Diodes Incorporated (DIOD) 2020年CSR報告「NASDAQ」.pdf

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1、purposeproductplanetpeopleSUSTAINABILITY REPORT 2020With sites and stakeholders across the planet,we view our responsibility on a global scale,2 SUSTAINABILITY REPORT 2020An introduction from Dr.Keh-Shew Lu,Chairman,President,and CEO 3 1.Company Profile 42.Commitment 5Overview 5Governance and Oversi

2、ght 6Responsible Disclosures 7SASB Sustainability Disclosure 8 Topics and Accounting MetricsCorporate Social and Environmental 8 Responsibility Conduct UN Global Compacts Principles Index 9Awards and Recognitions 103.Environment 14Overview 14 Resource Conservation Efforts 15Environmental Policy 16Cl

3、imate Change Policy 17Energy Management 18Water Management 21Waste Management 254.Supply Chain 28 Overview 28Conflict Minerals 29Responsible Business Alliance Validated Audits 29UK Modern Slavery Act Statement 30Supply Chain Management 30Supplier Management 30Supplier Diversity&Inclusion 32Responsib

4、le Use of Materials and Chemicals in Our Products 32Product Life Cycle and End of Life 33Intellectual Property Protection and Competitive Behavior 3417 GOALS TO TRANSFORM OUR WORLD5.Social Responsibility 35Overview 35 Sustainable Products 35Our Response to COVID-19 36Business Ethics 39Combating Corr

5、uption and Bribery 41Cybersecurity and Data Protection 42Community Engagement 43Charitable Giving 45 6.People 46Overview 46Team Next Gen 49Human Rights and Workforce Labor Rights Policy 49Employee Health,Safety,and Wellness 53Diversity and Inclusion 57Investment In Our Employees 587.Governance 60App

6、endix 661.SASB Sustainability Disclosure 66 Topics and Accounting Metrics 2.Corporate Social and Environmental 67 Responsibility Statement (multi-language)3.California Transparency in Supply 70 Chains Act Statement4.Anti Counterfeit Policy 715.Anti Bribery&Anti Corruption Policy 716.GFAB Gender Pay

7、Gap Report 20/21 767.OFAB Gender Pay Gap Report 20/21 808.Corporate Governance Guidelines 84These emblems appear on the following pages and indicate where our initiatives support and align with the United Nations Sustainable Development Goals(SDG)CONTENTS3 SUSTAINABILITY REPORT 2020Dr.Keh-Shew LuCha

8、irman,President and Chief Executive Officer Diodes IncorporatedAN INTRODUCTION FROM OUR CHAIRMAN,PRESIDENT,AND CEOAs an international semiconductor company with a global footprint,Diodes and its worldwide subsidiaries are committed to prioritizing our stakeholderscustomers,shareholders,employees,sup

9、pliers,and the communities in which we operate.We recognize the role we play in society and are committed to maintaining a sustainable and successful business over the long term by taking a stakeholder-oriented approach.We are dedicated to creating and maintaining long-term value for our stakeholder

10、s and we engage in activities that will lead to sustainability and shared prosperity for our business and our communities.Building on the foundation of our core valuesintegrity,commitment,and innovationand advancing the mission of profitability growth to expand shareholder value,we are committed to:

11、Fostering a corporate culture of trust,diversity,and inclusion where everyone is treated with dignity and respect,and diverse perspectives are valued;Delivering products to our customers through innovation and responsible supply chain management that promote sustainability;Dealing fairly and ethical

12、ly with our suppliers and engaging a diverse supplier base;Investing in our employees through fair compensation and benefits as well as professional development opportunities;Supporting the communities in which we live and work by protecting our environment through sustainable business practices and

13、 being involved in community engagement;and Generating long-term profits for our shareholders through continuous investment,business growth and innovation,as well as transparency and effective engagement with our shareholders.Each of our stakeholders is integral to our sustained success and we are c

14、ommitted to delivering long-term value to our customers,shareholders,employees,suppliers,and communities.We value the feedback and perspectives from our stakeholders and take our commitments to our stakeholders seriously.The Diodes hotline,hosted by an independent third-party,provides employees,supp

15、liers,and others an opportunity to report concerns regarding potential compliance,ethical,or safety matters on a confidential or anonymous basis.These perspectives allow us to continuously improve and challenge ourselves to always do better and achieve higher goals.By leading with integrity,commitme

16、nt,and innovation,and serving our stakeholders through these commitments,we believe everyone will enjoy and benefit from the long-term prosperity of Diodes.Sincerely,By leading with integrity,commitment,and innovation,and serving our stakeholders through these commitments,we believe everyone will en

17、joy and benefit from the long-term prosperity of Diodes.“”4 SUSTAINABILITY REPORT 2020Diodes Incorporated(Nasdaq:DIOD),a Standard and Poors SmallCap 600 and Russell 3000 Index company,delivers high-quality semiconductor products to the worlds leading companies in the consumer electronics,computing,c

18、ommunications,industrial,and automotive markets.We leverage our expanded product portfolio of discrete,analog,and mixed-signal products and leading-edge packaging technology to meet customers needs.Our broad range of application-specific solutions and solutions-focused sales,coupled with worldwide o

19、perations of 31 sites,including engineering,testing,manufacturing,and customer service,enables us to be a premier provider for high-volume,high-growth markets.Diodes corporate headquarters and Americas sales office are located in Plano,Texas,and Milpitas,California.Design,marketing,and engineering c

20、enters are located in Plano;Milpitas;Taipei,Taoyuan City,Zhubei City,Taiwan;Shanghai,Yangzhou,China;Oldham,England;and Neuhaus,Germany.Diodes wafer fabrication facilities are located in Oldham,Greenock,UK and Shanghai,China.Diodes have assembly and test facilities located in Shanghai,Jinan,and Cheng

21、du,China as well as in Neuhaus,Germany and Jhongli,Taiwan.Additional engineering,sales,warehouse,and logistics offices are located in Taipei,Taiwan;Hong Kong;Oldham,UK;Shanghai,Shenzhen,Wuhan and Yangzhou,China;Seongnam-si,South Korea;and Munich,Frankfurt,Germany;with support offices throughout the

22、world.62Years inbusiness2931Consecutive yearsof profitabilityNumber of locationsworldwide9000Number ofemployees43BnNumber of unitsshipped in 202029K50KNumber ofproductsNumber ofcustomers50Number ofdistributorsDIODStock Symbol1.2BnRevenuein 2020COMPANY PROFILE15 SUSTAINABILITY REPORT 2020OVERVIEWOur

23、commitment to sustainability is represented in our core values of Integrity,Commitment and Innovation.We strive for environmental sustainability,social responsibility,responsible sourcing,business ethics and compliance,corporate citizenship and employee volunteerism to have a sustainable operation a

24、nd a long-term,positive impact on our stakeholders:investors,customers,employees,suppliers,and our communities.We adopt a stakeholder-orientated approach to governance and are committed to conducting an ethical,lawful,profitable,and sustainable business that creates value over the long term.We are n

25、ot actively or directly involved in any political advocacy or lobbying groups,nor do we provide financial contributions to political organizations.Our engagements on these issues are mainly through industry associations that we support together with our industry peers,or through community engagement

26、 with non-profit organizations.Through our extensive sales and distribution network,we provide customers around the globe with a broad portfolio of innovative,energy-efficient,and eco-friendly products.It is our firm belief that our stakeholders well-being is supported by sustainability consideratio

27、ns,and such considerations are integral to our ongoing organizational success and operational resilience.Stakeholder EngagementOur decision to support sustainability influences our company operations worldwide:responsible manufacturing,the health&safety of employees,local compliance,quality standard

28、s,human resource and human capital management,research and development,product innovation,supply chain management,business ethics,investor relations,and corporate citizenship.We engage with our stakeholders,specifically employees,customers and investors,for feedback on our sustainability efforts.We

29、view sustainability as a competitive advantage and have adopted a sustainability-oriented approach to assess and address related risks that may influence our operational activities,business results,and financial performance.This includes considering the importance of economic,environmental,and socia

30、l factors as they impact our business and stakeholders.By engaging with stakeholders to identify sector-and company-specific risks and opportunities,we may develop proactive strategies to uphold our sustainability standards.We also assess our progress and leverage industry-standard certification and

31、 audit processes to ensure sustained accountability and long-term performance.We are privileged to partner with our customers in building sustainable products and applications that contribute to the health and well-being of our communities and our planet.COMMITMENT26 SUSTAINABILITY REPORT 2020Code o

32、f ConductWe align our business practices and operations with the Code of Conduct published by the Responsible Business Alliance(RBA),formerly the Electronic Industry Citizenship Coalition(EICC),a leading industry coalition dedicated to corporate social responsibility in global supply chains.Diodes C

33、SER Code of Supplier Conduct and Human Rights and Workforce Labor Rights Policy are based on the RBA Code of Conduct.The RBA Code of Conduct establishes standards to ensure safe working conditions in the electronics industry and in industries in which electronics is a key component,including the sup

34、ply chains that support those industries.The RBA Code of Conduct seeks to ensure workers are treated with respect and dignity,and that business operations are environmentally-responsible and ethically-conducted.The RBA Code of Conduct is in alignment with the UN Guiding Principles on Business and Hu

35、man Rights and is based on international principles and norms that we support and incorporate in our business practices,including the United Nations(UN)Universal Declaration of Human Rights,the International Labor Organizations(ILO)International Labor Standards and Declaration on Fundamental Princip

36、les and Rights at Work,the OECD Guidelines for Multinational Enterprises,and ISO standards.Through its rigorous RBA Validated Assessment Program(VAP),Diodes endeavors to ensure that its operational activities are consistently conducted in alignment with the RBA Code of Conduct and Diodes quality sta

37、ndards and procedures.In particular,our Chengdu manufacturing site and two of our manufacturing sites in Shanghai received Silver status recognition from the RBA during their initial RBA audits.GOVERNANCE AND OVERSIGHTSustainabilityisa strategic focus for the Diodes management team and theDiodesBoar

38、d of Directors(Board).To further accelerate our commitmentto sustainability,and with the support of the Board,we created a Steering Committee to focus on sustainability and the ongoing assessment of our operations and their impact on the communitiesinwhich we operate.The Sustainability Steering Comm

39、ittee is headed by our Senior Vice President of Operations andiscomprised of representatives from multiple functions,including corporate governance,regional management,operations management,legal and compliance,human resources,and quality.The Steering Committee approves sustainability-related polici

40、es,long-term objectives,and external disclosures and reporting.The Steering Committee also has operational control of environmental,health and safety,and social risks,and provides guidance on actions needed to address these risks.RBA SIlver Status Certificate7 SUSTAINABILITY REPORT 2020Given our glo

41、bal manufacturing footprint and strong commitment to environmental responsibility,we also formed a Task Force represented by regional environmental,health,and safety(EHS)subject matter experts.This Task Force is supported by the General Counsel and Corporate Compliance Officer to focus on harmonizin

42、g our EHS metrics and leverage best practices.Both the Task Force and the Steering Team conduct regular review meetings to assess performance and drive continuous improvement.The Task Force works closely with the Steering Committee,which provides periodic updates to the Board and engages frequently

43、with the CEO and Lead Director on sustainability issues.With oversight and support from the Board,we have developed and implemented business strategies,and managed business operations in ways that are resilient to sustainability-related risks,including the impacts of climate change and pandemics.In

44、addition to the Boards increased oversight of sustainability efforts,our executive bonus compensation includes a measurable Sustainability component to further demonstrate and enhance managements commitment to Sustainability.We also engage in regular dialogue with stakeholders and sustainability rat

45、ing agencies to solicit feedback as we continue to sharpen our focus on sustainability.Taking into account sustainability standards that are appropriate for the semiconductor industry,and for companies with a manufacturing footprint and scale of operations that are comparable to ours,specific sustai

46、nability performance metrics are identified where appropriate as we strive for continuous improvement.We believe these collective sustainability efforts help us create and maintain long-term profitability for our shareholders.As part of responsible reporting to our stakeholders,and specifically inst

47、itutional investors,we are committed to providing information that reflects the Seven Principles for Effective Disclosures published by the Task Force on Climate-related Financial Disclosures(TCFD).We also refer to the TCFD voluntary framework around these thematic areas of corporate activitiesgover

48、nance,strategy,risk management,and metrics and targets.We support the industry-specific metrics recommended by the Sustainability Accounting Standards Boards(SASB)for the Technology and Communications Sector specific for the semiconductor industry(“SASB Standards”),and use them as guidance in our de

49、velopment of disclosures.The SASB Standards are maintained by the Value Reporting Foundation.We focus our disclosures on the key sustainability issues identified by SASB Materiality Map and will continue to update these to provide material and relevant information to our stakeholders.We actively wor

50、k to make our sustainability disclosures more comprehensive,accurate,and transparent.The information disclosed is based on internally-available data and the managements good faith estimates,approximations,and analysis.The information has not been independently audited or verified by third parties.Pa

51、st performance is not an indication of our future performance or results.Our performance,the measurement of our performance,and any assumption used in measuring our performance on these environmental and social factors,will continue to evolve over time.We value feedback from our stakeholders and we

52、can be reached at RESPONSIBLE DISCLOSURES8 SUSTAINABILITY REPORT 2020SASB SUSTAINABILITY DISCLOSURE TOPICS AND ACCOUNTING METRICSWe strive to align our disclosures with the framework provided by the Sustainability Accounting Standard Board(SASB)for the Technology and Communications Sector specific t

53、o the semiconductor industry(“SASB Standards”).Please see Appendix 1 for a mapping of how our latest disclosures align with the SASB Standards.The SASB Standards are maintained by the Value Reporting Foundation.As we continue to collate information required under the SASB Standards for the various a

54、ccounting metrics,we will publish additional disclosures as part of our efforts to provide transparency and accountability to our stakeholders.CORPORATE SOCIAL&ENVIRONMENTAL RESPONSIBILITY CONDUCTDiodes CSER Code of Supplier Conduct is based on the Responsible Business Alliance(RBA)Code of Conduct,f

55、ormerly the Electronic Industry Citizenship Coalition(EICC),as it establishes standards to ensure safe working conditions in the electronics industry and in industries in which electronics is a key component,including the supply chains that support those industries.The RBA Code of Conduct seeks to e

56、nsure workers are treated with respect and dignity and that business operations are environmentally-responsible and ethically-conducted.The RBA is the worlds largest industry coalition dedicated to corporate social responsibility in global supply chains.Diodes is a member of the China Zizhu CRSA(Cor

57、porate Social Responsibility Alliance).Together with the companies in the China ZizhuNationalHigh-TechIndustrial Development Zone,Diodes is committed to sustainable development of its operations in this area.9 SUSTAINABILITY REPORT 2020UNITED NATIONS GLOBAL COMPACT PRINCIPLES INDEXThe United Nations

58、 Global Compact provides a principle-based framework for companies worldwide to adopt and integrate sustainable and socially responsible policies into their business activities,and encourages companies to strive towards achieving the Sustainable Development Goals to provide a better and more sustain

59、able future for all.As a global corporate citizen,Diodes embraces the ten general principles outlined in the UN Global Compact that are founded on internationally recognized conventions relating to human rights,labors,environment,and anti-corruption.We are committed to these sustainability and respo

60、nsible business practices.Referenced below are links to the relevant portions of Diodes Sustainability website that support the corresponding UN Global Compact principles.CategoriesPrinciplesDiodes ResponseHuman RightsPrinciple 1:Businesses should support and respect the protection of internationall

61、y proclaimed human rights.See“Commitment”section.Principle 2:Businesses should make sure that they are not complicit in human rights abuses.See“Commitment”,“Social Responsibility and Business Ethics”sections.LaborPrinciple 3:Businesses should uphold the freedom of association and the effective recog

62、nition of the right to collective bargaining.See People sectionPrinciple 4:Businesses should support the elimination of all forms of forced and compulsory labor.See“Supply Chain”and People sections.Also refer to our“Human Rights and Workforce Labor Rights Policy”,“UK Modern Slavery Act Statement”and

63、“California Transparency in Supply Chains Act Statement”.Principle 5:Businesses should support the effective abolition of child labor.See“Supply Chain”and People sections.Also refer to our“Human Rights and Workforce Labor Rights Policy”,“UK Modern Slavery Act Statement”and“California Transparency in

64、 Supply Chains Act Statement”.Principle 6:Businesses should support the elimination of discrimination in respect of employment and occupation.See People section and“Supply Chain”within Supplier Diversity&Inclusion”sections.Also refer to our“Human Rights and Workforce Labor Rights Policy”EnvironmentP

65、rinciple 7:Businesses should support a precautionary approach to environmental challenges.See“Social Responsibility and Sustainable Products”,“Supply Chain”within Responsible Use of Materials and Chemicals in Our Products”,and“Supply Chain”within Supply Chain Management”sections.Also refer to our“En

66、vironmental Policy”and“Climate Change Policy”.10 SUSTAINABILITY REPORT 2020Principle 8:Businesses should undertake initiatives to promote greater environmental responsibility.See“Social Responsibility and Sustainable Products”,“Supply Chain”within Responsible Use of Materials and Chemicals in Our Pr

67、oducts”,and“Supply Chain”within Supply Chain Management”sections.Also refer to our“Environmental Policy”and“Climate Change Policy”Principle 9:Businesses should encourage the development and diffusion of environmentally friendly technologies.See“Social Responsibility within Sustainable Products”,Anti

68、-CorruptionPrinciple 10:Businesses should work against corruption in all its forms,including extortion and bribery.See Social Responsibility within Combating Corruption and Bribery.Also refer to our“Anti-Bribery and Anti-Corruption Policy”AWARDS AND RECOGNITIONSAt Diodes,we set high performance targ

69、ets for our business operations,and continuous improvement is at the core of our day-to-day activities.We leverage a variety of resources to assess our companys progress against our Sustainability performance goals,and to drive continuous progress.We value the feedback from our stakeholders and are

70、appreciative of the various awards and recognition earned from governments and agencies worldwide.These awards acknowledge our continuous efforts to strive for excellence and successfully reach out to our communities.As an example,our U.K.operations and key employee representatives have been widely

71、recognized as recipients of various awards such as The Manufacturer Top 100,Queens Award for Enterprise Promotion,Engineering Employers Association Leadership Award,Oldham Civic Award and Oldham Outstanding Contribution Award.In addition to our corporate community efforts,the various awards received

72、 by our employees are a strong testament to their individual professional contributions as Diodes employees.The following are additional examples of awards we have received in recent years:UNITED STATES Outstanding Community Service Awards from the Chinese Institute of Engineers(CIE)/USA,DallasFort

73、Worth Chapter Corporate Friend Awards as appreciation for the support for the Asian American Community from the DFW Asian-American Citizens Council(DFW AACC)Certificate of Appreciation for Outstanding Community Service from the Office of the Mayor,City of Richardson,TexasMost Promising Semiconductor

74、 Technology Solution Providers 2020 from CIO Review11 SUSTAINABILITY REPORT 2020TAIWAN Certificate of Appreciation issued by Cathay General Hospital in recognition of Diodes contribution of NT$6 million(approximately US$214,000)to the Anti-Epidemic Fund for the purchase of twelve sets of intensive c

75、are ventilators and one set of non-invasive hemodynamic monitor to support the hospitals effort on epidemic prevention.Multiple“High Performance Corporate Enterprise for Employment of Foreign Worker“awards issued by the Taoyuan government Certificate of Appreciation recognizing Diodes support of Lon

76、g Term Care of People in Vegetative State issued by the Genesis Social Welfare Foundation Certificate of Appreciation recognizing Diodes support of the Disadvantaged Groups issued by the Taoyuan Guanyin Kind Garden Organization Certificates of Appreciation recognizing Diodes support of the people wi

77、th disabilities issued by various disability-welfare non-profit organizations such as the Eden Social Welfare Foundation,Chin Jen Disability Welfare Foundation,and Chenshenmei Social Welfare Foundation,Taoyuan County Foundation and Private Kang Fu Intelligence Development Center Certificate of Appre

78、ciation issued by the Taoyuan Reindeer Foundation recognizing Diodes support to programs designed to help children under 18 who are abandoned,abused,or neglected Certificates of Appreciation issued by the Taoyuan County Environmental Protection Bureau recognizing Diodes support and contribution to t

79、he air pollution emergency drill Certificate of Appreciation recognizing Diodes support of financially disadvantaged communities through the 1919 Food Bank Program issued by the Chinese Christian Relief Association Certificate of Appreciation recognizing Diodes support of activities establishing the

80、 funding for Elderly Care issued by Mennonite Christian Hospital Certificate of Appreciation Diodes support of medical care in remote areas issued by the St.Marys HospitalCHINA Safety Management Standardization certificate(grade 3)from the China Ministry of Energy Management,Chengdu Bureau Clean Pro

81、duction Audit Acceptance certificate from the Sichuan Ecology and Environment Department Top 10 Best Environmental Protection Company award from Chengdu High Tech Park Commission Clean Production Audit Acceptance certificate from the Shanghai Ecology and Environment Department12 SUSTAINABILITY REPOR

82、T 2020 Advanced Corporate Enterprise for Fire Safety Promotion from Shanghai Zizhu High-Tech Park ISO50001 Energy Management System certificate from the China National Accreditation for Conformity Assessment Green Development Advanced Corporate Enterprise certificate from the China Songjiang Export

83、Zone Management Committee Work Safety Standardization Management certificates(grades 2 and 3)from the China State Administration of Work Safety Water Conservation Enterprise Award from the Shanghai Water Authority and the Shanghai Municipal Commission of Economy and Informatization Excellent Enterpr

84、ise Award issued by the municipal government in Shanghai,China recognizing Diodes support towards epidemic control and prevention efforts and economic and social development Two LSC manufacturing sites in China received Integration of Information and Industrialization Management System certificates

85、issued by the assessment body authorized by the China Ministry of Industry and Information Technology Industrial Output Excellence Award and Advanced Green Development Enterprise Award issued by the China Songjiang Economic and Technological Development ZoneCertificate of Honor,Industry Production E

86、xcellence Award(2019)issued by the Shanghai Songjiang Economic and Technology Development Zone AdministrationIndustry Production Excellence Award(2019)issued by the Shanghai Songjiang Economic and Technology Development Zone AdministrationGreen Development Advanced Corporate Enterprise CertificateWa

87、ter Conservation Enterprise AwardExcellent Enterprise Award issued by the municipal government in Shanghai,ChinaIntegration of Information and Industrialization Management System certificatesIndustrial Output Excellence Award and Advanced Green Development Enterprise Award issued by the China Songji

88、ang Economic and Technological Development Zone Top 10 Best Environmental Protection Company Award13 SUSTAINABILITY REPORT 2020 Awards from the China Songjiang District government for projects involving energy online monitoring renovation and motor renovation systems Safety Factory Award from the Ch

89、ina Jinan Public Security Bureau Water-Saving Corporate Enterprise Award from China Shandong Development&Reform Commission,Housing and Urban Development Office,and Shandong Industry and Information Technology Office as well as Water-Saving Enterprise recognition issued by the Wuxi government in Chin

90、a Worker Pioneer Award from China Jinan Central Labor Union Advanced Corporate Enterprise for Employment of Disabled Workers from the China Jinan government Disabled Workers Working Committee Badminton in Foreign Enterprises Championship(NEC Software Cup),runner-up group awardsEUROPE Chairmans Award

91、 issued by the Center for Engineering Education&Development(CeeD)recognizing Diodes Greenock facilitys high performance and ongoing investment into workforce engagement and development Manufacturing Site of the Year,issued to the Diodes Oldham site by TechWorks in recognition of industry excellence

92、driving the tech economy Healthy Working Lives Award Gold Award issued by Public Health Scotland recognizing Diodes efforts in improving the health,safety,and well-being of the workers in a structured and productive way International Safety Award(ISA)Merit issued by the British Safety Council recogn

93、izing Diodes demonstrated commitment to occupational health,safety,and well-being International Safety AwardHealthy Working Lives Award14 SUSTAINABILITY REPORT 2020OVERVIEWDiodes recognizes that environmental responsibility is integral to producing world-class products.We understand the impact our o

94、perations have on the environment,the community,as well as the health and safety of our employees,contractors,and suppliers.We are committed to ensuring environmentally sustainable business practices and to help minimize the environmental impact of our supply chain.Please refer to our Environmental

95、Policy and Climate Change Policy.We expect our suppliers and vendors to also subscribe to standards and commitments described in these policies so that we collectively manage a responsible supply chain.As such,Diodes has based its Code of Conduct on the Responsible Business Alliance(RBA)Code of Cond

96、uct,formerly the Electronic Industry Citizenship Coalition(EICC),to ensure that business operations are environmentally responsible and compliant,at a minimum,with applicable environmental laws and regulations of the countries in which they have operations.Diodes direct suppliers are expected to imp

97、lement the Code of Conduct as well as an adequate management system to ensure continued compliance with this code.Diodes internal manufacturing sites are certified to the ISO 14001 environmental management system standard.The expectation for external suppliers is to be ISO 14001 certified as well or

98、,as a minimum,to submit a plan to become certified.Click here for Diodes Certifications.We enforce rigorous product compliance with the EU Directive regarding the Restriction of Hazardous Substances(RoHS)2011/65/EU and the REACH Directive 2006/1907 on the Registration,Evaluation,Authorization,and Re

99、striction of Chemicals.We provide customers with information on the chemical composition of the materials used in our products,as further described in our master Certificate of Compliance(master CofC).All products of Diodes Incorporated,including its subsidiaries,are REACH compliant.Where substances

100、 of very high concern(SVHCs)are contained in Diodes products,they are listed in our master CofC and either registered for usage,exempt from registration requirements,or present as impurities.All products of Diodes Incorporated,including its subsidiaries,are RoHS compliant.Some use exemptions to enab

101、le their compliance.These are listed in our master CofC.ENVIRONMENT315 SUSTAINABILITY REPORT 2020 RoHS compliance is indicated on shipping labels that are attached on packing materials,such as reels and shipping boxes.Diodes is also committed to conflict-free sourcing of Tin,Tantalum,Tungsten,and Go

102、ldwhich are widely used in manufacturing in the semiconductor industry.These metals are derived from minerals that have a variety of sources around the world.One potential source has historically been the Eastern region of the Democratic Republic of Congo(DRC).That region is currently the site of ar

103、med conflict,and mining profits by local military groups there are reportedly contributing to human rights abuses,environmental damage,and theft from DRC citizens.Diodes Incorporated requires its suppliers to undertake reasonable due diligence with their supply chains to assure that these metals are

104、 not being sourced from the DRC or adjoining countries,unless they are purchased from smelters or refiners that are listed as“conflict-free”on the Responsible Minerals Initiative(RMI)website.Diodes Incorporated has surveyed its relevant suppliers of components and raw materials concerning the origin

105、s of these metals.The result of this survey,in the form of the RMI/CFSI reporting template,can be found in our Conflict Minerals Report.RESOURCE CONSERVATION EFFORTSWe intend to protect and preserve the environment and provide a safe and healthy workplace for all employees.We are committed to the co

106、ntinual improvement of environmental protection and health and safety performance,as well as compliance with all applicable laws,regulations,permits,internal worldwide standards,and other social responsibility requirements to which we subscribe.We recognize the impact of our business operations on t

107、he environment,the ecosystem,and the communities in which we work and our employees reside.Consistent with our commitment to environmental stewardship,and as reflected in our company Code of Conduct,we have policies and processes in place that incorporate assessment of environmental impact as part o

108、f our business decision making process.With a continual focus on resource-use efficiencies,we reuse and recycle resources where possible,and we also adopt the following measures to provide an eco-friendly working environment:Deploy light sensors in conference rooms,communal areas and individual offi

109、ces Use mercury-free light tubes Deploy time clocks on building lighting and HVAC systems Deploy time clocks on hot water boilers with reduced temperature settings from 210F to 190F/98.8C to 87.7C.Water from these boilers is used to heat the building as well as supply sinks and showers Reduce paper

110、usage through various electronic document storage and management systems16 SUSTAINABILITY REPORT 2020 Reduce paper waste through double-sided printing default setting via our multifunction printers Reduce energy consumption via the sleep mode and timer setting in our eco-friendly printers Reduce ene

111、rgy consumption via consolidated servers and removal of excess servers Use recycled water for our landscaping and environment-friendly landscaping fertilizer Use environmentally-friendly janitorial supplies Reduce landfill trash through office recycling programs and minimize use of Styrofoam cups Re

112、duce travel through the increased use of video conferencing technologies Evaluate installation of onsite electric vehicle charging stationsOur resource conservation efforts not only contribute to overall operating cost reduction,in some instances,they are also recognized by local governments in the

113、form of financial incentives.For example,in China we received recognition for our deployment of an electricity online monitoring system and LED lighting projects.We continue to review business opportunities and monitor local government initiatives and incentives so as to leverage innovative technolo

114、gies and solutions to enhance energy cost savings and help reduce the impact on climate change and greenhouse gas emissions.ENVIRONMENTAL POLICYLast Updated:June 2021Diodes Incorporated designs,manufactures,and delivers high-quality semiconductor products to the worlds leading companies in the consu

115、mer electronics,computing,communications,industrial,and automotive markets.Our expanded product portfolio of discrete,analog,and mixed-signal products and leading-edge packaging technology are developed to meet our customers needs and we are committed to continual improvement.Our worldwide operation

116、s,including engineering,testing,manufacturing,and customer service,enable us to be a premier provider for high-volume,high-growth markets.Our commitments to environmental sustainability as a responsible corporate citizen are to:protect the health and safety of our employees and partners on a worldwi

117、de basis;comply with regulatory and other requirements;use natural resources,energy,and materials efficiently and reduce consumption where possible;substitute sustainable resources in place of non-renewable resources;recycle materials wherever practical and economically reasonable;minimize waste and

118、 dispose of waste safely and responsibly;implement specific measures to prevent and minimize hazards to humans and the environment,including pollution prevention;and consult with and encourage the participation of all employees.Our environmental policy has four main objectives:17 SUSTAINABILITY REPO

119、RT 2020 Regulatory Compliance:We will comply with or exceed applicable legal requirements,codes of practice,and industry guidelines.Continual Improvement:We will consider environmental implications in making company decisions at all levels.We will reduce the impact of our emissions to air,land,water

120、,and the noise from our operations.We will promote waste minimization and take reasonable steps to facilitate waste recycling and insure waste disposal is handled in a safe and environmentally acceptable manner.Communication with Stakeholders:We will coordinate with relevant external bodies and work

121、 with our own employees to improve environmental performance.We will provide appropriate environmental training and self-monitoring at all levels,particularly those that impact health,safety,and environmental matters.We will record and investigate promptly any matters brought to our attention by mem

122、bers of the public or any regulatory bodies,taking appropriate action as necessary.We will actively promote environmentally sensitive behavior by our employees.Environmental Management System:We will manage our environmental responsibilities within the framework of ISO 14001.We will carry out period

123、ic environmental self-audits as a means of setting objectives,monitoring achievements,and promoting further improvement.We will submit our environmental management system,performance,and achievements to independent verification by third parties as appropriate.Please click here for a PDF copy of our

124、Environmental PolicyCLIMATE CHANGE POLICYLast Updated:July 2020Diodes Incorporated recognizes our responsibility as a global corporate citizen to do our part to minimize our contribution to climate change.Operating in a sustainable way benefits the economic,social,and environmental interests of our

125、company,our employees,and the customers and communities we serve.Climate change creates risks for our company and our industry.Our facilities are subject to the physical risks associated with increasing temperatures and extreme weather conditions.We depend on critical raw materials and natural resou

126、rces that are subject to scarcity.We are subject to regulatory and legislative constraints which may impact the manufacture of our products.As part of our business operations,we ship billions of semiconductor devices to our customers worldwide.During the design,development,and manufacture of those d

127、evices,we consume raw materials,chemicals,energy,and water.Our manufacturing processes produce wastewater and solid waste.Our operations generate greenhouse gases and other emissions that contribute to climate change.Protecting the environment represents an important challenge and valuable opportuni

128、ty to our operations and to the semiconductor manufacturing industry.To address this challenge,Diodes has prioritized reduced generation of greenhouse gases and improvements in energy efficiencies across our entire enterprise.In addition to complying with all relevant regulations and established ind

129、ustry guidelines,Diodes is committed to establishing goals and objectives which reduce our overall carbon footprint and support energy conservation,reduced water usage,and minimized waste generation.Please click here for a PDF copy of our Climate Change Policy18 SUSTAINABILITY REPORT 2020ENERGY MANA

130、GEMENTSustainable Energy ManagementDiodes recognizes that semiconductor manufacturing is an energy-intensive process with the majority of our energy being consumed within our wafer fabrication and assembly and test facilities.We are committed to lowering climate risks related to our global carbon fo

131、otprint by applying responsible energy management,driving energy efficiency,and pursuing reduction of energy use at the manufacturing sites and office buildings we occupy worldwide.In addition to managing our internal operations for increased energy efficiency,we also focus on developing and manufac

132、turing semiconductor products to provide our customers with opportunities to reduce their carbon footprints with more energy-efficient end applications when using our products.Please refer to our Energy Policy that outlines our position on energy management.Direct energy consumption at each manufact

133、uring site is regularly measured,consistent with the requirements in SASB Code TC-SC-130a.1,to track the total energy consumed in gigajoules(GJ),the percentage of energy consumed that is supplied from grid electricity,and the percentage of energy consumed that is renewable energy.As part of our comm

134、itment to operate in a sustainable manner,each plant also conducts regular energy assessments to identify opportunities for energy conservation and to increase the percentage of renewable sources in the energy mix that is accessible to the respective location.The main energy source to power Diodes m

135、anufacturing facilities is electricity.In 2019 and 2020,Diodes manufacturing sites sourced 95.09%and 95.38%respectively of consumed energy from the electric grid,decreasing our historic grid dependency down from 98.84%in 2018.The balance of energy was from natural gas,diesel fuel,and long distance h

136、eat.Natural gas is mostly used for heating purposes and also for humidification control.Diesel fuel is primarily used for humidification control,and may be used for the operation of emergency power generators as well.Percentage of Energy Consumed from Grid Electricity201820192020%Energy Grid Electri

137、city%Energy Non-Grid Electricity%Energy Grid Electricity%Energy Non-Grid Electricity%Energy Grid Electricity%Energy Non-Grid Electricity4.91%4.62%1.16%98.84%95.09%95.38%We have increased our focus on more effective energy management to further reduce Diodes carbon footprint,which enabled us to more

138、accurately assess and report energy consumption with significantly more granularity.As a result,over the most recent 3-year time frame,we have seen an increase in the reporting of renewable energy consumption from our Diodes-owned factories across the globe.Our energy providers have also increased t

139、he information available to their customers regarding the energy mix being provided for consumption.Overall,21.54%and 23.47%of energy consumed by Diodes manufacturing sites in 2019 and 2020,respectively came from renewable sources,up from 11.27%in 2018.19 SUSTAINABILITY REPORT 2020Percentage of Cons

140、umed Energy that is Renewable Energy201820192020%Non-Renewable Energy%Renewable Energy%Non-Renewable Energy%Renewable Energy%Non-Renewable Energy%Renewable Energy21.54%23.47%76.53%88.73%78.46%11.27%Energy Conservation ProjectsAll our manufacturing sites routinely seek new opportunities to drive ener

141、gy management improvement initiatives and to achieve further reductions of Diodes global carbon footprint.The execution and implementation of these energy conservation projects,such as the ones listed below,are overseen by the Diodes Corporate Social and Environmental Responsibility(CSER)steering te

142、am.Recent examples include:Implementation of the out-of-control action planning(OCAP)methodology for energy management Performing annual energy forecasts Winter/summer set point changes for temperature and relative humidity(RH)Real time plant RH monitoring Installation of lighting proximity sensors

143、and LED lighting in conference rooms,communal areas,and individual offices Implementation of air handling units(AHU)with permanent magnets and fan timers Replacement of aged chilling and cooling pumps and other outdated facility equipment such as fan filter units(FFU)with energy-efficient performanc

144、e units Switching to more efficient equipment when the load is high during the summer Upgrading of building management systems for improved monitoring Deployment of time clocks on building lighting and HVAC systems Reduction of energy consumption via the sleep mode and timer setting in our eco-frien

145、dly printers Reduction of energy consumption via consolidated servers and removal of excess serversIn 2020,Diodes kicked off a major energy conservation project:the construction of a combined heat and power(CHP)plant and absorption chiller with battery-energy storage system(BESS)at our Oldham,UK waf

146、er fab(OFAB).The project involves a capital investment in excess of US$7M with completion being expected by the end of 2021.Local electricity generation will eliminate transmission losses from external providers equivalent to 290 tons CO2e.Use of waste heat from the CHP plant otherwise exhausted int

147、o the atmosphere will support chiller load and reduce overall site energy use by approximately 3,500 MWh/year,equivalent to over 880 tons CO2e.The absorption chiller is part of a tri-generation system that will provide chilled water without use of greenhouse gases and the following benefits:Reduced

148、use of chiller refrigerant gases,R134A and R410 Reduction of environmental impact from uncontrolled release Safer decommissioning/disposal at end of life 20 SUSTAINABILITY REPORT 2020ENERGY POLICYLast Updated:June 2021Diodes Incorporated recognizes climate change as a global risk as it affects the e

149、nvironmental,social,and economic landscape of the communities in which we live and work.Since semiconductor manufacturing is an energy-intensive process,our manufacturing sites,as well as office buildings,are contributors to our carbon footprint.The majority of our energy is consumed within our wafe

150、r fabrication and assembly and test facilities with energy required to maintain very demanding physical and climate conditions for production of our products in a cleanroom environment.We are strongly committed to reducing energy consumption and improving energy efficiency across our operations worl

151、dwide.In addition,we focus on developing and manufacturing products that help reduce power consumption and minimize energy requirements when included in our customers applications.As a responsible corporate citizen,our commitments to minimize the impact on climate change are:Conduct corporate-wide e

152、nergy assessments to derive suitable and reasonable measures for further increasing energy efficiency and reducing total energy usage and consumption;Measure and reduce electricity usage in our manufacturing sites;Reduce energy consumption from the electric grid and increase usage of renewable energ

153、y;Drive and invest in energy conservation programs;Reduce energy intensity of our manufacturing processes;Deploy energy-efficient manufacturing and office equipment and modify energy efficiency of existing equipment in manufacturing sites and office buildings;Implement equipment for active heat reco

154、very;Support sustainable energy management of our facilities,i.e.use of high efficiency lighting technologies and HVAC systems,powering down unutilized equipment;and Design semiconductor products with optimized energy consumption performance to support our customers expectations for energy-efficient

155、 end applications.Click here for a downloadable PDF copy of the above policy.21 SUSTAINABILITY REPORT 2020WATER MANAGEMENTSustainable Water Management Water scarcity is a topic of global attention as it presents a high impact risk to our planet.The semiconductor manufacturing industry is a water-int

156、ense business.Increasing complexity in semiconductor manufacturing processes may contribute to an increased need for water consumption and higher level of water purity.Our water comes from public sources as we rely primarily on local municipal supplies for our water source and do not use groundwater

157、 or rainwater.Water quality is essential to semiconductor manufacturing and there is a potential risk of water pollution that is under constant scrutiny,particularly in certain areas in Asia where we have manufacturing sites.Reliable continuity of water supply is critical to our operations and each

158、manufacturing site is responsible for managing its specific water-related risks.Sustainable use of an essential natural resource such as water is critical to safeguarding our business continuity and the communities around us.We are committed to managing water resources responsibly and we leverage in

159、dustry best practices for efficient water management.Our water management efforts contribute to the United Nations Sustainable Development Goals target 6.4 aimed to substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address w

160、ater scarcity.Through our continuous and focused efforts to collect data and measure our water usage at each of our manufacturing sites,we identify opportunities to implement water conservation measures.We carefully monitor water usage across these manufacturing sites and set goals to minimize water

161、 consumption.We also maintain an environmental management system in accordance with the requirements of ISO-14001 to manage our water usage in a sustainable manner.Water Usage and Operational ImpactWe conduct water stress assessments by leveraging the Aqueduct Water Risk Atlas provided by WRI.Water

162、stress is defined as the total annual water withdrawals(municipal,industrial,and agricultural)as a percent of the total annual available surface water.Industrialization and urbanization are key contributors to increased water stress levels,as observed in many parts in China.The water stress classifi

163、cation level identifies locations that have higher exposure to water-related risks.Based on the WRI tool,the water stress classification of our current manufacturing sites is as follows:Water Stress ClassificationNumber of Manufacturing SitesLocations of Manufacturing SitesLow1ScotlandLow to Medium6

164、Taiwan,Germany,England,and China(Chengdu)Medium to High1China(Wuxi)High4China(Shanghai)Extremely High1China(Shandong)The majority of our manufacturing sites are located in areas that are classified as having a Low or Low-to-Medium Water Stress level.We acquired the manufacturing facility located in

165、Shandong,China,an Extremely High Water Stress location,as part of our acquisition of Pericom Semiconductor Corporation in 2015.22 SUSTAINABILITY REPORT 2020We assess the location and volume of water withdrawn for our manufacturing sites and the water-stress levels in these locations and actively mon

166、itor our water usage at these locations to contribute toward sustainable water stewardship.To ensure continuity of supply and minimize impact to our operations,we concentrate on water availability and demand challenges unless there are other relevant risks such as water quality,drought,or flooding t

167、hat may be material to our activities in these locations.Consistent with the requirements in SASB Code TC-SC-140a.1,in addition to analyzing our operations for water risks and identifying activities that withdraw and consume water in locations with High or Extremely High Water Stress,we track the to

168、tal amount of water that was withdrawn from the different sources and the total amount of water that was consumed in our operations,and the percentage of each in regions with High or Extremely High Water Stress.Our year-over-year progress is illustrated in the chart below.We acquired Lite-On Semicon

169、ductor Corporation(LSC)in November 2020,therefore the 2020 chart does not include information from LSC.Percentage of Water Withdrawn by Water Stress Level 201820192020HighExtremely High0.72%8.87%17.44%72.97%1.08%10.36%18.63%69.93%0.82%18.45%80.73%Low to MediumHighExtremely HighLowLow to MediumHighEx

170、tremely HighLowLow to MediumPercentage of Water Consumed by Water Stress Level201820192020HighExtremely High0.98%10.54%12.32%76.16%0.59%9.94%16.79%72.68%1.13%12.68%86.18%Low to MediumHighExtremely HighLowLow to MediumHighExtremely HighLowLow to MediumAlthough the 2020 chart does not include informat

171、ion from LSC,as part of our corporate-wide water management program,the LSC manufacturing facilities are included in our assessment program.One of these manufacturing facilities is located in Shanghai,a High Water Stress location.In recognition of our water conservation performance at that manufactu

172、ring site,we received a“Water Conservation Enterprise”award from the Shanghai Water Authority and Shanghai Municipal Commission of Economy and Information.As indicated in the chart,on average,less than 1%of the water used in our manufacturing operations was withdrawn or consumed in our Shandong manu

173、facturing facility,an extremely High Water Stress location.In addition,as we continue to use water responsibly in our manufacturing operations,there is a year-over-year decrease in the total amount of water consumed at that facility.In 2020,roughly 30%of the amount of water used in our manufacturing

174、 facilities was withdrawn or consumed from locations with Low or Low-to-Medium Water Stress levels.23 SUSTAINABILITY REPORT 2020Water StewardshipDiodes is constantly looking for ways to optimize water usage,implement water-saving technologies and manage water usage responsibly.Water reuse and recycl

175、ing is a key aspect of the water conservation efforts within our manufacturing facilities.Semiconductor manufacturing equipment requires ultrapure water that is generated from a reverse osmosis water filtration process.Concentrated wastewater produced from this reverse osmosis process is graded and

176、filtered for reuse in our manufacturing facilities where possible.Several of our manufacturing facilities are equipped to further recycle wastewater that cannot be sufficiently purified for manufacturing use.Such recycled wastewater,including condensate from facility air handler units,is used for no

177、n-potable facilities support,such as landscape water supply or sanitation purposes.These water conservation activities reduce the amount of wastewater that is treated and returned to municipal sewer systems.Investment in Water Conservation Projects In 2020,as part of Diodes overall resource conserva

178、tion efforts,Diodes made capital investments in excess of US$200,000 to upgrade its DI(de-ionized)water treatment system at its manufacturing site in Germany.The resultant benefits include annual financial savings of more than US$10,000,reduced water consumption by more than 300m per year,reduced el

179、ectrical energy consumption by more than 30KWh per year,reduced chemical usage,and reduced maintenance manpower requirements and associated costs.This cost-effective system upgrade also helps reduce potential water quality issues that may impact our products while extending the lifetime of certain m

180、anufacturing equipment.Spotlight on Shanghai Manufacturing site:As part of our commitment to operate in a sustainable manner,we continue to evaluate programs and invest in infrastructure to improve operational efficiency and reduce impact to the environment.For example,during the period between 2018

181、 and 2020,Diodes invested over US$2,000,000 in two of our assembly and test manufacturing sites located in Shanghai,China to upgrade the wastewater recycle systems and install online wastewater monitoring programs.In 2020,we also approved approximately US$280,000 in capital investment to upgrade the

182、 wastewater treatment system at one of our manufacturing facilities in Shanghai,China.We anticipate approximately US$350,000 in annual cost savings from the improved wastewater treatment system.In addition to adhering to the applicable laws and regulations in the countries we operate,we continue to

183、leverage available infrastructure technologies and collaborate with local governmental agencies to identify opportunities for continued improvement and to reduce environmental impact.24 SUSTAINABILITY REPORT 2020Our water efficiency data across the last several years show positive trends in wastewat

184、er reduction.In recognition of our efforts specific to our Shandong facility,which is located in an area classified as Extremely High water stress,we received a“Water-saving Corporate Enterprise Award”from the China Shandong Development&Reform Commission,Housing and Urban Development Office,and Shan

185、dong Industry and Information Technology Office.We are evaluating the installation of a 24-hour onsite water storage facility at certain manufacturing site(s)to further mitigate water scarcity and water withdrawal risks and the resultant impact to our production,in addition to recycling and reusing

186、the water from our operations.Our manufacturing sites in Chengdu,China and Germany have included water financial savings goals in their operational performance goals.Even in the absence of specific financial savings goals,each manufacturing site constantly strives to conserve water resources.Califor

187、nia Proposition 65California Proposition 65,officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986,was enacted in November 1986.Proposition 65 protects the states drinking water sources from being contaminated with chemicals known to cause cancer,birth defects,or other reprodu

188、ctive harm,and requires businesses to inform individuals in the State of California about possible exposures to chemicals known to the State of California to cause cancer or reproductive toxicity and described in the Proposition 65 List.Learn more about Proposition 65 here.Proposition 65 requires bu

189、sinesses to provide“clear and reasonable warning”to consumers if their products contain one or more of the chemicals on the Proposition 65 List.A Proposition 65 warning does not necessarily mean a product is in violation of any product-safety standards or requirements.While Diodes does not sell dire

190、ctly to consumers,our products will be incorporated in end products that are sold to consumers.As a component manufacturer,we have concluded that most of our products contain at least one substance included in the Proposition 65 List.For products sold into the State of California,the following label

191、,or similar,is affixed to the product packaging:We regularly review the Proposition 65 List and reserve the right to amend this label as necessary.25 SUSTAINABILITY REPORT 2020WASTE MANAGEMENTSemiconductor manufacturing processes are complex and require the use of an assortment of materials and chem

192、icals during the wafer fabrication and product assembly operations.We recognize the risks and unfavorable consequences on the environment and the health and safety of people,as well as our brand image,profits,and financial situation if the waste from our operations is not disposed of appropriately.W

193、e are fully committed to minimizing any waste generated from our operations and disposing of such waste safely and responsibly so as to protect the environment,and the health and safety of our employees and the communities in which we operate.Our waste management programs cover various waste streams

194、 generated by our operations and products,and an analysis of our waste streams helps inform our use of the most appropriate waste segregation,treatment,and management approaches.Reducing waste at the source is a critical component of our waste management program.We prioritize actions and encourage e

195、mployees to reduce,reuse,recycle,and recover whenever possible,rather than to dispose of waste at landfills.Our various manufacturing processes can generate potentially hazardous waste,including chemical substances.We regularly monitor the type of waste generated from our manufacturing facilities,in

196、cluding both hazardous(e.g.batteries,accumulators,oily sludge,acid,resin)and non-hazardous waste(e.g.cardboard,paper,glass,food waste,plastic bottles,metal cans,wooden pallets).Both hazardous and non-hazardous wastes are recycled,incinerated,or disposed of at landfills.We comply with applicable laws

197、 and regulations relating to the use,storage,and handling of chemicals,as well as the disposal of any potentially hazardous waste.Where appropriate,we engage waste management service providers to transport,treat,and dispose of waste generated from our operations.In 2020,our manufacturing sites globa

198、lly generated approximately 8%more hazardous waste than the prior year.Waste generation increased from the prior year due in part to an increase in production.We also experienced a one-time increment in waste in 2020 due the closure of a site in China and the associated waste disposition and the ins

199、tallation of a new bulk HCl tank and the requirement to flush the former tank prior to removal.We recycled 15%of our hazardous waste generated which reflects an increase of approximately 3%from the prior year.Recycled waste included solvents,oil,resin,acid,alkali,sludge,and its containers.We generat

200、ed approximately 17%more in non-hazardous waste in 2020 compared to the prior year.Of this,approximately 54%was recycled,26%was incinerated,and 20%went to landfills.Percentage of Hazardous Waste Recycled201820192020Recycled Hazardous WasteRecycled Hazardous WasteRecycled Hazardous Waste16%84%15%85%1

201、8%82%Percentage of Non-Hazardous Waste Recycled201820192020LandfilledIncinerated RecycledLandfilledIncinerated RecycledLandfilledIncinerated Recycled14%63%20%25%54%14%20%23%66%26 SUSTAINABILITY REPORT 2020Please refer to our sustainability website for more information on Responsible Use of Materials

202、 and Chemicals in our Products,including our compliance with RoHS(Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment)and REACH(Registration,Evaluation,Authorization,and Restriction of Chemicals)Directives.Consistent with SASB TC-SC-150a.1s requirement to di

203、sclose the legal or regulatory framework(s)used to define hazardous waste and recycled hazardous waste,we use the following governing standards:Location Standard China PRC on Prevention and Control of Solid Waste PollutionTaiwan Waste Disposal ActGermany Thringer Landesverwaltungsamt Abfallwirtschaf

204、tUK Special Waste Regulations 1996 Waste Reduction InitiativesWe have implemented waste management programs and practices as part of our commitment to reuse and recycle materials.Cognizant of the potential hazardous impact of certain chemicals,where appropriate,we also have chemical waste management

205、 programs.Our facilities around the world update their recycling programs periodically to decrease non-hazardous waste generation and increase diversion rates,or the amount kept out of the landfills.We leverage responsible packaging practices to reduce waste generation.This in turn reduces our overa

206、ll shipping costs and positively impacts our financial performance.For example:We increase packaging density of the products we ship per box or container;We reduce the use of large and heavy packing materials such as custom-cut foam,non-recyclable foam,and cardboards;We carefully handle our packagin

207、g and packing materials so that we can reuse them whenever possible;and Reusable containers and wooden pallets for the transport of products are used to reduce the tonnage of packaging waste.We also recycle production and packaging waste such as oil,solvents,cardboard,foam,plastics,bubble wrap,and p

208、aper products.This waste reduction initiative expands beyond manufacturing as we encourage our employees to engage in recycling activities,including using reusable food containers and drinkware.Recycled paper is used and employees are encouraged to reduce paper use.The printer fleet has been streaml

209、ined,and most printers default setting is set at double-sided printing.The employee cafeterias at our manufacturing sites are an important focus of our waste management program.Instead of using disposable tableware,we provide durable,washable,and reusable tableware and food trays.27 SUSTAINABILITY R

210、EPORT 2020We also raise employee awareness regarding food waste.Appropriately labeled bins(postable,recyclables,landfill)at employee cafeterias help employees to optimize the sorting of food waste and reduce overall waste generation.Various non-food related sorting containers are also set up at nume

211、rous places(including conference rooms and offices)in both our manufacturing and non-manufacturing facilities.Electronic Waste or E-WasteAlthough Diodes does not directly manufacture any electrical or electronic end equipment,we share the global concerns over electronic products getting into landfil

212、ls,contaminating groundwater,and creating environmental issues.We are committed to playing our part in the preservation and protection of our environment,and embrace the guidance in the Waste Electrical and Electronic Equipment Directive(WEEE Directive)aimed to reduce the amount of electrical and el

213、ectronic equipment produced and to encourage reuse,recycle,and recovery.In 2020,we generated 25%less in electronic waste compared to the prior year and once again recycled 100%of electronic waste generated at our manufacturing sites worldwide.Pursuant to the requirements of SASB TC-SC-150a.1,our ele

214、ctronic waste is transferred to third parties certified and licensed to handle e-waste.In China,we adhere to the Administrative Measures for Prevention and Control of Environmental Pollution by Electronic Waste;in Taiwan,we follow the Regulations Governing Administration of Reuse of Enterprise Waste

215、;and in the UK,the Environmental Permitting(England and Wales)Regulations 2010.Percentage of Electronic Waste Recycled201820192020Recycled Recycled Recycled 100%100%100%The types of electronic waste we generate include scrap products,spare parts,and other electronic materials from production,as well

216、 as decommissioned computers,monitors,laptops,printers,and other electronic equipment previously used by our employees;decommissioned servers,storage equipment,and networking equipment previously used in our data centers;and obsoleted testing equipment previously used in our laboratories for the eng

217、ineering testing and verification of our products and other purposes.The electronic waste generated from these items is disposed of in accordance with the applicable laws and regulations,and the decommissioning of any electronic equipment used in our operations is handled with special care and by sp

218、ecialized companies or the original suppliers,as appropriate.28 SUSTAINABILITY REPORT 2020OVERVIEWAs a global company with an international customer base,getting the right products to our customers around the world at the right time is of paramount importance to us.In addition to efficiency and oper

219、ational excellence,our approach to managing our supply chain focuses on three elements that are critical to maintaining our commitment to sustainability:1.Responsible Sourcing:1.1 We are committed to sourcing conflict-free minerals for use in our products.1.2 We respect human rights and do not toler

220、ate slavery,human trafficking,forced or involuntary labor or child labor.1.3 We leverage a diverse supplier base to provide quality goods and services and to promote economic inclusion.1.4 We monitor the use of chemicals in our products and ensure chemicals and materials are handled in an environmen

221、tally responsible manner.2.Responsible Supply Chain Management 2.1 We leverage Responsible Business Alliance(RBA)audits to promote and maintain accountability.2.2 We hold our suppliers to high standards of social,environmental,and safety practices and expect their adherence to our Code of Supplier C

222、onduct.2.3 We conduct periodic supplier assessments and reviews to drive continuous improvement.2.4 We provide product lifecycle information to facilitate product adoption and product transition by customers.3.Responsible Market Competition 3.1 We establish,preserve,and enforce our intellectual prop

223、erty rights to stay competitive in the market.3.2 We respect the intellectual property rights and data of our suppliers,customers,and other third parties.3.3 We combat counterfeit products and encourage customers to purchase directly from us or our authorized distributors to receive reliable and qua

224、lity products.3.4 We compete fairly and conduct business in accordance with the applicable laws and regulations.SUPPLY CHAIN429 SUSTAINABILITY REPORT 2020CONFLICT MINERALSDiodes is dedicated to ensuring that we use responsibly sourced minerals in both our supply chain,as well as through our supplier

225、s.The armed conflict and human rights atrocities that proliferate and are funded by the exploitation of natural resources in the Democratic Republic of Congo(DRC)are unacceptable and any manufacture of product connected with this will not be tolerated.Commonly known conflict minerals are those such

226、as tantalum,tin,tungsten,and gold(3TG).Conflict minerals originating from the DRC must not be included in materials or products supplied to Diodes or its subsidiaries.We are committed to ensuring an ethical and diverse supply chain that is focused on responsible mineral sourcing.Diodes“Statement on

227、Conflict Minerals”describes our approach and commitment to work towards a goal of sourcing only conflict-free materials in our products.We are committed to the sourcing of raw materials in a way that supports human rights,labor,health and safety,the environment,and ethics.Consistent with this commit

228、ment,we address the issues associated with the harvesting,extraction,and transportation of raw materials as a global responsibility applicable to all substances used in our productsunbounded by specific materials or locations.Diodes Incorporated Statement on Conflict Minerals Diodes Conflict Mineral

229、s-CMRT Cobalt Reporting Template Conflict Minerals Report 2020RESPONSIBLE BUSINESS ALLIANCE VALIDATED AUDITSWith a strong commitment to manufacturing our products responsibly and sustainably,we align our business practices and operations with the Code of Conduct published by the Responsible Business

230、 Alliance(RBA),formerly the Electronic Industry Citizenship Coalition(EICC),a leading industry coalition dedicated to corporate social responsibility in global supply chains.The RBA Code of Conduct establishes standards to ensure safe working conditions in the electronics industry,industries in whic

231、h electronics is a key component,their supply chains,and that workers are treated with respect and dignity and that business operations are environmentally-responsible and ethically-conducted.The RBA Code of Conduct is based on international principles and norms that we support and incorporate in ou

232、r business practices,including the United Nations(UN)Universal Declaration of Human Rights,the UN Guiding Principles on Business and Human Rights,and the International Labor Organizations Declaration on Fundamental Principles and Rights at Work.Through its rigorous RBA Validated Assessment Program(V

233、AP),Diodes endeavors to ensure that its operational activities are consistently conducted in alignment with the RBA Code of Conduct and Diodes quality standards and procedures.In particular,our Chengdu manufacturing site and two of our manufacturing sites in Shanghai received Silver status recogniti

234、on from the RBA.Diodes Shanghai Kaihong Electronic Co.RBA auditRecognition thatShanghai KaiHong ElectronicNo.999 ChenchunRoad,XinqiaoTown,Songjiang County,Shanghai,ChinaCompleted the RBA Validated Audit Process achieving SILVER StatusWithout any Priority findings achieving a score of 164.2/200Valida

235、ted Audit Report:VAR-20200824-CN-08B02-2Audit date:July 28,2020Certificate issue date:August 25,2020Expiration date:July 28,2022v1.2-Oct 2018Diodes Shanghai Co.RBA AuditThrough its rigorous Validated Assessment Program(VAP),Diodes received Silver recognition at two of its Shanghai manufacturing site

236、s during their initial RBA audits.Recognition thatDiodes ShanghaiNo1.Lane 18,San Zhuang Road,Songjiang Export Processing Zone,Shanghai,ChinaCompleted the RBA Validated Audit Process achieving SILVER StatusWithout any Priority findings achieving a score of 180.6/200Validated Audit Report:VAR-20200730

237、-CN-01A01-3Audit date:July 30,2020Certificate issue date:August 25,2020Expiration date:July 30,2022v1.2-Oct 201830 SUSTAINABILITY REPORT 2020UK Modern Slavery Act StatementDiodes Incorporated conducts business in accordance with our core values of integrity,commitment,and innovation.As a globally-tr

238、aded business committed to protecting human rights,we take seriously the responsibility of preventing modern slavery in our business and supply chains.We are committed to upholding the best practices and remaining vigilant to continuously improve.Diodes takes its social responsibilities very serious

239、ly and conducts its business in accordance with its core values of integrity,commitment,and innovation.Human Rights DocumentsModern Slavery Act 2015-2020 StatementSUPPLY CHAIN MANAGEMENTSustainability is represented in our core values of integrity,commitment,and innovation.We strive for environmenta

240、l sustainability,social responsibility,corporate citizenship,and responsible sourcing to have a long-term,positive impact on our stakeholders:communities,employees,suppliers,customers,and investors.These corporate responsibility expectations are incorporated into the business processes we use with o

241、ur suppliers so as to maintain and improve supply chain accountability.With our strong commitment to operating our business in a sustainable and socially responsible manner,we expect our suppliers to join us in this commitment and conduct their businesses based on this shared set of values and princ

242、iples.Customers are one of our key stakeholders.With a customer-centric focus,we are committed to designing,manufacturing,supplying,and supporting high-quality and high-reliability products.We adopt a robust quality management system that incorporates supplier quality control and supply chain securi

243、ty processes so that we can consistently source and deliver high quality products.Consistent with our Anti-Counterfeit Policy,supply chain integrity is of critical importance to us and our customers.We encourage customers to purchase directly from Diodes or our authorized distributors to ensure rece

244、ipt of authentic Diodes products.This minimizes any safety or reliability risks associated with counterfeit or compromised semiconductors in the supply chain.SUPPLIER MANAGEMENTDiodes subscribes to the Code of Conduct published by the Responsible Business Alliance(formerly the Electronic Industry Ci

245、tizenship Coalition).While we do not have a specific or formalized labor rights certification program for our suppliers,we expect our suppliers to recognize and conduct their business in a manner consistent with the RBA Code of Conducts requirements.We communicate our Sustainability expectations thr

246、ough our Code of Supplier Conduct.31 SUSTAINABILITY REPORT 2020The CSER Code of Supplier Conduct is modeled on the RBA Code of Conduct that defines labor,health and safety,environmental standards,business ethics standards,and a management system to assure continued compliance with this RBA Code of C

247、onduct.The RBA is a leading industry coalition dedicated to corporate social responsibility in global supply chains.One of the most fundamental RBA programs is the Validated Assessment Program(VAP),which is the leading standard for onsite compliance verification and effective,shareable auditswhich a

248、ll rely on approved audit firms.We have various principles and requirements outlined in our policies that we expect our suppliers to adhere to and conduct business consistent with,including:CSER Code of Supplier Conduct Corporate Social&Environmental Responsibility Statement Supplier Letter Human Ri

249、ghts and Workforce Labor Rights Policy Environmental Policy Anti-Bribery and Anti-Corruption Policy Conflict of Interest PolicyWe are committed to sourcing materials from suppliers who operate their supply chains in a socially-responsible manner.We award business to suppliers who commit and adhere t

250、o the applicable laws and regulations and whom act fairly and with integrity,compete in an ethical manner,provide a safe and healthy working environment,treat stakeholders with respect and dignity,and respect internationally proclaimed human rights.Those doing business with the Company are required

251、to comply with the applicable law of the countries in which they do business.We generally reserve the right to require our direct suppliers to periodically acknowledge in writing their compliance with the applicable laws,regulations,and the Companys Code of Supplier Conduct and related policies.The

252、Company maintains the right to inspect suppliers to monitor their compliance with the applicable laws and adherence to the Companys Code of Supplier Conduct and various supplier-related policies(including environmental management and compliance requirements).In the event that an inspection reveals a

253、 suppliers non-compliance,we will address these issues on a case-by-case basis.We reserve the right to terminate our business relationship with any supplier who fails to comply with these requirements or resolve the non-compliance in a satisfactory time frame.We adopt a flexible manufacturing strate

254、gy including leveraging external assembly,test subcontractors,and wafer foundries to fulfil additional capacity needs beyond our installed base of owned capacity.We require these critical external sourcing suppliers to comply with our quality specifications.Our corporate supplier quality specificati

255、ons encompass a wide range of topics such as quality controls,reliability,quality system requirements,change management,continuous improvement activities,conflict minerals,and data retention.As a key stakeholder in our supply chain,we engage frequently with these critical external sourcing suppliers

256、 throughout the year and we evaluate their performance through periodic quality scorecard assessments and business reviews.32 SUSTAINABILITY REPORT 2020SUPPLIER DIVERSITY&INCLUSIONAs a multinational company with a global footprint,we engage with a wide range of suppliers and envision developing a di

257、verse and inclusive global supply chain network.We believe diversity fuels innovation and allows suppliers to develop more innovative products and solutions that serve our business needs.We encourage engagement with diverse-owned businesses that offer high-quality products and services,as well as co

258、mpetitive prices.Our commitment to support supplier diversity helps us attract a wide range of qualified suppliers to support our business needs and optimize our entire value chain.Diodes expects suppliers to implement a CSER Code of Supplier Conduct that is modeled on the Responsible Business Allia

259、nce(RBA),which defines labor,health and safety,environmental,business ethics standards,and a clear management system to assure continued compliance with this code.The RBA is the worlds largest industry coalition dedicated to corporate social responsibility in global supply chains.One of the most fun

260、damental RBA programs is the Validated Assessment Program(VAP),which is the leading standard for onsite compliance verification and effective,shareable auditswhich all rely on approved audit firms.Diodes also requires its suppliers to abide by our Code of Supplier Conduct,which calls for direct supp

261、liers to comply,at a minimum,with the applicable labor and environmental laws and regulations of the countries in which products are grown,produced,and in which they have operations.This includes laws against human trafficking,compulsory prison labor,child labor,slave labor,or physical abuse of work

262、ers,and to monitor their suppliers for compliance with the labor and environmental laws and regulations of the countries in which they have operations.RESPONSIBLE USE OF MATERIALS AND CHEMICALS IN OUR PRODUCTSSemiconductor manufacturing processes are complex and require the use of an assortment of m

263、aterials and chemicals during the wafer fabrication and product assembly operations.We are committed to selecting and handling these materials and chemicals(including hazardous substances,if any)in an environmentally and socially responsible manner so as to protect the environment,and our employees,

264、customers,and communities.We regularly monitor the use of materials and chemicals required in our production manufacturing processes,and provide personal protective equipment(PPE)and implement safety protocols to ensure the safe handling of chemicals.Where possible,we identify and substitute environ

265、mentally preferred alternatives to the materials and chemicals used in our manufacturing to reduce the impact on our environment.We remain compliant with applicable legal and regulatory requirements and maintain the quality and reliability of our products.33 SUSTAINABILITY REPORT 2020We enforce rigo

266、rous product compliance with the EU Directive regarding the Restriction of Hazardous Substances(RoHS)2011/65/EU and the REACH Directive 2006/1907 on the Registration,Evaluation,Authorization,and Restriction of Chemicals.We provide customers with information on the chemical composition of the materia

267、ls used in our products as further described in our master Certificate of Compliance(master CofC).All products of Diodes Incorporated,including its subsidiaries,are REACH compliant.Where substances of very high concern(SVHCs)are contained in Diodes products,they are listed in our master CofC and eit

268、her registered for usage,exempt from registration requirements,or present as impurities.All products of Diodes Incorporated,including its subsidiaries are RoHS compliant.Some use exemptions to enable their compliance.These are listed in our master CofC.RoHS compliance is indicated on shipping labels

269、 that are attached to packing materials,such as reels and shipping boxes.Diodes is committed to conflict-free sourcing of tin,tantalum,tungsten,and goldwhich are widely used in manufacturing in the semiconductor industry.These metals are derived from minerals that have a variety of sources around th

270、e world.One potential source has historically been the Eastern region of the Democratic Republic of Congo(DRC).That region is currently the site of armed conflict,and mining profits by local military groups there are reportedly contributing to human rights abuses,environmental damage,and theft from

271、DRC citizens.We require our suppliers to undertake reasonable due diligence with their supply chains to ensure these metals are not being sourced from the DRC or adjoining countries,unless they are purchased from smelters or refiners listed as“conformant”on the Responsible Minerals Initiative(RMI)we

272、bsite.We have surveyed relevant suppliers of components and raw materials concerning the origins of these metals.The result of this survey,in the form of the RMI reporting template,can be found in our Conflict Minerals Report.PRODUCT LIFE CYCLE AND END OF LIFEOur products are used in a wide variety

273、of applications by our customers,and product longevity and continuity of supply are important procurement considerations.We adopt a flexible manufacturing strategy and multiple inventory management disciplines to meet our customers expectations of product longevity and supply continuity consistent w

274、ith industry standards.We are committed to following a controlled,documented,and transparent business process should a product reach the end of its life cycle,and we will collaborate with our customers to help facilitate a seamless product transition in the event a product is discontinued.When avail

275、able,we seek to provide product life cycle information to our customers for their product design and planning purposes.We also make available product change notifications consistent with J-STD-046 for product/process changes and J-STD-048 for product discontinuance.Continuity and reliability of the

276、supply of materials and chemicals used in our product manufacturing are critical to our longevity and continuity of supply commitments to our customers.To help mitigate any risks of supply shortage and the impact on our operations,we use multiple suppliers for critical materials and chemicals.We als

277、o monitor the applicable regulatory restrictions that may be applied to the importation and use of such materials and chemicals and that may otherwise impact their availability.34 SUSTAINABILITY REPORT 2020INTELLECTUAL PROPERTY PROTECTION AND COMPETITIVE BEHAVIOURDiodes respects the intellectual pro

278、perty rights of third parties and also takes actions to establish,preserve,and enforce its intellectual property rights in order to stay competitive in the semiconductor market.In addition to patents,trade secrets,copyrights and other intellectual property rights owned by us,examples of our trademar

279、ks can be found here.Use of our trademarks require prior authorization from us and is subject to these guidelines.We may obtain patents,trademarks,copyrights,and other intellectual property rights from time to time to be used as part of our business.Innovation is an integral part of our core values.

280、By providing patent incentive awards to our employees,we recognize their contribution to our intellectual capital and encourage innovation in all organizational levels and functions.We may assert our intellectual property rights against infringers so as to protect our intellectual capital and IP inv

281、estment,and to ensure our freedom of operation.As recommended by the SASB Code TC-SC-520a.1 regarding Intellectual Property(IP)protection and Competitive Behavior,we track the total amount of monetary losses as a result of legal proceedings associated with anti-competitive behavior regulations.Durin

282、g the reporting years of 2018,2019,and 2020,we were not involved in any legal proceeding associated with anti-competitive behavior regulations(e.g.price-fixing anti-trust behavior,patent misuse,or product bundling aimed to limit competition);therefore,we did not incur any monetary losses or liabilit

283、ies associated with the enforcement of such anti-competitive behavior regulations.We compete fairly and operate our business in compliance with the applicable anti-trust laws,and do not engage in anti-competitive behavior or monopoly practices.There have been no significant incidents of any non-comp

284、liance concerning product and service information,marketing or labelling regulations,or relating to bribery or corruption.35 SUSTAINABILITY REPORT 2020OVERVIEWWe take a stakeholder-oriented approach in our approach towards sustainability.The communities in which we operate in are a critical stakehol

285、der to us and we strive to make a positive impact on these communities.As a socially responsible corporation with a global footprint,we are committed to the following:Developing sustainable products that contribute to the health and well-being of both our communities,and our planet.Conducting busine

286、ss with integrity and high standards of business ethics,and combating bribery and corruption as well as cybersecurity threats Supporting our communities through promotion of science,technology,engineering,and math(STEM)Participation in disaster relief projects and charitable giving to underserved co

287、mmunitiesSUSTAINABLE PRODUCTSWe are privileged to partner with our customers in building sustainable products and applications that contribute to the health and well-being of both our communities,and our planet.Our semiconductor devices can be incorporated into a wide range of applications,including

288、 energy-efficient products that are used in factories,transportation,electric and hybrid vehicles,vehicle charging stations,LED lighting,smart home technologies,green electronics,and telehealth medical equipment,as well as products used for energy saving and pollution elimination purposes.We collabo

289、rate with our customers in the development of sustainable products to help them and their customers reduce their overall carbon footprint.Examples of our collaborative efforts on green factory automation and green-energy initiatives include robotics,automated QR scanners,and products used in solar c

290、ell systems,wind power generators and the conversion to full electric vehicle systems.SOCIAL RESPONSIBILITY536 SUSTAINABILITY REPORT 2020OUR RESPONSE TO COVID-19At Diodes,we operate in many parts of the world and see the impact COVID-19 has on communities where our employees and stakeholders live an

291、d work.As we navigate through this unprecedented time,we are committed to protecting our employees and stakeholders and supporting our workforce and communities.The health and well-being of our employees continues to be our top priority.We have changed our business practices to include:Providing ons

292、ite facial masks,face coverings,and other personal protective equipment(PPE)as well as alcohol-based hand sanitizers and disinfectants;Installing Plexiglas,desk and table divider shields,and other separation panels in meetings rooms,cafeterias,and other communal areas;Increasing the frequency and ex

293、tent of cleaning and sanitizing our facilities;Using ultraviolet disinfection lights to sanitize workspaces,meeting rooms,communal areas,and incoming deliveries;Providing and paying for accommodations to employees who are subject to quarantines and unable to return home;Providing paid leave to emplo

294、yees who participate in COVID-19 pandemic response operations;and Continuing to raise awareness regarding workplace health and safety protocols in alignment with government guidance.We collaborate with local governments in their COVID-19 recovery programs,infection control and prevention plans,and a

295、ctively promote awareness of health and safety measures to protect our communities.As an example,our support of frontline health workers was recognized through certificates of appreciation issued by the Affiliated Hospital&Clinical Medical College of Chengdu University.COVID-19 Sanitizing gel dispen

296、sers,personal protection equipment,reminder signage,temperature checks,safety mirrors so people can see around corners,and desk shields are just few ways Diodes made its facilities safer for its employees and visitors.FACE COVERINGS For example corridors,stair wells,exits,entrances,kitchens,toilets

297、and conference rooms.All contractors and visitors will be supplied a mask by security.Wear a face covering in all communal areas where it is likely those from different work groups will mix.Thank you for your co-operationUSE A FACE COVERING IN COMMUNAL AREASCORONAVIRUS COVID-19 OFAB The safety measu

298、res that have been been put in place have been excellent and the new kitchen has made a big difference.I feel the company went above and beyond with all the protocol measures.Susan Reaney,Production Fab,Greenock,UK“”37 SUSTAINABILITY REPORT 2020 https:/ our manufacturing facility at Greenock,we dona

299、ted 17,000 face masks to help protect and support the healthcare workers on the frontlines of the pandemic.These face masks were added to the stock of personal protective equipment(PPE)held by Inverclyde Health and Social Care Partnership.As recognized by Councilor Robert Moran with Inverclyde Counc

300、il,this kind of community spirit will help us come out of the pandemic stronger.In our care for the senior citizens community and dementia patients,our manufacturing facility in Oldham,U.K.donated face masks and aprons to their local community.In addition,many of our employees volunteer their time a

301、nd resources for COVID-19 pandemic response programs in their communities and we applaud their participation in these relief efforts through public recognition at the sites.Diodes is committed in doing everything we can to expedite shipment and ensure supply of our products that are used in healthca

302、re technologies and medical equipment that are essential for the diagnostics and treatment of COVID-19.We work with local governments to ensure that our facilities remain in operation or resume manufacturing activities promptly so that we can continue manufacturing products that are critical to the

303、frontline health workers,the medical community,and our society.In Taiwan where Diodes has a strong business and manufacturing presence,upon learning about the pressing need for medical equipment to treat COVID-19 patients,Diodes took prompt actions and contributed NT$6 million(approximately US$214,0

304、00)to Cathay General Hospitals Anti-Epidemic Fund.The financial contribution was used to purchase twelve sets of intensive care ventilators and one set of non-invasive hemodynamic monitor to support the hospitals treatment of COVID-19 patients and its epidemic prevention efforts.According to Cathay

305、General Hospital,the hemodynamic monitor is a much needed medical equipment for the hospital as it helps with the remote monitoring of patients with severe illness and allows the hospital to more effectively allocate its medical resources.In recognition of Diodes deep commitment to protect and promo

306、te the well-being of stakeholders in the local community,Cathay General Hospital awarded a certificate of appreciation to Diodes.38 SUSTAINABILITY REPORT 2020We are making every effort to assist our customers in the ongoing global fight against COVID-19 by supporting many medical applications,includ

307、ing diagnostic and tomography imaging systems,such as ultra-sound monitors,X-ray systems,and pulse oximetry monitors.Diodes delivered switching diode products for personal protective equipment used by first responders and health care providers so they can provide excellent care while still maintaini

308、ng their own health and safety.Similarly,our MOSFETs,diodes,crystals,and crystal oscillators have been adopted in a number of medical applications ranging from testing equipment to ventilators,especially those to fight COVID-19.Despite the supply challenges faced by the global semiconductor industry

309、,we remain committed to supporting our customers and the markets they serve.We were honored to receive an appreciation award from one of our customers recognizing our outstanding execution and delivery performance.Just a note of thanks for the work that has gone into making the site as safe as possi

310、ble for the workforce.I was very anxious about returning,but I do feel comfortable on site in the new environment we find ourselves in.Andy Jablonski,Manchester,UKSemtech Appreciation Award to Diodes Shanghai for manufacturing execution and excellence during the pandemic.In the Dallas-Fort Worth are

311、a,Diodes partnered with local organizations in a“Mask Drive”and provided funding to donate over 8,000 masks to multiple schools in local independent school districts(ISD),such as Garland,DeSoto,Plano,Frisco,Carrollton,Richardson,Irving,and Allen ISDs to help provide a safe learning environment for s

312、tudents and staff.“”39 SUSTAINABILITY REPORT 2020BUSINESS ETHICSDiodes is committed to operating with a strong sense of integrity,critical to maintaining trust and credibility with our stakeholders.We believe that long-term,trusting business relationships are built by being honest,open,and fair.We a

313、re committed to fostering a culture of integrity that starts with the management team modelling the right way and employees doing the right thing across all levels of the organization.Our promise is to uphold high professional standards in all of our global business operations and also expect the sa

314、me from our vendors and suppliers.These values are embedded in our policies and are applicable to all employees,suppliers,and third parties with whom we partner:Code of Conduct Code of Business Conduct Anti-Bribery and Anti-Corruption PolicyDiodes employees are required to familiarize themselves wit

315、h the Code of Business Conduct and related policies and procedures.New employees,as part of the onboarding process,are required to acknowledge certain policies and procedures including our Code of Business Conduct.Each year,employees are required to formally acknowledge that they have read and will

316、comply with the Code of Business Conduct.This mechanism helps increase awareness of acceptable business conduct and allows us to deal with issues as they arise.In 2019,we launched a web-based Ethics and Code of Conduct course intended for 100%of our employees worldwide.We also conducted face-to-face

317、 training at some of our international sites.In 2020,we launched online courses covering topics such as cybersecurity,anti-harassment,and anti-bribery and anti-corruption;on average,we achieved approximately 99%training completion rate.We will continue to utilize the online global employee training

318、programs to increase awareness of and promote ethical business conduct as we strive for zero ethics violations.Diodes core values are incorporated in the expectation of integrity,honesty,and fairness in our business dealings.Our“Open Door”policy is a key element of supporting this expectation,and is

319、 reflected in our accounting,internal controls,and auditing practices.Employees are encouraged to speak up without fear of retaliation or repercussions.Managers are accountable for maintaining a work environment where employees feel comfortable to express their concerns freely.Employees have access

320、to a number of reporting channels,including reporting to their supervisors,Human Resources and Legal and Compliance departments,as well as our hot line service,to communicate incidents or suspected incidents of misconduct.Employees and our external stakeholders can utilize the hotline operated by an

321、 independent,external service company to express concerns if they experience or suspect a breach of business ethics or possible violations of our Code of Business Conduct or Code of Supplier Conduct or related polices.Interested parties have the option to report their concerns anonymously via this t

322、hird-party service.We are not formally tracking any in-person or in-office visits by employees who report concerns and we utilize the external service company to monitor and track incoming reports.The telephone hotline is designed to give employees,suppliers,customers,and others with whom we partner

323、 a way to anonymously and confidentially report suspected violations of our standards of conduct,policies,laws,or regulations regarding any questionable accounting,internal controls,or auditing matters.Additionally,reporting can be made online at:https:/ SUSTAINABILITY REPORT 2020The telephone hotli

324、ne service supports reports in English as well as languages common to our areas of operation.All hotline reports received are reviewed and evaluated by a committee comprised of representatives from the Audit,Finance,Operations,and Legal&Compliance functions to determine the appropriate action to add

325、ress the allegation.If warranted,an investigation is undertaken to determine the validity of the allegation and to identify appropriate actions to be taken as a result of the investigation.We utilize these reports to help manage and identify potential areas of ethical risks and business misconduct,a

326、ssess the effectiveness of our ethics and compliance trainings,and to drive continuous improvement.Hotline InformationLocationFirst Stage Phone NumberSecond Stage Phone NumberUnited States855-316-2192Not ApplicableChina(North,Beijing)10-811855-316-2192China(North,Beijing)108-888855-316-2192Germany0-

327、800-225-5288855-316-2192Japan(NTT)0034-811-001855-316-2192Japan(KDDI)00-539-111855-316-2192Japan(Softbank Telecom)00-663-5111855-316-2192Korea00-309-11855-316-2192Korea00-729-11855-316-2192Korea00-369-11855-316-2192Taiwan00-801-102-880855-316-2192United Kingdom0-800-89-0011855-316-2192United Kingdom

328、0-500-89-0011855-316-2192United Kingdom0-800-013-0011855-316-219241 SUSTAINABILITY REPORT 2020COMBATING CORRUPTION AND BRIBERYBribery and corruption are key social concerns that affect our society,public service,and government accountability.Bribery and corruption also increase the cost of doing bus

329、iness and negatively impact companies ability to compete fairly on a level playing field.According to the Corruption Perception Index companies operating in countries with higher tolerance for corruption have increased fraud and compliance risks associated with bribery and corruption.One of Diodes c

330、ore values is Integrity.Diodes takes a strong stance against bribery and corruption.We prohibit any illegal offers that may inappropriately influence business decisions.Our employees,suppliers,and business partners are expected to comply with these standards of business conduct.Diodes products are o

331、ffered,purchased,and sold based on the strength of our product portfolio,quality,price,customer support,and other competitive business considerations.Our reputation as an ethical and trustworthy employer,supplier,and business partner is,in part,dependent on our ability to effectively manage this leg

332、al compliance area.We take a compliance-driven approach to monitor and manage this risk area,including internal policies and company-wide corporate ethics training;and we investigate any allegations of violations of these requirements.In our Anti-Bribery and Anti-Corruption Policy,we address anti-co

333、rruption and anti-bribery compliance requirements,consistent with those contained in the U.S.Foreign Corrupt Practices Act,the UK Bribery Act,and other applicable local anti-bribery and anti-corruption laws and regulations.Every employee,officer,and director of Diodes is required to comply with the Diodes Anti-Bribery and Anti-Corruption Policy and the applicable laws and regulations relating to b