Sustainable Intelligent Solutions

Goals and Strategies

With the vision of "Enabling an intelligent planet" we are committed to achieving sustainable development in the world. By utilizing IoT technology and comprehensive product solutions, we enhance customers' resource utilization and production efficiency, reduce energy waste and carbon emissions, thereby promoting sustainable development. This is achieved through the development of IoT software and hardware products and services in areas such as energy management, transportation and logistics management, smart agriculture, smart factories, telemedicine, education, and maintenance services. Advantech is also committed to gradually expanding the proportion of revenue from sustainable intelligent solutions.



According to the revenue share of sustainable intelligent solutions classified under climate change mitigation indicators and climate change adaptation indicators as determined by the EU Taxonomy Sustainable Reporting Framework in 2023, the proportion amounted to 39.9%, or NTD 25,766,635K. The calculation methodology for this reporting scope is as follows:


Step 1： Refer to the classification, meaning, and peer identification of the Sustainable Development Taxonomy, and then further explain the connotation of economic activities based on Advantech's products and operating activities.


Step 2： Advantech units including product, manufacturing, R&D, procurement, and investment evaluate the relevance of the activities in 2023 based on the economic activity descriptions.


Step 3： A total of 17 economic activities were identified, corresponding to the domains of climate mitigation and climate adaptation. Advantech's 2023 EU Taxonomy Eligible revenue, capital expenditures, and operating expenditure were inventoried accordingly. Collect and disclose financial data of economic activities and issue a summary report.



In the future, Advantech will refer to international sustainability indicators, improve its methodology year by year, incorporate sustainability indicators into its green operations management, enhance the planning of eco products and services, enhance ESG performance, and continue to monitor the latest sustainability developments with regularly updated results

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) 64,567,697K 100%
Total of which is Taxonomy- Eligible
Total of which is Taxonomy- Eligible Total amount (Currency: NTD) 25,766,635K 39.9%
Total of which is not Taxonomy Eligible
Total of which is not Taxonomy Eligible Total amount (Currency: NTD) 38,801,062K 60.1%
Capital Expenditures
Total (Currency: NTD)
Total (Currency: NTD) Total amount (Currency: NTD) 1,197,587K 100%
Total of which is Taxonomy- Eligible
Total of which is Taxonomy- Eligible Total amount (Currency: NTD) 477,914K 39.9%
Total of which is not Taxonomy Eligible
Total of which is not Taxonomy Eligible Total amount (Currency: NTD) 719,673K 60.1%%
Operational expenditure
Total (Currency: NTD)
Total (Currency: NTD) Total amount (Currency: NTD) 14,033,564K 100%
Total of which is Taxonomy- Eligible
Total of which is Taxonomy- Eligible Total amount (Currency: NTD) 5,600,288K 39.9%
Total of which is not Taxonomy Eligible
Total of which is not Taxonomy Eligible Total amount (Currency: NTD) 8,433,276K 60.1%%

Sustainable Intelligent Solutions

Item Explanation
Policy or commitment
Policy or commitment

Advantech has assembled product R&D capabilities and local technical teams to embrace new opportunities in key application domains such as factory automation, renewable energy infrastructure, EV batteries and charging pile equipment, smart healthcare, and smart retailing.
Incorporate the concept of sustainability into the strategic blueprint for new product development and market expansion across business units. Establish quantifiable plans for sustainable products and services, and expand the scope and performance targets of related product departments (such as Environmental and Energy, Smart Healthcare). This will in turn amplify the positive impact on the environment and society through Advantech's products and services.

Impact description
Impact description

Sustainable intelligent solutions are being used to improve convenience and efficiency in a variety of industries, including smart factories, intelligent transportation, healthcare, energy management, and smart warehouses. These solutions have a positive economic impact because they streamline processes and boost productivity. The shift toward automation is becoming increasingly important, particularly in the context of a global labor shortage, and it serves as a critical strategy for closing the human resource gap.
Advantech's iEMS series solutions help enterprises save energy, reduce carbon emissions, and make energy transition to make a positive impact on the environment in the global net zero development trend. However, intelligence and AI will indeed replace part of the labor force and bring corresponding social impacts.
In the face of the possible impact on society and employment, Advantech has also long invested in the cultivation of industry talents, such as IoT industry-academic cooperation, IoT industry-academic internship project, and IoT education online certification course. Committed to shortening the gap between learning and application, and bringing more innovative talents in IoT to the world. For the industry-academia education content related to IoT, see 3.3 IoT application promotion and education.

2023 Goals achievement status
2023 Goals achievement status

Achieved.
In 2023, the target for revenue of sustainable intelligent solution ratio is 19%, and the actual result is 39.9%. (Note: In 2023, we calculated contributions to the EU Taxonomy indicators, focusing on mitigating climate change and enhancing climate adaptation. Advantech's sustainable smart solutions were assessed for their contributions to these areas. Therefore, the calculation methods for the two years are different.)

2024 Goals
2024 Goals

41% of revenue comes from the sale of sustainable products or solutions.

2025 Goals
2025 Goals

42% of revenue comes from the sale of sustainable products or solutions.

2030 Goals
2030 Goals

47% of revenue comes from the sale of sustainable products or solutions.

Key action plans or programs
Key action plans or programs
  • Establish a clear blueprint for sustainable product R&D and design 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.
  • Establish ecosystem partners. By leveraging the value and technological advantages of partners, we can provide users with better value, thereby creating mutual prosperity and sustainability for Advantech, ecosystem partners, customers (enterprises or individuals), and the earth.
  • Continue to pay attention to the development of sustainability-related regulations, and incorporate the development of sustainable indicators, certifications, or technologies related to products or solutions in the development direction.
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.
  • Enter into external awards or competitions. For example, Advantech participated in and exhibited at E-Mobility Taiwan organized by Taiwan External Trade Development Council (TWSE) and was selected as the ESG Achievement logo; USC-365 POS machine won the 2023 Taiwan Excellence Awards (Click here); Performance evaluation via external honors.
Stakeholder engagement
Stakeholder engagement

In recent years, Advantech has noticed that customers have become increasingly concerned with issues such as energy conservation, carbon reduction, and product carbon footprint. There is also considerable interest in Advantech's social contributions and corporate governance. In response to the above issues, Advantech has various discussions and experiences with customers, and then forwards customers' expectations to the relevant units, including the improvement of product sustainability and the acceleration of product carbon footprint disclosure.

Highlight Case