Identification of Major Topics

Billion adopted a materiality analysis in preparing the 2024 Sustainability Report, referencing the SASB Hardware industry standards and benchmarking industry peers. External experts evaluated 15 sustainability issues based on their impacts—both positive and negative—on the economy, environment, and people (including human rights), while also considering international initiatives and investor expectations. In line with the European Sustainability Reporting Standards (ESRS), the principle of double materiality was applied to assess both sustainability and financial significance. After internal discussions, seven key topics were identified as the material issues for 2024, serving as the basis for disclosure in this report.

ESG Topics Materiality Analysis Steps

1. Identification of Stakeholders 2. Summarizing ESG Issues 3. Surveying Issues of Concern 4. Identification of Material Topics 5. Review and Discussion
Principle of Stakeholder Inclusion Principle of Sustainability Context Materiality Principle Materiality Principle Integrity Principle
In 2024, Billion identified six key stakeholder groups—employees and other workers, shareholders and investors, customers, suppliers/contractors, banking institutions, and media. The identification process was guided by external expert input, internal discussions, and benchmarking against industry peers to ensure inclusiveness and relevance for material communication. Billion collected potential ESG topics with reference to the GRI Standards and SASB indicators, as well as industry peers. A total of 15 topics covering corporate governance, economic, and environmental aspects were identified and used as the basis for assessing both positive and negative impacts. In 2024, external experts evaluated the topics and, together with internal discussions among company executives and colleagues, assessed their impact on the Company’s sustainable operations as a basis for topic prioritization. Based on the scoring results and management’s input, Billion analyzed and ranked the materiality of each topic. Topics with an average score of 4 or above in positive impact or financial relevance were identified as material. In addition, any topic with a negative impact score of 4 or above was also considered material, regardless of likelihood. In 2024, a total of seven material topics were identified, each with corresponding management approaches. After identification, Billion Group incorporates priority topics into annual work plans and objectives. The Group will continue to strengthen management, review the need for adjustments, and disclose relevant information in the sustainability report.

Material Topics Identification Results

In 2024, Billion confirmed seven material topics: economic performance, customer privacy and information security, supplier environmental and social assessment, employee diversity and equal opportunity, occupational health and safety, customer relationship management, and innovative product R&D and marketing. These topics will serve as priorities for ongoing action and disclosure in future sustainability reports. Compared with 2023, “Supplier Social Assessment” and “Supplier Environmental Assessment” were merged, and “Risk Management” was integrated into the chapter on Sustainable Governance instead of being listed as a separate material topic. The finalized topics were reviewed by the Sustainability Development Committee and submitted to the Board of Directors for approval.


Material Topics Objectives 2024

Economic Performance

Short-term Goal (2024) 2024 Target Achievement (Completed) 2025 Goal
Strengthen capital structure through capital market financing to maintain a debt ratio below 40% and enhance operational capability. Due to increased funding needs, the Company raised additional credit lines from financial institutions. The 2024 debt ratio slightly increased from 35% to 37% but remained below 40%, maintaining a healthy financial structure. Continue developing high-power industrial power supplies and deepen relationships with existing customers while exploring new business opportunities. The Group will also seek new investment targets to enhance overall competitiveness.
Focus on ICT and power business with long-term customer relationships, while expanding into overseas markets and seeking strategic investment opportunities. Strengthened customer relationships and expanded into overseas markets, including establishing a subsidiary in Japan for business development. Also reinforced cooperation with existing strategic partners and maintained stable operations. Complete demonstration sites in Japan and Australia to showcase group-owned products and expand brand presence in overseas markets.
— In 2024, actively explored potential investment opportunities, participating in equity investment in renewable energy projects to enhance long-term competitiveness. Maintain focus on market expansion and adjust business strategies to strengthen operational capability, targeting a 25% revenue increase over 2024.

Supplier Environmental & Social Assessment

Short-term Goal (2024) 2024 Target Achievement (Completed) 2025 Goal
Conduct supplier sustainability self-assessment surveys with a response rate of at least 80%. In 2024, 110 suppliers completed the sustainability self-assessment survey, accounting for 57% of all active suppliers. Some smaller suppliers had yet to establish ESG-related practices, resulting in the response rate falling short of the 80% target. In 2025, the Company will continue strengthening supplier guidance and communication to improve response rates. Conduct joint supplier self-assessment surveys with Billion Watts, targeting an overall response rate above 70%.
— — Achieve an average supplier assessment score of 80 or above, and ensure 95% of suppliers sign the Supplier Code of Conduct and ESG commitment declaration to uphold environmental and social responsibility.

Customer Satisfaction

Short-term Goal (2024) 2024 Target Achievement (Completed) 2025 Goal
Maintain average customer satisfaction score of 9.2 or above in the Telecom and Power Management businesses. In 2024, the Power and Energy Management business achieved an average satisfaction score of 9.43. Maintain average customer satisfaction score of 9.2 or above in the Telecom business, and 9.4 or above in the Power business.
Achieve an average annual satisfaction survey score of 9.0, with at least 48% survey response rate. In 2024, the Telecom business achieved an average satisfaction score of 9.5. Achieve an average annual satisfaction survey score of 9.0, with at least 50% survey response rate.
Billion EVC to begin conducting customer satisfaction surveys in the second half of 2024. In the second half of 2024, Billion EVC conducted its first customer satisfaction survey, achieving an average score of 9.0. Maintain an average satisfaction survey score of 9.0 for Billion EVC.
— — Conduct customer satisfaction surveys every six months; maintain an annual average satisfaction score of 9.0 or above, with an overall response rate of 90% or higher.

Information Security

Short-term Goal (2024) 2024 Target Achievement (Completed) 2025 Goal
Billion EVC to begin conducting general information security training in 2024. In 2024, completed group-wide general information security training: 3 hours for managers, 12 hours for IT staff, 12 hours for security staff, and 3 hours for general users. Fully implement Smart IT asset management and endpoint security systems, strengthening service resilience and enhancing device management.
Require annual training hours: 3 hours for managers, 12 hours for IT staff, 12 hours for security staff, and 3 hours for general users. In 2024, completed the rollout of MDR (Managed Detection and Response) across the Group. Group-wide adoption of Microsoft 365 to advance digital transformation and enhance digital resilience.
Fully implement MDR (Managed Detection and Response) to safeguard communication systems. Completed MDR deployment in 2024. Accelerate workflows by integrating ERP system upgrades with electronic signatures and digital approvals.

Employee Diversity & Equal Opportunity

Short-term Goal (2024) 2024 Target Achievement (Completed) 2025 Goal
Add two female directors in 2024. By 2024, the Board of Directors included two female members. Recruitment, salaries, performance reviews, and training all achieved 100% gender equality compliance. Conduct at least one gender equality, human rights, or anti-workplace harassment awareness campaign.
Conduct at least one session on gender equality training, human rights, or workplace harassment prevention. In November 2024, conducted a gender equality seminar. Conduct an employee satisfaction survey in 2025.
Provide employee benefits such as flexible working hours, parental subsidies, and education scholarships for employees’ children. Since 2024, flexible leave, parental subsidies, and scholarships for employees’ children have been provided. Starting in 2025, strengthen employee welfare policies to support diversity and equal opportunity, creating a fair and healthy workplace.
Conduct at least two employee town hall meetings in 2024. In 2024, held two town hall meetings and installed employee suggestion boxes. Plan to hold quarterly town hall meetings in 2025.

Occupational Health & Safety

Short-term Goal (2024) 2024 Target Achievement (Completed) 2025 Goal
Provide occupational health and safety management training at least 3 hours every three years for employees. In 2024, conducted multiple safety and fire drills, including: - Yilan Plant: 2 self-defense drills - Headquarters: 2 joint fire drills - 2024.05.22 ESD static protection training - 2024.09.24 Occupational safety training (2 hours) - 2024.12.25 Hazard awareness training - Billion EVC completed occupational health and safety training on 2024.04.30 Maintain zero major occupational accidents.
Maintain zero major occupational accidents. Achieved zero major occupational accidents in 2024. Plan to implement ISO 45001 certification.
— — NoonSpare to conduct two fire safety drills annually.

Innovative Product R&D and Marketing

Short-term Goal (2024) 2024 Target Achievement (Completed) 2025 Goal
Enter overseas markets in 2024. Successfully entered overseas markets in 2024. Hold two international workshops and release product news regularly.
Complete three commercial and industrial energy storage projects. Completed three projects in 2024. Deliver at least two projects in overseas markets.
Establish a proprietary brand “INVERTER.” Brand “INVERTER” established. Launch Pixel View v2.0 in 2025.
Develop a 240W industrial power supply with modular design, and adopt eco-friendly WEEE-compliant recyclable design. Developed 240W industrial power supply with recyclable design. Develop 100W Power Delivery (PD) power supply with adaptive load adjustment and eco-friendly WEEE-compliant design.
Expand telecom business into the Japanese market. Entered the Japanese telecom market in 2024. Continue expanding telecom R&D and applications for 5G private networks.
Deepen telecom R&D in 5G private network applications. Completed development and trial deployment of 5G private networks in 2024. —
— Completed one major international exhibition, with a second scheduled. —
— Originally planned to expand into the Japanese market through an acquisition, but due to customer restructuring and local government challenges, the plan was cancelled. —

Quantitative Impact of Material Topics

External Experts’ Evaluation Results of Billion Group’s 2024 Material Topics

Positive Impact Assessment Results

Topic Average Sustainability Impact Score Average Likelihood Score Average
Economic Performance 4.73 4.5 4.61
Customer Relationship Management 4.68 4.5 4.59
Customer Privacy & Information Security 4.73 4.14 4.44
Innovative Product R&D and Marketing 4.59 4.27 4.43
Employee Diversity & Equal Opportunity 4.23 4.55 4.39
Supplier Environmental & Social Assessment 4.09 3.95 4.02
Occupational Health & Safety 4.14 3.64 3.89
Training & Education 3.59 3.86 3.73
Anti-Corruption 3.36 3.68 3.52
Taxation 3.32 3.14 3.23
Materials 3.18 3 3.09
Energy 3.23 2.91 3.07
Emissions 2.59 2.09 2.34
Waste 2.45 1.86 2.16
Water & Effluents 2 1.68 1.84

Negative Impact Assessment Results

Topic Average Sustainability Impact Score Average Likelihood Score Average
Economic Performance 4.59 3.73 4.16
Customer Privacy & Information Security 4.59 3.14 3.86
Customer Relationship Management 4.32 2.27 3.3
Occupational Health & Safety 4.23 2.64 3.43
Innovative Product R&D and Marketing 4.09 2.59 3.34
Training & Education 3.91 3.09 3.5
Supplier Environmental & Social Assessment 3.86 3.23 3.55
Anti-Corruption 3.68 2.23 2.95
Employee Diversity & Equal Opportunity 3.36 2.86 3.11
Taxation 3.23 2.68 2.95
Materials 3.05 2.55 2.8
Energy 2.95 2.18 2.56
Emissions 2.45 2.64 2.55
Waste 2.32 1.77 2.05
Water & Effluents 1.95 1.45 1.7

Financial Impact Assessment Results

Topic Average Financial Impact Score Average Likelihood Score Average
Economic Performance 4.68 4.14 4.41
Innovative Product R&D and Marketing 4.05 3.41 3.73
Customer Relationship Management 4.27 3.18 3.73
Customer Privacy & Information Security 4.36 2.86 3.61
Materials 3.73 3 3.36
Supplier Environmental & Social Assessment 3.45 2.95 3.22
Taxation 3.27 2.73 3
Anti-Corruption 3.36 2.32 2.84
Occupational Health & Safety 3.23 2.36 2.8
Training & Education 3.09 2.23 2.66
Employee Diversity & Equal Opportunity 2.91 2.59 2.75
Energy 2.77 2.14 2.45
Emissions 2.05 2.68 2.36
Waste 1.95 1.82 1.89
Water & Effluents 1.64 1.55 1.59