2020 MSI CSR Report

About this report. Report Scope. Time: From 2019.01.01 to 2019.12.31. Scope: Financial data presented in this report reflects performance of.

06.06.2020 ... About this report. Report Scope. Time: From 2019.01.01 to 2019.12.31. Scope: Financial data presented in this report reflects performance of.

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2020 msi csr eng

2020 MSI CSR Report
MICRO-STAR INTERNATIONAL CO.,LTD.

2020 MSI CSR Report
About this report
Report Scope
Time: From 2019.01.01 to 2019.12.31 Scope: Financial data presented in this report reflects performance of the parent company and its subsidiaries. (About the scope detail please refers to 2019 annual report at https://tw.msi.com/about/investor). For nonfinancial data, the boundary of this report covers Micro-Star INT'L Co., Ltd. (MSIT), MSI Computer (Shenzhen) Co., Ltd. (MSIS), and MSI Electronics (Kunshan) Co., Ltd.(MSIK)(The three facilities are referred to as "MSI Group or MSI").MSIS and MSIK do not provide information on the number of employees due to the confidentiality of the customer contract. Unless elsewhere specified, information will be disclosed in the report. There is no change from the 2018 Reporting scope.
Report Outline
MSI's CSR report addresses core indicators from the Global Reporting Initiative (GRI) GRI Standards Guidelines-Core Options and the Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies. This report discloses our business activities, strategies and management performance addressing the most significant corporate social responsibility (CSR) issues. The reference table of GRI Standards has been attached as an appendix to this report.
Report Assurance
Internal review: The Sustainable Development Office shall assess and be
responsible for administering the planning, data gathering, internal communication, content compilation, and verification of reporting. The Corporate Social Responsibility (CSR) working group team and the function heads shall review the content and the information contained in relevant chapters and sections for accuracy.
2

The President & CEO is authorized by the Board to command respective designated (adjunct) bodies to review the strategic objectives and the ESG (Environment, Social, Governance) performance.
To be reviewed and confirmed by the President & CEO by signing before release for publishing.
External assurance:
The Report is in compliance with the core options in the GRI Standards guidelines, and an independent third party (BSI Pacific Limited, Taiwan Branch) has been engaged to provide assurance for moderate assurance level in AA1000AS-2008 with 2018 Addendum Type 1.The independent assurance opinion statement has been attached as an appendix to this report.

Data verification:

The data relating to ISO of qualityenvironment and power managementfinancialRBA and greenhouse gas emission standards have been verified by third parties.

Item

Verification / Certification

Financial Data

PwC Taiwan

Quality management systems (ISO 9001)

Environmental management system (ISO 14001)

Greenhouse gas emissions (ISO 14064-1)

Occupational health and safety management system (ISO 45001) Hazardous substance process parties management system (IECQ/QC 080000)

Bureau Veritas Certification(BVC) Co.,

Ltd.

The requirements of a quality management system for organizations

in the automotive industry (IATF 16949)

Telecommunications quality management System (TL 9000)

MSIS verification
items

Energy management systems (ISO 50001)

Centre Testing International (CTI)

Testing and

calibration laboratories (ISO 17025)

China National Accreditation Service for Conformity (CNAS)

Responsible Business Alliance (RBA)-validated audit process (VAP)

TÜV SÜD China

Date of Issuance

Since publishing our first CSR Report in 2008, to this date, MSI has continued to publish CSR Report on an annual basis. All of the past Reports are publicly available for viewing for all stakeholders around the world on the MSI website with both English and Traditional Chinese versions available.

CSR Report downloads

TWSE Code: 2377 http://mops.twse.com.tw/mops/web/t100sb11
http://tw.msi.com/html/popup/csr_tw/index.html

Current issued version June 2020

Last issued version

June 2019

Next issued version

Expected in June 2021

Contact information

Micro-Star INT'L CO., LTD.

CSR Contacts

Corporate Sustainability Office

Address No. 69, Lide St., Zhonghe District, New Taipei City 235030, Taiwan (R.O.C.)

csr msi.com

MSI Sustainability Performance Highlights in 2019
Environmental Performance
Reduced by 3,934.8 MWh as compared with the last reporting year. Reduced by 1,272.7tCO2e in greenhouse gas emission as compared
with the last reporting year. Issued the 10th edition of the Standard for Environmentally Friendly
Products, and completed over 140,000 parts approval.

Social Participation
Total amount of donations for public welfare: NT$19,531,244 The number of benefit students for education cares: 8,811 The number of benefit students for school lunch: 6,510

Among the Top 50 of the Excellence in Corporate Responsibility AwardsLarge Enterprises.

Ranked the 19th position of Interbrand of Best Taiwan Global Brands 2019 Awards. No.1 in Brand Value Growth (+18%)

The MSCI Taiwan Index component
Number One of reliable computer brand cited by UFC-Que Choisir of France in 2019.

MSI was ranked top 6%-20% public companies list of The 6th Corporate Governance Evaluation held by Taiwan Stock Exchange (TWSE). Selected as TWSE CSR Index:
Taiwan Corporate Governance 100 Index component
The Taiwan HC100 Index component
Taiwan RAFI EMP 99 Index component

Ranked among the Top 20 Well-Being Enterprises of the Technology Industry in 2019 by 1111 Job Bank.
2020 CSR 3

2020 MSI CSR Report
Letter from the Chairman and President (CEO)
Message from the Chairman and President (CEO) Market needs first, value creation foremost
Global economy in 2019 was clouded by the USChina trade dispute and geopolitical uncertainty, which triggered a high level of uncertainty to the supply and demand of the industry chain. Accordingly, operation turned increasingly difficult with challenges intensified.MSI responded to the complexity of variables in the environment with flexible deployment, including the expansion of the production line in Taiwan, and an alliance with BlueStacks, a US gaming platform designer, to extend to the cloud gaming application. MSI not only chased the shipment volume of hardware but also strengthened the integration capacity of software and hardware. Furthermore, MSI also added value to its products through combining AI to mitigate the impact from the external environment. Further to the continued supply of high-end eSports equipment and peripherals, MSI also launched high-end image processing products to meet the needs of content creators. In the areas of servers, industrial computers, automotive electronics-related and OEM products, MSI also furthered its integration with related applications of AIoT and launched different solutions with a view to bringing even higher value to the customers and win-win situations for the shareholders, customers, employees, and suppliers.
President (CEO) Chiang,Sheng-Chang
4

Chairman Hsu,Hsiang

Advancement to sustainability in concerted effort
MSI takes positive adaptive/mitigating actions to tackle the challenges from climate change and environmental protection by setting the objectives for the reduction of greenhouse gas emission, energy and water resource consumption and dumps. In the course of product development, MSI exercises control and reduces hazardous substances and assures energy efficiency of its products. In addition, MSI spares no effort to act friendly to the environment and improve the performance of environmental protection throughout the product life cycles. Besides this, MSI also seeks to reduce the use of materials which are not energy efficient and hazardous to the environment for assurance of conformity to applicable laws in Taiwan and advocacy of the objectives set forth by international organizations. MSI is dedicated to the transformation of the common sustainable value chain to unveil another blue ocean.
Balanced Development under coexistence and common prosperity
MSI pursues a sustainable strategy slowly but surely in sustainable economic development congruent with the development direction under the UN SDGs. In conforming to the standards of responsible minerals and Responsible Business Alliance (RBA), MSI materializes the evaluation and management of workers so that each worker becomes a vital partner of MSI and creates higher social value together with MSI. MSI has nonetheless continued its social participation. Through the donation of funds, sectoral integration and collaborative education, MSI has wielded its professed influence on society in the positive way for social good, and hopes to play an even more active role in education, support of the underprivileged class, and protection of the environment for further pursuit of corporate social responsibility.

2020 CSR 5

2020 MSI CSR Report
Table of Contents
1. Corporate Sustainability Development 1.1 Commitment of MSI in Sustainable Development 1.2 MSI Sustainable Development Strategy 1.3 Stakeholder Engagement and Analysis of Material Issues 2. About MSI 2.1 Company Overview 2.2 The Framework of Corporate Governance 2.3 Operation Performance 2.4 Risk Management 2.5 Business Ethics 2.6 Legal Compliance 3. Employee Value 3.1 Overview of the Employee 3.2 Remuneration and Benefits 3.3 Employee development 3.4 Employee Care 3.5 Healthy Workplace 3.6 Occupational Safety and Health 4. Product Value 4.1 Product Sustainability 4.2 Management of Hazardous Substances 4.3 Supplier Management 4.4 Customer Service and Satisfaction 6 4.5 Protection of Privacy Rights and Personal Information
of the Customers

8 5. Environmental Value

8 5.1 Environment Management Goals

8 5.2 Environmental Management System

11 5.3 Climate Change Management

16 5.4 Greenhouse Gas Management

16 5.5 Pollution Prevention

18 5.6 Water Management

21 6. Love in MSI

22 6.1 Remote Locations Care-School Lunch Fund

25 6.2 Pluralistic Educational-Supporting Education

28 6.3 Flip Life-Disadvantages Groups Help

32 6.4 Power to Change Society-Corporate Volunteers

32 6.5 Community Action-Feedback and Safeguard

36 6.6 Community Relations-Donation of Resources

40 Annex I. GRI Standards Content Index

43 Annex II. ISO 26000 Index

44 Annex III. United Nation Global Compact Comparison Table 98

47 Annex IV. Assurance Statement

1. Corporate Sustainability Development

2020 MSI CSR Report
1. Corporate Sustainability Development
As a corporate citizen, MSI seeks to create corporate value of sustainable development through "innovation of smart technologies", "pursuit of corporate citizenship" and "common growth for win-win situation" and performs its responsibility and mission in social concern, environmental protection, employee care, commitment to shareholders,
and customer trust.
1.1 Commitment of MSI in Sustainable Development
"Sound Sustainable Governance, Environmental Sustainability and Sociality Common Good" form the core of MSI's CSR vision; they are the motivation that drives the company towards seeking balance between business, society and the environment, further setting model example for the good corporate citizen. Conceived with the corporate social responsibility vision of "vitalization of sustainable governance, development of environmental sustainability, preservation of common good in society", MSI seeks to achieve economic, social, and ecological equilibrium and sustainable development so as to set an example as a good corporate citizen. MSI adopted the internationally recognized standards in performing its social and environmental responsibilities such as the Responsible Business Alliance (RBA), UN Guiding Principles on Business and Human Rights for the performance of corporate social responsibility. Accordingly, all activities in business operation must be in compliance with the applicable legal rules effective in the countries of operation. In addition, MSI has also instituted the "Corporate Social Responsibility Best Practice Principles" as the guide for performing the obligation as a corporate citizen. MSI spares no effort in seeking solutions for the improvement of energy and resources consumption and has set the objectives for environmental protection and energy saving to demonstrate its concern over climate change as a responsible enterprise.MSI manages the use, emission, and reduction of energy and resources through the environment management system, the guide for the pursuit of environmental policy and management. MSI will continue
8

to conduct proper inspections and make improvements and mingle the issues pertinent to climate as an integral part of business decisionmaking so as to withstand the impact from climate change in concerted effort.
1.2 MSI Sustainable Development Strategy
Conceived with the corporate philosophy of "innovation of smart technologies", "pursuit of corporate citizenship", "common growth for win-win situation". MSI seeks to properly launch the ESG strategy (Environment, Social, Governance) of sustainable development, and respond to the ten goals of the UN SDGs incrementally through the strategic moves of a "viable governance structure", "leadership towards sustainability", "diversified and inclusive workplace" and "implementation of responsible production". The performance result in the reporting period is presented in the CSR Report.
Sustainability Strategy and Blueprint

MSI Sustainable Development Goals and the UN SDGs
The CSR Team and the senior management officers of MSI reviewed the core competence in operation and influence of MSI as specified in the annual report of the preceding year, and determined to make adjustments for alignment with the SDGs by introducing SDGs 1, 5, 6, and 16.

UN SDGs No Poverty

GOOD HEALTH AND WELL-BEING

Good Health And Well-Begin

QUALITY EDUCATION

Quality Education

Gender Equality
Clean Water and Sanitation

Item 1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance.
3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.
4.5 By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations.
5.1 End all forms of discrimination against all women and girls everywhere. 5.c. Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels.

MSI's response to SDGs

Related Report Sections Page

To continue the supply of appropriate resources to the

underprivileged:

3.2 Remuneration and

Goal: To allocate resources for social charity annually. Benefits

Goal: To continue local purchase of raw materials.

6. Love in MSI

The mechanisms of the reduced use of substances

hazardous to the environment and proper management 4.1 Product

of the products at the final stage of the product life

Sustainability

cycle for assurance of the safety and health of the

4.2 Hazardous

environment.

Substances

Goal: To target using halogen-free parts and

Management

components in BOM by more than 85% by 2030.

Assurance of education and training for all with

equal opportunity, and advocacy of lifetime learning

for improvement of contribution to sustainable

3.3 Employee

development.

Development

Goal: To express concern for education in remote

6.2 Pluralistic

rural areas with commitment of resources to narrow

Educational-Supporting

the learning gap for students in remote locations.

Education

Goal: To advocate the on-the-job continuing education

program with the availability of opportunity for overseas

assignment to provide incentive for employees to stay.

Eradication of discrimination in all forms and realization of gender equality. Goal: To comply with MSI CSR policies and code of conduct for assurance of no sexual discrimination. Goal: To assure equal opportunity at the workplace through ESG questionnaire survey and RBA evaluation and analysis.

2.4.3 Scope and Policies of Early Warning of Risks 3.3 Employee Development 3.5 Healthy Workplace

23
40 44

6.3 By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally. 6.4 By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity.

Continuation in the management of efficient use of water resources to avoid waste and pollution. Goal: To set the objective of reduced use of water unfolded by substantive action plans. Goal: To improve the quality of water pollutants in draining for assurance of conformity to applicable standards.

5.5 Pollution Prevention 79 5.6 Water Management 81

2020 CSR 9

2020 MSI CSR Report

UN SDGs

DECENT WORK AND ECONOMIC GROWTH

Decent Work and Economic Growth

SUSTAINABLE CITES AND COMMUNITIES

Sustainable Cities and Communities

RESPONSIBLE CONSUMPTION AND PRODUCTION

Responsible Consumption and Production

CLIMATE ACTION

Climate Action

Peace, Justice and Strong Institutions

Item
8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. 8.7 Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labor, including recruitment and use of child soldiers, and by 2025 end child labor in all its forms. 8.8 Protect labor rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment.

MSI's response to SDGs

Related Report Sections Page

To allow all male and female employees to be accessible to a decent

job with the prohibition and eradication of the illicit employment

of juvenile workers, eradication of forced labor, protection of labor

3.1.2 Employment

rights, and improvement of safety at the workplace.

3.2 Remuneration and

Goal: To target a zero frequency of disability and injury, and zero

Benefits

occupational hazards at the workplace.

3.6.5 Result of

Goal: To offer incentives in remuneration and keep the overall

Occupational Safety and

salary level of employees at the top 35% of industry level.

Health Management

Goal: To comply with applicable laws effective in all production

sites for the protection of the right of employment of the employees.

Mitigate the impact on the environment, and prompt for

inclusiveness, safety and sustainable development of the

accommodation environment.

11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

Goal: To monitor the quality of ambient air annually for assurance of the effectiveness of the air pollution control measures. Goal: Mitigate the mutual influence of sharing water resources for assurance of water pollution prevention and related works are in conformity to applicable rules and regulations.

4.1 Product Sustainability 5.5 Pollution Prevention 5.6 Water Management

58
79 81

Goal: Management of wastes-complete the labeling of products

and equipment and the registration of recycling wastes, with product

recycling rate higher than 90%.

12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment. 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

Reduce the use of chemicals through prevention, reduction, recycling, and reuse and reduce the output of wastes to mitigate negative influences on human health and the environment. Goal: To establish a green product management system platform for the management of suppliers and to ensure products and materials conform to applicable rules and regulations. Goal: To launch the reduced use of packing materials, efficacy management, and the reduction of the ratio of hazardous wastes.

4.1 Product Sustainability

13.1 By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity. 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

To make efforts to save energy and reduce carbon emissions for

stronger adaptability to the impacts resulting from climate change.

Goal: To reduce the total emission of greenhouse gas by 50% by 2025 (as compared with 2007) and reduce the energy consumption of key items by 20%. Goal: Zero day of production interruption under the impact of climate change.

2.4.3 Scope and Policies 23 of Early Warning of Risks 5. Environmental value 74

Goal: To establish the Business Continuity Plan (BCP) as a means

of management for assurance of the continuation of operation.

16.2 End abuse, exploitation, trafficking and all forms of

Establish partnership with upstream and downstream enterprises

violence against and torture of children. 16.6 Develop effective, accountable and transparent institutions at all levels.

for proper governance and peace resolution in concerted effort. Goal: To advocate the management of conflict minerals for equality of human rights.

2.5 Business Ethics 4.3 Supplier Management

25 64

16.b. Promote and enforce non-discriminatory laws and

Goal: To call for international advocacy in anti-corruption, ethics

policies for sustainable development.

and integrity, and unfair competition in enterprises and supply chain.

1.3 Stakeholder Engagement and Analysis of Material Issues

MSI provides a diversity of channels for hearing the stakeholders in matters of their concern, and proceeds to effective discussion for building consensus, and respond to the needs and expectation of the stakeholders.

Stakeholder Engagement

MSI has consulted the AA1000 Stakeholder Engagement Standard (or known as AA1000 SES) on its principles of influence, degree of concern, responsibility, reliance, and diversified views as the criteria for judgment. International sustainable development trend and operation needs have also been taken into consideration, based on which MSI has defined seven categories of stakeholders, namely, investors/shareholders, customers, suppliers, employees, media, government, and non-profit organizations (NPO).MSI pays constant attention to changes in corporate responsibilities and engages stakeholders in ongoing exchange of opinions. During the reporting period, a broad variety of communication channels, both regular and unscheduled, were utilized to respond to stakeholders' concerned issues.

The result of stakeholder engagement in the reporting period

Stakeholder Shareholder
Investor
Customer
Supplier Employee

Communication Channel

Frequency

Shareholder meetings Investor conferences Annual report MSI website Market observation post system CSR report

Annually Irregular Annually Irregular Irregular Annually

Customer service website Immediate

Customer satisfactory survey Irregular

Internal contact person

Office hours

Service center

Office hours

Social media

Immediate

0800 Phone call service

Daily(specific time)

MSI CSR website

Immediate

Green product management Supplier conference Supplier questionnaire Onsite audit supplier/
Supplier assessment

Immediate Irregular Annually Annually

Employee opinion box

Immediate

Employee EAP

Immediate

Mobile APP

Immediate

Enterprise information portal (EIP) Immediate

Employee satisfactory survey Irregular

Issues

Response

Company vision and governance Business operation overview Business performance Risk management

The executive management
team meets regularly every year Material information briefings Investor mail Investor service line

Product liability and safety Customer service management Compliance Supply Chain management

Customer audit Supplier conference Project meeting and consultation RBA online Community activities Physical store activities Specific issue questionnaire

Business operation overview Business performance Product liability and safety

Supplier audit Supplier conference Specific issue questionnaire Project meeting

Business performance Employee benefits Employee development Occupational safety

EAP hotline and mail ESH committee LOB/BU internal meeting Internal mail
Employee satisfactory survey

Engagement Results
Meetings at the management level: Shareholder meetings: 1 / Investor conferences: 1 2019 cash dividend of NT$4.2 per common share Participation in Corporate Governance Evaluation (Evaluation Result in the reporting period: among the top 6%-20% enterprises) The annual reports, financial statements, and business reports will be disclosed at the official website of MSI promptly-on the page of information for investors. Contact: Jade Hang / +886-2-3234-5599
Operation-related audit certification Irregular conference with communication RBA online information disclosure for customer query Community instant activities The questionnaire and issue reply Contact: Hotline: +886-800018880
Irregularly audit suppliers and organize supplier meetings (as needed) Issue reply and information collection Project meeting with communication Contact: Maggie Chen / +886-2-3234-5599
Feel free to give the opinion and make strategic adjustments and response To review the safety of employees' work environment To study employee activity satisfaction survey and develop employee requirements Contact: Wayne Chien / +886-2-3234-5599

2020 CSR 11

2020 MSI CSR Report

Stakeholder Communication Channel

Frequency

Media

Press conference Press release

Irregular Irregular

Government

Government regulation requirements Immediate

CSR report

Annually

Market observation post system Annually

MSI investor information website Immediate

non-Profit Organization

Stakeholder questionnaire CSR Website/email Market observation post system MSI investor information website

Annually Annually Annually Immediate

Issues

Response

Engagement Results

Business operation Media interviews

overview

Press releases

Media interviewsinquiries and press releases

Business performance Spokesperson public relations Contact: Jade Hang / +886-2-3234-5599

Compliance

hotline and mail

Corporate governance Regular press releases to

Compliance

publish monthly revenues

Labor rights

Questionnaire and interview

The company works with government agencies regularly and as needed in implementing and coordinating related programs.
Press releases The company plays an active role in trade associations to facilitate frequent interaction among members of the industry.

Corporate governance Environmental management Compliance Labor rights

Questionnaire and interview Project meeting Relations with Associations Project collaboration

By applying for government subsidies or earmarked grants, the company forms academia-industry partnerships in specific fields with research institutions. Contact: Wayne Chien / +886-2-3234-5599

Material topics issues analysis

MSI compiled its Corporate Social Responsibility (CSR) Report in accordance with the AA1000 Accountability Principles (AA1000AP), and the Global Reporting Initiative (GRI) Standards, which were served as references to identify major issues of CSR and major issues necessary for disclosure. MSI conducted an analysis of the major issues through the process of identification, sequential ordering, confirmation and review in order to determine the scope of disclosure in the CSR report, and reviewed the content of the issues specified in reports in the past and the external challenges to sustainable development in confirming the major issues to be covered by the report.

7 categories of stakeholders MSI consulted the AA1000SES to define seven categories of stakeholders, namely, investors/shareholders, customers, suppliers, employees, media, government agencies, and NPOs.
14 topics of sustainable development MSI complies with the CSR standards, advocacy of sustainability, and the corporate strategic goals to communicate with the stakeholders and put together their opinions for assuring the full coverage of all topics. Through this procedure, MSI has sorted out 14 topics of sustainable development.

Standards of CSR (GRIRBAISO)
Sustainability Initiative (SDGseCDPeDJSI)

5 Economic and Corporate Governance Issues

5 Environmental Issues

* Corporate operating performance
* Corporate governance * Compliance * Supply chain manage-
ment * Customer service
management

* Product liability * Energy management * Climate change * Pollution prevention * Water management

4 Social Issues
* Cultivation of talent * Friendly workplace * Occupational health
and safety * Human rights manage-
ment and labor relations

Identification

MSI also reviewed the matrix of the major topics covered in the previous version of the CSR report to assure the inclusiveness, sustainable links, materiality and completeness of the content of the report.

Stakeholder Engagement Business Strategy Goal

Prioritization

MSI has established channels for engagement with the stakeholders and evaluated each topic in the aspects of intensity of impact and degree of concern.
MSI designed the questionnaire on the basis of the intensity of impact and degree of concern of the stakeholders, and launched an online questionnaire survey to collect information on the degree of concern over the topics of sustainability, and has received 335 replies from valid respondents in the reporting period as the basis of degree of concern.
The CSR team evaluated the topics one-by-one in the aspects of operation, governance, risk, social impact, and conformity through quantitative analysis to identity the intensity of influence and impact on the basis of the GRI standard requirement, operation development, and internal controllable action, and has come up with the sequential order of the major topics at the preliminary stage.

56%

Degree of concern
Investors/ /
Shareholders
8%
19%

10%

The CSR team members engaged in discussion on the 14 topics of sustainable development being sorted out, and mapped out the matrix of MSI sustainable development to report to the senior management for confirmation, and to determine the corresponding major topics under the GRI standards. The result is disclosed in the CSR report.
Major impact issues * 12 Ensure the major topics as determined correspond to the 12 designated economic, environmental and social topics under GRI standards, and fit into relevant boundaries of MSI in information disclosure as the basis of reporting. The "Occupational Health and Safety at the workplace" was introduced as one of the major topics as compared with the report of the preceding year.
Significant Impact Issues * 11 The other 11 topics of concern are not major topics. MSI will make appropriate disclosure of the influence on SDGs in the CSR report to meet the needs of specific stakeholders or present the topics of significant influence.

Intensity of impact
The CSR team members proceed to discussion on the
topics in the aspects of operation, governance, risk, social influence and conformity.
Level of significance of the sustainable development topics.
Economic and Corporate Governance Issues* 5 Environmental Issues* 5 Social Issues* 4

Validation

Review

The publication of the CSR report helps to review the action and effort of MSI in sustainable development with the establishment of diversified channels for the communications with the stakeholders, and respond to the topics of their concerns to satisfy the stakeholders in their expectation and concern for MSI. MSI will review the matrix of the topics of sustainable development once again in each reporting period depending on the planning of the content of the topics and communication with the stakeholders, and confirm the needs for the adjustment of the topics.
2020 CSR 13

2020 MSI CSR Report

The material topics list of MSI sustainability development issues.

Stakeholders
GRI material topics
Related report sections

Investors/ Shareholders
201205

Customers

Suppliers

Employees

Media

205305307308 205308403414

403414416419

416

201403404

201307

Please refer to Annex I. GRI Standards Content Index.

Government 201305307 403416419

Non-Profit Organizations 205305307416
419

Other non-material issues

202402

303406407408 302408409417

409417418

418

202405407409

205402405 417418

202402407 409417418

202405302303 306408409

SDGs target

SDG1316

SDG12

SDG8121316 SDG13456813

SDG8

SDG1213

SDG145681213

Identification of Material Topics' Boundary

Category

Compliance indicator

Corporate social responsibility progress

MSI did not commit any improper dealings that Anti-corruption are against our commitment for ethical practices
or jeopardize the company's interests.

Social

MSI's business activities did not involve

Anti-competitive inappropriate business activities such as anti-

behavior

competitive practice, anti-trust, or monopolizing

practices.

Compliance

No substantial fines or non-economic sanctions were imposed on MSI for violation of regulations.

Supplier assessment for impacts on
society

MSI did not have any workplace hazards or sustained any economic losses as a result of contractor or supplier's breach of operating procedures.

2020 CSR 29

2020 MSI CSR Report

Category

Compliance indicator

Corporate social responsibility progress

Social

Grievance mechanisms for impacts on
society

There were no stakeholder complaints about unfavorable social impacts.

Human rights

Nondiscrimination
Forced or compulsory
labor
Human rights grievance
mechanisms
Child labor

No incidents of discrimination, human rights violations, forced labor and sexual harassment were reported.
No operational base or supplier was found to have been involved in serious child labor disputes.

Environmental

Effluents and waste

MSI did not transport any wastes derived from business activities across borders. It was also not reported for serious incidents of hazardous substance leakage nor had fines imposed for violation of environmental protection laws.
The test results of all MSI operation sites fully complied with local regulations. No incidents of serious leakage were reported and no impact to the local environment and wildlife habitats related to MSI's operations was found.

Compliance

No substantial fines or non-monetary punishments were imposed on MSI for violation of environmental-protection laws.

Total number and volume of significant spills

No instance of serious leakage of the chemicals used in MSI's business activities was reported.

Environmental No complaint relating to environmental impact grievance was lodged through the stakeholder complaint
mechanisms mechanism.

Customer health MSI did not violate any laws concerning product and safety and service labeling.
Product and MSI did not violate any laws concerning product service labeling and service labeling.

Product responsibility

MSI did not violate any laws concerning advertisement, promotion, or sponsorship for Marketing selling and marketing of products. communications MSI did not produce any prohibited or controversial product. None of its products was banned from sale in specific markets.

Customer privacy

MSI did not receive complaints regarding violation of client's privacy right and/or loss of clients' information.

Compliance

MSI was not fined in substantial scale as a result of violation of laws relating to products, services and/or product usage.

3. Employee Value

2020 MSI CSR Report

3. Employee Value

Material topics
The meaning of the major topics
to MSI

Employment(401),Occupational Health and Safety(403),Training and Education(404)
MSI follows the rules of humanitarian governance and respects basic human rights, thereby sparing no effort in offering a fair, sound, safe and healthy workplace of superior quality. To MSI, the employees are the most vital part of its operation. Further to the respect of the employees, MSI also provides room for open communication, adequate competitive power, innovation, growth and development with the proper design of an outstanding development policy so that each and every employee can demonstrate their individual values and accomplishment through self-actualization in the MSI family.

3.1 Overview of the Employee
Harmonious labormanagement relation, impeccable working conditions, and the physical and mental health of the employees are the very basics for the employees to have peace of mind at work and to demonstrate their strength in their activities. Therefore, MSI has established friendly channels for communications, and diversified learning and benefit systems to pool the momentum for sustainable development.

List of management policy in the reporting period

Material topics Employment(401)

Boundary

To provide employees with assurance regarding recruitment, employment terms, work rights and work environment, and thereby maintain sound labor-management relations.

Management policy

Service Regulations, labor and employment laws effective at the places of production.

Management commitment

Creation of admirable culture at the workplace, fair treatment to all employees, upgrade of the management policy for promotion and retaining good people, creation of market value for the employees.

Management objective
Management responsibility
Management methods
Resources Grievance mechanisms Evaluation mechanisms Evaluation
result

Maintain a competent and stable workforce Provide incentive compensations and a comprehensive welfare system Create a friendly and joyful work environment
Management measures
Human Resources Division
MSI instituted a system for the protection of employee rights under the fundamental principle of law. Through routine performance evaluation of the employees, MSI traces the general situations of the employees and provides necessary assistance to protect their rights. In addition, MSI also seeks to create harmonious operation benefit for common good through email, labormanagement meeting consultation and other mechanisms for communications.
Employee remuneration, Employee insurance premium
EAP Email at eaphelp@msi.com
Availability of employment opportunity, competitive remuneration packages, excellent benefit system, protection of labor rights.
Please refer to 3.1.2 Employment, 3.2 Remuneration and Benefits, 3.3 Employee Development, 3.4 Employee Care

3.1.1 Employee Structure

Staffing structure of the corporate governance body in the reporting period (%)

Age\Gender

Board members

Male

Female

Age 30 and under

0.00%

Age 30-50

9.09%

0.00%

Over 50

90.91%

0.00%

Note: There are no female staff and male staff under the age of 30 in the corporate governance body.

Distribution of employees by age and gender in the reporting period (%)

Age\Gender

MSIT Male Female

MSIS Male Female

MSIK Male Female

Number of Employees

1,078

1,666

MSIS and MSIK do not provide information on the number of employees due to the confidentiality of the customer contract.

Age 30 and under 16.40% 19.30% 67.00% 63.00% 70.31% 58.89%

Age 30-50

78.20% 76.00% 32.50% 36.70% 28.05% 41.11%

Over 50

5.40% 4.70% 0.50% 0.30% 1.64% 0.00%

Note: There were no over 50 year's old employees at MSIK.
Distribution of employees by education and gender in the reporting period (%)

Education\Gender

MSIT Male Female

MSIS Male Female

MSIK Male Female

Masters or above 24.00% 15.00% 0.18% 0.26% 0.48% 0.00%

Bachelor

70.00% 68.00% 5.32% 9.62% 13.92% 19.98%

Others

6.00% 17.00% 94.50% 90.12% 85.60% 80.02%

Note: MSIK employees does not have a master's degree or above.
Distribution of employees by grade and gender in the reporting period (%)

Grade\Gender

MSIT Male Female

MSIS Male Female

MSIK Male Female

Executive
Mid-level executives
Supervisor

3.80% 1.20% 19.24% 10.65% 1.12% 0.65%

0.37% 3.26% 7.25%

0.26% 4.61% 7.47%

0.55% 7.24% 2.94%

0.00% 5.11% 3.83%

General staff 75.84% 87.50% 89.12% 87.66% 89.28% 91.06%

Note: 1. Executive: including Assistant Vice President or above. 2. Mid-level executives: Section Manager or above 3. General staff: General administrative clerk (including Technician, DL, IDL, Contract
employees, Interns) 4. There were no female senior executives at MSIS.

Diversified distribution of employment in the reporting period (%)

Category\Gender

MSIT Male Female

MSIS Male Female

MSIK Male Female

Proportion of employees hired from vulnerable
groups

5.00%

0.00% 10.40% 5.10%

9.69%

5.34%

Proportion of foreign employees

0.80%

1.80%

0.00%

0.12%

0.00%

Note: 1. No expatriate was employed at MSIS. 2. No female expatriate was employed at MSIK. 3. The underprivileged groups are the handicapped and minorities, who are employed by MSI.

3.1.2 Employment

MSI offering competitive salary, benefits and employment terms, and also has robust on-job training in place to support employees' career development. Moreover, we strive to maintain an open and fair working environment where new employees may quickly adapt to the environment and the duties assigned to them. The immediate supervisor and members of the Human Resource Division also make communication and visits to minimize chances of resignation due to unfamiliarity with the workplace irregularly.

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2020 MSI CSR Report

Distribution of new employees by age and gender in the reporting period (%)

Age\Gender

MSIT Male Female

MSIS Male Female

MSIK Male Female

The number of employment

379

MSIS and MSIK do not provide information

327

on the number of employees due to the

confidentiality of the customer contract.

Age 30 and Under 35.50% 40.40% 82.72% 83.87% 91.82% 83.48%

Age 30-50

63.30% 59.60% 17.28% 16.13% 8.18% 16.52%

Over 50

1.20% 0.00% 0.00% 0.00% 0.00% 0.00%

Note: 1. There are no new female employees over the age of 50 at MSI, and there are no new
employees over the age of 50 at MSIS and MSIK. 2. Note to turnover of employees under the age of 30 at MSIS and MSIK: The high
employment rate of employees is the result of the turnover of line workers where additional manpower is required to fill the vacancies of the production lines.

No employment of child labor

MSI insists on keeping the corporate spirit of humane and friendly employment, observing internal codes and advocacy of human rights and the laws effective in Taiwan and Mainland China. Through a transparent recruitment system, MSI keeps track on the risk of employing juvenile workers at all operation locations. MSI strictly prohibits the employment of juvenile workers under the age of 15 in the recruitment process, and also prohibits the employment of workers under the age of 18 to perform labor-intensive duties or works entailing high danger. MSI also works in conjunction with the suppliers proactively to create a sustainable supply chain through the advocacy of business integrity. If MSI discovers applicants for jobs feeding MSI fabricated information to the extent that MSI erroneously hires juvenile workers, MSI will proceed with further action in compliance with applicable laws effective at the places of the production sites or institution of related rules and regulations to handle the situation (refer to the table below).

Item \ Manufacturer

MSIT

MSIS

MSIK

The child labor

Labor Standards The child labor remediation and minor

remediation procedure.

Law.

labor management procedure.

Distribution of employees by contract category in the reporting period (%)

Category\Gender

MSIT Male Female

MSIS Male Female

MSIK Male Female

The number of employee

1,606

Full Time-Official Employees
Full Time-Contract Employees

99.10% 0.90%

1,070

MSIS and MSIK do not provide information on the number of employees due to the confidentiality of the customer contract.

98.60% 66.93% 56.35% 80.72% 90.51%

1.40% 25.40% 16.52% 19.28% 9.38%

Part Time-Interns 0.00% 0.00% 7.67% 27.13% 0.00% 0.11%

Note: 1. MSI has not employed any interns in the reporting period. 2. There are no male interns at MSIK.

The proportion of employing local residents as senior executives in

the reporting period (%)

Main operation sites

MSIT

MSIS

MSIK

Location

New Taipei City, Shenzhen City, KunShan City,

Taiwan

China

The proportion of assuming positions as senior executives in proportion to the overall staffing population (%).

3.00%

0.78%

1.76%

The proportion of assuming positions as senior executives and higher (%).

100.00%

0.79%

0.04%

Note: 1. Definition of senior executives in the facilities of Taiwan: Executives at the level of
division and higher. 2. Definition of senior executive in the facilities of Mainland China: Executives at the
level of deputy manager and higher.

3. Essential locations of operation: About 85% of the employees are distributed in the essential locations of operation, Taiwan, and Mainland China, and about 15% of the employees are distributed in all other overseas subsidiaries. Only the content disclosed in this report will count.
Minimum Notice Periods Operational Changes
Note to advance notice or collective consultation as required by law in the event of drastic change in the operation or employees chose to sever the employment relation for failure to adapt to the jobs. MSI will offer severance pay and related certification documents for assuring no influence on the right of employment of the employees.
Note:
1. According to Paragraph 17, Article 2 of the MSI Work Protocols, the Company needs to announce termination of employee's labor contract at least 10 days prior to termination to the affected employees.
2. When the Company's policies or decisions (e.g. salary adjustments or overseas assignments) will cause significant impacts on the rights of the MSI employees, the Company should announce this change at least 10 days prior to its taking place.
3. In the event of significant influence on shareholders equity or stock price, MSI shall provide the details in materiality by the deadline as required by Taiwan Stock Exchange Corporation.
4. The announcement of other significant changes should be processed according to local legal regulations.
3.1.3 Retaining Employees
MSI emphasizes the spirit of "One MSI" and spares no effort in upgrading the identification and practice of the corporate core value among the employees. At the same time, MSI also designs the remuneration and benefit systems to the needs of employees. Through the optimization of human resources, and the cultivation of communication transparency, employees can demonstrate their strengths without reserve and advance the common goal with the Company to create the value of growth where both sides are winners.

After the new employees have reported to duty, the designated window of HR and function heads will assist these employees to ascertain their adaptive capacity to the new jobs. This helps to reduce the turnover of new employees due to their incapacity to adapt to the new work environment. In addition, new employees can quickly mingle with the overall corporate environment through on-the-job training and education. If a specific employee proposes to resign for any specific reason, HR will interview the employee to understand the reasons for quitting and will help the employee switch to other vacancies at his/her will. This measure will help to retain employees.

Distribution of employee turnover by age and gender in the reporting period (%)

MSIT

MSIS

MSIK

Age

Male Female Male

Female

Male

Female

MSIS and MSIK do not provide information

on the number of employees due to the

The number of employee turnover

203

129

confidentiality of the customer contract. MSIS and MSIK do not provide information

on the number of employees due to the

confidentiality of the customer contract.

Age 30 and Under 29.00% 39.00% 82.16% 85.89% 90.87% 83.42%

Age 30-50

69.00% 57.00% 17.84% 14.11% 9.08% 16.58%

Over 50

2.00% 4.00% 0.00% 0.00% 0.05%

0.00%

Note: 1. There are no employees over the age of 50 who resigned from MSIS, and there are no
female employees over the age of 50 who resigned from MSIK.
2. Note to turnover of employees under the age of 30 at MSIS and MSIK: The majority of the departed employees are line workers. They resigned mainly because of the labor shortage in the locality, competition in the industry, and the content of work. The administration of the plants will continue to pay attention to the problem and seek improvement.

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2020 MSI CSR Report
Maternity leave and paternity leave
MSI provides parental leave, maternity leave and paternity leave in accordance with applicable local laws of the production locations so that employees can maintain a proper balance between work and family. MSI also designs a viable system for the returning employees, including the arrangement of leaves of absence, career planning assistance, and allowances pertinent to maternity care and benefits to let the employees feel warmth and care.
The parental leave status of employees at MSIT in the reporting period.

Descriptions

MSIT Male Female

No. of people qualified for parental leave

Actual no. of applicants

No. of people expected to be reinstated in the current year (A)

Actual no. of people reinstated in the current year (B)

No. of people reinstated from long-term child care leave in the previous year, and who have worked for one year since (C)

Actual no. of people reinstated in the last year (D)

The parental leave return to work rate(B/A)%

14.29% 88.89%

The parental leave retention rate(C/D)%

75.00%

Note: 1. There is no mandatory parental leave in the facilities of MSI in Mainland China. 2. Return to work rate=Total number of employees that did return to work after parental
leave / Total number of employees due to return to work after taking parental leave * 100% Retention rate=Total number of employees retained 12 months after returning to work following a period of parental leave / Total number of employees returning from parental leave in the prior reporting period(s) * 100% 3. : No returning employee from parental leave at MSIT in the last reporting year.

The maternity leave status of employees at MSIS & MSIK in the reporting period

Descriptions

MSIS Male Female

MSIK Male Female

No. of people qualified for maternity and paternity leave

113

818

720

Actual no. of applicants

113

No. of people expected to be reinstated in the current year (A)

113

Actual no. of people reinstated in the current year (B)

No. of people reinstated from maternity

and paternity leave in the previous year,

and who have worked for one year since (C)

Actual no. of people reinstated in the last year (D)

The maternity and paternity leave reinstatement rate(B/A)%

88.89% 83.19% 88.89% 75.36%

The maternity and paternity leave retention rate(C/D)%

85.29% 94.74% 81.25% 77.97%

Note: Employees of PRC nationality enjoy longer maternity leave under Chinese labor regulations; therefore, the reinstatement time often extends across reporting.

3.2 Remuneration and Benefits

MSI effectively combines the remuneration system and benefits to satisfy the working and living needs of the employees. This arrangement also helps to effectively improve the operation and development of the Company. MSI will continue to improve the remuneration and benefits for the employees through a sound management system.

3.2.1 Remuneration system
MSI offers a sound remuneration The amount of salaries and bonus system through annual review of expenses in 2017-2019 the salary level in the market and fairness of remuneration to provide the employees a competitive remuneration package. This will help to assure the retention of good people and attract other talents to MSI.

The mean and mode of the salaries for non-managerial full-time employees at the facilities of Taiwan in the reporting period

Item/Year

2018

MSIT

2019

General staff count (A)

2,104

2,211

Change in the general staff from the same period Not applicable

of the previous year (persons)

for the first year.

Sum of full-time salary in the reporting period (in NT$1,000) (B)

2,889,689

107 2,930,797

The total amount of growth of salaries for the fulltime employees from the reporting period of the
previous year (%)

Not applicable for the first year

0.014

The mean salaries in the reporting period (in NT$1000) (C=B/A)

1,373

1,326

The variance from the mean salaries of the

Not applicable

reporting period of the previous year (in NT$1000) for the first year

-47

The median of the salaries in the reporting period Not applicable

(in NT$1,000)

for the first year

1,105

The variance from the median salaries of the reporting period of the previous year (in NT$1,000)

No regulatory requirements

Not applicable (the median of the salaries was disclosed for the first time in
2019)

Note: 1. The mean and mode of the annual salaries for non-executive full-time employees was
disclosed in response to the requirement of the "Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies" of the Taiwan Stock Exchange Corporation after amendment effective 2019. 2. Annual salaries: Including the basic salaries and annual bonus of the employees in the year. 3. General staff: General administrative clerk (including Technician, DL, IDL, Contract employees, Interns) 4. This disclosure is not applicable to the facilities in Mainland China.

The ratio of the standard salaries for the basic level of employees to minimum level of salaries in the place of production
As for compensations and incentives, we conduct regular performance assessments and decide them based on employees' individual education, experience, knowledge seniority and performance. All operation sites offer starting salaries for new employees that are more favorable than the local basic salary. The starting salary does not differ for employees' differences such as gender, marital status, religion or political association.

Location\Gender

MSIT

MSIS

MSIK

Male Female Male Female Male Female

The salary standard for basic level

employees is at a higher ratio to the minimum salaries of the places

1.03

1.02

1.02 1.16

1.16

of operation.

Note: Basic level employees: Mainly the full-time (direct) employees.

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2020 MSI CSR Report

3.2.2 Magnanimous Benefits
MSI not only reviews the salary standard with proper adjustment at regular intervals to upgrade the performance of operation, organization and individuals, but also provides benefit packages senior to mandatory requirements. In addition, MSI also flexibly designs rewards exclusive to designated job positions and continues to perfect the benefit system.

Amount of benefit expenses in 2017-2019

Itam/Year

2017

The employees of benefit expenses (NT$ Millions)

6,752.46

Accrued benefit expenses (NT$)

51,008,421

2018 7,060.20 59,040,003

2019 7,247.57 57,953,188

Benefit Items for MSI employees
MSI appropriates a specific amount from revenue and employee salaries as a welfare fund at regular intervals for funding annual big events, year-end banquets, arts and culture lectures, gifts for the three major festivals, allowances for group activities of the organization, traveling subsidy, birthday gifts for employees, emergency aid for employees, maternity subsidy, matrimonial gifts, department level social gatherings and cross-functions benevolent gathering subsidy, and supply of recreational facilities for the employees. The spending on benefits will be disclosed to all employees on the intranet of MSI for their reference.

Item\Location
Operation Bonus
Employee Insurance (including life insurance, accident insurance and
medical insurance) Social Insurance
(including annuity, medical, unemployment, occupational injury, and maternity)
38

MSIT V V

MSIS V

MSIK V
V

Item\Location

Housing Allowances

Parental Leave

Maternity and Paternity Leave

Family care leave

Pension

Employee Clubs

Others

Continuing Education Gifts for the three major festivals

Massage Service

MSIT V V V V V V V V

MSIS V V V V V V V

MSIK V V V V V

Flexible working hours
MSI makes humane work hour arrangements and offers a leave system that is more favorable than what the laws require. These systems are intended to help employees achieve balance between work, health and family life.
Flexible work hours for office operations (office hours begin 8:30~09:00 and end 17:30~18:00).
3 days flexible paid leaves are offered.
Every Friday, with 7.5 hours of work, employees can get off work half an hour earlier. For the business day before a 3-day (or more) holiday, employees can get off work 1 hour earlier after 7 hours of work.

Appropriation for pension reserve

MSIT

The employee pension benefit plans are constituted precisely and apply to the length of service for all formal employees before the implementation of Labor Pension Act in July 1, in 2005. The plans are also applied to the seniority of those

who choose to fall under the Labor Standards Act after the implementation of Labor Pension Act. In the name of Supervisory Committee of Business Entities Labor Retirement Reserve, retirement accounts are opened in Bank of Taiwan.

MSIS, MSIK

In accordance with the old-age insurance system in the P.R.C., the MSIS and MSIK allocate pension premium for local workers based on a certain proportion of their payroll every month. The pensions of all staff would be made overall arrangements by the government.

Welfare Allowances
MSI has an "Employee Welfare Committee" in place and offers most comprehensive welfare system for employees' life, promote the healthy development of employee both physically and mentally, and maintain harmonic labor-management relations.

Welfare item Employee benefits: MSI also offers welfare expenses for organize major annual events, the year-end party, cultural talks, gifts/cash gifts for the three major festivals, club activity subsidy, travel grants, monetary gifts of birthday, employee emergency aid, maternity allowance, wedding cash gift, department gatherings, interdepartmental gatherings, and employee recreational facilities. The employee health screening offers for free. The external professional training is fully subsidized.

Physical and Mental Care
MSI has mapped out a good LOHAS policy to provide the employees with services and space for relaxation.

We have set up an employee clinic staffed with a physician from a medical center to provide health consultation and medical services.
We have also implemented a series of tasks for prevention of occupational health hazards, first aid training, health education, health promotion, epidemic prevention, and other health management related subjects.
All the complexes are equipped with dormitories, mobile and motorcycle parking lots, employee cafeterias, multimedia TV, microwave oven, rice steamers, coffee bar etc.
MSIT and MSIS offer of free massage service.
Excellent Work Environment
A safe workplace is closely associated with the occupational safety and health of the employees. To this end, MSI seeks to reduce the risks from the environment, sanitation, and safety and health through continued improvement, and provides related medical facilities to respond to emergency situations. MSI has an Occupational Safety and Health Committee and meetings
are held at least once every quarter to implementation of workers' safety and health. Air conditioners, cooling towers and drinking fountains are being serviced and cleaned regularly to maintain office air quality and employee health. The office building implementation entrance guard control, and set up central monitoring system is controlled by security personnel monitoring 24 hours a day. Established the Automated external defibrillators (AEDs) for more people to respond to a medical emergency where defibrillation is required. CPR and first-aid knowledge is promoted among employees irregularly.
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2020 MSI CSR Report
MSI holds fire drills every six months, and performs "Fire Safety Equipment Checks" once a year to enhance employees' fire safety awareness.
MSI has installed fire prevent manager personnel that will promote and implement fire safety education within the organization.

3.3 Employee development
MSI has established the management and assessment mechanisms to "choose," "use," "develop," "assess," and "keep" good people under the mindset of the overall human resources development strategy. MSI has long been investing its resources in human resources development to strengthen the competence of employees and provide a diversity of channels for the learning and growth of the employees in the technical and managerial systems of duties. Employees can continue their education through internal and external education and training programs, and have the opportunity of overseas assignment, seminars and conferences, speech meetings, and use of online learning system of the Company to enrich the knowledge in different areas of specializations. MSI will bear all the expenses incurred from employee learning.

List of management policy in the reporting period

Material topics Training and Education(404)

Boundary
Management policy

Employees can refine their work efficiency through voluntary learning and the availability of smooth channels for promotion. Employees are encouraged to align with corporate development to plan for their career opportunities for the free flow of good people in the Company.
Realization of on-the-job training and offering smooth channels of promotion for the employees to develop talents in the future. Offering the channels for diversified learning to develop the potential of the employees and improve their work performance.

Management commitment
Management objective

Provide a positive work environment and career development planning for employees, and upgrade the measures for the development of talents to create employee competitiveness at the workplace.
Provide sound career development planning. Continue to provide training programs for the employees to upgrade their professional competence.

Management measures

Management responsibility

Human Resources Division

Management methods

Establishment of the policies for the diversified development of human resources. Heterogeneous training and management will be provided for the employees in managerial and technical duties that gives the right people an appropriate environment for development.

Resources
Grievance mechanisms
Evaluation mechanisms

Employee salaries, training expenses, human resources management EAP Email at eaphelp@msi.com
Performance evaluation, professional training evaluation

MSI continues to pay the full amount of on-the-job training for

employees

Evaluation result

29 learning and development projects have been designed and implemented

Routine evaluation of employee performance and availability of

promotion opportunity

3.3.1 Occupational Career Vision

Human resources development is a prime force driving sustainable

development and innovative change of an enterprise. For this reason,

MSI provides employees appropriate career development planning, including the advocacy of learning new knowledge, development of multiple

Upgrade organizational efficacy
Improvement of work efficiency Development of potential at workplace

professional skills and creativity

storming so as to prompt organizational learning and knowledge revolution and to upgrade the performance of employees at work and optimize the organizational structure, which will eventually guide MSI towards the right direction of development.
Occupational development blueprint

Occupational development planning
Basic training for new employees: All newly recruited MSI employees are required to complete the online of general knowledge course training before commencing duty. The course provides employees with a fundamental understanding of MSI's corporate culture and management policies including human rights, intellectual property rights, information security and occupational safety and health, which will shortens the time for manpower import.

Development of workplace
potentials

Specialized training: Training of special skills for the recruited duty, including online operation, quality management and skills pertaining to specific roles.

In-service training: Employees can request external training and conducting external professional courses for employees improve skills.

Language learning: The Company has contracted with foreign language centers and purchased learning materials from them to give employees the option of choosing the suitable foreign language institution to learn from.

Professional capacity
development

MSI University was established in 2009 with four main colleges, namely: Leadership Development, Research & Development, Technology and Sales & Marketing.The MSI university courses content combined with the company's overall strategy to carrying out focused, specialized and differentiated training for different job roles by limited resources utilization.

Tiered training management

Managers in the growth phase are subjected to training on corporate culture, corporate identity and value. Depending on their job roles, they also undergo different forms of knowledge transfer to become management successors.

Leadership training

For key business management talents, through a series of internal and external courses to train employees on market analysis, leadership, strategic management and business decision-making, and create a strong management team and ensure corporate good governance within the organization.

3.3.2 The Overview of Human Resources Development
MSI provides diversified learning at the workplace with the proper balance of family life so that the employees can be equipped with the professional skills and a nurtured way of life. In addition, MSI also provides an excellent work environment so that all employees can have the opportunity for self-development and grow hand-in-hand with MSI with the enhancement of the value for MSI and the employees. This will help to develop good quality people for MSI and upgrade the overall competitive power.

2017-2019 Accrued education training

Amount of expenses incurred from education and training (NT$)

1,892,230

3,295,760

2,147,440

2017

2018

2019

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2020 MSI CSR Report

The average hours of annual training by gender and grade in the reporting period

Age\Gender\Grade

MSIT Male Female

MSIS Male Female

MSIK Male Female

Executive
Mid-level executives
Supervisor

4.94 5.17 25.87

5.81 6.92 23.84

60.97 51.97 13.52

63.29 49.02 14.60

13.30 22.33 22.71

0.00 26.19 22.71

General staff

6.62

7.51

21.96

21.66

32.21

34.61

Item\Location

MSIT

MSIS

MSIK

Number of new employees

7,196

17,470

2,318

Total training hours

11,734.80 139,760.00 1,392.00

Information on employee training in human rights in the reporting period

Item\Location

MSIT MSIS MSIK

The Non-discrimination,

Management

ethics(including anti-corruption),

employee rights (including human General staff

rights), forced labor and sexual

harassment training total hours (hours) New employees

18.67 2.67 529.00

382.50 1,802.70 8,735.00

0.00 0.00 682.00

Note: 1. Please refer to MSI's 2019 annual report for more details on corporate governance
courses and training undertaken by board members and the senior management. The employee irregularly uses e-mails and the intra EIP system to promote the human rights. New employees need to complete the training course of human rights. 2. MSI hired contract labor from manpower agencies also need to do human rights training. Contract employees were entitled to the same rights as full time employees. 3. The management and all in MSIK were engaged in education of human rights via email in the reporting period without tracking the exact hours of education.

3.3.3 Performance review
MSI conducts employee performance evaluation twice a year, and conducts core competence evaluation based on the organizational goals set by each unit. To achieve fair performance evaluations, each employee is evaluated by at least two supervisors, including an interview with the direct supervisor to assist MSI in promoting labor-management communication.

Distribution of the employee performance review result by gender and grade in the reporting period

Age\Gender\Grade

MSIT Male Female

MSIS Male Female

MSIK Male Female

Executive
Mid-level executives
Supervisor

100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 99.03% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

General staff

91.50% 88.32% 100.00% 100.00% 59.94% 75.38%

Note: 1. The total number of employees of year-end performance evaluation based in 2017.
(Former employees and Taiwanese Staff are not included) 2. Executive: including Assistant Vice President or above. 3. Mid-level executives: Section Manager or above 4. General staff: General administrative clerk (including Technician, DL(Direct Labor)
IDL(Indirect Labor), Contract employees, Interns) 5. There were no female senior executives at MSIK. 6. Performance evaluation did not reach 100% at any MSI plants due to absence of
employees on unpaid leave, newly recruited employees leaving before the end of the third month, and employees on personal and sick leave over 30 days.

3.4 Employee Care
Harmonious labor - management relations are the cornerstone of an enterprise for sustainable and stable development. MSI established a diversity of channels and transparent platforms to hear the true voices of the employees in the expectation of effective and barrierfree communication with the employees. MSI also keep the personal information on each employee in strict confidence so that each employee is fearless in expressing their opinions. MSI spares no effort in keeping and furthering its relations with the employees.
3.4.1 Open Channels of Communications
The EIP of the MSI intranet MSI has established an EIP platform on its intranet so that the employees can access all important notices and the information on benefits of the Welfare Committee. This helps to augment the rights and benefits employees are entitled to. The EIP website also integrates several management service systems internally to provide employees several forms of care and concern. In addition, MSI also sends the employees clippings of important news, the MSI IT Daily News, on a daily basis via Outlook to allow the employees access to important news of the latest industry trend and the industry.

Employee Assistance Project (EAP) The Employee Assistance Project (EAP) help employees can get help for the following issues: work stress, emotional problems, tax, legal affairs, medical care, and others. By combing internal and external services, EAP helps employees to solve related problems and release work stress and emotions to regain mental health, so that their family will not need to worry about their physical and mental condition.

The contact information of EAP

MSIT

EAP email : eaphelp@msi.com EAP Hotline : 8585

MSIS

EAP Hotline : 8858

MSIK

EAP Hotline : 8085

3.4.2 Meeting Communications
Through different business groups, MSI engages employees in weekly monthly and quarterly meetings to discuss the current state of business and issue major announcements. Employees are entitled to reflect opinions through available channels, and the communication provides the management with a better understanding of the current state of governance for more harmonic employment relationship.

The collective bargaining result in the reporting period

Item\Location

MSIT

MSIS

Collective Bargaining

Quarterly Quarterly

Labor Union

None*

Yes

MSIK Annual
Yes

Percentage of total employees covered by collective bargaining agreements (%)

N/A

100

Violation of the employee collective agreements

* MSIT has no employee unions and representatives established; employee communication can be conducted through multiple channels, such as the Occupational Safety and Health Committee, departmental meetings, and employee assistance project (EAP).

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3.4.3 Channels for Employee Complaints
If unlawful practice, discrimination, environment, and health and safety at MSI become a concern, employees may engage in dialogue and communication with MSI through the Occupational Safety and Health Committee, LaborManagement Meeting, department meetings, EIP, and other channels for assurance of the protection of employee rights and improvement of labormanagement harmony.

Channels for Employee Complaints

Occupational and environmental safety email

esh@msi.com

Stakeholder email

080419864@msi.com

Prevention of sexual harassment at the workplace
To create a friendly work environment with peace of mind, MSI absolutely prohibits any form of sexual harassment at the workplace and has established the Gender Equality Committee, special hotline and exclusive email for complaints of sexual harassment, and assures the protection of the privacy rights of the parties concerned through the mechanisms of complaints. In addition, all new employees are required to receive education and training on the prevention of sexual harassment while all other employees are also required to receive education and training on gender equality from time to time so that each and every employee can develop a proper concept of gender equality at the workplace and understand how to handle the problem and where to seek assistance. No complaint pertinent to sexual harassment has been received in the reporting period.

Location MSIT
44

Channels for Sexual Harassment Complaints Hotline Internal Extension No.1333 email: 113@msi.com.tw
MSI Internal EIP website-Employee Relations

MSIS MSIK

Hotline Internal Extension No.8858 email: carrieliu@msi.com MSIK Mobile APP

3.5 Healthy Workplace
A healthy workplace is essential to improving employees' mental state and strengthening the Company's human capital. At MSI, we view healthy employees to be the foundation of sustained business achievements, and therefore invest actively into employee care, welfare system and workplace safety to help employees adapt and adjust. Developing employee health self-management, cultivation of health occupational competence and a supportive working environment is how MSI rewards its growth partners in its pursuit for a sustainable future.
3.5.1 LOHAS MSI
MSI provides a great variety of hardware and software and activities to satisfy the diversity of interests of the employees so that they can enjoy the recreational facilities inside the plant sites to spend their leisure time. MSI also encourages the employees to take part in big events, group activities, games and cross-function benevolent gatherings at MSI with proper funding. Employees are discreet in choosing dynamic or vibrant activities to their interest for relaxation, and enjoy an abundant, healthy, and balanced recreational life after work.
Employee Assistance Project (EAP) MSI introduced the Employee Assistance Project (EAP) in 2010 to provide a variety of assistance to the employees in emotional management, release of pressure at the workplace, and legal and medical services free of charge. The EAP helps the employees to solve the problems that may affect their individual performance at work and also yields positive effects of a healthy workplace at MSI.

Benefit to the organization: Solve the problems of a concern of the organization and which may affect productivity and competitive power.
Benefit to the employees: Assistance to the employees to find out and resolve the problems affecting individual performance at work such as: health, psychological problems, family, financial problems, addiction to alcohol and drugs, legal problems, emotional problems, stress, or other personal problems.
Employee Activities Center MSI developed different forms of activities and facilities for the employees, including the venues for a variety of activities such as dance classroom, library, massage parlor, and gymnasium. Different kinds of sports training programs are also offered at regular intervals (such as yoga, fitness boxing, and street dancing) for employees so that they can choose the way and space for relaxation from the variety of choices to their preference.

3.5.2 Health Management
Maintaining the physical and psychological health of the employees is vital to the health development of the enterprise. MSI expresses its concern over the health and pressure of the daily lives of the employees. Through the improvement of health advocated by the professional medical staff of the Medical Room, MSI provides assistance to employees to keep track of their own health. MSI also advocates an environment with the installation of relevant facilities in support of health, and encourages the employees to participate. MSI promotes health in the following four aspects:

Art and Literature Lectures For the 2019 MSI Arts and Culture Festival, the MSI organized a series of seminars and invited prominent figures from various industries to share their views and experience. Through the stories of people from different backgrounds, we give employees an insight to the lives of others and encourage them to take control of their future.

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Health Management
Health education:
MSI arranges essays on health education on topics of disease epidemiology and a diversity of other health topics on the intranet system monthly. In addition, 22 lectures on health topics have also been organized in the reporting period. MSI provides free vaccination for the employees in the high season of influenza in October. Employees may get a vaccination on a voluntary basis to get a general idea of epidemic prevention. There were 760 employees who received vaccinations in the reporting period.
Psychological care:
MSI provides free psychological counseling services for the employees. Through the one-to-one interview with professional counselors in private, lectures for the release of psychological pressure, and the circulation of essays among the employees, MSI helps employees seek the channels for the release of pressure and solutions to free psychological disturbance.
Health management of employees of high risk:
MSI reminds employees to attend subsequent medical consultations at regular intervals and keep track of health data, and also gives health management advice to the employees, provides assistance for referral treatment, and maps out a plan for the prevention of diseases triggered by unusual workload. MSI also gives an evaluation prior to business trips and recommendations on health maintenance before departure, and recommends the employees taking overseas business trips to receive relevant vaccinations for international.
Protection of maternal health:
For the protection of the female employees during pregnancy and within a year after delivery from the hazardous factors at the workplace, MSI adopts the practice of risk management self-assessment and proceeds to management by level of duties after the evaluation of the physician. Where necessary, MSI will conduct fact-finding on the site and make available the measures for the improvement or adjustment of work.
Emergency rescue:
Rescuers are assigned to different floors equipped with first-aid kits. An AED is also installed at both plant sites for emergency use.
Employee Health Examination MSI provides health examinations for employees once every other year and for expatriates and senior executives once a year. Items of examination varied with gender. The data of the employees from health examinations were tracked by the system for the employees to follow up with their health examination, health information and new medical knowledge for the convenience of employees in self-management of health. In addition, different plant sites may proceed to real-time communication on topics of health through their medical staff.
46

Item\Location

MSIT

MSIS

MSIK

Attendance to health
examination
Health examination
items
Items will vary with the age
and ranks of the employees

Employee health examination will be held once every
other year. No employee health examination has been held in the reporting period. The next health examination will be held in 2020.

77.3%

91.5%

Routine blood examination, routine examination in internal medicine and surgery (blood pressure, auscultation), liver function,
x-ray, ultra-sound radiography.

None

Heart function, cardiorespiratory function, gynecology, cancer screening, bone density and digestive system.

Note: MSIK has a lower attendance rate of health examinations mainly because of the high employee turnover rate. Employees absent from health examination (except the discharged personnel) will be tracked by the administration to ensure each employee completes the health examination.

Medical Clinic For the proper prevention of occupational diseases, pursuit of health examination, health management by hierarchy, and promotion of health, the medical room at the plant sites of MSI housed an outpatient clinic attended by qualified physicians and professional nursing staff to provide health consultation services. Employees and the stationing contractors may prevent the problem of seeking medical attention elsewhere during regular work hours.

Medical Service Information

Service Item

MSIT

MSIS

MSIK

Medical service

NHI Clinic, Health Counseling,
Preventing Ergonomic Related Hazards Management

Clinics and Psychological Consultation
Room

Clinics

Employee physical examination

Common and special exams

Health promotion activity

Speeches and Dynamic Information

Hospitalist

Medical

professionals Registered nurse

Number of medical service

1,847

896

2,594

3.5.3 Health Promotion Activities
MSI holds a great variety of health and medical care promotion schemes and activities every year to enrich the employees and the stationing contractors with knowledge in health and reduce their health risks. The plant sites in Mainland China launched the promotion of health through email and cell phone APP in the reporting period. In addition, MSI has held 22 events for health promotion with the participation of 1,117 persons by head count. The health promotion events are shown below:

Vaccine and Screening Third dose of Hepatitis B vaccine Second dose of Hepatitis A vaccine Influenza vaccine (total 4 instances) Cancer screening for females - smear examination Lectures on wholesome food Herbal recipes commonly seen in Taiwan and health preservation The choice of ketogenic diet for those eating outside Disclosure of food necessary for muscle building and fat burning Analysis of the Recipes for Exercise Fans - How to eat before, during, and after exercise. Lectures on health improvement Emergency rescue -first-aid in daily life Smoke-free MSI - Three Steps to Quit Smoking Lectures on mitigation of stress Stress release courses (4 classes) Gardening Therapy - horticulture to help release pressure Good for physical and mental health Fitness test Love at MSI, blood donation campaign (4 instances of blood donation with the participation of 258 blood donors and the donation of 421 bags of blood in the reporting period).
3.6 Occupational Safety and Health
People are fundamental to MSI in sustainable development and are also the precious intellectual capital of MSI. MSI implements effective occupational safety and health measures to improve the health and safety of all employees, create a healthy and friendly workplace, and to properly manage the contractors in order to create common value for the goal of common prosperity.
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List of management policy in the reporting period

Material topics Occupational Health and Safety(403)

Boundary

Prevention of occupational hazards, implementation of health management for the workers

Corporate activities are complying with applicable legal rules governing environmental protection, occupational safety and health and related requirements as the prerequisite. Management Creation of a safe and healthy work environment, intensification in policy uncovering potential risks and reducing risks to a tolerable threshold. Intensification of operation management and training of people to eradicate accidents, prevent pollution and avoid occupational injuries and diseases.

The offering of a safe work environment for the workers for the proper

balance of physical and psychological development, and a sense of

Management commitment

achievement at the workplace for well-being. Continued implementation of workplace improvement, education at the workplace and encouragement of health improvement. Safety and concern will be the

standard of management for allowing better safety, comfort and health

at the workplace.

Management Assurance of safe work environment objective Application for ISO 45001 accreditation

Management measures

Management responsibility

OSH office

Establishment of the Occupational Safety and Health Office to

assure the workers understand the rules and regulations and their

responsibilities of safety.

Management methods

Identification of the items dictated for improvement with the setting of related objectives and mapping out the management plans. Supervision of the effective operation of the occupational safety and

health system.

Audit and review occupational safety and health incidents with the

pursuit of appropriate measures to prevent recurrence.

Resources

Spending on the maintenance of the management system, education and promotion of occupational safety and health.

Grievance Email for communication with the stakeholders at 080419864@msi.com mechanisms Occupational safety and health email: esh@msi.com

Evaluation Acquisition of accreditation at regular intervals mechanisms Continuation of monitoring occupational safety data

Evaluation result

Please refer to 3.6.5 Result of Occupational Safety and Health Management
Accredited with the ISO 45001 in occupational health and safety management

3.6.1 MSI Occupational Safety and Health (OSH) Organization Structure
MSI has been committed to promoting occupational safety and health (hereinafter referred to as OSH) management. Through internal control management, MSI fully implements the OSH management system regulations and occupational safety management requirements of internal departments; compliance inspection is conducted regularly at the request of OSH laws, clients, or stakeholders. MSI is also constantly working to improve the OSH management at each operating site. The Employee Code of Practice and OSH Code of Practice describe worker's relevant health, sanitation, and safety rights and interest; the Occupational Safety and Health Committee is set up, in which labor representation accounts for more than one half of the committee. Through the supervision and implementation of the management system, the ISO 45001 Certification obtained to achieve the goal of continuous improvement.

Audits on legal rules governing occupational safety and health in the reporting period

Item

Implementing measures

Compliance

Routine identification of applicable legal rules

governing safety and health for assurance of

compliance, including:

Legal rules identified

Applicable legal rules governing safety and health management Applicable legal rules governing fire safety management

Yes

Applicable legal rules governing food hygiene

management

Applicable legal rules governing environmental protection

Establishment of the safety and health management

Management procedures with routine review annually.

system

ISO 45001 occupational safety and health

Yes

procedure management system: Completion of training and

third-party accreditation.

Advocacy of worker safety and health training in

conformity to the requirements of applicable legal

rules governing safety and health and response to

Education and emergency.

training

Training in fire safety, emergency evacuation, traffic

Yes

safety and first-aid.

Orientation for the new employees in occupational

safety and health.

Identification of hazards

Identification of hazards to safety and health from work environment and content with 2,642 cases confirmed.

Yes

Management of Completion of 12 cases in management of change

change

with 0 cases causing hazard or false alarm.

Yes

Contractor The contractors have accomplished 121 tasks in high risk management operation with 0 cases causing hazard or false alarm.

Yes

MSI adopts the concept of Similar Exposure Group

(SEG) to divide the indoor areas that may cause

hazards (such as laboratories, repair district, and

Monitoring office area) into separate groups and conducts

of operation physical and chemical tests on these areas annually.

Yes

environment In addition, MSI also includes the testing of lead and

tin to the list of inspection and testing further to the

use of lead-free soldering wire for the protection of

the health of the workers.

Proper corrective There were 772 audit defects recommended for

actions in corrective actions in the reporting period. Corrective response to audit actions have been taken in response to the

Yes

defects

recommendations and been completed by the deadline.

Conduct analysis of the cause of injuries to the

employees with further advocacy of the corrective

actions taken for improvement to reduce the incidents

Prevention of occupational
hazards

of occupational hazards. MSI was taken as an example in the reporting period. The main causes of injuries to the employees are traffic accidents. As such, MSI asked the Traffic Patrol

Yes

of New Taipei Government to hold two lectures on road

safety and inspection on the safety of the motorcycles

used by the employees for a period of three days.

Note: 1. Workers are those who are employed by MSI for work, including those who are given charge of administering occupational safety and health or persons who are not MSI employees. 2. Persons who are not MSI employees are contractors, including suppliers and outsourced service providers.

Scope of occupational safety and health management for the workers in the reporting period

Scope and categories of control

Categories of duties subject to MSI control

OSH management system

ISO 45001

Categories of workers Type of audit

Employees

Internal 3rd Party

audit

Contractors

Internal 3rd Party

audit

Workplace controlled
by MSI

Population size MSIT of the month
Ratio
Population size MSIS of the month
Ratio

2,231 96.54%
97.97%

2,152

97.02% 3.46%

97.30% 2.03%

66 2.98%
2.70%

Population size MSIK of the month

Ratio

96.56% 96.47% 3.44%

3.53%

This plant site is bound by the confidentiality clause contained in contracts with customers such that the information on the number of employees and contractors is not available.

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2020 MSI CSR Report
3.6.2 Risk Control and Disaster Prevention
Qualified safety and health management staff will identify and evaluate the possibility, frequency and severity of the occurrence of each type of occupational hazard and also proceed to risk assessment of the hazardous factors at different levels of severity subject to the review of the environmental safety and health function. Unacceptable risks will be kept under control. Hazardous tasks bearing unacceptable risks will be subject to control with the setup of goals for improvement with routine tracking of the progress. This will help to eliminate the potential occupational hazards at the workplace.
MSI has instituted related rules and regulations for the investigation of any incidents of the workers pertinent to occupational safety and health at the workplace with follow-up actions after the incidents. MSI will determine damage and occupational injury on the basis of the content of the accidents and will launch corrective action plans after the report on the findings of the investigation. The environmental safety and health management function will continue to monitor and follow up the progress to reduce loss caused by the accident and prevent the recurrence of the same accident.

Control type

Control measures

Chemical Selection of chemicals of low hazard and manage by origin for substances assurance of the safety of the plant site and the employees.

Occupational hazards

Propose suitable and qualified persons for this kind of duty and provide individual education and training by type of duty. Provide suitable personal protective gear, physical examination on occupational diseases, health management, and monitoring of the operation environment.

Machinery and Evaluate the safety and reinforce the protection measures of equipment equipment.

Electrical Conduct inspection on electrical equipment from time to time to equipment prevent non-conformity before it occurs.

Response to occupational incidents and investigation management Workers may discover hazards and danger in the course of performing their duties, and may stop working and retreat to a safe place on condition that the safety of other workers remained unaffected, and shall report to the supervisors and occupational safety management function at once. Related incidents will be subject to investigation in accordance with laws effective at the locality of the plant. In addition, MSI will provide legal assistance to protect related workers and the persons reporting the incident will unlikely be confronted with unfavorable treatment.

3.6.3 Education, Training and Promotion
MSI makes employees aware of the hazards at the workplace and know about the prevention of hazards through lectures, promotional posters, email, and the intranet on health and safety. Further to the routine education and training on health and safety and also fire safety, employees may also engage in communication with the management on safety and health through email and the channels for complaints on occupational health and safety to nurture the culture of safety.
Education and training in health and safety for the employees in the reporting period Employees' health is critical to MSI, which is why we have taken the extra step to implement, maintain and manage our safety and health measures. The MSIT convenes "Occupational Safety and Health Committee" meetings whereas MSIS and MSIK organize "Employee Meeting" to promote employees' awareness. MSI employees involved in special, high-risk operations are required to undergo special health checks.

Item

Course title

Training in occupational safety
and health and courses in common
knowledge of hazardous substances

New employee consensus training

Education and training in safety
and health for current employees

Occupational safety and health training
Safety and health training for executives

Environmental education

Traffic safety

Lectures on promotion of new
traffic laws
Motorcycle safety across the plant site

Total hours MSIT MSIS MSIK
1,593 33,600 60,960

322

1,072 2,280

756

240

185

1,820 1,080

1,150 None

125

2,250 None

Objects
New employees
Employees Sales
executives Employees Employees Employees

Education and training in safety and health for the contractors in the reporting period In addition, MSI has also instituted rules and regulations governing the safety and health and operation of the contractors, and requires all contractors to duly observe applicable legal rules governing occupational safety and health and the rules and regulations of MSI. Only the contractors who have completed the education or training of MSI Group may be admitted to the plant site for operation. There was no occupational hazard that claimed the lives of contractors in the key production location of MSI Group in the reporting period. Likewise, there was no disability, injury, or occupational diseases of contractors at the plant site.
As for onsite contractors, they all need to proceed with relevant insurance as required by the government and the legal regulations,
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2020 MSI CSR Report

in addition to complying by various safety and health work rules from MSI. In addition, we will supervise that onsite contractor pay sufficient attention to the labor conditions of their workers so that they could also be in compliance with national labor standards.

Item

Course title

Number of the attendance

Total hours

MSIT MSIS MSIK MSIT MSIS MSIK

Objects

Safety, health

and fire

fighting fire 441 213 43 709 426 86

management

educations

Safety, health and fire fighting
training

Resident contractor education
training

N/A

Resident

contractor internal

meeting

Resident contractor

Working Working safety

safety promotion for 42

promotion

worker

Special 65 364 63 130 364 operation
contractor

Food

Resident

sanitation sanitation and 11 76 41 11 152 164 restaurants

and safety

safety

supplier

3.6.4 Occupational Health Service
MSI started its transformation of health at the workplace in 2010 with the creation of a friendly and healthy workplace as the top priority. A medical room has been established at the plant site housing a clinic for employees. Qualified physicians from medical centers provide health consultation and medical attention services, and help to launch occupational disease prevention management, emergency rescue and first-aid, health education, health promotion, epidemiology and prevention, and related health management works to promote different
52

method of health promotion and create the culture of a healthy workplace. MSI also seeks to discover the possible causes of occupational diseases through the procedure for identification of occupational hazards and include the findings into health management. Employees and stationing contractors may seek related consultation at the medical room during working hours, and may also seek referral treatment once diagnosed by the resident physicians as needed.
3.6.5 Result of Occupational Safety and Health Management
MSI has established the "Occupational Safety and Health Committee" and the "Occupational Safety and Health Email" as the principal channels for communication with the workers participating in occupational safety and health management for the protection of the occupational safety of the workers and compliance with applicable legal rules governing environmental protection and labor safety and health. Workers may communicate with the management through the liaison window, email, employee representatives of their respective departments, or the committee. MSI has also established the procedures for the timely reporting of any hazards or false alarms in occupational safety by the workers. In the event of occupational accidents or an accident is imminent, workers may stop the operation and evacuate to a safe place in accordance with the procedures for responding to emergency and related requirements of MSI on condition

that the safety of other workers remains unaffected, and report to management at once. MSI will act in accordance with the Service Regulations, and thereby will not take any unfavorable actions against the workers who absent from their work for safety.

Work Safety Management in the reporting period In an attempt to enhance safety and health and prevent occupational hazard in construction projects, we have assigned suitable supervisors, depending on the nature and size of the project involved, to supervise, audit, inspect and perform random checks on project, and thereby minimize chances of accident and pollution.
Principal items of work safety management:
1. Notice of operation hazards and review of application for work. 2. Special operation such as hot work, work at high altitude and confined space, with suspension devices, suspension cages. The safety of the above works must be confirmed in advance with on-the-site inspection from time to time.

Item/Location Number of internal audits at the plant
Number of nonconforming cases Number of cases improved by corrective action
Improvement rate

MSIT 18 14 14
100%

MSIS 26 26 26
100%

MSIK 1,632 115 115 100%

Number of cases of general occupational injuries and traffic accidents to the employees in the reporting period The statistics on the result of occupational safety and health management in the reporting period indicated that there was no significant increase of occupational injuries as compared with the reporting period in the preceding year. MSI will continue to promote Level III safety training to enhance the awareness of the employees

on hazards. For traffic accidents, motorcycle accidents during the peak hours before and after work are more frequent at the MSIT. MSI will continue the education on safety for the employees (refer to 3.6.3 Education, Training and Promotion). Further to the reminder of specific road sections, MSI also reminds employees to maintain the tires and braking system of motorcycles in order to reduce the recurrence of accidents.

Item/Location/Gender
Number of accidents in general occupational injuries
Number of traffic accidents

MSIT

MSIS

MSIK

Male Female Male Female Male Female

Statistics of employee injuries and disabilities in the reporting period The expected frequency of disability and injury and severity of disability and injury for management and the actual outcomes in the reporting period are shown in the table below:

Item/Location/Gender

MSIT MSIS MSIK

The targeted value of frequency of disability and injury (FR) 0.24 7.5 0.95

The targeted value of frequency of severe disability and injury (SR)

Disabling frequency rate(FR)

0.23 7.03 0.89

Disabling severity rate(SR)

Formula Notes: The record date for total number of employees was December 31, 2019. Disabling Frequency Rate (FR) = Total # of injuries * 1,000,000 / Total hours worked Disabling Severity Rate (SR) = Total # of lost days * 1,000,000 / Total hours worked The SR of MSIK fell below standard mainly because of the occupational disaster to one employee (bone fracture) that required staying home for one month. This case has been referred to special treatment. Additional effort will be made to intensify the management of occupational safety and health.

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Statistics of occupational injuries and fatalities and severe occupational injuries and fatalities of the workers

MSIT

MSIS

MSIK

Item/Location

Employees Contractors Employees Contractors Employees Contractors

Number of

fatalities caused by occupational

injuries

Ratio of

fatalities caused by occupational

injuries

Number of severe

occupational

injuries

(excluding the

fatalities)

Ratio of severe

occupational

injuries

(excluding the

fatalities)

Ratio of occupational injuries that could be tracked on record (including 0% the number of fatalities caused by occupational
injuries)

0.40%

1.42%

1.10%

0.53%

0.18%

Primary type of occupational
injuries

Crushed

Crushed, scratched

Machine injury

Total work hours (hour)

4,331,072

9,067,961

5,632,101

Note: 1. The above data excluded traffic accidents. 2. High-consequence work-related injuries: The worker cannot recover, or does not or is
not expected to recover fully to pre-injury health status within 6 months.

3. Standard of counting people: (Total number of persons of the month)/12 × annual average (round to the nearest integer).
4. Counting of total work hours: (Number of people in the month * number of working days in each month * 8 hours) × the sum of 12 times (annual total).
5. Rate of fatalities as a result of work-related injury: (Number of fatalities as a result of work-related injury/Number of hours worked) x [1,000,000]
6. Rate of high-consequence work-related injuries (excluding fatalities): (Number of high-consequence work-related injuries (excluding fatalities)/Number of hours worked x [1,000,000]
7. Rate of recordable work-related injuries: (Number of recordable work-related injuries/Number of hours worked) x [1,000,000]
8. The recordable work-related injury or ill health: based on the notified figures (inclusive irrespective of any number of day loss)

Statistics of occupational diseases suffered by workers in the reporting period

Item/Location/Gender

MSIT

MSIS

MSIK

Male Female Male Female Male Female

Number of fatalities caused by occupational
injuries

Employees Contractors

None

Number of occupational Employees disease cases that could
be tracked on record Contractors

None

Principal types of occupational diseases

Employees Contractors

None

Note: No fatality caused by occupational injuries in the reporting period.

None

3.6.6 The Participation, Consultation, and Communication with the Workers Pertinent to OSH
MSI has established the "Occupational Safety and Health Committee (OSHC)" to maintain the environment, protect the safety of workers at the workplace of MSI, and meet the requirements of applicable legal rules governing environmental protection, labor safety and health. MSI encourages all employees the participate voluntarily and

implements all matters pertinent to occupational safety and health, and expects that each and every employee can assume the responsibility of environmental protection and make it an integral part of the environmental management system. MSI promises the entire operation process conforms to the requirements for the protection of employees, customers, and the surrounding environment. In addition, MSI also calls for the quarterly meeting of the OSHC for the effective evaluation of the performance of implementation, and also conducts internal and external audits every year. The management methods and enforcement strategy will be subject to adjustment on the basis of the audit findings to achieve the management performance objective of continued improvement of environmental protection, safety, and health.

Participation, consultation, and communication with the employees in

the reporting period

Item/Location

MSIT

MSIS

MSIK

Labor union

Union representatives

Li, Fang

Yu, Sen-Sheng

Contact of union representatives

Extension: 8890 Extension: 8061

Number of labor representatives at OSHC (A)

Total members of OSHC (B)

Ratio of labor representatives at OSHC (%) (A/B) * 100%

83.67%

67.16%

62.79%

Ratio of the rights of the

freedom of association and

100

collective bargaining (%)

Item/Location

MSIT

MSIS

MSIK

Number of violations against

the employee freedom of association and collective

bargaining

Health and safety topics

1. Workplace 1. Occupational 1. Electrical

Monitoring

Safety

2. Traffic Safety 2. Fire Equipment 2. Fire

Promotion

Management

Equipment

3. Safety and 3. Chemical

Management

Health Risk Management

3. Chemical

Management 4. Machinery

Management

4. Health

Equipment

4. Food and

Promotion

Protection

Beverage

Sanitation

Accredited with the ISO 45001 in

occupational health and safety

management

Item/Location OSHC

Departmental meetings

Channel for labor management consultation

Labor union EAP

Channels for complaints

MSIT V

MSIS V

MSIK V

EAP email: eaphelp@msi.com MSIT EAP Hotline: 8585 MSIS EAP Hotline: 8858 MSIK EAP Hotline: 8085

OSH email at esh@msi.com

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Item/Location OSHC

MSIT

MSIS Once quarterly

MSIK

Departmental

Labor

meetings

management consultation

Labor unions

frequency

EAP

Irregular
Irregular Any time

Channels for complaints

Any time

* There is no labor union and labor representatives at MSIT. Employees may communicate with the management through OSHC, department meetings, EAP and other channels.

4. Product Value

2020 MSI CSR Report

4. Product Value

Material topics

Energy(302),Supplier Environmental Assessment(308),Supplier Social Assessment(414),Customer Health and Safety(416)

The meaning of the major topics to MSI.

In environmental management, MSI makes efforts in reducing the depletion of natural resources in the product life cycle,
mitigates the possible impact of products on the environment, and follows the principles of reduction, recycling, regeneration,
and reuse to mitigate the impact on the environment and strengthen the competitive power in market.

4.1 Product Sustainability
As countries become increasingly aware of the environmental impact of production activities and emphasize producers' responsibilities, companies must also take environmental protection into consideration while developing new technology. Therefore, MSI actively promotes environment-friendly product design and green supply chain management system, while at the same time taking the initiative to collaborate with business partners on green product development and in doing so mitigate or even improve environmental impacts throughout the product life cycle.
4.1.1 Adaptation to Environmental Impact
In recent years, there has been increasing attention from around the world towards environmental performance of the manufacturing industry, which manufacturers have responded by incorporating environment-friendly elements into product development. This ongoing call for lower resource consumption and lower environmental impact throughout the entire product life cycle has kept motivating MSI to systematically incorporate environmental concerns into product design and development. MSI has incorporated "Reduction Hazardous Substances Reduction", "Energy and Resources Saving", "Ease of Disassembly/Recycling" and "Waste Reduction" policies into the project
58

development workflow. By emphasizing on Reduce, Recycle and Reuse (3R), we aim to minimize environmental impact of our products and improve market competitiveness as a result.

Reduce
Upgrade product performance Reduce the types of packing materials Reduce the use of packing materials Mitigate toxic impact on the environment Reduce carbon emission through reduced transportation

Recycle
Introduce recycled plastics and pulp from market after consumption Reduce the use of composite materials Easy decomposition for recycling

Reuse
Module design of product Repeated use of packing materials (e.g., pallets, transfer bins)

Eco-design thinking and analysis of product design In consideration of economic and technical feasibility, MSI evaluates

the life cycle of products under the mindset of product life cycle. The objective is choosing products and services that cause the least impact

on the environment, and upgrade the friendliness of products to the environment and society as a whole.

Item

Raw materials

Manufacture Transportation

Use

Disposal

Target

Reduction hazardous substances

Optimize production technologies

Sound logistics management

Improvement of energy/ material efficiency

Optimize the management
of waste

Strategy

Choose environmentfriendly materials (e.g. halogen-free materials) Use regenerated materials

Choose green production technologies Simplify production steps Reduce waste in production process

Reusable packing materials Improve loading efficiency Cargo flow carrier planning Cargo flow distance adjustment

Reduce product energy consumption Reduce use of materials and adopt modular design

Reduce packaging waste Reduce product waste Increase recycling percentage Safe for incineration or landfill

Statistics of environmental impact management and measures in the reporting period

Goals

Aspect

Management measures

Goal

Objective in the

achievements

future

Reduction hazardous substances reduction

Reduction in the use of hazardous substances

All raw materials are subject to
RoHS and REACH All meet the of prohibited and requirements. restricted substances
management.

Make continuous of restricted substances management.

Conduct hazardous

Make

substance management on the MSI Green Product Management Platform

11,629 approved parts has been
completed.

continuous of hazardous
substance management by

(GPM).

GPM every year.

The global waste/

resource recycling

regulations have Identify and

been established, and manage 355

Compliance the "MSI Standard hazardous

with IECQ/QC for Environmentally substances;

080000

Friendly Products- Obtain IECQ/

10th Edition" has been QC 080000

published and included certification.

in the requirements for

management.

Make continuous import the identification results into
the MSI management specification by
annually.

Goals

Aspect

Management measures

Goal

Objective in the

achievements

future

The product outer

packaging box is

only available in 5 sizes, avoiding over-packaging and

All meet the requirements.

increasing the carrying

capacity by about 3%.

Assess the possibility of optimizing the carrying
capacity.

Energy and resources
saving

Reduce energy consumption and carbon
emissions

Increase the average efficiency of external
power supply conversion from 88%
to 89%.

The external power supply compliance with efficiency level
VI

Evaluate the possibility of optimizing the average active efficiency of the conversion.

At least 80plus bronze

medal products are

adopted in internal power supply products, which is 2% more efficient

All meet the requirements.

than 80plus white power

supply series.

Make continuous use the 80plus specification's
product.

Reducing the

utilization rate of

composite materials and use a single or compatible material

Plastic rate

recycling of 90%

Improve plastic recyclability to
92%.

plastics to increase the

plastic recycling rate.

Ease of disassembly/
recycling

Resource recycling

The materials of plastic and paper packaging materials
are labeled for recycling.

100% complete labeling.

Make continuous
labeling.

Reduction the proportion of parts in products, which are mainly treated by incineration or landfill.

The proportion of such
materials has dropped from 5% of the total
weight of a product to less
than 2.5%.

Make maintaining incineration or landfill materials accounts for 2.5% of the total weight of the
product.

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2020 MSI CSR Report

Goals
Waste reduction

Aspect

Management measures

Goal

Objective in the

achievements

future

Regulatory impact

The global waste/ resource recycling regulations have been established, and included in the requirements for
management.

The "MSI Standard for Environmentally
Friendly Products-10th
Edition" has been published.

Make continuous
update.

Recycling rate of related

electrical and electronic

equipment of MSI during the reporting period which is superior

Recycling rate >90%

to 80% set out in the EU

WEEE Directive.

All meet the WEEE requirement.

4.1.2 Product Responsibility
As always, MSI aims at providing high quality products and services. Through the establishment of the internal procedures and review process, MSI spares no effort in advocating "Production Responsibility Management," thereby providing safe product liability guarantee with peace of mind through reliable quality and fortified protection of personal information. These measures allow for sustainable consumption and brand value upgrade.

List of management policy in the reporting period

Material topics Energy(302),Customer Health and Safety(416)

Boundary

Provide customers green products and solutions for recycling, reduced use of energy in response to climate change and the risk of health and safety of the customers, and grasp the opportunity of improving the mode of operation.

Management policy Energy Star standard V7.1, EU ErP Directive

Management commitment

Assure product performance management is in conformity with applicable standards with improvement of the level of product performance, and reduce carbon emission through reduced consumption of energy.

Management objective
Management responsibility
Management methods

Accredited with the Energy Star or in conformity with the CE standard of the EU.
Management measures
R&D division
Upgrade the average performance of external power supply. Internal power supply conforms to 80plus Bronze accreditation or higher. Introduce the energy saving circuit design of chip makers.

Resources
Grievance mechanisms
Evaluation mechanisms
Evaluation result

Capital investment in green product design, apply for accreditation of Energy Star
Stakeholder email: 080419864@msi.com Product service hotline (Taiwan) +886-800-018-880
Energy Star energy consumption test, EU ErP ecodesign assessment
Accredited with Energy Star Accredited with CE safety standard of EU

4.1.2.1 Evaluation of Product Safety
We address potential safety risks of our products in four steps: "Hazard identification", "Risk characterization", "Risk management" and "Risk communication".

4.1.2.2 Product Review Mechanism

Evaluation Applicability Management

Measures implemented

Result in the reporting Objective in the

period

future

Safety Health Environmental

New product

design

procedures

EMC & Safety & RFI

Design & Verification

procedures, Green

MSI products and components

GPM(Green Product

new product development operation procedure, New Product Design

Management) procedures and

Platform Packaging approval

operation procedure.

100% meets the requirements of customers and regulations in global regions, achieving the goal of enhancing product competitiveness.

Continue to provide high-quality products characterized by "low pollution", "low energy consumption" and "high safety" to prevent products and services from being penalized.

Personal Information Protection

All customer service

Customer privacy and personal information protection measures

1. Announcement of

the website

2. Establishment

of breaches

of personal

information and

processing control

mechanism

3. Enforcement

of information

party's rights

through enhanced MSI did

procedures

not receive

4. Processing

complaints

personal

regarding

information legally violation of

with the Users'

client's privacy

consent

right and/or

5. Personal

loss of clients'

information

information.

handling and store

requirements

6. Personal privacy

protection

measures

7. Signing of personal

information

contracts with 3rd-

party information

handlers

8. Appointment of

accountable units

Protect privacy and security of customers' information during processing and exchange, and thereby avoid possible lawsuit.

Statistics of product safety assessment and performance in the reporting period

Impact Categories
Safety

Applicability

Assessment Item

Content

Result in the reporting period

Objective in the future

Computer system
Equipment terminals

Safety
HDMI USB

Electromagnetic, Safety, Radio Frequency

Conformity to legal requirements.

Completion of

Hardware Terminals product safety

Safety

labeling.

Continued conformity to legal requirements.

Health

Hazardous Components substances
management

Batteries

Waste batteries

CSCL

Components REACH

POPs

Environmental hazardous substances
management

Conformity to legal requirements.
Continued reduction of hazardous substances.

Continued conformity to legal requirements.
Update "MSI Standard for Environmentally Friendly Products"

Package materials
Computer systems
Package materials
Batteries Environmental

PPW

Packaging labeling
WEEE
PPW
Waste batteries labeling

Conformity

to legal

requirements.

Declaration

of dumps in

conformity

The waste disposal to local

and recycle rate after requirements

product using.

of the place of

production.

Completion

of product

materials and

dump recycling

labeling.

Continued conformity to legal requirements.
Continued registration and declaration of recycling of waste.

Computer system

ErP Energy Star
CEC
DOE

Energy efficiency requirements

MEPS(GEMS)

Conformity to legal requirements.
External accreditation of products.

Continued conformity to legal requirements.
Continued voluntary inspection and testing and declaration of product performance.

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2020 MSI CSR Report

4.1.2.3 Products Energy Efficiency

Through eco-design analysis and product carbon footprint inventory, we found that the main stage of carbon footprint in our products lies in energy consumption during user operation. Our response to this issue is to use technologies currently available to improve energy efficiency, starting from the product design stage. In hardware, product energy efficiency can be achieved through using high-efficiency materials and components. In software and firmware, efficient energy can be achieved through scenariobased power management. Effective management can not only reduce power consumption, but cut down product carbon footprint.

The table below exhibits the energy efficiency of MSI's Energy STARcertified products, including notebook computers, desktop computers and all-in-one computers. The average energy efficiency performances are all higher than the standard 37.06%, 63.48% and 54.97%, respectively.

(Other MSI of ENERGY STAR certified products, please refer to the Energy Star website: https://www.energystar.gov)

Product Categories

Model

ETEC* Calculation**

ETEC_Max Calculation**

(kWh/yr (GJ/yr per (kWh/yr (GJ/yr per per pcs) pcs) per pcs) pcs)

Average ETEC saving (%)

Notebook Computer

MS-14B3 MS-1551 MS-17C8

20.10 25.88 44.18

74.37 95.756 163.466

36.48 44.9 58.08

134.976 166.13 214.896

44.90% 42.36% 23.93%

Desktop Computer

Cubi B183 Prestige B929 Trident B926

36.14 157.96 140.46

133.718 584.452 519.702

187.48 343.08 317.48

693.676 1269.4 1,174.68

80.72% 53.96% 55.76%

All in One Computer

MS-ACD1 MS-ACD2 MS-AEC2

103.21 381.877 230.59 853.183 126.13 466.681 230.4 852.48 84.69 313.353 238.05 880.785

55.24% 45.26% 64.42%

* Typical Energy Consumption (ETEC): means the electricity consumed by a product over specified periods of time across defined power modes and states.
** ETEC Calculation and ETEC_Max Calculation equation please reference Energy Star Computer V7.1.
4.2 Management of Hazardous Substances
In consideration of the negative influence of production and operation on the environment, the commitment of using environmentally friendly materials, and the compliance with applicable legal rules and conformity to customer requirements, MSI requires all suppliers with business transactions and the Company to duly observe the MSI "Green Products Control Regulations". All suppliers are required to duly observe the rules and regulations governing environmental protection for the products and services supplied and inscribe the content in the purchase agreements. In the reporting period, there were "132 substances of prohibited/restricted use", "223 reported items (including the SVHC under REACH, substances under industry rules and regulations, and customer requirements)". Through the management of hazardous substances, MSI acts in concerted effort with the supply chain to duly observe applicable legal rules, assume the responsibility of mitigation of impact on the ecological environment with a view to supplying the consumers environmentally friendly products.
4.2.1 Green Product Management (GPM) Platform
MSI completed the installation of the Green Product Management (GPM) platform and has used this platform since 2010, and proceeds with the management and control of all substances in compliance with applicable legal rules, industry rules and regulations, and customer requirements through the information management system. With the timely feedback from suppliers, the management function of MSI will proceed to analyze the data and make judgements to confirm product conformity. Update information will be conveyed through this platform, which is included in the present management system (such as IECQ/

QC 080000) for operation to reduce imperfect control of data by manual labor and data repetition and processing time. This is also a channel for the communication with the customers and suppliers. GPM system framework
GPM management performance during the reporting period: None of MSI's products has violated environmental laws, punished,
no recalls were implemented and no customer complaints were received. The supplier signs the Environmental Compliance Statement of MSI there were completed 985 suppliers sign the statement. MSI accumulatively completed component qualification management for 147,980 parts/components. Percentage of new suppliers that were screened using environmental criteria: 100%

4.2.2 Halogen-Free (HF) Flame Retardant Management
When choosing materials for product development, MSI not only ensures compliance with applicable hazardous substance laws, but also undertakes pro-active management over substances of potential environmental impact. Although the halogen-based flame retardants (BFR/CFR) are not prohibited or restricted by the current laws, they have certain negative impact on the environment, ecology and human body. Therefore, MSI has specifically created an HF (Halogen-free) category from its classification of material properties for better control, while continuously evaluated and enhanced the feasibility of using HF materials.

We have carefully evaluated the use of low-hazard raw materials since the beginning of our design to provide our customers with innovative, environmentally sustainable products. Based on the premise of the controllability and economic value of the product materials, we are planning and introducing HF flame retardants. We are dedicated to reducing harmful substances and providing customers with environmentally friendly product choices.

Halogen-Free Fire Retardant Agent Management in the reporting period

Management Item

Result in the reporting period

Objective in the future

The E-sports product bill of materials (BOM) does not use halogen flame-
retardant materials.

Achievement rate: 75%

Annually > 2% Growth to 85% by 2025 (base
year: 2018)

VGA cards and motherboards introduce
into flame retardant materials on printed
circuit boards

VGA card achievement rate: 18%

Annually > 10% Halogen-free materials for VGA card
up to 78% by 2025 (base year: 2019) Halogen-free materials for
motherboard up to 65% by 2025
(base year: 2020)

All-in-one computers do not use halogen flame-retardant Achievement rate: 100% Continue to introduce annually.
in plastic chassis.

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2020 MSI CSR Report

4.3 Supplier Management
Conceived with the corporate philosophy of amity and goodwill, MSI takes the partners of the supply chain as an integral part of sustainable development, and sets an example of corporate social responsibility to require all partners to do the same. As such, MSI extends its strategy of sustainable development to the cooperation with the suppliers and wields the influence of a leader, guiding suppliers to the road of growth and transformation, and works together with the suppliers for the development of a sustainable supply chain.

List of management policy in the reporting period

Material topics

Supplier Environmental Assessment(308),Supplier Social Assessment(414)

Boundary

MSI emerged as a benchmark enterprise in the eSports industry, and proceeds to material procurement with a responsible attitude, transparency, and fairness. MSI also works in cooperation with suppliers to upgrade their product quality, understand their production, employees, and work environment, and wields a positive influence on suppliers so as to achieve the goal of economic, environmental, and social sustainable development together with them.

Management Corporate Social Responsibility Code, Corporate Social Requirements

policy

and Conflict Minerals Management Measures

Management commitment

MSI takes the sustainable development indicators of environment, labor, human rights, and social impact as an integral part of the evaluation items for the screening and management of suppliers. Through encouragement and sharing, MSI drives the suppliers to assume responsibility of sustainable development and wields substantial influence.

Management objective

Environmental and social audits on the suppliers from time to time. Education of the suppliers in the requirements of corporate social responsibility with signing for confirmation.
Continued investigation and declaration of responsible minerals.

Management measures

Management Global Management Center, Corp. Supply Chain, Corp. Quality responsibility Assurance

Management methods

Audits, visits, and questionnaire survey of the suppliers from time to time to identify the kinds of environmental and social risks they are exposed to. Routine disclosure of responsible minerals investigation findings and signing of the declaration of conformity. Requires all suppliers to make continued improvement of the indicators of concern in sustainable development.

Resources

Capital investment in keeping the GPM platform, and investment of human resources to conduct audits and investigation on suppliers in due diligence.

Grievance mechanisms

Stakeholder email at 080419864@msi.com

Evaluation mechanisms

Installation of management system. Supplier environmental and social audits. Supplier signing to confirm the conformity to corporate social responsibility requirements.
Signing of the conflict minerals and cobalt minerals investigation sheets.

Evaluation result

Complete the assessment and approval of new suppliers. Entering into sustainability clause with new suppliers. Complete the investigation and declaration of conflict minerals and cobalt minerals in due diligence.
No major non-conformity on environmental and social issues defected from the audits on the suppliers.

4.3.1 Sustainable Supply Chain Management and Goals

MSI develops its sustainable supply chain on the basis of its supply chain management in service, and identifies the environmental, governance, and social risks; management mechanisms; continued improvement; technical joint ventures; responsibility and accountability from the procedures of its management process to cultivate and communicate with new and old

suppliers to establish corresponding management measures, tracked by audits at any time for confirmation of the proper implementation of the system and create common growth where all are winners.

Targets
No use of conflict minerals

Implementing measures

Result in the Objective in the

reporting period

future

Investigation is conducted in accordance with the due diligence investigation under the OECD framework.
MSI uses the Responsible Minerals Assurance Process (RMAP) resources provided under the Responsible Minerals Initiative (RMI) to assist its suppliers in purchasing raw materials which are not conflict minerals.

100% no use

Conformity of suppliers
to the requirements
of MSI in corporate
social responsibility

Evaluation of suppliers by questionnaire survey
Education or training of suppliers On-the-site inspection of key
suppliers

Full conformity

Continue

Management mechanism

Establishment of the mechanisms for reporting and complaints, with the internal audit office as the window for whistle blowing.

No related incidents of negative effect

Continued improvement

In case the supplier is suspected of acting in defiance of the requirements of corporate social responsibility, MSI will demands corrective action accomplished by a designated deadline and accept audits of MSI from time to time.

No major defect discovered

Targets

Implementing measures

Result in the Objective in the

reporting period

future

Cognitive cooperation

Sharing of training resources with the suppliers
Visits and exchanges to cultivate the relation of development through concerted effort

Accomplished

Give recommendations to the suppliers on feasible corrective actions
Responsibility & Let the suppliers know the result Accountability of self-assessment through
questionnaire survey on the suppliers and set up the goals for corrective action

Accomplished

Continue

4.3.1.1 Sustainable Supply Chain Guidelines
MSI regulates quality, cost, and delivery through supply chain management. In addition, MSI also instituted the standard and agreements for evaluation of suppliers and new suppliers in accordance with the international code of conduct and internal rules and regulations (such as RBA, International Labour Organization (ILO)) to demand suppliers for due diligence in management of labor, health and safety, environment, ethics, management system, and compliance with laws in conformity with the legal requirements of their places of operation. MSI will visit and audit the suppliers from time to time with follow-up action.
4.3.1.2 Identification of Suppliers Risk
To identify the risk issues related to MSI through the negotiation with the stakeholders, advocacy of the international organizations and customer demand, and on the basis of the supplier strategy, contractual performance, market, performance and needs, to evaluate the key suppliers in the five aspects of operation environment, corporate quality, service level, compatibility of cooperation, and status of supply.

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2020 MSI CSR Report

Statistics of identification and assessment for high risk suppliers in

the reporting period

Risk identification
item

Economic

Environmental

Social

Risk

Industry

assessment environment

Delivery Company total Service

status

quality

Compatibility

Purpose Item

To investigate To investigate suppliers'

To establish suppliers' managerial competence,

understanding response

including human

of the current capabilities resources, financial

political,

in terms

position, production

legal, social, of product equipment, R&D,

economic,

quality, cost reputation, environmental

technological control,

protection practice,

and geographic delivery

emergency response,

environment. timeline and service satisfaction and

quantity.

communication.

To confirm the overall cooperative capacities, including suppliers' behaviors, common values, information disclosure practices and product specifications.

Safety of the environment, transportation, and technology standard.

Product qualification ratio, pricing, procurement cost, timing flexibility, and quantity flexibility.

Supplier's

Personnel service

competence, attitude,

technical

service

competence, details and

and

standards,

environmental service

impact

response

throughout time, and

the product quality of

life cycle.

after-sale

service.

Corporate culture, organization management, corporate strategy, system management and product standardization.

Identification and Assessment for High Risk Suppliers We evaluate suppliers' risks using a number of factors including industry category, location and substitutability. Based on the outcome of the evaluation, we are able to develop a supplier risk grading system that identifies high-risk suppliers for regular and unscheduled audit/ review, and follow up with counseling and improvements to reduce supplier management risk. Identification criteria for MSI key suppliers:

High purchase (sale) percentage Ability to implement sustainable practices Highly pollute manufacturing

Product exclusivity High technical barrier High labor intensity

Assessment item

Economic

Environmental

Social

Sustainability risks

Compliance Business Ethics Exclusive Product Quality, Delivery &
Cost

Compliance Management System
Climate Change Adaptation
Waste Management

Health and Safety Human Rights Management
Conflict Minerals Labor Practices and
Working Hours

High risk supplier

Integrated Circuit

PanelsCablesPlastic Parts

Printed Circuit Board (PCB)

Management Measures for High Risk Suppliers Under the new economic environment, it is increasingly common for companies to adopt strategies such as global procurement, business outsourcing and centralized management. While these strategies are all based on cost savings, they inevitably increase the risk of supply chain management. As the supply chain becomes increasingly dependent upon cooperation, sharing, outsourcing, communication and globalization, MSI has responded with more flexible supply chain practices and tightened monitoring of suppliers' current state of business and materials supply in an attempt to minimize risk of supply shortage in the event of economic, environmental and social impact.

MSI supplier risk management measures

Integrate the Company's requirements, require suppliers to

develop contingency procedures and plans to address natural

or man-made hazards that caused by suppliers' products and

services, and thereby ensure business continuity.

Business continuity Develop a flexible and diversified supply chain to prevent

management

supplies from being monopolized to the point that threatens

overall business operations.

Flexible contract management with optional terms and stage-by-

stage execution to reduce business losses caused by changing

market price.

MSI supplier risk management measures

Environmental sustainability management

Demand that suppliers establish an emergency reporting system for natural disasters, so that situation and recovery can be updated to MSI in a timely manner in the event of disaster.
Demand that suppliers implement contingent measures such as backup production and inventory reserve to mitigate operational impact in the event of natural disaster, violation or accident.
Comply with environmental laws, offer clean-produced products and services, and enforce the environment management system.

Code of conduct compliance

Any act in defiance of the ethical norms is prohibited. A reporting system is established, and the identity of the informants will be kept in strict confidence.
Require that suppliers establish and enforce management guidelines based on international initiatives on labor and human rights (such as RBA, OECD Guidelines for Multinational Enterprises etc.), and ensure full compliance with local laws where production sites are located.
Ensure the confidentiality of business information and demand that suppliers respect intellectual properties of both parties.
Out of protection for human rights and compliance, suppliers are required to perform due diligence investigation to ensure that raw materials and products do not involve illegal minerals and smelters.

4.3.2 Supplier Management Mechanism
As a successful and leading business in e-sports, we purchase materials in a responsible manner and in the utmost transparency and fairness. We also work with suppliers to improve the quality of their products, and gain insight into their production, employee and environmental practices in order to ensure procurement of ethical, environmentfriendly, responsible and high-quality supplies from them as part of our green purchase.

Supplier management measures in the reporting period

Item

Measures implemented

Goals

Goal

Objective in the

achievements

future

The labor standards

and working

environment in

New supplier

accordance with rules screening ratio:

New suppliers that were
screened and managed using social criteria. MSI evaluates supplier
risk primarily based on product quality, delivery time, substance management, audit outcome (e.g. RBA) and

and regulations. Conduct due diligence investigation based on OECD guidelines and prepare regular reports in compliance with Responsible Minerals Initiative (RMI) for higher transparency.

100% The reply ratio of Conflict Minerals Reporting Template (CMRT) statement: 90%

their ability to enforce risk management.

New supplier screening ratio:

We target high-risk

and main suppliers for

audit and improvement,

and use questionnaires

to survey suppliers'

performance in terms

of environmental, social

and routine practices.

The outcome enables us

New suppliers that were
screened and managed using environmental
criteria.

to identify potential risks in environmental, social and economic aspects. Through random on-site audit, counseling and collaborative training, we take steps toward

reducing risks of supply

disruption.

Establish a ESH, safety, hazardous substances management system of requirement. Meet the "MSI Standard for Environmentally Friendly Products" management requirements. There is improving using of hazardous substances in products and striving to reduce

100% Key suppliers obtain certification ratio as below: Environmental Management: 90% Quality Management: 100% Occupational Health Safety: 70% Number of suppliers violate of local environmental regulations: 0

environmental impact There are 41

substances.

new supplier had

meet the "MSI

Standard for

Environmentally

Friendly

Products"

manage

requirements.

Continue to following goals: New suppliers that were screened and managed using social criteria. The reply ratio of Conflict Minerals Reporting Template (CMRT) statement 90%.
Continue to following goals: New suppliers that were screened and managed using environmental criteria. The high risk and key suppliers carry out key audits and improvements. Meet the "MSI Standard for Environmentally Friendly Products" management requirements.

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4.3.3 Responsible Minerals Management
The continued improvement in the performance of the moral, environmental and social aspects of MSI will be the fundamental elements for demonstrating its humanitarian government to the stakeholders. Through routine due diligence investigation under the RMI, MSI demands all suppliers to purchase non-conflict materials and avoid using conflict minerals, indirect acts in defiance of human rights, and violation of national and international laws.
Management of Conflict Minerals In respect of international human rights and implement corporate social responsibility, MSI will take related measures to avoid using Conflict Minerals. Besides Conflict Minerals statements, we are also disclosure the information of conflict minerals due diligence measure and supply chain smelters list. MSI has completed the "Conflict Minerals Management Measures" in order to facilitate the investigation and control of conflict minerals.
MSI Conflict Minerals Statement website link: https://www.msi.com/ html/popup/csr/sh_conflict.html
MSI conducts annual certified mineral surveys on suppliers based on the latest Conflict Minerals Reporting Template (CMRT) and follows up on the progress of the submit. This survey has been effective in managing supply chain and minimizing default risks. In the survey in 2019, there was a 90% response rate. More and more suppliers responded to the survey over time. Suppliers which declined to respond will be subject to supervision with follow-up actions by filling in related forms depending on the level of management risk, and urged to respond to the survey. The findings from the survey on smelting factories of tantalum, gold, tin, and tungsten indicated no violation of human rights.
68

MSI Conflict Mineral Control Measures

Item

Measures implemented

Goals

Goal achievements

Objective in the future

There are signing

of Procurement

Contract, Electronic

Industry Code of

Supplier signing commitment

Conduct Letter Agreement, MSI Standard for Environmentally

Friendly Products,

and Corporate

Social Responsibility

Requirements.

Document management

Conflict Minerals Management Measures

Supplier 100% completed

100% completed

Management approach has been Completed established.

New supplier was requested to sign management commitments.
Continue to focus and survey whether the management item is updated.

Responsible Mineral Initiative(RMI)The Conflict Minerals Reporting Template(CMRT) Survey Conflict minerals due diligence
Due Diligence Analysis

CMRT survey completed at the end of March each year.

Reply rate: 90%

The metal mines

used in our

There are analyses products from

of smelter

smelters that

Qualified Rate

information from have received a 100%

supplier feedback. "conflict-free"

designation by the

RMI.

CMRT company level report Due diligence information disclosure The investigation results were revealed on the MSI website.

The report is available in every April.
The report is available in every April.

Information has been provided to customers in need at April.
The report has been disclosed on the official website in April.

Unqualified supplier

Unqualified product management procedure

Management procedure has been established.

No unqualified suppliers found.

Available every April
Continue to ensure product compliance with management

Investigation on Cobalt Battery has emerged as the key component in the world's ongoing movement towards energy/carbon reduction and in new consumer and auto electronics. Since cobalt is an essential metal to making Li-ion batteries, the mining of which has become so aggressive that some even incorporate disputable means. About half of the world's cobalt supply is sourced from Republic of the Congo, where exploitation of workers and child labor has caught the attention of human rights organizations worldwide.MSI has required all suppliers of materials containing cobalt to disclose the smelting factories of the place of origin since 2018 to assure no violation of human rights of the sources of mineral supply. The findings from the investigation on cobalt smelting factories of suppliers indicated no violation of human rights.

Item

Measures implemented

Goals

Result in the Objective in the

reporting period

future

Cobalt mineral investigative action

RMI Release of the Cobalt Reporting Template (CRT)

Completed for submission by the Response rate at end of March of each 75% year.

Continued routine update

4.4 Customer Service and Satisfaction
MSI attention on building relationship with customers through brand, and considers product and service experience after purchase to be the ultimate testament for a brand's success. We recognize customers' encouragement/complaint, compliment and criticism as constructive feedbacks, and measure customers' satisfaction by "overall product value, service, environment and performance" to provide the basis for better service experience.

4.4.1 Customer Service
We engage customers closely in all of our services. By heeding their demands and making immediate responses, we strive to build longlasting customer relations for strengthened loyalty, closer interaction reduced service cost and improved profitability.
Product After-Sale Services MSI has over 6,500 service centers in over 120 countries globally to provide customers convenient and localized sales and after-sale support. Our service centers provide quality services for product replacement, testing, technical consultation, accessories and free notebook computer health check-ups. In addition to support offered at local service centers, our online support also offers technical information inquiry, in-store service tracking, online service request and customer satisfaction survey.

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Service Channels: 0800 Taiwan Customer Service MSI Forum MSI GameBot APP

Internet Customer Service System Authorized service locations On line MSI Member Center

Pick-up Delivery Service (Taiwan area) We launched the home pick-up service for certain products in 2015. Now, our customers can send their products out for repair without leaving the comfort of home. After a product is received for service, MSI's work begins: Our service staff updates the customer on progress, including notification when the product is sent back to the customer, does a post-service call, call to inquire the status of use and troubleshoot on the spot, as well as conduct a survey to inquire suggestions for MSI Services. Information derived from all customer service calls serves as valuable references for improvement of the quality of our customer services.

Real-Time Service MSI has set up the call diversion system, instant call and information service through LINE with cell phones and service at the service centers of Taipei/Taichung/Kaohsiung to upgrade customer service quality and compress the waiting time. These arrangements help to access information on the repair lead-time and progress, contributes to the surrounding environment and customer satisfaction.

Call diversion service system

Instant call through LINE by cell phones

LINE information service with cell phones
70

4.4.2 Customer Satisfaction Survey
Depending on the sales location and product category, we provide online and in-store after-sale technical service and support to customers, and invite customers to participate in a voluntary satisfaction survey (the details of which are frequently adjusted depending on the current market condition) after each service. If a customer expresses dissatisfaction, the Company would immediately initiate follow-up and visit, while at the same time forward customers' opinions to relevant departments for review and improvement. Outcome of every case will also be analyzed and presented to sales units to provide reference for new product planning.

2017-2019 0800 Customer Satisfaction Survey (%)

2017-2019 Customer Service Performance by Toll-free 0800 Calls

2019 Service Type by Toll-free 0800 Calls

2019 Service by Product Categories Inquiry by Toll-free 0800 Calls

2019 The Average After-Sales Service Time by Each Kind of Products

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4.5 Protection of Privacy Rights and Personal Information of the Customers
Protecting customers' personal information and privacy has always been part of MSI's fundamental service principles. The Company complies with the Personal Information Protection Act and related laws with regards to privacy protection and the collection and confidentiality of personal information. We make limited and protected use of personal information, notify customers of their rights, and process information with their consent and in full compliance with laws. These practices provide customers with assurance to the products and services we offer. Please refer to MSI's privacy policy at https://www.msi.com/page/privacy-policy for more details on how we gather, make use and process your personal information. There were no complaints and litigations in respect of customer privacy violation in the reporting period. In the future, MSI will make further efforts to protect customer privacy in accordance with stricter standards.
Customer Privacy For the protection of customers' confidential information, MSI would confirm the following with customers before providing product maintenance and service:
Backup of computer data (including but not limited to account/password, photo and music files etc.) Reminder on risk of file loss MSI's privacy policy, service terms and conditions, and compliance notes Customers may decide whether to use MSI's products and services

MSI Personal Information Management Mechanism

Category

Strategy management

Organization management

A personal information protection team has been assembled to execute tasks relating to personal information protection. An Data Protection Officer (DPO) has been appointed to oversee information and communication security within the organization.

Policy management

Establish and implement personal information protection policies and rules, and publish on the corporate website; Review and revise on a yearly basis based on compliance and audit findings.
Comply with the Personal Information Protection Act and provide consumers with the function to inquireretrieve and delete personal information, and the option to unsubscribe marketing messages.

Implement policies on internal/external privacyCookie and data storage/security. Internal data processing procedures. Procedure management Data transfer protocol and record. Data leakage incident evaluation and reporting procedures. Procedures for exercising of information owners' rights.

Customers' profile is being treated asconfidentialdocument; All documents containing personal information is being held at designated locations, and

Employee management

access of which is strictly controlled. 100% of employees are required to undergo personal information protection training.

Outsources are being required to sign confidentiality agreements.

5. Environmental Value

2020 MSI CSR Report
5. Environmental Value
Material Topic Emissions(305)
In responding to the irreversible influence of economic activities to the environment, MSI seeks to maintain proper balance of its products and services in environmental protection while making The meaning of the profits from its operation, and launch green and innovative major topics to MSI. services, save resources and ceaselessly advocate other things in environmental protection. The purpose is to allow for the development of coexistence and making substantial contributions through the joint efforts between environmental assets and MSI.

5.1 Environment Management Goals
MSI has set the environmental management objectives for the consumption of energy and resources and the management of hazardous substances. Environmental management is launched through the environmental management system, which is the guide for the pursuit of environmental policy and management with continued improvement through proper audits.

The environmental management approach as below list in the reporting period

Item

Goals

Goal Achievements Objective in the future

4% average annual Reduction of reduction of GHG GHG emissions emission compared to
2007 (baseline year)

Reduced by 5.77%

Base year: 2007 The total GHG
emissions achieve
50% reduction in 2025.

Reduction of energy consumption

4% average annual reduction of energy consumptions compared to 2007 (baseline year)

Reduced by 4.81%

Base year: 2007 The total energy
consumptions achieve
50% reduction in 2025.

Item

Goals

Goal Achievements Objective in the future

Reduction of water resources
Reduction of waste

1% reduction of total

water consumption

Reduced by 12.05% Continued to reduce

compared to last year.

1% compared to the

1% reduction of total waste compared to last year.

Reduced by 6.70%

previous reporting year.

Hazardous substance
control

Increase the use of the Bill Of Material (BOM) of halogen-free materials in e-sport product by at least 2% per year by 2025 compared to 2018 (baseline year).

Achievement of 75%

Base year: 2018 The rate of HF
materials of BOM list reaches to 85% in 2025. (Base year: 2018)

Reduction of hazardous substance

Increase the use of the halogen-free materials in VGA card and motherboard product by at least 10% per year as the target by

VGA Card: 18% Mother: 0% (2020
is the starting year of the project)

Base year: 2018 The rate of HF
materials of PCB reaches to VGA 78% / Motherboard 65% in 2025.

2025 compared to 2018

(baseline year).

Compliance

MSI ensured that the operations activities were in compliance with environmental regulatory requirements at the factory site.

No substantial fines

or non-monetary

punishments were Continue to

imposed on MSI meet regulatory

for violation of

requirements.

environmental-

protection laws.

5.2 Environmental Management System
Out of respect for environmental protection, pollution control, green production and sound corporate management, MSI not only complies with environment and energy-related laws, but also incorporates international certified environment management systems and occupational safety and health management systems into its operation. These measures help promote environment protection, occupational safety and health awareness within the organization, support pollution

prevention efforts, and contribute to our goals as a hazard-free, zeroaccident and sustainable business.

Continuous Improvements "Pollution prevention and ongoing improvement" are the two main principles that MSI has adopted to enforce environment management. By undergoing annual internal and external audits, we ensure that our environment practices are PlanDoCheck and Action to ensure the goal of achieving sustainable improvement.
Environment Safety and Health Management Performance We devote attention to environment-friendly measures and make improvements on an ongoing basis. Management and action plans are devised annually to improve environmental safety and health performance, and mitigate impact of business operations on the environment and the community. MSI's commitment to environment safety and health is supported by robust management systems, policies and rules. Together, they help identify potential risks within the environment and minimize environmental impact of our business operations and products. By regularly checking existing practices for compliance, we ensure that our environment management system continues be effective.

Management Systems ISO 14001 ISO 14064-1
IECQ/QC 080000 ISO 50001

MSIT V V V
None

MSIS V V V V

MSIK V V V
None

Item/Location
Water footprint inventory

MSIT

MSIS

MSIK

The total water consumptions achieve 129.145 ML reduction compared to last year.

Item/Location

MSIT

MSIS

MSIK

Reduction of GHG emissions

The total GHG emissions achieve 3,622.25 tCO2e reduction compared to last year.

Energy saving management

The total energy consumptions achieve 14,558.60 GJ reduction compared to last year.

Air quality and noise measurement

We voluntary air quality and noise management commitment. No incidents of serious air and noise pollution were reported
to MSI's operations were found.

No incidents of serious leakage were reported and no impact Waste water discharge to the local environment and wildlife habitats related to MSI's
operations was found.

Waste management

It was also not reported for serious incidents of hazardous substance leakage nor had fines imposed for violation of
environmental protection laws.

Compliance

No substantial fines or non-monetary punishments were imposed on MSI for violation of environmental-protection laws.

Communication/ grievance mechanisms

Occupational Health and Safety email: esh@msi.com

Environmental Expenditure MSI engages in an industry that is not involved in high-pollution and high-energy consumption. The relevant operations are mainly plant assembly and administrative operations, environmental management system (ISO 14001) have been established, and valid verification from an impartial third party has been obtained. The relevant environmental expenditure and investment during the reporting period are as follows:

Item

Expenditure (NT$)

Purpose and benefits

The Total expenditure on environmental
protection

20,629,333

Benefits: Assuring the environmental protection activities and related treatment at MSI conform to related legal requirements and reducing the possibility of pollution to the environment. Purpose: Including the treatment of waste, treatment of water pollutants with inspection and testing of wastewater, external service of environmental protection, and accreditation of management system by third parties.

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Item

Expenditure (NT$)

Purpose and benefits

The total amount of investments in environmental protection

247,474,000

Benefits: Assuring the normal functioning of the environmental protection equipment and improving the performance of air-conditioning with the decommissioning of obsolete compressors and ice water devices of poor performance. Purpose: Including the introduction of new facilities and equipment, equipment maintenance, equipment supplies, and education and training on environmental issues.

5.3 Climate Change Management
Risk analysis and the impact of extreme events are important topics regarding the impact of climate change on the electronic industry from the perspective of disasters. MSI has conducted analyses of the impact from the vulnerability of the factors of climate and environmental changes, and risk assessment to review the capacity for protection at present for the tracking and control of risks and search for potential opportunities of development. In addition, MSI is not in the industry of high energy consumption. Further to the proactive effort in the control of greenhouse gas emission through the establishment and signing of commitments, MSI also starts with daily lives and operation to develop the strategy for the reduction and control of greenhouse gas emission, and also maps out relevant countermeasures to tackle the impact on the environment and the operation.
Management Strategy and Control Measures
Resilience to climate change: Implement risk identification, response and prevention measures in relation to climate change and avoid impact to operations. Promote low-carbon production: Adopt optimized technologies to reduce Management greenhouse gas emission, and set reduction goals. strategies Evaluation of green energy equipment: Procurement of equipment fueled by regenerated energy, such as photovoltaic energy heaters, to reduce the dependence on electricity supply. Improve energy efficiency: Devise energy and carbon reduction measures and enforce action plans for improved energy efficiency.
76

Control measures

Identificationevaluation and analysis of impacts and risks associated with future climate.
Adaptation planning and review. Energy/resource coordination. New protection facilities or improved disaster prevention equipment. Regular examination of asset and commercial insurance coverage to determine whether they are adequate for compensating losses caused
by climate change.

Adaptation to Climate Change MSI supports UNFCCC and the Paris Agreement, which introduce the objective of keeping greenhouse gas concentration in the atmosphere at a level that would prevent dangerous anthropogenic (human induced) interference with the climate system. Such a level should be achieved within a time-frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened, and to enable economic development to proceed in a sustainable manner.

Climate Change Response Measures

Item

Aspect

Response measures

Goal achievements

Voluntary GHG emission inventory declarations

Survey GHG emission and energy consumption

Completed GHG Inventory.

Voluntary total GHG emission control

Promote low-carbon manufacturing and energy/ carbon reduction measures

Achieve the GHG goals of reducing emissions.

Low-carbon economy Compliance (carbon tax carbon trading etc.)

Search for relevant laws

using the management

Completed establishment

system; raise employees' of carbon trading

awareness to laws and

procedures for plants in

internal policies and thereby China

reduce chances of violation.

Product energy efficiency standards

Improve the energy

Evaluate viable technologies and materials to be used for product design and reducing energy consumption.

consumption efficiency in circuit design Meeting the mandatory energy consumption requirements of products

in all countries

Item

Aspect

Response measures

Goal achievements

Extreme climate

Natural Disasters probability of occurrence and severity level, affect production and operation.

Assess mitigation

measures for risks of

Implemented Business

natural disaster that

Continuity Planning

are caused by climate

(BCP) and established

change. Make appropriate emergency response

improvements and

procedures for natural

enhancements to plant sites, disasters and fire

and advise the government Commercial insurance

on making improvements to coverage has been

infrastructures in order to acquired

withstand climate risks.

Production interruption

Incorporate commercial for 0 days caused by

insurance and emergency natural disaster

production procedures to

reduce losses in the event of

natural disaster.

Supply chain management

Evaluate suppliers' competence and help them adjust whenever deemed necessary.

No supplier was found to exhibit imminent risk.

Economic activity

The consumption pattern was being changed and Increase the demand for environmentally friendly products.

Implement product life cycle environmental impact analysis; assess product eco-design to ensure reduce environmental impact.

Completed establishment of product eco-design procedures, and 100% of system products have completed the assessment.

Identify Energy weaknesses management in energy
consumption

Adopted ISO 50001

Energy Management

Monitor energy usage at

System.

various factories and identify MSIT and MSIK adopt

weaknesses that can be

a voluntary management

improved upon.

approach and replace

energy-saving equipment

according to schedule.

5.4 Greenhouse Gas Management
MSI is not in the industry that emits massive volumes of greenhouse gases. MSIS was included in the carbon emission exchange pilot location program of Mainland China. Other locations have not been

regulated by laws or agreements governing greenhouse gases. As dictated by the needs of an OEM producer, this will help to attract the attention of the stakeholders. For this reason, MSI advocates carbon reduction. In addition, MSI also takes measures for carbon reduction of products and services with the expectation of environmental equilibrium and sustainable development.

List of management policy in the reporting period

Material topics

Emissions(305)

Boundary

In responding to the impact on the environment under global warming caused by climate change and extreme weather conditions, action for mitigating the impact on the environment is pressing. For this reason, MSI spares no effort in advocating greenhouse gas management for the assurance of tracking the emission sources and the intensity of the impact, and also engages in ceaseless discussions proposing plans and objectives to reduce the volume of greenhouse gas emission for the cause of environmental justice and mitigation of the impact of greenhouse gas on the environment.

Management Corporate Social Responsibility Code, Regulations Governing

policy

Greenhouse Gas Inspection Data Quality

Management commitment

MSI must stay on top of the current status of greenhouse gas emissions. Continued advocacy of greenhouse gas reduction with efforts in the research and development of low energy consumption products. Disclosure of greenhouse gas strategy at the right moment to set an example in the industry.

Management objective

Average reduction of 4% of annual emission in total volume from 2007(base year). The total GHG emissions achieve 50% reduction in 2025.

Management measures

Management responsibility

Global Management OfficeOSH Office

Management methods

ISO audits and third party verification annually. Designated goal of continued improvement Planning for energy saving and translate the plan into action for better energy efficiency

Resources

Equipment modification, greenhouse gas inspection, education on energy saving

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Grievance Stakeholder email: 080419864@msi.com mechanisms OSH email: esh@msi.com

Evaluation mechanisms

GHG inventory (ISO 14064-1), GHG inventory report

Evaluation result

The emission of greenhouse gas reduced by at least 48.02% in volume on average annually as compared with 2007(base year). Accreditation of ISO 14064-1.

5.4.1 GHG Emissions
We have been executing GHG surveys since 2008, and in order to establish common grounds and reduction goals over the long term, all plant sites are required to conduct GHG survey in accordance with ISO 14064-1 and obtain 3rd-party verification once every year. Having established baseline data on GHG emission, we set 2007 as the baseline year (total GHG emissions 113,675.33 tCO2e) and aimed to achieve GHG reduction by 50% before 2025.

The GHG emissions approach as below list in the reporting period

Item

Goals

Goal Achievements

Objective in the future

Total GHG Emissions

4% average annual
reduction of GHG emission compared to
2007 (baseline year)

Total GHG emissions 5,9091.7 tCO2e Reduced by 54,583.63 tCO2e of the total GHG emission as compared with 2007(base year). The total volume of annual emission reduced by 5.77% on average and hit the goal of reduction.

The total GHG emissions achieve 50% reduction in 2025. (56,837.67 tCO2e)

GHG Emission Intensity

Regular Disclosure

Total GHG Emission Intensity 0.490 tCO2e/ million NT$. 1.116 tCO2e/million NT$ of total GHG emissions in 2007(baseline year) , and decrease 56.04% decrease of volume compared to baseline year. Reduced by 0.039 tCO2e/million NT$ as compared with the last reporting year.

Continuous annual regular disclosure.

Note: 1. The data of the total volume of greenhouse gas emission has been validated by
Bureau Veritas Certification (BVC) Co., Ltd. 2. GHG inventory types: CO2, CH4, N2O, HFCs, PFCs, SF6
Emission Factor and Management Except for power coefficient and fossil fuel calorific coefficient, all other coefficients cited during the reporting period were calculated using data published by IPCC in 2006.

Electricity emission factor
Fossil fuel emission factor

Taiwan China Taiwan China

By Bureau of Energy, Ministry of Economic Affairs notice for "Electricity Emission Factor".
By Nation Development and Reform Commission notice for Baseline Emission Factors for Regional Power Grids in China.
By Bureau of Energy, Ministry of Economic Affairs notice for "Energy Using Product Unit and Heating Value List".
By China Energy Statistical Yearbook 2012.

Global warming potential (GWP)

GHGs are converted to CO2-equivalents based on Global Warming Potentials the IPCC 1995 Second Assessment Report. (Unit: Tonnes CO2e)

The context for any significant changes
in emissions that triggered recalculations of baseline year
emissions.

Taiwan China

None None

Setting organizational
boundaries

Taiwan China

MSI used the control approaches to consolidate GHG emissions. Under the control approach, MSI accounts for 100% of the GHG emissions from operations over which it has control.

2017-2019 GHG Emission Inventory Results

Year

2007 (base year)

2017

2018

2019

Scope 1 Direct emission (tCO2e)
Scope 2 Indirect emission (tCO2e)
GHG emissions intensity for per-million revenue (tCO2e/million)

6,383.20 1,865.96 107,292.13 67,691.00

1.116

0.654

2,349.55 60,364.40
0.509

1,814.96 57,276.74
0.490

GHG Emission and Carbon Reduction Measures We adopt a multitude of reduction measures in daily operations. We also advocate for a low-carbon environment and encourage employees to adapt to more efficient ways of spend electricity in order to achieve carbon reduction goals.

Item

Management Measures

Energy management

Plant dormitories partially use solar heating solutions for hot water supply, and additional heat pumps have been installed to recycle heat from air compressors.
Chiller outlet temperature and chiller operation time have been adjusted to reduce power consumption.
The temperature of air-conditioners in production line and offices is controlled at 26°C.

Lighting management

The unnecessary lighting in the office area was shutdown. Lights are turned off during lunch break. Lighting control is applied in office areas after business hours.

Public facility management

Photocopiers are being run on power-saving mode, and turned off after office hours and during public holidays. Drinking fountains are being run on power-saving mode, and turned off during public holidays. Air conditioner operations are managed area-by-area, turning on only when needed. Replacement of energy efficient equipment as scheduled

Energy

The Company offers proposal bonus incentives to encourage

conservation energy-saving solutions from employees.

promotion Energy conservation dissemination to staff.(eg. EmailPosters ... etc.)

5.4.2 Direct and Indirect Energy Consumption
Direct Energy Consumption MSI fossil fuels are only used for official vehicles, boilers, and emergency power generation equipment, and cooking at the employee cafeteria in various factories, and are not used for other operational purposes.

Item

Goal Achievements

Fossil fuels consumption

Fossil fuels consumption 6,091.2 GJ 20.71%* reduction of fossil fuels consumption intensity compared to last year.

Fossil fuels consumption intensity

Fossil fuels consumption intensity 0.051 GJ/million NT$ 0.014 GJ/million NT$ reduction of fossil fuels consumption intensity compared to last year.

*: The higher reduction was mainly attributed to increased revenues and Micro Electronics having purchased heat-exchanged hot water from vendors for use by employees.

Indirect Energy Consumption (electricity consumption)

Item

Goal achievements

Electricity consumption

Indirect energy consumption 249,539.1 GJ 5.51% reduction of indirect energy consumption compared to last year.

Electricity consumption intensity

Indirect energy intensity 2.071 GJ/million NT$ 0.157 GJ/million NT$ reduction of electricity consumption intensity compared to last year.

5.5 Pollution Prevention
While we commit ourselves to developing high-quality gaming products, we also strive to improve the local environment and control the level of pollution generated from our operations. In terms of pollution control, we continue to minimize treatment costs and comply with legal requirements by making improvements to production technology and treatment procedures.
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AIR Pollution Prevention MSI generates air pollutants mainly in the form of VOCs (Volatile Organic Compounds)emitted from auxiliary materials (such as solderflux alcohol etc.) used in the production process. We adopt exhaust prevention equipment (e.g. active carbon absorption) to treat the exhaust emitted from production, which is released into the environment in strict compliance with local air pollution control laws and emission standards. Air quality (including indoor and operating environment) is monitored regularly to ensure the effectiveness of air pollution control measures. Furthermore, no ozone-depleting substance is used during production and no NOx and SOx is released into the atmosphere.

Goal

Management Measures

Control

Optimize indoor air quality

Reduce storage and use of materials characterized by high volatility and toxicity
Use alcohol instead of naphtha for product cleaning Apply control over the use of organic solvent-based products (e.g.

Air in production and office areas is exchanged regularly to maintain air quality. Random inspections (for CO2, PM2.5 etc) are conducted to maintain air quality. Filters are cleaned and renewed regularly to maintain air quality.

air fresheners) at confined spaces and office areas

Peripheral boundary air Low-sulfur fuel is used in emergency power generators. pollution emission control Improvement to pollute production procedures.

Installation of active-carbon absorption equipment. Regular testing of air quality in peripheral boundary.

Wastewater Discharge Management MSI complies with prevailing environmental standards. The Company generates wastewater mainly from living activities, and all wastewater is treated before discharge (for MSIK, wastewater is discharged to Kunshan water treatment plant for collective treatment through direct pipeline connection). The company has real-time monitoring equipment in place to check the quality of wastewater, and wastewater is discharged only when treated to standard. MSI is subjected to regular wastewater quality inspections of the authority, and has managed to meet the required standards.

The draining of wastewater at all plant sites conformed to legal requirements in the reporting period and under routine inspection through random sampling by the monitoring body from time to time. There was no significant impact on the waterbody accommodating the draining. In addition, there was no significant leaking or overflowing.

Location

Plant

Taiwan China

MSIT MSIS MSIK*2

Total

Wastewater discharge (megaliters)
34.605 352.604 166.028
553.237

Concentration of effluent (mg/L)

BOD

COD

Sewage treatment plant

Maximum processing

volume

Receiving water

(megaliters/day)

Impact*1

100

Bali Sewage Treatment Plant

1,530

Taiwan Strait

<0.1%

Shajing Sewage Treatment Plant

500

Maozhou River

<0.2%

China Everbright Water Limited

Taicang Pond

<1.0%

*1: Impact = Wastewater Discharge / Maximum processing volume *2: MSIK wastewater is discharged to Kunshan water treatment plant for collective treatment through direct pipeline connection (no flow meter is installed on MSIK site) and the sewage discharge is estimated to be 80% of the water consumption.

Waste Management Based on pollution prevention and the producer's responsibility and the aim to meet the requirements of international environmental protection, when designing a product, MSI takes into account the requirements regarding use, disassembly, recycling, and low toxicity of the whole life cycle to reduce the amount of waste for disposal, alleviate the difficulty of recycling, and improve environmental performance; a qualified outsourcing agency is selected based on the location of the factory to treat the waste accordingly. Waste generated by MSI operations is divided into general business waste (subdivided into recyclable and nonrecyclable) and hazardous business waste, and are managed according to an environmental management system, in which waste generation, classification and collection, and recycling and transportation are properly managed and recorded.

Statistics on the volume of wastes in the reporting period

Item

Weight (kg)

Treatment measures

Hazardous wastes Non-hazardous wastes
Household wastes

32,588 2,788,862 3,226,187

MSI commissioned a qualified waste treatment service provider for the recycling and reuse thermal treatment, incineration or burying for assurance of no second pollution of the environment.

The performance of waste management in the reporting period Except for natural disasters and unpredictable changes in operating conditions, we will work hard to adjust the process to reduce unnecessary waste generated and manage waste under controlled conditions to achieve our goals.

Item

Goals

Goal achievements

Objective in the future

Total Waste

1% reduction of total waste compared to
last year.

Total Waste 6,047,637 kg

1% reduction

6.70% reduction of total waste compared of total waste

to last year. The waste reduction target compared to last

for 2019 was achieved.

year.

Waste intensity

Regular disclosure

The Waste Intensity 23.15 kg/million NT$
2.07 kg/million NT$ reduction of waste intensity compared to last year.

Continuous annual regular
disclosure

Peripheral Boundary Noise Prevention MSI monitors and controls noises caused to the peripheral boundary. The Company engages external surveyors to measure noise levels each year, and keeps track of noises generated from plant activities and equipment on an ongoing basis to ensure compliance with legal requirements. All of our plants are located inside designated industrial zones or science parks and outcomes of the above tests have all conformed with legal requirements, meaning that no disturbance is caused to nearby communities.

5.6 Water Management
MSI focuses on clean production and environmental protection. The waterless manufacturing process is adopted at each plant to produce various products; no effluents are produced in the manufacturing process. The water consumption is mainly based on employees' use of water, and only domestic sewage is produced. 100% of the domestic water source comes from municipal water supply (tap water) and does not from rivers and lakes, groundwater, or the ocean, which has no significant possible impact on water sources and community water.
Water resources management strategy Strive for the most efficient use of water and optimize water resource management measures. In assessing the change in equipment, the purchase of water efficient equipment shall be the first priority to reduce waste. Related education and training has also been provided for the employees.

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Commitment of water resources management Climate change worldwide causes significant impacts on water supply. For the sustainable development of water resources, MSI promises to continue monitoring the use of water resources and make improvement in the discharge of water pollutants to avoid the waste of water and impacts on water resources.

Identify the risk inherent to water resources and countermeasures

Risk

identification consideration

Description

Countermeasures

Legal requirements

The control of the quality
of water pollutant discharge is becoming increasingly
strict.

The poor quality of water pollutants will push up the amount of fines imposed by the government and run the risk of reciprocal protest from the stakeholders, which in turn causes damage to the

Conduct inspection and tests on water pollutants at regular intervals for assurance of conforming to requirements of water pollutant quality.
Continue the evaluation of the feasibility of introducing new technologies for the treatment of water pollutants at the plant site.

corporate image of

MSI.

Universal education of

Excessive

the efficient use of water

Collection of surcharges for wasteful use
of water

consumption of water will push up the cost of operation and affect the profit level of the

resources. Water consumption at MSI
is mostly for household use and not in large quantity. The influence on the cost of

enterprise.

operation is minimal.

Risk

identification consideration

Description

Countermeasures

Climate change

Scarcity of water resources
Typhoon and shortterm heavy downpour

Shortage of water supply will intensify the risk of epidemics which in turn affect the operation of MSI.

Evaluation for introducing other sources of water supply.
Intensify the education of public health.

The difficulty of water allocation will affect the overall operation of the supply chain.

Early warning mechanisms of the evaluation of water resources.
Establishment of the 2nd supply chain or alternate site supply.

The higher frequency of typhoon and higher intensity of torrential rain will cause impact on the capacity of the disaster prevention systems to respond to the change and the capacity in recovery.

Installation of water gate. Completion of the emergency
response plan and establishment of a response team. Confirmation of the geographic location of the plant site and the information on neighboring waterbodies to reduce the risk of river flooding.

Information on water resources management in the reporting period MSIT has proper equipment for handling water pollutants and monitoring the discharge at regular intervals. The wastewater generated will drain into the sewage system designed for wastewater discharge. MSIK discharges its water pollutants directly into the pipe of the wastewater treatment plant at Kunshan, which will collectively handle the treatment. MSIS has installed an intermediate water recycling system. The recycled water will be used in irrigation and toilet flushing. All the plant sites of MSI are located in industrial zones which are not sensitive to ecological conservation. The results of inspection and tests on wastewater conform to the requirements of local laws. The discharge of water pollutants does not cause significant influence on the surrounding ecological environment and habitats.

Item\Location Address

MSIT Zhonghe

MSIS
Shenzhen City (Baoan District)

Sources of water resources

Feitsui Reservoir(Xindian
River)

Dongjiang River

Surface water (no withdrawal for use)
Groundwater (no withdrawal for use)
Seawater (no withdrawal for use)

No statistics kept by Taiwan Water
Corporation
0

456,422Note2 629Note2 0

Water generated

Volume of regional water supply
Water withdrawals (running water)

18,768Note1 72.158

467,427Note2 663.136

Water recycling

None

159.683

Water discharge

34.605

352.604

Water consumptionNote5

37.553

310.532

Water sources dependencyNote6

0.0038

0.0014

Water sources and Low to medium risk Medium to high risk

risksNote7

(1-2)

(2-3)

Unit: Megaliters MSIK Kunshan City
Taihu Lake
395,200Note3 110,300Note3
0 0 431,280Note3 207.535 None 166.028Note4 41.507 0.0005 High risk (3-4)

Risk plant siteNote8

None

Yes

Note1: Announced total water supply from each region in 2019 (latest information). Note2: Announced total water supply from each region in 2018 (latest information). Note3: Announced total water supply from each region in 2017 (latest information).

Note4: MSIK directly discharges wastewater to the designated wastewater treatment plant (no installation of flow meters). The volume of water discharge is based on 80% of the water consumption volume.
Note5: Water consumption=Water withdrawals-Water discharge.
Note6: Water sources dependency=Water consumption from each plant in the reporting period/Volume of regional water supply from each plant in the reporting period.
Note7: According to analyzed data of the "Aqueduct Water Risk Atlas" produced by the World Resources Institute.
Note8: Risk plant site refers to plant site under the pressure of water resources determined in consideration of dependence, overall risk of water resources, and production value.

Statistics on water consumption in the reporting period

Objective

Goals

Goal achievements

Objective in the future

Total water consumption volume

1% reduction of total waste compared to last year.

Total water consumption at 942,829 m3(942.829 megaliters)
Reduced by 350,697 m3 as compared with 2015(base year).
Reduced by 12.05% as compared with the last reporting year, which is an attainment of the set goal.

Water consumption at MSI is mostly for household use, which was a decrease of 1% by volume as compared with the last reporting year.

Total water consumption intensity

Regular disclosure

Total water consumption

intensity at 7.825 m3/million

NT$ Reduced by 7.34 m3/million as
compared with 2015(base year).

Continue to disclose annually

Reduced by 13.48% as compared

with the last reporting year.

Statistics on reclaimed water consumption by MSIS in the reporting period

Item

Goal achievements

Total reclaimed water consumption volume in MSIS

Total reclaimed water volume at 159,683 m3 (159,683 megaliters).
Reduced by 1.63 % as compared with the last reporting year.
The water recycling ratio reached 13.48 %.

Total reclaimed water consumption intensity in MSIS

The reclaimed water intensity at 1.325 m3/million NT$. Reduced by 3.27% as compared with the last reporting year.

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6. Love in MSI

2020 MSI CSR Report
6. Love in MSI
Based on the concept that "Change progresses constantly, Service continues silently, Contributions accumulate, Dreams realize step by step". MSI practices CSR commitments, provides the greatest support and assistance. We have long been coordinating with corporate employees to work with stakeholders (such as government agencies, schools etc.) on various charity programs including students' lunch, education, donation and care for socially disadvantaged; all of which are intended to create an equal society that is free of poverty.

Change progresses constantly

Service continues
silently

Contributions accumulate

Dreams realize step
by step

MSI public care services and donations item as below table in the reporting period

Total amount of donations for public welfare (NT$): 19,531,244

The number of public welfare programs: 30

The number of employees participation: 4,850

School Lunch Fund
The number of benefit students: 6,510 The number of benefit schools: 62

Education Care
The number of benefit students: 8,811 The number of benefit schools: 52

6.1 Remote Locations Care-School Lunch Fund
Students in remote locations are often financially disadvantaged to the point that prevents them from having the same meal privileges as ordinary students. Furthermore, schools in remote areas tend to be so under-funded that even lunch preparation becomes a heavy burden to bear. Given the lack of resources in the public sector, MSI has stepped in and contributed resources to assure students of their rights to healthy and abundant food even in remote areas.
Public Welfare Program: School Lunch Fund and Sponsored to purchase locally produced vegetables or rice MSI understands the difficulty confronting the remote locations and has provided long-term funding to improve the quality of food for the students in these areas. With adequate nourishing foods for lunch, the students will no longer suffer from malnutrition and being underweight. The warm-heartedness to the students from society will help the students to nurture a sense of thanksgiving to society. In addition, MSI has funded elementary schools and junior high schools in remote areas to procure certain Taiwanese own rice or vegetables on a regular basis to promote local rice farming while subsidizing the food ingredients for the schools' lunches, enabling the schools to feel the warmth of society.
Content of donation in the reporting period

Donation Item

Donation Amount (NT$)

Number of Beneficiary
Students

Number of Beneficiary
Schools

School Lunch Fund

340,245

6,510

Purchase Locally Produced Vegetables or Rice

5,123,865

8,811

Amount of donation for school lunch so far (since 2010): NT$6,417,026 Amount of donation for purchase locally produced vegetables or rice so far (since 2010): NT$16,507,900

6.2 Pluralistic Educational-Supporting Education
Education is critical to the progress of a society, and although people may differ in terms of genetics and background, everyone should have fair, reasonable and equal opportunity to quality education. By providing educational resources, MSI hopes to reverse the adverse environment that disadvantaged students are subjected to, and narrow the learning divide at the starting line.
6.2.1 Education care for disadvantaged students
Public Welfare Scheme: Tutor Service for Disadvantaged Students Social resources are utilized to implement MSI's "Love from MSI" help to students remedial program for disadvantaged students, which cultivated students' basic learning ability, helped disadvantaged students build self-confidence to develop their potential and create a new society of mutual care and mutual assistance.

Content of donation in the reporting period

Donation Item

Donation amount (NT$)

Number of beneficiary
students

Number of beneficiary
schools

Number of
classes held

Number of
lessons held

"Love from MSI" Education Assistance Program - Tutor Service for Disadvantaged Students

2,881,149

1,873

112

8,155

The amount of donation so far (since 2014): NT$9,503,619

Public Welfare Scheme: MSI English Enhancement Program for Students from Disadvantaged Families MSI English Enhancement Program for Students from Disadvantaged Families has been launched with social resources to bridge the English ability gap caused by the urban and rural gap, the amount of resources, and the differences in family social and economic conditions, so as to flip education in remote areas.

Content of donation in the reporting period

Donation Item

Donation amount (NT$)

Number of beneficiary
students

Number of beneficiary
schools

Number of lessons held

MSI English Enhancement

Program for Students from 1,500,000

6,938

2,005

Disadvantaged Families

The amount of donation so far (since 2016): NT$4,500,000

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2020 MSI CSR Report

6.2.2 Science Education Assistance
Public Welfare Scheme: MSI 2019 PowerTech Creative Technology Program for Youth In response to the rise of Makers and "STEAM"-the educational purpose of science, technology, engineering, arts, and mathematics; young people are guided to explore their interest in science and develop their popular science potential through hands-on and popular science creation learning approaches to cultivate new generations of technological talents. In response to the rise of Makers and "STEAM"the educational purpose of science, technology, engineering, arts, and mathematics; young people are guided to explore their interest in science and develop their popular science potential through handson and popular science creation learning approaches to cultivate new generations of technological talents.

Content of donation in the reporting period

Donation item

Donation amount (NT$)

Achievements

Subsidized elementary schools

Promoted juvenile technological

and junior high schools in New

creation contest as a means to improve

Taipei City for the organization of

hands-on practice and basic science

summer camps and PowerTech clubs, and organized group

1,250,000

knowledge for students and teachers. Livened up courses taught at schools

training, courses and events

and aroused students' interest to basic

in New Taipei City and on a

science knowledge and hands-on

nationwide scale.

practice.

The amount of donation so far (since 2016): NT$4,000,000

Public Welfare Scheme: MSI sponsored to school e-sports Camp There are more than 60 schools in Taiwan that offer the classes or programs of eSports. To speed up the professional development eSports on campus, MSI has hold eSports on campus at 10 schools of higher education in the reporting period to assist the schools in furthering the education in the area of eSports more profoundly so that students who have an interest in eSports can understand the hardware and software necessary for the setting of an ideal environment for eSports and other experience in the industry. This also allows the students to understand eSports-related career development.

Content of donation in the reporting period

Donation item

Number of beneficiary
students

Number of beneficiary
schools

Achievements

MSI eSports on Campus

1,200

Students were educated on the

eSport industry and possible

career development.

6.3 Flip Life-Disadvantages Groups Help
The underprivileged tend to be the most non-influential and neglected group of people in the society, and their basic rights can be easily sacrificed over the course of social changes. This group of people requires timely and adequate support in terms of social security, healthcare, education and employment in order to break free of the prevailing vicious cycle for a life of hope.

Public Welfare Scheme: Flight with Dreams Fund for Students from Disadvantaged Families Founded in 2005, the Dreams Foundation has paid out NT$140 million of

tuition aid to date, and subsidizes an average of 300 students registered in New Taipei City per year. MSI has been a long-term member of the Committee of New Taipei City Flight with Dreams Fund. This committee, formed by a panel of representatives from the industrial, public and academic sectors, selects students with high performance from disadvantaged families and sponsors the students with scholarships so that they can focus on learning, complete their education and have enjoyable years on campus without having to worry about tuition fees and living expenses. This scholarship aims to improve the lives of students with good academic performances from rural areas of New Taipei City.

Content of donation in the reporting period

Donation item

Donation amount (NT$)

Number of beneficiary students

New Taipei City Flight with Dreams Fund

3,000,000

300

The amount of donation so far (since 2012): NT$13,590,000

Public Welfare Scheme: New Taipei City Government Family Day for Children in Special Education To enable students in special education to have diverse life experiences, the Education Department, New Taipei City Government, holds Family Day education days for students in special education in the second semester, allowing these children who seldom travel far away to have the opportunity to have different life experiences.

Through the activities and shuttle bus services arranged by the Education Department, parents' burden is alleviated and the children are more willing to go outdoors. This program helps these little angels to study and grow up happily. MSI has sponsored this program for fifth consecutive years and has joined forces with the public group of Taiwan Taxi Public Group to help these young angels to experience life through different activities.

Content of donation in 2016-2019

Year

2016

2017

2018

2019

Organizer

Education Department of New Taipei City Government Taiwan Taxi Public Group

Sponsor

MSI

Co-organizer

Ching Yang

Aqua Marine

Enterprises

Taipei

Philharmonic Orchestra-

Green World Ecological Farm

LEOFOO Village

Sistema Taiwan

--Museum of

Marine Science

& Technology

Window on China

Sponsorship fee (NT$)
The number of participants
The number of participating
families

170,000 400 80

231,550 400 80

246,470 400 80

320,000 600 100

Public Welfare Scheme: Strategic Alliance Cooperation Program Currently, the society's attention on long-term nursing has been largely focused on caring for disabled persons, while long-term stress and

2020 CSR 89

2020 MSI CSR Report

issues concerning caregivers tend to be overlooked. Having recognized caregivers as a hidden risk amidst an aging society, MSI specifically finances local caregiving institutions so that they may recruit staff in greater diversity (nurses, volunteer workers, local/foreign nursing staff) to accommodate the needs of high-risk caregivers and support them multiple times a day, over a short period of time, on flexible occasions and within small areas. With this additional support, we hope to cover the shortfall of long-term nursing resources provided by the government.

Content of donation in 2017-2019

Year

2017

2018

2019

Donation item

All In One Services Family Caregiver Services Respite Care Services Holiday Care and Supportive Services for the Family Caregivers

Long-Term care facilities

Hondao Senior Citizen's Welfare Foundation

Number of service people
(monthly)
Donation amount (NT$)

365 826,440

369 495,400

361 508,660

Public Welfare Scheme: Sistema Taiwan Cooperation Program The mission of Sistema Taiwan is mainly to provide musical education for disadvantaged children, and inspire new possibilities through art. Through this program, we are able to discover musical talents spawning within children, which provide us

with the motivation to continue what we do. MSI introduced "music as a life-changing opportunity" and launched a series of musical education of charitable nature. Through music, we hope to enrich the minds of children and help them develop positive attitudes to withstand the hardship in life.

Content of donation in 2017-2019

Year

2017

2018

2019

Donation item Sponsored Sistema Taiwan for musical instruments and teaching staff.

Donation amount (NT$)

300,000

350,400

382,400

Public Welfare Scheme: MSI public welfare lotto activities In recent years, there has been competition among businesses in hosting lavish year-end banquets featuring renowned celebrities as a means to reward employees. Contrary to this approach, MSI began exploring different elements that would make year-end banquets as joyful as they are meaningful, and thus the idea of "charity banquet" started to emerge in MSI. Since 2016, we have been inviting employees to join us in charity during yearend banquet by purchasing scratch cards and lottery tickets. One lucky winner would be drawn at the end of the event to claim 50% of the prize pool, while the other 50% is donated to charity organizations.

Year
Donation Item
Donation amount (NT$)

2017

2018

2019

Cash donated to charity organizations.

99,505

136,050

156,650

Recipient Unit

Eden Social Welfare Foundation

Taiwan Fund for Children and Families
Help Save A Pet Fund Taiwan
Genesis Social Welfare Foundation

6.4 Power to Change Society-Corporate Volunteers
Driven by the mission to "promote decency in the society", MSI fulfills its duty as a corporate citizen through programs including "corporate volunteer" and "community feedback"; both of which are aimed to direct corporate resources and employees' attention towards the environment, the community and charity where we are able to contribute influence to good deeds.

Public Welfare Scheme: Diversity Service of Corporate Volunteers

Volunteer Club

The 27th Northern Taiwan Special Cheerleading Tournament for Children with Intellectual Disabilities
The Cheering Team Contest for the mentally handicapped is a combination of music and dancing therapies aimed at motivating the mentally handicapped students to learn. Through this activity, they can improve their confidence. This also gives a boost to their parents.MSI volunteers also participated in the event and played the role as the supervisory team and helpers of the team to provide assistance to the contestants all through the contest.MSI has provided services for some 5,000 mentally handicapped children at present.

Horticultural Club

Potted Plant Auction
The Horticulture Club of MSI organized the invoice donation for narcissus bulbs campaign to help colleagues relax from their tense work and enhance fraternal interaction. This invoice donation for narcissus bulbs campaign helps to provide a green living space for individual colleagues and for charity purposes at the same time. Those who donated five invoices will get a pot of narcissus bulbs. The Horticulture Club of MSI rallied for the support from its members and all other employees with the donation of 260 invoices in the campaign and planted the bulbs to help the Genesis Social Welfare Foundation.

Photography Club

Design Badge Charity Auction
The Photograph Club of MSI asked all at MSI to serve the cause of charity. Employees may prepare a magnetic badge through DIY to wear on the chest or use as a magnet. The badge may also be stuck on the OA screen, documents cabinet, or refrigerator at home as a souvenir. Each bit of love yields enormous benefits. The magnetic badges sold for NT$8,000, which was donated to the Principle Hsu Animal Life Protection Association.

Yoga Club

Fund Fair with Love from Taiwan Fund for Children and Families
Kind-hearted people from all walks of lives in society are invited to share the cause with the Taiwan Fund for Children and Families in holding a Love Fund Fair to bring joy and laughter to some 2,000 children of underprivileged families for the whole day! The Yoga Club has pledged to donate NT$20,000 for a stand in the 2019 year-end charity event and NT$7,000 of vouchers for the fund fair to the Children and Families Center. This event not only helps the center and many physically impaired children but also demonstrates the spirit and philosophy of MSI in serving the public and society.

Dance Club

Guide Dogs Charity Lecture

Photography Club

Yoga Club

Dance Club

Guide Dogs Charity Lecture
The Dancing Club of MSI invited Taiwan Guide Dog Association to present a charity lecture to give a proper concept related to guide dogs. MSI has purchased NT$20,000 worth of items from rummage sales and donated NT$10,000 in favor of the association in the reporting period.

Public Welfare Scheme: Medical Support-Blood Donation The statistics compiled by the Red Cross indicated that donation of blood one time on average helps to save the lives of three people! Blood donation is an act of philanthropy to help the ailed and wounded. MSI started the blood donation campaign in 2002 and has continued consecutively. The plant sites in Mainland China have also organized blood donation campaigns from time to time to share the cause of philanthropy. The Medical Room of MSI works in conjunction with the Blood Donation Center every year to arrange for blood donation at the
2020 CSR 91

2020 MSI CSR Report facilities of MSI. Function heads and staff respond to the cause positively in order to save the lives of the ailed and wounded. There were 258 blood donors by head count donating 421 bags of blood at MSI in the reporting period.
6.5 Community Action-Feedback and Safeguard
MSI is an international brand manufacturer in eSports and has developed business in the global market. MSI holds that it is our onus to do good in the communities where we run operations. For this reason, MSI works in conjunction with the communities to strive towards this goal and is dedicated to bringing about well-being to others with what they have.
6.5.1 Feedback to Community
Public Welfare Scheme: Strengthening Community Cohesiveness

Community Cohesion Zhonghe Village Deity Cultural Festival The village deity had most followers and safeguard local communities. The Zhonghe district has many distinctive village deity temples, including the well-known Hongludi and Lixing village deity temples. As a local enterprise based in Zhonghe, MSI offered sponsorships to distinctive local cultural festivals and ceremonies to share the blessings with local people and pray for the peace and prosperity of the country. A total of NT$350,000 was donated during the reporting period. Greening maintenance of Huazhong Bridge Slope Green Space and Zhonghe Qiaohe Rd. MSI is headquartered in Zhonghe District, New Taipei City. The vicinity is dominated by industrial areas. Frequently, large and small vehicles enter and exit, and the surrounding environment does not have too much green beautification. Therefore, MSI Technology proposes to adopt the Zhonghe Qiaohe road to the Zhonghe District Office. The tree plan hopes to enhance the beauty and safety of the street tree and benefit the community. A total of NT$1,000,000 was donated during the reporting period. Donation of Police Equipment According to the statistics presented in the annual report of New Taipei Police in 2018, there were a total of 34,748 traffic accidents on the roads of New Taipei and the police have to handle an average of 95 cases of traffic accidents daily. The statistical figures are skewed at roads with heavy traffic. The police have to sketch out the map at the scene of traffic accidents manually, which is time-consuming and labor-intensive. For this reason, MSI donated a set of police equipment (equipment for aerial photography over the scene of the accidents). The police can gather evidence on the scene of the accident very quickly through aerial photography. The high resolution equipment provides sharp visuals on the traits of the accidents and related evidence in the surrounding area. Related information will be marked on the photographs through the software interface. This can help to obtain photographs of the scene of traffic accidents accurately, thoroughly and quickly to serve as evidence in handling the cases.
6.5.2 Defending Our Environment
Environmental friendliness arises from mankind's respect for nature, and could only be inspired through advocacy of environmental culture and civilized values. This awareness enables us to find the right balance between economic gains and sustainability that facilitates the perpetual renewal of natural resources. Public Welfare Scheme: Environmental Protection Action

Environmental Protection Forestation at Jinshan Coast "Planting a tree is just the beginning, it is far more important to protect the tree." It is even more difficult to keep young trees along the coastline. MSI started the "Afforestation Along the Coast of Jinshan Campaign" in 2016, and has planted 5,200 trees so far. MSI will continue to plant and protect trees. More than 400 employees have participated in afforestation. This helps them be aware of the protection of the environment and plant trees to protect their homeland. Ecology Conservation Program at Wugu Wetland The wetland at Wugu has the largest population of migratory birds in the north, and has been granted the title of essential wetland zone by the government through the effort of the Society of Wilderness. MSI recognized the effort made by the society and has donated NT$500,000 to them in the reporting period supporting the planning of conservation of the wetland at Wugu. Further to the fostering of the wetland at Wugu, MSI also holds lectures on the education of ecological conservation to let everyone make conservation a habit incrementally and care about the environment. Fostering of Natural Fields in Nanao for Growing Rice under Community-supported Agriculture MSI shares the idea of the plantation of natural fields in Nanao and fostered 0.5 hectare of farmland. The natural fields in Nanao are responsible for rice milling and growing. The harvest in excess of the required quantity will be shared by the participating partners of the community who actually grow the rice. Yet, MSI just donated all the rice from the harvest to the food bank of New Taipei Government Bureau of Social Affairs to share the "Well-Being Around with Abundant food Bank" with those from all walks of life. MSI continued to foster natural fields for CSA in the reporting period, and spent NT$250,000 to foster the fields and donated 1,500 kg of rice to the food bank of New Taipei Government.
6.6 Community Relations-Donation of Resources
"Giving back to the society" has been an important part of MSI's CSR efforts, and by donating computers to communities in need, we demonstrate our resolve to help move the society forward and send the message that everyone has the ability to contribute to charity one way or another.

Donation of Computers
World Vision Taiwan Yuli Center World Vision Taiwan has served the tribes located at remote rural districts for a long time, and has the experience of keeping children and youths company for more than 50 years. They hope to allow the youths a place for learning and growing up through the "Hualien County Yuli Youth Development Center" for a healthy upbringing of the youths. After understanding the needs, MSI donated 15 AIO desktop computers to the Hualien County Yuli Youth Development Center of World Vision Taiwan and made the center the base for the activities of the youths and keeping the youths company. Through the update of the computer peripherals, MSI helps to improve the return rate of the students of high schools to the center. This place is also available for the pupils of primary schools to learn computer skills every Wednesday after school after doing their homework.
Taipei Waldorf Education Taipei Waldorf Education started to admit students for the first time in August 2013, and has increased the population from 33 students to more than 150 students and teachers. In the 7th year of its operation, Waldorf Education moved to the new campus. This also happened to be the centennial anniversary of Waldorf Education, which is very meaningful as a milestone of education with metamorphic change and development. MSI donated 17 AIO desktop computers in 2019 to assist the installation of a computer classroom, which demonstrates the concern of MSI for digital learning and education and the community.
New Taipei Government Nice Day and Love Platform The New Taipei Government established the "Nice Day and Love Platform" on June 17, 2019 and put together the needs of the underprivileged in society through the internet platform. The public can register online to make donations in cash, in kind or providing services to their wish so that love can quickly be conveyed to those who in need. According to the New Taipei Government Bureau of Social Affairs, the food bank of New Taipei have successfully matched the donation in kind amounting to some NT$1,760,000,000 over the past eight years and contributed to a population of more than 265,000. Through the New Taipei Government Nice Day and Love Platform, MSI donated 24 desktop computers and 1 notebook computer to the young children from underprivileged families so that these children can learn to use computers and strengthen their computer literacy, upgrade their value and achieve self-actualization.
Cheng Kung University MSI has not just worked closely with the academe with its advantages in the specialization of eSports products in order to develop good people among the students as professionals in the eSports industry, but also established industryacademia collaborative education relations with National Cheng Kung University in 2019. Under this relation, MSI provided ten notebook computers for the professional workstations in the education program of computer graphic design. Through the entry of the workstations from MSI, students in the Department of Architecture could enjoy a high quality and stable learning environment. The experience of the students in using the devices could serve as a reference for MSI in the research and development of products in the future, which brings products closer to the needs of users.
Taiwan University of Science and Technology MSI works closely with universities and has established industryacademia collaborative education with National Taiwan University of Science and Technology in 2019. MSI has provided ten professional mobile drawing workstations to the research classroom of the Department of Architecture of the university so that the students of the department can practice drawing and design, 3D modeling and other practical works more efficiently. MSI wishes the sharing of resources between the industry and the academe can help to create win-win situations.

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2020 MSI CSR Report

Annex I. GRI Standards Content Index

GRI 102: General Disclosures

Topics

GRI Standards

Disclosure Items

102-1 Name of the organization

102-2

Activities, brands, products, and services

102-3 Location of headquarters

Related Report Sections Page

2.1 Company Overview

Note/Omissions

102-4 Location of operations

2.1.3 Operations Worldwide 17

102-5 Ownership and legal form

2.1 Company Overview

102-6 Markets served

2.1 Company Overview

102-7 102-8
102-9

Scale of the organization

2.1 Company Overview

Information on employees and other workers

3.1 Overview of the Employee 32 3.6 Occupational Safety and 47 Health

Supply chain

1.3 Stakeholder Engagement and Analysis of Material

Issues 4.3 Supplier Management

1. Organization Profile

102-10

Significant changes to the organization and its supply chain

About this report

- No significant changes.

102-11

Precautionary Principle or approach

2.4 Risk Management

102-12 External initiatives

·Comply with the requirements

of Taipei Exchange Rules

Governing the Preparation

and Filing of Corporate Social

Responsibility Reports by

TPEx Listed Companies and

Corporate Social Responsibility Best Practice Principles for

TWSE/GTSM Listed Companies.

·Respond to external initiatives

such as the UN SDGs, RBA

Guidelines, ISO 26000,

Responsible Minerals Initiative

(RMI).

2. Strategy

102-13 Membership of associations

2.1.2 Relations with Associations

102-14

Statement from senior decision-maker

Letter from the Chairman and President(CEO)

3. Ethics and Integrity

102-16

Values, principles, standards, and norms of behavior

2.5 Business Ethics 2.6 Legal Compliance

25 28

4. Governance 102-18 Governance structure

2.2 The Framework of Corporate Governance

5. Stakeholder Engagement

102-40
102-41
102-42 102-43 102-44 102-45 102-46 102-47

List of stakeholder groups

1.3 Stakeholder Engagement and Analysis of Material Issues

Collective bargaining agreements

3.4.2 Meeting

Communications

3.6.6 The Participation,

Consultation, and

Communication with the

Workers Pertinent to OSH

Identifying and selecting stakeholders

1.3 Stakeholder Engagement and Analysis of Material Issues

Approach to stakeholder engagement

1.3 Stakeholder Engagement and Analysis of Material Issues

Key topics and concerns raised

1.3 Stakeholder Engagement and Analysis of Material Issues

Entities included in the

consolidated financial

About this report

statements

Defining report content and topic Boundaries

About this report

List of material topics

1.3 Stakeholder Engagement and Analysis of Material Issues

102-48 Restatements of information

- Update of historical data.

102-49 Changes in reporting

"Occupational health and

safety" is new additions to the material topics compared to

last reporting year.

6. Reporting

102-50 Reporting period

About this report

Practice

102-51 Date of most recent report

About this report

102-52 Reporting cycle

About this report

102-53

Contact point for questions regarding the report

About this report

Claims of reporting in

102-54 accordance with the GRI

About this report

Standards

102-55 GRI content index

GRI content index

- This table

102-56 External assurance

Third Party Assurance Statement

99 Refer to Annex 4

Material Topics

GRI Standards

Disclosure Items

Related Report Sections

Page

Note/ Omissions

GRI 103 Management Approach 2016

103-1

Explanation of the material topic and its boundary

103-2 103-3

The management approach & its components Evaluation of the management approach

GRI 201 Economic Performance 2016

201-1

Direct economic value generated and distributed

GRI 103 Management Approach 2016

103-1

Explanation of the material topic and its boundary

103-2 103-3

The management approach & its components Evaluation of the management approach

1.3 Stakeholder Engagement and

Analysis of Material Issues

2. About MSI

2.3 Operation Performance

2.3.1 Financial Performance

2.3.2 Distribution of Economic Value 22

to Stakeholders

1.3 Stakeholder Engagement and

Analysis of Material Issues

2. About MSI

2.5 Business Ethics

GRI 205 AntiCorruption 2016

205-1

Operations assessed for risks related to corruption

2.5 Business Ethics

GRI 103 Management

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues 4. Product Value

11 58

Approach 2016

103-2 The management approach & its

103-3 components

4.1.2 Product Responsibility

Evaluation of the management approach

GRI 302 Energy 2016

302-4 Reduction of energy consumption

4.1.2.3 Product Energy Efficiency

GRI 103 Management

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues 5. Environmental Value

11 74

Approach 2016

103-2 The management approach & its

103-3 components

5.5 Pollution Prevention

Evaluation of the management approach

305-1

Direct (Scope 1) greenhouse gas (GHG) emissions

GRI 305 Emissions

2016

305-2

Energy indirect (Scope 2) greenhouse gas (GHG) emissions

5.4.1 GHG Emissions

305-4 GHG emissions intensity

GRI 103 Management

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues 2. About MSI

11 16

Approach 2016

103-2 The management approach & its

103-3 components

2.6 Legal Compliance

Evaluation of the management approach

GRI 307 Environmental Compliance 2016

307-1

Non-compliance with environmental law and regulations

2.6 Legal Compliance

GRI 103 Management

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues 4. Product Value

11 58

Approach 2016

103-2 103-3

The management approach & its components Evaluation of the management approach

4.3 Supplier Management

GRI 308 Supplier Environment Assessment 2016

308-1

GRI 308 Supplier Environment Assessment 2016

4.3.1 Sustainable Supply Chain

Management and Goals

4.2.1 Green Product Management

(GPM) Platform

GRI 103 Management

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues 3. Employee Value

11 32

Approach 2016

103-2 103-3

The management approach & its components Evaluation of the management approach

3.1 Overview of the Employee

401-1

Average hours of training per year per employee

3.1.2 Employment

Benefits provided to full-time employees

GRI 401

401-2 that are not provided to temporary or

3.2.2 Magnanimous Benefits

Employment 2016

part-time employees

GRI 103 Management Approach 2016

401-3

Programs for upgrading employee skills and transaction assistance programs

3.1.3 Retaining Employees

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues 3. Employee Value

11 32

103-2 The management approach & its

103-3 components

3.6 Occupational Safety and Health 47

Evaluation of the management approach

GRI 403 Management Approach 2018
GRI 403 Management Approach 2018

403-1

Occupational health and safety management system

3.6.1 MSI Occupational Safety and Health (OSH) Organization Structure

403-2

Hazard identification, risk assessment, and incident investigation

3.6.2 Risk Control and Disaster

Prevention

3.6.5 Result of Occupational Safety 52

and Health Management

403-3 Occupational health services

3.6.4 Occupational Health Service

Worker participation, consultation, and 403-4 communication on occupational health
and safety

3.6.6 The Participation, Consultation,

and Communication with the

Workers Pertinent to OSH

403-5

Worker training on occupational health and safety

3.6.3 Education, Training and Promotion

403-6 Promotion of worker health

3.5.2 Health Management

3.5.3 Health Promotion Activities

Prevention and mitigation of occupational 3.5.2 Health Management

403-7 health and safety impacts directly linked 3.6 Occupational Safety and Health 47

by business relationships

403-8

Workers covered by an occupational health and safety management system

3.6.1 MSI Occupational Safety and Health (OSH) Organization Structure

2020 CSR 95

2020 MSI CSR Report

GRI 403 Management Approach 2018

403-9 Work-related injuries 403-10 Work-related ill health

3.6.5 Result of Occupational Safety and Health Management

GRI 103 Management

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues 3. Employee Value

11 32

Approach 2016

103-2 The management approach & its

103-3 components

3.3 Employee development

Evaluation of the management approach

GRI 404 Training

404-1

Average hours of training per year per employee

3.3.2 The Overview of Human Resources Development

an Education 2016 404-3

Programs for upgrading employee skills and transaction assistance programs

3.3.3 Performance review

GRI 103 Management

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues 4. Product Value

11 58

Approach 2016

103-2 103-3

The management approach & its components Evaluation of the management approach

4.3 Supplier Management

GRI 414 Supplier Social Assessment 414-1 2016

New suppliers that were screened using social criteria

4.3.2 Supplier Management Mechanism 4.3.3 Responsible Minerals Management

67 68

GRI 103 Management

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues 4. Product Value

11 58

Approach 2016

103-2 103-3

The management approach & its components Evaluation of the management approach

4.1.2 Product Responsibility 2.6 Legal Compliance

60 28

GRI416 Customer

416-1

Assessment of the health and safety impacts products and service categories

4.1.2.1 Evaluation of Product Safety

Health and Safety

2016

Incidents of non-compliance concerning 416-2 the health and safety impacts of products 2.6 Legal Compliance

and services

GRI 103

103-1

Explanation of the material topic and its boundary

1.3 Stakeholder Engagement and Analysis of Material Issues

Management

Approach 2016

103-2 The management approach & its

103-3 components

2.6 Legal Compliance

Evaluation of the management approach

GRI 419

Non-compliance with laws and

Socioeconomic 419-1 regulations in the social and economic

2.6 Legal Compliance

Compliance 2016

area

Category

10 Principles

Human Rights

Businesses should support and respect the protection of internationally proclaimed human rights;
Make sure that they are not complicit in human rights abuses.

Related CSR Report Section

Page

2.5 Business Ethics

2.6 Legal Compliance

Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

MSI conducts collective

bargaining agreements in accordance with local

laws and regulations.

Labor

The elimination of all forms of forced and compulsory labor;

The effective abolition of child labor; and

2.6 Legal Compliance 3.1.2 Employment

28 33

The elimination of discrimination in respect of employment and occupation.

Businesses should support a precautionary approach to environmental challenges;

5. Environmental Value

Environment

Undertake initiatives to promote greater environmental responsibility; and

Encourage the development and diffusion of environmentally friendly technologies.

4.2 Management of

Hazardous Substances

5. Environmental Value

Anti-Corruption

Businesses should work against corruption in all its forms, including extortion and bribery.

2.5 Business Ethics 2.6 Legal Compliance

25 28

Annex IV. Assurance Statement
2020 CSR 99

No.69, Lide St., Zhonghe Dist., New Taipei City 235, Taiwan www.msi.com

tel:886-2-3234-5599 fax:886-2-3234-5488

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