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Hon Hai Reveals 14 Long-Term Governance Goals for ESG
2022/05/16
CSR

Improving Board Member Diversity and Strengthening Board Responsibility,to uphold Integrity and extend ESG influence to Supply Chain

16 May 2022, Taipei. Hon Hai Technology Group (Foxconn), the world’s largest technology manufacturer and service provider, reveals its long-term Governance goals for ESG, focusing on“Market-leading Sustainability” and “Wise Governance”. The Group endeavors to ensure good corporate governance and strong protection of stakeholder interests, demonstrating its dedication to social responsibilities.

As a leading technological solution provider, Hon Hai has footprints all over the world, with huge clients and suppliers base, making risk management a challenging task to achieve. However, the Group adheres to the principle of business integrity, striving to improve board diversity and corporate governance, and protect the interests of its stakeholders.

This time, Hon Hai puts forward 14 goals on several aspects, including board diversity, supply chain management, cyber security, anti-corruption, and tax policy disclosure, to name but a few, laying out milestone for 2025 and years after:

  1. > 50% board members are not concurrently employees or managers of Hon Hai.
  2. Increase female boards of directors from 11% to 30%.
  3. The performance evaluation of board of directors, Audit committee and Remuneration committee raise to an average of 4.8 points; board of directors and functional committees taking performance evaluation conducted by external experts every 3 years.
  4. Disclose information addressing the Group’s tax policy.
  5. Keep improving ISO 27001 and assist business units to establish cyber security system.
  6. Conduct security test annually for 10 important systems to ensure zero major cyber security incident.
  7. Information transparency: 10% increase in annual disclosure of corruption and violations of laws and regulations via employee app.
  8. All key electronics suppliers have FMD (Full Materials Declaration) on RoHS-REACH intelligent management platform.
  9. Increase the number of designated electronics suppliers achieving Zero Waste to Landfill from 3 to 25.
  10. Increase the number of key electronics suppliers using 100% renewable energy to manufacture Hon Hai’s product from 3 to 45.
  11. Evaluate and select key electronics suppliers every year. For the suppliers with the poorest ESG performances, Hon Hai reserves the right to reduce annual order quantity or value by 2-5%.
  12. Conduct evaluation on all designated suppliers’ ESG performance (including green product, carbon management, social and environmental responsibilities).
  13. Coverage rate of designated mechanical supplier audit (conducted every 3 years) reaches 90%.
  14. Conflict minerals inquiry response from designated suppliers reaches 100%, ensuring zero use of conflict minerals.

“Hon Hai brings its organizational value ‘Sustainability = EPS+ESG’ into practice in its campuses worldwide. Our objective is to create sustainable values through improving transparency on corporate governance. By setting quantitative indicators for our goals, we are engaging our employees and partners as advocates and enablers of ESG improvement”, said Galatea Chao, Chief Audit Executive & Head of G (Governance) Team for Sustainability Committee of Hon Hai Technology Group.

Hon Hai, on its way towards sustainable corporate governance, pays close attention to global trends in corporate governance, especially on the composition and gender diversity of the board as well as operational risk management. In this March, a Nomination Committee was established. Recently Hon Hai also revealed the candidates for its board of directors, in which independent directors account for more than 50%. Moreover, among the 9 candidates, 2 are female. The reappointment of directors will be carried out on Hon Hai’s shareholders’ meeting on May. 31.

Committed to the implementation of sustainable actions, Hon Hai has set up a Sustainability Committee, with the Group’s Chief Environmental Offer, Chief Human Resource Officer, and Chief Audit Executive being the Heads of E (Environment) Team, S (Social) Team and G (Governance) Team respectively to jointly promote ESG. The Group recently revealed its vision and strategy with 32 long-term goals for employees to work on, showing its determination for the ESG revolution.   

About Hon Hai

Established in 1974 in Taiwan, Hon Hai Technology Group (“Foxconn”) (2317:Taiwan) is the world’s largest electronics manufacturer. Hon Hai is also the leading technological solution provider, and it continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies. Hon Hai has expanded its capabilities into the development of electric vehicles, digital health, and robotics, and three key technologies – new-generation communications technology, AI, and semiconductors – which are key to driving its long-term growth strategy.

In addition to maximizing value-creation for customers who include many of the world’s leading technology companies, Hon Hai is also dedicated to championing environmental sustainability in the manufacturing process and serving as a best-practices model for global enterprises.

 

To learn more, visit www.honhai.com

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