Advantech’s Corporate Citizen Philosophy
Starting from the Company's core capabilities, Advantech responds to issues of SDG 9 (Industry, innovation, and infrastructure) and SDG 4 (Quality Education) by deepening the innovative application of the IoT and education. We offer long-term support for IoT education and various innovative and sustainable education, and we look forward to cultivating the children, teenagers, and youth in Taiwan with a sustainable outlook on the environment to become citizens of the world.
SDG 4 is also echoed in social investment and education, cultural and public welfare. Advantech promotes sustainable education and aesthetic literacy for the public. It invests in educational innovation and encourages and hosts sustainable education promotion programs in elementary and secondary schools. We also support private education platforms to promote the Project-Based learning model (PBL). In addition, we continue to invest resources to assist professional schools and art teams in cultivating outstanding artistic talents and actively promote aesthetic literacy for the public. In the future, we will also expand our support to develop talent in art creation in Taiwan, enhancing Taiwan’s artistic soft power.
The vision statement of the foundation is "combining the participation of corporate stakeholders based on Advantech's altruistic concept to promote "IoT innovation,” "sustainable education", and "humanistic quality" to promote the development of an intelligent and happy community.” Advantech is committed to becoming an intelligent promoter of sustainable earth and a brand enterprise of truth, goodness, and beauty. The goal is to promote sound social development through talent cultivation in which science, technology, and humanities go hand in hand. From 2022 to 2025, we have continued to deepen the IoT education topic using the Company's core capabilities. Also, we promote art and public welfare activities that combine social development and strengthen the connection between the Company and our employees. The promotion of the annual goal is carried out in a planned way with "innovative research and development of IoT,” "sustainable innovation education,” "humanistic and aesthetic quality,” and "charity care for rural areas" as key projects.
Message from Top Management
Message from Chairman
In 2022, the global environment continued to be affected by the aftermath of the pandemic. Geopolitical disputes have set off supply chain issues. Also, the trend of energy saving and carbon reduction is rapidly heating up, bringing opportunities and transformation drives for Advantech.
The year of 2022 was also for Advantech to strengthen its investment in ESG work and upgrade and transform. The following aspects are used to illustrate the work achievements of this year:
Strengthening of corporate sustainable governance
We established the Sustainable Development Committee (SDC) at the board level. ESG-related actions are supervised and implemented from the level of corporate strategic. Moreover, the sustainable performance and positive incentive mechanism for senior executives has been activated. Also, sustainable performance indicators are formulated to drive accountability in ESG management and implementation performance. In 2022, we was among the top 5% in corporate governance evaluation. This also urges us to keep moving forward and operate with integrity
Improvement of public welfare social influence
It has been 22 years since the establishment of the Advantech Foundation. Over the years, we have spared no effort to invest in public welfare, art, Internet of Things education and innovative education. The social impact indicator document was developed more actively this year in anticipation that it can be transformed into an impact donation model. In this way, social pain points are effectively solved or the trend of social transformation is led.
The accelerated entry of the smart energy-saving industry and its leading role
Advantech has invested heavily in the Energy Management System intelligent Energy Management Solution (iEMS) industry this year. The smart energy-saving system is promoted with the core industry as the core and combined with partners in the energy-saving ecosystem. Global corporate practices can reduce carbon emissions to create Advantech's sustainable advantages
Deep cultivation of IoT education and industry-university cooperation
WISE-IoT platform is used to cultivate innovative talents in the field of IoT and incubate innovative solutions. We are committed to the goal of expanding IoT education to IoT education in 50 universities in 11 ountries around the world by 2025. IoT talents are cultivated and energy is innovated to achieve the sustainable goal of "finding the future for students and finding talents for jobs".
Advantech looks forward to 2023 and will focus on the following goals:
iEMS Global Roll outAdvantech headquarters and major overseas bases were first established as demonstration sites for energy conservation and carbon reduction. Also, realtime information on sustainable goals and energy-saving achievements were publicly disclosed. The goal of the global office is to save energy by 7%, and the goal of the main factory is to save energy by 8%.
Application to join the RE100 initiative50% use of renewable energy by 2030. In 2040, the utilization rate of renewable energy is 100%. Also, global energy information is collected systematically. Global bases are pushed to implement various renewable energy measures.
The deepening of employees' sustainable participationThe employee volunteer leave system has been implemented. Each person has a total of 2 days of volunteer leave per year to encourage employees to serve the society
Improvement of ESG sustainability evaluationThe goal is to be selected as one of Dow Jones Sustainability Index companies in 2025, to obtain A level in the CDP carbon disclosure questionnaire (climate change), and to continue to maintain a leading position of 5% in corporate governance evaluation.
Anchor of innovative education to expand influenceIt focuses on the trend of future education which is the link between PBL (Project Based Learning) innovative education and SDGs. It combines the educational ecosystem, key primary and secondary schools and communities, and to be is expected to establish the influence of education.
Finally, 2023 marks the 40th anniversary of Advantech. The activity planning of Advantech's global bases has been intensively launched. The global partner conference, the global employee wellbeing program and so on have been expanded. Advantech's achievements are shared with global employees and customer partners.
Let us imagine 40 together and create a common prosperity and vision for the future.
The year 2022 was also for Advantech to strengthen its investment in ESG work and upgrade and transform.
Message from President
The efficiency of global cross-border business activities and supply chains in 2022 was affected and limited by the threat of COVID-19 pandemic. However, Advantech's overall operating performance is still positive. Both revenue and profit showed double-digit growth. In addition to the aforementioned growth in business operations, Advantech is also actively expanding ESG sustainable development projects from its headquarters to its overseas subsidiaries. The progress of key work is as follows:
The assessment report on the financial quantification of TCFD (Task Force on Climate-related Financial Discourses) has been completed. The risks and opportunities of the Company's climate change are clearly quantified with financial data. All categories of the inventory and verification of scope 1, 2 and 3 of ISO 14064- 1: 2018 greenhouse gas emissions have been completed.
The self-owned energy-saving iEMS software was introduced into the manufacturing factories on both sides of the Taiwan Strait. Also, it was gradually expanded to own buildings worldwide. The scenario of self-owned application and management was implemented as an energy-saving display field.
Prepared to join the RE100 initiative as a corporate member. The target process for the use of renewable energy is set to: In 2030, it will reach 50% (both sides of the Taiwan Strait). In 2040, Advantech will reach 100% of the world's use of renewable energy.
Other material topics such as the mechanism of green product design, the evaluation of green supply chain, and the inventory of the carbon footprint of the first product have been launched successively, and are expected to achieve results in 2023.
Talents are the source of Advantech's driving innovation. At present, talent attraction, selection and retention are particularly important due to the global shortage of jobs, waves of resignation, and the trend of declining birthrates. Advantech has been strengthening talent cultivation and high-level inheritance in 2022. Workday HCM (Human Capital Management) is imported as a global talent management database. It is expected to accurately improve the quality of talents and optimize the process experience, including talent cultivation, new recruits and employee assessment.
In order to strengthen the policy of settling down and childbirth, Advantech increased employee maternity subsidies and launched the iTeleMed employee health care platform. This promotes workplace wellness and emphasizes work-life balance. Also, employee engagement survey measures are implemented to enhance employees' sense of belonging.
Sustainable Development Committee(SDC) was established. Working groups are set up to focus on environmental topics, talent cultivation and high-level inheritance. The guidance and support of the strategic direction is given at the height of the board of directors.
The linkage between the salary of senior executives and the performance of E, S, and G is promoted. Also, KPIs for senior executives and corresponding positive incentive mechanisms are set.
Awarded in the top 5% of listed companies in Taiwan for evaluation and governance.
Looking forward to 2023, below is additional to the abovementioned key work being continuously promoted. This year marks Advantech's 40th anniversary. We've planned a global tandem celebration of Global Cycling 40. Our ESG communication with employees and partners will also be strengthened. Through the regular publication of e-newsletters and sustainability special issues, everyone can understand Advantech's sustainability progress. We even join hands with co-creation partners to launch more sustainable intelligent solutions. In this way, the earth we live in is more sustainable and environmentally friendly