote ergonomic
engineering

Transportation
assistanceDirect traffic
One helmet one belt
Vehicle placement
Promotion of traffic regulations

Promoted the idea of “Clearing firelanes to protect lives”

Medical assistance

Epidemic prevention
Health lectures
Free clinics
Blood drives

Established epidemic prevention
volunteer services

Learning
assistance

Hope Primary School
School-enterprise exchanges
Parent vvolunteers
Care for children

Provided care to Hope Primary School
and annual subsides of 220,000 NTD toeach school

Legal assistance

Fraud prevention
Knowledge of Civil CodeLegal aid
Resident mediation

Promoted “Fraud Prevention for All”

Happiness projects

Polite phrases
Civilized employees
Good people and things
Campus tours

Polite phrases “Hello, Please, Thankyou, Sorry, Goodbye”

Contributions to the
SDGs by the Group

Service activities

Service Projects

Cleaning
assistance

Goals of the Group

Solutions Provided by
the Group

Business Sustainability,
Beneficial Partners

108

7

Appendix

Appendix I：GRI Standard
Reference
Appendix II：SASB Standard
Comparison Table
Appendix III：Independent
Assurance Statement

Corporate Governance,
Smart Innovation

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Appendix I：GRI aStandard
Reference

Healthy Workplace,
Safety Adherence

GRI 1 used：

Foundation 2021

Applicable GRI Sector Standard(s)Not applicable
Omission/Note

Disclosure
Number

Disclosure Title

Chapter

Requirementsfor omission

Page
ReasonExplanation▼ General Disclosures

GRI 2：
GeneralDisclosures
2021

Disclosure 2-1
Organizational
details

Company ProfileCompany
Overview-

Disclosure
2-2 Entities
included in theorganization's
sustainability
reporting

About this Report-

Disclosure
2-3 Reporting
period,frequency andcontact point

About this Report

Disclosure 2-4
Restatements of
information

No rearrangementof information has
occurred.

-

Disclosure
2-5 External
assurance

Appendix III –Independent ThirdParty AssuranceStatement-

Disclosure 2-6
Activities, value
chain and otherbusinessrelationships

Company
Overview

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Omission/Note
Disclosure
NumberHon Hai Precision Industry Co., Ltd has reported inaccordance with the GRI Standards for the period2022/01/01 to 2022/12/31

Statement of use：

Business Sustainability,
Beneficial Partners

P.7

P.3

P.3

-

P.118

P.3

GRI 2：
GeneralDisclosures
2021

Disclosure Title

ChapterPage

Requirementsfor omission

ReasonExplanation

Disclosure 2-7
Employees

Chapter 2-Employee
overview

-

-

-

P.44

Disclosure 2-8
Workers who are
not employees

Chapter 2-Employee
overview

-

-

-

P.44

Disclosure 2-9Governancestructure andcomposition

Chapter 1：Corporate
GovernanceGroup Structure
and the Board of
Directors Chapter
1-Sustainability
Committee---

Disclosure 2-10
Nomination andselection of thehighestgovernance body

Chapter 1：Corporate
Governance-Group
Structure and theBoard of Directors

-

-

-

P.21

Disclosure 2-11
Chair of the highest
governance body

Chapter 1：Corporate
Governance-Group
Structure and theBoard of Directors

-

-

-

P.20

Chapter
1-Sustainability
Committee

-

-

-

P.35

Chapter
1-Sustainability
Committee

-

-

-

P.35

Chapter
1-Sustainability
Committee

-

-

-

P.35

Disclosure 2-15
Conflicts of interest

Chapter 1：Corporate
Governance-Group
Structure and theBoard of Directors

-

-

-

P.20

Disclosure 2-16
Communication ofcritical concern

2022 Annual
Report，P.36

-

-

-

-

Disclosure 2-12
Role of the highest
governance bodyin overseeing themanagement of
impacts
Disclosure 2-13
Delegation of
responsibility for
managing impacts
Disclosure 2-14
Role of the highest
governance bodyin sustainability
reporting

P.20
P.35

110

Corporate Governance,
Smart Innovation

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Omission/Note

Omission/Note
Disclosure
NumberGRI 2：
GeneralDisclosures
2021

Disclosure Title

Chapter

Requirementsfor omission

Page
ReasonExplanation

Disclosure
2-17 Collective
knowledge of thehighestgovernance body

Chapter 1：Corporate
Governance-Group
Structure and theBoard of Directors

Disclosure 2-18
Evaluation of theperformance of thehighestgovernance body

Chapter 1：Corporate
Governance-Group
Structure and theBoard of Directors-

Disclosure 2-19
Remuneration
policies

Chapter 1：Corporate
Governance-Group
Structure and theBoard of Directors-

Disclosure
2-20 Process
to determine
remuneration

Chapter 1：Corporate
Governance-Group
Structure and theBoard of Directors

-

-

-

P.21

Disclosure 2-21
Annual totalcompensation ratio

Chapter 2：
Compensation and
Benefit

-

-

-

P.46

-

-

-

-

-

-

-

P.21

P.21

Letter from ourChairman

-

-

-

P.4

Disclosure
2-23 Policy
commitments

The Group's
Corporate Social
Responsibility (CSR)
Code of Conduct

-

-

-

P.16

Disclosure 2-24
Embedding policy
commitments

The Group's
Corporate Social
Responsibility (CSR)
Code of Conduct

-

-

-

P.16

Disclosure 2-25
Processes toremediate negative
impacts

Chapter 1：EthicalManagement- Group Code of
Conduct--

Disclosure
Number

P.20

Disclosure 2-22
Statement onsustainable
development
strategy-

Appendix

P.27

GRI 2：
GeneralDisclosures
2021

Disclosure Title

ChapterPage

Requirementsfor omission

ReasonExplanation

Disclosure 2-26
Mechanisms forseeking advice
andraising concerns

Chapter 1：EthicalManagement- Group Code of
Conduct

-

-

-

P.27

Chapter 1：EthicalManagement- Group Code of
Conduct
Disclosure 2-27
Compliancewith laws andregulations

No major changes
occurred during thereporting period

-

-

-

-

Disclosure 2-28
Membershipassociations

Taiwan Alliance for
Net Zero Emission,Monte Jade Scienceand Technology
Association of Taiwan,
Taiwan Electricaland Electronic
Manufacturers'
Association, Taiwan
Transportation Vehicle
Manufacturers
Association, Taiwan
Association of
Machinery Industry,
Taipei Computer
Association, Taiwan
Mold & Die Industry
Association, SINOCON
Industrial Standards
Foundation、Responsible Business
Alliance, (RBA）

-

-

-

-

Disclosure 2-29
Approach to
stakeholder
engagement

Chapter 1：
Stakeholder
Identification,
Communication, andResponsibilities

-

-

-

P.36

Disclosure
2-30 Collective
bargaining
agreements

Chapter 2：Protectionof Employee Rights
and Employees
Satisfaction

-

-

-

P.47

111

Corporate Governance,
Smart Innovation

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Omission/Note
Disclosure
Number

Disclosure Title

Chapter

Requirementsfor omission

Omission/Note
Page

ReasonExplanation▼ Material Topics

GRI 3：Material
Topics 2021

Disclosure
Number

Disclosure
3-1 Process
to determinematerial topics

Scope of MaterialIssues andMateriality Analysis

Disclosure 3-2 Listof material topics

Scope of MaterialIssues andMateriality Analysis--

GRI 3：Material
Topics 2021

Disclosure 3-3
Management ofmaterial topics

Chapter 2：Diverse
Inclusiveness,
Employee
Satisfaction-

GRI 405：
Diversityand Equal
Opportunity
2016

Disclosure 405-2
Ratio of basic
remuneration of
women to men

Chapter 2：
Compensation and
Benefits

-

-

-

-

-

P.39

GRI 3：
Material Topics
2021

-

-

-

-

Disclosure 3-3
Management ofmaterial topics
403-1
Occupational
health and safety
management
system

P.39

P.42

P.46

▼ Information security and customer privacy

GRI 418：
CustomerPrivacy 2016

Disclosure Title

ChapterPage

Requirementsfor omission

ReasonExplanation

Chapter 3：Healthy
Workplace, Safety
Adherence

-

-

-

P.55

Chapter 3：Healthy
Workplace, Safety
Adherence

-

-

-

P.56

Chapter 3：
Occupational
Health and Safety

-

-

-

P.56

Chapter 3：
Occupational
Health and SafetySafety Audits andRisk Identification

-

-

-

P.57

Chapter 3：
Occupational
Health and SafetyHealth and Safety
Training and Drills

-

-

-

P.60

Employees
can voluntarily
depart from work
conditions they
believe may resultin injury or disease
without
repercussions.

-

-

-

-

▼ Occupational health and safety▼ Employee rights and diverse equality

GRI 3：Material
Topics 2021

Appendix

Disclosure 3-3
Management ofmaterial topics

Chapter 1：
Corporate
Governance, Smart
Innovation

-

-

-

P.19

418-1
Substantiatedcomplaints
concerning
breaches ofcustomer privacy
and losses ofcustomer data

Chapter 1：
Corporate
GovernanceInformation
Security
Management

-

-

-

P.26

Disclosure 3-3
Management ofmaterial topics

Chapter 5：Green
Solutions, Circular
Economy

-

-

-

P.77

-

-

-

-

-

-

GRI 403：
Occupational
Health and
Safety 2018403-2 Hazard
identification,risk assessment,
and incident
investigation▼ Climate change responses
GRI 3：Material
Topics 2021
Self-defined
topic

112

Corporate Governance,
Smart Innovation

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Omission/Note
Disclosure
Number

Disclosure Title

Omission/Note
Page

Requirementsfor omission

ReasonExplanation

Chapter 3：
Occupational
Health and SafetySafety Audits andRisk Identification

-

-

-

Chapter 3：
Employee Health
PromotionHealth Promotion
Activities-

403-4 Worker
participation,
consultation, andcommunicationonoccupational
health and safety

Chapter 3：
Occupational
Health and Safety-403-5 Worker
training on
occupational
health and safety

Chapter 3：
Occupational
Health and SafetyHealth and Safety
Training and Drills-

403-6 Promotionof worker health

Chapter 3：
Employee Health
Promotion-

403-3
Occupational
health services

GRI 403：
Occupational
Health and
Safety 2018

Chapter

403-7 Prevention
and mitigationof occupational
health and safety
impacts
directly linked
by business
relationships

403-8 Workers
covered by an
occupational
health and safety
management
systemAppendix

Disclosure
Number

Disclosure Title

ChapterPage

Requirementsfor omission

ReasonExplanation▼ Financial performance
P.57
GRI 3：Material
Topics 2021
-

-

-

-

P.61

P.56

GRI 201：
Economic
Performance
2016

-

-

P.61

Chapter 3：
Occupational
Health and SafetySafety Audits andRisk Identification

-

-

-

P.57

Chapter 3：
Occupational
Health and SafetySafety Innovations
and Improvement
Projects

-

-

-

P.59

Chapter 3：
Occupational
Health and Safety-

GRI 206：AntiCompetitive
Behavior 2016

-

-

-

P.19

201-1 Direct
economic value
generated anddistributed

Chapter 1：
Corporate
GovernanceFinancial
Performance

-

-

-

P.22

Disclosure 3-3
Management ofmaterial topics

Chapter 1：
Corporate
Governance, Smart
Innovation

-

-

-

P.19

205-3 Confirmed
incidents ofcorruption andactionstaken

Chapter 1：EthicalManagement

-

-

-

P.27

206-1 Legalactions for anticompetitive
behavior, antitrust, andmonopolypractices

Chapter 1：EthicalManagement

-

-

-

P.27

-

-

-

P.19

▼ Corporate governance and risk management
GRI 3：Material
Topics 2021

-

-

P.60
GRI 205：AntiCorruption 2016-

Chapter 1：
Corporate
Governance, Smart
Innovation▼ Ethical management and legal compliance
GRI 3：Material
Topics 2021-

Disclosure 3-3
Management ofmaterial topics

Disclosure 3-3
Management ofmaterial topics

Chapter 1：
Corporate
Governance, Smart
Innovation

P.56

113

Corporate Governance,
Smart Innovation

Foreword

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Omission/Note
Disclosure
Number

Disclosure Title

ChapterPage

Requirementsfor omission

ReasonExplanation▼ Corporate governance and risk management
GRI 3：Material
Topics 2021

GRI 302：
Energy2016

GRI 305：
Emissions
2016

Disclosure 3-3
Management ofmaterial topics

Chapter 5：Green
Solutions, Circular
Economy

-

-

-

P.77

302-1 Energy
consumption
within theorganization

Chapter 5：Climate
Change -Energy
Management

-

-

-

P.82

305-1 Direct(Scope 1) GHG
emissions305-2 Energy
indirect (Scope2) GHGemissions305-4 GHG
emissions
intensity

P.80
Chapter 5：Climate
Change

-

-

-

P.80
P.80

▼ Innovative Development and Low-Carbon Technologies
GRI 3：Material
Topics 2021

Self-defined
topic

Disclosure 3-3
Management ofmaterial topics

Chapter 1：
Corporate
Governance, Smart
Innovation

-

-

-

P.19

-

-

-

-

-

-

Disclosure 3-3
Management ofmaterial topics

Chapter 5：Green
Solutions, Circular
Economy

-

-

-

P.77

-

-

-

-

-

-

▼ Hazardous Substance Management
GRI 3：Material
Topics 2021
Self-defined
topic

114

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Appendix II：SASB Standard Comparison Table
Disclosed Theme

Disclosed Metrics

EnergyManagement

-

(1)
Water
Management

Waste
Management(2)

Total water withdrawn,
percentage in regions withHigh or Extremely HighBaseline Water Stress
Total water consumed,
percentage in regions withHigh or Extremely HighBaseline Water StressAmount of hazardous waste frommanufacturing, percentage
recycled

Total recordable Incident
rate (TRIR)(2) Near miss frequency rate
(NMFR) for (a) direct
employees and (b) contract
employees

Appendix 1-14：Sustainability
Disclosure Indicators - Other
Electronics Industry
Total energy consumption,
percentage of purchased
electricity, and renewableenergy utilization

Category

Indicator CodeQuantitative-

Percentage of (1) entity's facilities
audited in the RBA Validated
Audit Process (VAP) or equivalent,by (a) all facilities and (b) highrisk facilities
Percentage of (2) Tier 1 supplierfacilities audited in the RBA
Validated Audit Process (VAP) or
equivalent, by (a) all facilities and(b) high-risk facilities

Total Energy Consumption：38,506,366 GJ
Percentage of Purchased Electricity：91.83%
Renewable Energy Utilization：7.67%

Total water withdrawn and total
water consumed

Quantitative

TC-ES-140a.1

Amount of hazardous wastefrommanufacturing, percentage
recycled

Quantitative

TC-ES-150a.1

We generated 420,518 tons of hazardous waste. We are unable to disclose
percentages of recycled waste as we are currently working to establish datacompilation process, but plan to disclose relevant information in the future.

Chapter 5：Waste
Management, P.86

(2)
Quantitative

TC-ES-320a.1

The total recordable incident rates (TRIR) for direct employees andcontract employees were 0.1312 and 0.0208, respectively.
The near miss frequency rates (NMFR) for direct employees andcontract employees were 0.0239 and 0.0125, respectively.

Note：The data above were taken solely from the Greater China region. We
are currently working to establish data compilation process for other regions,and plan to disclose global data in the future.
(1)-

Quantitative

TC-ES-320a.2

Chapter 5：
ClimateChange, P.82

Chapter 5：Water
Management, P.84

(2)

(1)
Description of Occupational
Accident Categories, Numberof Incidents, and Rates

Corresponding
Sections

Total volumes of water withdrawn amounted to 91,470,724 m3 ,with48.30% sourced from High Baseline Water Stress regions
Total volumes of water consumed amounted to 10,434,770 m3, with29.31% sourced from High Baseline Water Stress regions

(1)

(1)

Labor
Conditions

Report Content or Descriptions

In terms of our facilities, 18% have completed RBA VAP audits and 0%
were determined to be high-risk

Note：Group entities undergo RBA VAP audits in response to client
requests or other requirements. If multiple entities from a single facility haveundergone RBA VAP audits, we consider said facility to have completed
RBA VAP audits.
(2)

Chapter 3：
Occupational
Health and SafetyStatistics on
Disabling Injuries,
P.59-

In terms of key electronics suppliers, 20% supplier facilities havecompleted RBA VAP audits and 33% were determined to be high-risk

Note：We are currently working to establish data compilation process andplan to include data from key institutional suppliers in future.

115

Foreword

Disclosed Theme

Disclosed Metrics
(1)

Labor
Conditions(2)

Product
Lifecycle
Management

Materials
Sourcing

反競爭行為

Non-conformance
rate with the RBA
Validated Audit Process(VAP) or equivalentfor (a) priority
nonconformancesand (b) othernonconformances,broken down for (i) the
entity's facilities and(ii) the entity's Tier 1
supplier facilities
Associated corrective
action rate for(a) priority nonconformancesand (b) other nonconformances, broken
down for (i) the entity's
facilities and (ii) the
entity's Tier 1 supplierfacilities

Percentage of recycled weightof scrapped products andelectronic waste

Description of the
management of risks
associated with the use ofcritical materials-

Corporate Governance,
Smart Innovation

Appendix 1-14：Sustainability
Disclosure Indicators - Other
Electronics Industry

Diverse Inclusiveness,
Employee Satisfaction

Category

Healthy Workplace,
Safety Adherence

Indicator Code(2)
Quantitative

TC-ES-320a.3

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Report Content or Descriptions(1)-

Business Sustainability,
Beneficial Partners

In terms of non-conformance rates with RBA VAP audits, the priority
nonconformance and other non-conformance rates for our facilities were0% and 100%, respectively; the priority non-conformance and othernonconformance rates for our key electronics suppliers were 0 % and 0%,
respectively
The RBA VAP associated corrective rate for other non-conformances at
our facilities was 100% (no priority non-conformances were discoveredat our facilities); the RBA VAP associated corrective rates for priority
non-conformances and other non-conformances at our key electronics
suppliers were 100% and 100%, respectively.

Appendix

Corresponding
Sections-

Notes：For critical suppliers in the institutional category, it is currently only
required to establish a social responsibility management system, and RBA
certification is not yet mandatory.

Weight of end-of-life products ande-waste recovered, percentage
recycled (including sales of offcuts
or other recycling processes)

Quantitative

TC-ES-410a.1

The Group has carefully reviewed the qualifications of our waste handlingand recycling vendors, and we commission qualified vendors to recycle
our e-waste products. We are unable to disclose related data as we are
currently working to establish data compilation process, but plan to disclose
relevant information in the future.
The Group adopts a circular mechanism for supplier management processes
which includes the four major stages of regulatory compliance, risk assessment,
audit verification, and continued improvement, and implements the ESG
management structure into process.
The group firmly rejects and does not use conflict minerals. The Group has
developed a management platform for conflict mineral to achieve long-term data
storage and traceability. Completed conflict minerals surveys for 2002 suppliers,
achieving a response rate of 100%. No use of conflict minerals was discovered.

Description of the managementof risks associated with the use ofcritical materials

Discussion
andAnalysis

TC-ES-440a.1

The total amount of monetarylosses incurred due to legal
disputes related to anticompetitive practices.

Quantitative-

No legal litigations related to anti-competitive practices in 2022-

Chapter 4：
Supplier
Management
Processes,
P.67

-

116

Foreword

Disclosed Theme

Disclosed Metrics

Corporate Governance,
Smart Innovation

Appendix 1-14：Sustainability
Disclosure Indicators - Other
Electronics Industry

Diverse Inclusiveness,
Employee Satisfaction

Category

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Indicator CodeGreen Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Corresponding
Sections

Report Content or Descriptions
No legal litigations related to anti-competitive practices in 2022
Unit：Thousand Unit、
NTD Thousand Dollars

Major ProductOutput(1)
Labor Practices

Major Product Output by ProductCategory-(2)

Number of work
stoppages
total days idle-

Quantitative

Quantitative

Disclosed Metrics

Category

Indicator Report

Number of
manufacturing facilities

Quantitative

TC-ES-000.A

Around 70 locations

Area of manufacturing
facilities

Quantitative

TC-ES-000.B

Around 226.04 million square feet

Number of Employees

Quantitative

TC-ES-000.C

925,890

Production
Volumeproduction
value

Smart Consumer
Electronics

2,126,166

1,921,842

2,756.364,987

Computing Products

428.140386.995

934.284.896

Components and Others

2,201,826

1,990,230

23.810.744

Cloud and Networking
Products

6.320

5.712

6.669.628-

TC-ES-310a.1

Production
Capacity(1)(2)

No employee strikes or work stoppages occurred in 2022
About Zhengzhou Foxconn incident in 2022 November, pleaser refer tochapter 2 Employee Communication and Grievance Channel, P.48

2022 Annual
Report，P.109

Chapter 2
EmployeeCommunication
and Grievance
Channel, P.47

Report Content or Descriptions

117

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix

Appendix III：Independent Assurance Statement
Inclusivity
This report has reflected a fact that HON HAI has continually sought the engagement of its stakeholders and established material
sustainability topics, as the participation of stakeholders has been conducted in developing and achieving an accountable andstrategic response to sustainability. There are fair reporting and disclosures for the information of Environment, Social andGovernance (ESG) in this report, so that appropriate planning and target-setting can be supported. In our professional opinion
the report covers the HON HAI’s inclusivity issues.

INDEPENDENT ASSURANCE OPINION STATEMENT
2022 HON HAI Sustainability Report
The British Standards Institution is independent to Hon Hai Precision Industry Co., Ltd. (hereafter referred to as HON HAI in thisstatement) and has no financial interest in the operation of HON HAI other than for the assessment and verification of thesustainability statements contained in this report.
This independent assurance opinion statement has been prepared for the stakeholders of HON HAI only for the purposes ofassuring its statements relating to its sustainability report, more particularly described in the Scope below. It was not prepared
for any other purpose. The British Standards Institution will not, in providing this independent assurance opinion statement,
accept or assume responsibility (legal or otherwise) or accept liability for or in connection with any other purpose for which it may
be used, or to any person by whom the independent assurance opinion statement may be read.
This independent assurance opinion statement is prepared on the basis of review by the British Standards Institution of
information presented to it by HON HAI. The review does not extend beyond such information and is solely based on it. In
performing such review, the British Standards Institution has assumed that all such information is complete and accurate.
Any queries that may arise by virtue of this independent assurance opinion statement or matters relating to it should be
addressed to HON HAI only.

Scope
The scope of engagement agreed upon with HON HAI includes the followings:
1. The assurance scope is consistent with the description of 2022 HON HAI Sustainability Report.
2. The evaluation of the nature and extent of the HON HAI’s adherence to AA1000 AccountAbility Principles (2018) in this reportas conducted in accordance with type 1 of AA1000AS v3 sustainability assurance engagement and therefore, theinformation/data disclosed in the report is not verified through the verification process.
3. The assessment of disclosure to be in conformance with the applicable SASB industry standard(s) in this report as conductedin accordance with type 1 of AA1000AS v3 sustainability assurance engagement.
This statement was prepared in English and translated into Chinese for reference only.

Opinion Statement
We conclude that the 2022 HON HAI Sustainability Report provides a fair view of the HON HAI sustainability programmes andperformances during 2022. The sustainability report subject to assurance is free from material misstatement based upon testing
within the limitations of the scope of the assurance, the information and data provided by the HON HAI and the sample taken.
We believe that the performance information of Environment, Social and Governance (ESG) are fairly represented. The
sustainability performance information disclosed in the report demonstrate HON HAI’s efforts recognized by its stakeholders.
Our work was carried out by a team of sustainability report assurors in accordance with the AA1000AS v3. We planned andperformed this part of our work to obtain the necessary information and explanations we considered to provide sufficient evidence
that HON HAI’s description of their approach to AA1000AS v3 and their self-declaration in accordance with GRI Standards werefairly stated.

Methodology
Our work was designed to gather evidence on which to base our conclusion. We undertook the following activities:⎯ a review of issues raised by external parties that could be relevant to HON HAI’s policies to provide a check on theappropriateness of statements made in the report.
⎯ discussion with managers on approach to stakeholder engagement. However, we had no direct contact with external
stakeholders.
⎯ 6 interviews with staffs involved in sustainability management, report preparation and provision of report information
were carried out.
⎯ review of key organizational developments.
⎯ review of the findings of internal audits.
⎯ review of supporting evidence for claims made in the reports.
⎯ an assessment of the organization’s reporting and management processes concerning this reporting against the
principles of Inclusivity, Materiality, Responsiveness and Impact as described in the AA1000AP (2018).
⎯ an assessment of the organization’s use of metrics or targets of SASB Standard(s) to assess and manage topic-relatedrisks and opportunities.

Materiality
HON HAI publishes material topics that will substantively influence and impact the assessments, decisions, actions andperformance of Abbreviation and its stakeholders. The sustainability information disclosed enables its stakeholders to makeinformed judgements about the HON HAI's management and performance. In our professional opinion the report covers the
HON HAI’s material issues.

Responsiveness
HON HAI has implemented the practice to respond to the expectations and perceptions of its stakeholders. An Ethical Policy for
HON HAI is developed and continually provides the opportunity to further enhance HON HAI’s responsiveness to stakeholder
concerns. Topics that stakeholder concern about have been responded timely. In our professional opinion the report covers
the HON HAI’s responsiveness issues.

ImpactHON HAI has identified and fairly represented impacts that were measured and disclosed in probably balanced and effective way.
HON HAI has established processes to monitor, measure, evaluate and manage impacts that lead to more effective
decision-making and results-based management within the organization. In our professional opinion the report covers the HON
HAI’s impact issues.

GRI Sustainability Reporting Standards (GRI Standards)
HON HAI provided us with their self-declaration of in accordance with GRI Standards 2021 (For each material topic covered in
the applicable GRI Sector Standard and relevant GRI Topic Standard, comply with all reporting requirements for disclosures).
Based on our review, we confirm that sustainable development disclosures with reference to GRI Standards’ disclosures arereported, partially reported or omitted. In our professional opinion the self-declaration covers the HON HAI’s sustainability
topics.

SASB Standards
HON HAI provided us with their self-declaration of in accordance with SASB Standard(s) (ELECTRONIC MANUFACTURINGSERVICES & ORIGINAL DESIGN MANUFACTURING Sustainability Accounting Standard). Based on our review, we confirm
that the sustainability disclosure topics & accounting metrics of SASB Standard(s) (ELECTRONIC MANUFACTURINGSERVICES & ORIGINAL DESIGN MANUFACTURING Sustainability Accounting Standard) are reported, partially reported oromitted. In our professional opinion the self-declaration covers disclosure topics, associated accounting metrics and activity
metrics for applicable SASB industry standard(s).

Assurance level

The moderate level assurance provided is in accordance with AA1000AS v3 in our review, as defined by the scope andmethodology described in this statement.
The moderate level assurance provided is in accordance with AA1000AS v3 in our review of SASB Standard(s).

Responsibility

The sustainability report is the responsibility of the HON HAI’s chairman as declared in his responsibility letter. Our
responsibility is to provide an independent assurance opinion statement to stakeholders giving our professional opinion based on
the scope and methodology described.

Competency and Independence
The assurance team was composed of Lead auditors experienced in relevant sectors, and trained in a range of sustainability,
environmental and social standards including AA1000AS, ISO 14001, ISO 45001, ISO 14064 and ISO 9001. BSI is a leading
global standards and assessment body founded in 1901. The assurance is carried out in line with the BSI Fair Trading Code ofPractice.

For and on behalf of BSI:

Peter Pu, Managing Director BSI Taiwan

Conclusions

A detailed review against the Inclusivity, Materiality, Responsiveness and Impact of AA1000AP (2018), GRI Standards and SASB
Standard(s) is set out below:

Statement No:
2023-06-19

SRA-TW-788669

Taiwan Headquarters: 2nd Floor, No. 37, Ji-Hu Rd., Nei-Hu Dist., Taipei 114, Taiwan, R.O.C.
BSI Taiwan is a subsidiary of British Standards Institution.

118

Foreword

Corporate Governance,
Smart Innovation

Diverse Inclusiveness,
Employee Satisfaction

Healthy Workplace,
Safety Adherence

Business Sustainability,
Beneficial Partners

Responsible Unit

Sustainability Committee

DesignatedContact

James Wu, Martin Hsing

Editorial Team

Doreen Tsai, Elaine Liu, Enking Chen, Gang Huang, Kuan
Chen (listed in order of stroke count for names)

Address

No. 2, Zihyou Street, Tucheng Industrial Park, Tucheng District,
New Taipei City, Taiwan

Phone+886-2-2268-3466, ext. 560-25859

Emailfgsc-03@foxconn.com

Websitehttps//www.honhai.com

Green Solutions,
Circular Economy

Social Contribution,
Win-Win Strategy

Appendix119No. 2, Zihyou Street, Tucheng Industrial Park, Tucheng District, New Taipei City, Taiwan