Sustainable Intelligent Solutions

Management Guidelines for Major Topics

Sustainable Intelligent Solutions

Sustainable Intelligent Solutions
Policy or commitment
Policy or commitment

Advantech's sustainable intelligent solutions are applied to different sectors such as: smart factory, renewable energy infrastructure, smart healthcare, smart retail, robotics applications, etc. In recent years, Advantech has introduced AI applications, collaborating with ecosystem partners to accelerate the adoption of AI edge computing across various industries.
Advantech is committed to incorporating sustainability into the strategic blueprints of its business units for new product development and market expansion. Examples include focusing on product sustainability responsibility, expanding the objectives of relevant product departments (such as environmental protection and energy, smart healthcare, smart agriculture, and environmental monitoring), and expanding the impact of Advantech's sustainable intelligent solutions.

Positive impact
Positive impact

Advantech’s sustainable intelligent solutions generate a positive economic impact by enhancing convenience and improving efficiency across sectors such as smart factories, smart transportation, healthcare, energy management, and smart warehousing. In light of global labor shortages and Taiwan’s aging population, automation-driven transformation is an inevitable trend. This shift not only addresses workforce challenges but also actively facilitates economic transformation.
While sustainability remains a top priority, Advantech’s iEMS solutions are designed in response to the global trend toward net-zero development by enabling businesses to effectively monitor energy resource-related data. This, in turn, helps them to identify carbon emission hotspots and devise effective energy saving and emission reduction strategies, ultimately creating a positive environmental impact.

Negative impact
Negative impact

Smart and AI technologies will replace some of the manual workforce, leading to corresponding social impacts.
For negative impact countermeasures, please refer to 3.3 IoT Application Promotion and Education. Advantech is committed to cultivating IoT talent to ensure that the workforce is not displaced by AI or technology, but instead becomes proficient in applying technology to bring positive contributions to society.

2024 Goals achievement status
2024 Goals achievement status

In 2024, the revenue of sustainable intelligent solutions was 41%, and 55.6% was achieved
(Note: In 2024, Advantech calculated the contribution of its sustainable intelligent solutions toward climate change mitigation and climate change adaptation based on EU Taxonomy indicators.)

2025 Goals
2025 Goals

57% of revenue comes from the sale of sustainable products or solutions.

2030 Goals
2030 Goals

62% of revenue comes from the sale of sustainable products or solutions.

Key action plans or programs in 2024
Key action plans or programs in 2024
  • Establish a clear blueprint for sustainable product R&D and improve product integration. With reference to sustainability-related indicators, those with high applicability are included in Advantech's existing eco products and related operating activities specification to gradually enhance sustainability.
  • Forge ecosystem partnerships. By leveraging the value and technological advantages of our partners and the supply chain, we can provide users with better value, thereby fostering shared prosperity and sustainability for Advantech, ecosystem partners, customers (businesses or individuals), and the planet.
  • Continue to monitor the development of domestic and international sustainability-related regulations, and incorporate relevant sustainable indicators, certifications, and technologies into the direction of product and solution development.
  • Launched a pilot program for three products featuring sustainable raw materials to explore the carbon reduction performance of incorporating recycled plastics and metals into products. The aim is to achieve mass production and establish Advantech's image as a green enterprise.
Effectiveness assessment
Effectiveness assessment
  • Regularly review revenues from smart energy management solutions, smart factory solutions, smart telemedicine, smart agriculture solutions, smart education solutions, smart transportation, and smart logistics.
  • Each business group has monthly, quarterly, and annual review mechanisms to review strategies, plans, inventory, revenue, gross profit, net profit margin, and other revenue conditions on a regular basis.
  • Regular meetings are conducted to review eco product development progress, and annual targets are stipulated to monitor the progress of eco products across four key aspects.
Stakeholders impacted by the material topic and actions implemented by Advantech
Stakeholders impacted by the material topic and actions implemented by Advantech

Addressing the potential social impact on employment resulting from its activities, Advantech's mitigation measures involve investing in industry talent cultivation, such as the IoT Industry-Academic Cooperation, the IoT Industry-Academic Internship Project, and the IoT Education Online Certification Course. Committed to bridging the gap between learning and application, and introducing more innovative IoT talents to the world. For the content of the IoT industry-academic education cooperation, refer to 3.3 IoT Application Promotion and Education.
In response to investor and customer concerns about product sustainability performance, Advantech voluntarily engages in discussions on energy-saving and carbon reduction achievements, targets, and roadmaps. The outcomes of these discussions are forwarded to relevant units and incorporated into initiatives such as improving product sustainability and expediting product carbon footprint disclosure.

Goals and Strategies

Advantech's sustainable intelligent solutions are applied to different sectors such as: smart factory, renewable energy infrastructure, smart healthcare, smart retail, robotics applications, etc. In recent years, Advantech has introduced AI applications, collaborating with ecosystem partners to accelerate the adoption of AI edge computing across various industries. Advantech is committed to incorporating sustainability into the strategic blueprints of its business units for new product development and market expansion. Examples include focusing on product sustainability responsibility, expanding the objectives of relevant product departments (such as environmental protection and energy, smart healthcare, smart agriculture, and environmental monitoring), and expanding the impact of Advantech's sustainable intelligent solutions.

With the vision of "Enable an Intelligent and Sustainable Planet," we are committed to achieving sustainable development in the world. By applying IoT technology and comprehensive product solutions, we can enhance customers' resource utilization and production efficiency and minimize energy waste and carbon emissions to promote sustainable development. This is achieved through the development of IoT software and hardware, as well as products and services in areas including energy management, transportation and logistics management, smart agriculture, smart factories, telemedicine, education, and maintenance services. Advantech also strives to gradually expand the revenue share from sustainable intelligent solutions.

Advantech voluntarily adopted the EU Taxonomy as a reference to refine the classification of its sustainability-related activities and disclose corresponding revenue and expenditures. In 2024, based on the EU Taxonomy reporting framework and by benchmarking against its climate change mitigation and climate change adaptation indicators, the revenue share from sustainable intelligent solutions was calculated to be 55.6%.

Advantech's sustainable intelligent solutions correspond to the financial disclosure of the European Union's sustainability classification report

Revenue
Total (Currency: NTD)
Total (Currency: NTD) Total amount (Currency: NTD) 59,786,293K 100%
Total of which is Taxonomy- Eligible
Total of which is Taxonomy- Eligible Total amount (Currency: NTD) 33,264,408K 55.6%
Total of which is not Taxonomy Eligible
Total of which is not Taxonomy Eligible Total amount (Currency: NTD) 26,521,885K 44.4%
Capital Expenditures
Total (Currency: NTD)
Total (Currency: NTD) Total amount (Currency: NTD) 1,475,070K 100%
Total of which is Taxonomy- Eligible
Total of which is Taxonomy- Eligible Total amount (Currency: NTD) 820,712K 55.6%
Total of which is not Taxonomy Eligible
Total of which is not Taxonomy Eligible Total amount (Currency: NTD) 654,358K 44.4%%
Operational expenditure
Total (Currency: NTD)
Total (Currency: NTD) Total amount (Currency: NTD) 15,326,118K 100%
Total of which is Taxonomy- Eligible
Total of which is Taxonomy- Eligible Total amount (Currency: NTD) 8,527,276K 55.6%
Total of which is not Taxonomy Eligible
Total of which is not Taxonomy Eligible Total amount (Currency: NTD) 6,798,842K 44.4%%

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