A new era has dawned, and we are moving from the digital to a faster and larger quantum era. The rapid progress in technology and industry has improved the quality of life for human beings, but in the process we remain unaware of the magnitude of natural resources we are consuming and the environmental pollution we are causing. Ever since Delta’s founding, we have known that although industrial development brings convenience to our lives, it also depletes the Earth’s resources and affects the natural ecology. For many years, Delta has adhered to the business mission of “To provide innovative, clean and energy-efficient solutions for a better tomorrow” in the hope that employees will design innovative products to solve environmental problems, so that we are not a problem “maker” but a problem “solver”.

Nearly half of the carbon-reduction strategies proposed by the International Energy Agency (IEA) to reduce global warming can be achieved by improving energy efficiency in three major sectors, namely, terminal equipment, transportation, and new buildings. Delta is committed to developing products and solutions for these sectors, which includes improving power-supply efficiency, developing electric vehicles and charging solutions, and constructing green buildings. Since Delta began investing in the development of switched-mode power-supply products in the 1980s, we have worked continuously to improve the efficiency of our powersupply products. The efficiency of all products currently exceeds 90%, directly assisting our global customers with energy conservation and carbon reduction. From 2010 to 2019, 31.4 billion kWh of power has been saved. In addition, Delta actively participates in activities related to international climate issues. To accelerate the low-carbon transformation of transportation and respond to the goal of keeping global warming below 2°C, Delta took the lead in joining the international EV100 initiative for electric vehicles in 2018 as the first electric-vehicle energyinfrastructure provider. Since 2006, Delta has ensured that all new factories will be green buildings and continues to promote building energy efficiency through our green-building energy-saving solutions. At present, 27 green buildings have been built around the world, and two green server rooms have obtained LEED greenbuilding certifications.

The United Nations Environment Program (UNEP)’s Emissions Gap Report released in 2019 showed that the world has not worked hard enough over the past 10 years to reduce carbon emissions and must accelerate the process. Between 2020 and 2030, more active carbon-reduction measures should be taken to reduce carbon emissions by 7.6% a year and to limit global warming to less than 1.5°C. The World Economic Forum’s Global Risks Report 2020 further pointed out that among the risks with the top five impacts, environment-related factors include failure of climate action, extreme weather events, extreme climate, and loss of biodiversity. Climate change has become the most concerning issue for global experts and policymakers for the last four consecutive years.

Delta has been actively devoted to carbon reduction as a corporate citizen. It has taken the lead in setting a global carbon-reduction target using scientific carbonreduction methods for reducing the carbon intensity by 56.6% by 2025 with 2014 as the base year, and has formed the Task Force on Climate-related Financial Disclosure (TCFD). Delta strives to implement mitigation and adaptation strategies in response to climate change through our actions.

Delta is constantly adopting different methods to raise public awareness of the climate crisis through environmental education. The Delta Electronics Foundation sends personnel to the United Nations Climate Change Conference every year to obtain the latest information. In recent years, Delta has also been organizing peripheral meetings at the Conference of the Parties (COP) to share its experience with internationally renowned think tanks, while seeking relevant international climatechange reports in real time. By 2019, Delta summarized and translated the Special Report on the Ocean and Cryosphere in a Changing Climate (SROCC) released by the Intergovernmental Panel on Climate Change (IPCC), which warns of the impact of climate change on global oceans, polar regions, coastal areas, alpine ecosystems, and human communities, and of the probability of an increase in extreme weather events. What’s worse, the continuous warming of the earth may cause about 70% of the permafrost to thaw, which may significantly increase the concentration of greenhouse gases in the atmosphere. The consequences could be disastrous. Furthermore, the impact of extreme climate on the distribution of water resources is also increasing, and global warming is getting worse. To improve people’s awareness of water resources, the Delta Electronics Foundation in collaboration with NHK Enterprises from Japan filmed a documentary “Water with Life” The film faithfully presents the impact of climate change on our natural water resources in 8K ultra-high image quality, while alerting the public to the challenges facing Taiwan now and in the future.

Environmental protection and energy conservation are issues I am deeply concerned about and I have long endeavored to find solutions. Natural disasters around the planet are becoming more devastating year after year, and we need everyone to immediately begin taking appropriate action. Governments and businesses in various countries must be more forward-thinking, and propose truly effective policies to focus on and even prevent environmental problems while developing their industrial activities and ensuring economic development. We must also raise the awareness of all human beings to protect the environment, conserve energy, love the earth and modify their lifestyles. Now is the time for all of us to work together for the sustainable development of our planet.

Delta continues to focus on our company mission “To provide innovative, clean and energy-efficient solutions for a better tomorrow.” We use our core technologies in power and electronics to integrate global resources, innovation, and R&D. Delta pays close attention to the development of CSR and aligns CSR strategies with business development goals. As a core value, we continue to extend our energy conservation experience around the world. We aim to achieve growth for the company as we work to mitigate the climate change crises, accomplish our energy conservation and carbon emissions reduction goals, connect with our global Sustainable Development Goals, and fulfill our role as a world-class corporate citizen.

Delta has long been dedicated to promoting sustainable development. We have received honors and recognition at home and abroad for our CSR achievements. This year has been a particularly fruitful year. In 2019, we won numerous awards and honors including selection for the fourth time as an “Industry Leader” in the Dow Jones Sustainability Indices for the Electronic Equipment, Instruments and Components Industry, for a sixth time Gold Award in the RobecoSAM Sustainability Yearbook, and for a third time as Climate Change “Leadership Level” in the CDP. We were also ranked among the Forbes Annual Global 2000 Ranking, FTSE4Good TIP Taiwan ESG Index, MSCI ACWI ESG Leaders Index, and Taiwan ESG Leaders Index. In addition, Delta received the “Annual Honorary Award” in 2019. This is the Global Views Monthly Annual Corporate Special Responsibility Award. In China, Delta was ranked among the Top 100 Foreign Enterprises with the Best Corporate Social Responsibility Reputation, and we received the 2019 Green Development Enterprise award from Southern Weekly. In Thailand, Delta received the Best Sustainability Award from the Stock Exchange of Thailand and the Thailand Sustainability Investment (THSI) Award. In addition, Delta received the ENERGY STAR Partner of the Year award for the outstanding energy conservation performance of the Delta Breez ventilation fan from the U.S. Environmental Protection Agency (EPA). It was Delta's fifth such award and the third consecutive year of winning the Sustained Excellence Award. These awards represent global recognition of Delta's accomplishments and the achievements of all employees.

Delta established its CSR Committee in 2007. To respond to international trends and intensify Delta's strategic ESG development, the Company, in 2019, established the role of Chief Sustainability Officer to take charge of and oversee Delta's sustainable development, connect to the United Nations Sustainable Development Goals (SDGs), and focus on these seven goals: climate action, industrial/innovative infrastructure, global partnership, sustainable cities and communities, affordable and clean energy, quality education, and responsible consumption and production. We also seek to implement effective communication with stakeholders and create greater added-value to achieve corporate sustainability and fulfill our obligations as a world-class corporate citizen.

Delta continues to improve corporate sustainability in corporate governance, environmental protection and energy conservation, employee relations, and social engagement. In terms of corporate governance, we enhanced the functions of the Board of Directors, improved supervision, and strengthened management functions. In response to the exacerbated impact of climate change on the world and increasingly severe loss of life and property, Delta became the first to introduce “Climate-related Financial Disclosures” to identify the risks and opportunities and the financial impact of climate change. Delta increased its capacity for adapting to and reducing possible climate risks. Delta emphasizes innovative R&D and continues to invest in product R&D and technological innovation, and has established R&D centers across the world. We invested 8.9% of total revenue for R&D and innovation in 2019. In addition, Delta regards suppliers as long-term partners. To work with suppliers and enhance their resilience, we have established short and medium-term objectives and formulated specific measures for effective promotion and implementation. The actual greenhouse gas reduction of key suppliers in 2019 amounted to 1.3%.

In terms of environmental protection and energy conservation, Delta pays close attention to climate change and actively participates in international initiatives. We signed the We Mean Business initiative for climate change in 2015 and committed to: “adopt a science-based emissions reduction target”, “report climate change information in mainstream reports as a fiduciary duty”, and “commit to responsible corporate engagement in climate policy”. In 2017, we adopted the science-based emissions reduction target (SBT) and committed to reducing carbon concentration by 56.6% by 2025 (using a 2014 baseline), which fully demonstrated our resolve for limiting global warming to less than 2°C in accordance with international standards. With the hard work of all our employees in energy conservation and carbon emissions reduction, we fulfilled our carbon emissions reduction goals in 2018 and 2019. We also joined the EV 100 global initiative of the Climate Group in 2018 and in 2019, and became the first company to set up electric vehicle charging facilities in 100% of our office locations in Taiwan to provide employees and customers with a friendly EV usage environment. We plan to gradually expand these initiatives to plants across the globe. We were also invited to Climate Week NYC for the first time in 2019 to share our experience in actions, strategies, and challenges in the low-carbon vehicles conversation.

Delta embraces our core competencies and implements energy saving and carbon emissions reduction through three energy conservation dimensions, which include products, factory operations, and green buildings. Delta continues to invest in product innovation and provides efficient power supply products to help clients around the world conserve electricity. We have helped our customers save 31.4 billion kWh of electricity between 2010 and 2019. This is equivalent to reducing approximately 16.74 million metric tons of emissions. Delta is committed to energy conservation management in manufacturing plants and implemented a total of 2,036 energy saving projects from 2011 to 2019. The projects saved approximately 262,464 MWh of electricity, which is equivalent to reducing approximately 207,474 metric tons of CO2 e emissions. Delta has facilitated the construction of 27 green buildings, including our main operation facilities as well as buildings donated to academic institutions over the past ten years or more, and 2 LEED-certified green data centers. Delta’s 15 certified green buildings and 5 donated campus buildings total conserved 21.48 million kWh of electricity in 2019, representing approximately 13,415 metric tons of CO2e reduction.

In addition, Delta, in 2019, launched 73 waste reduction measures and 97 water conservation solutions in our manufacturing plants, which reduced 2,346 metric tons of waste and 411.4 thousand metric tons of water consumption. Dongguan Plant introduced the UL 2799 Zero Waste to Landfill Standards in 2019. It received the highest platinum rating and achieved a 100% waste diversion rate (including 8% in thermal processing with energy recovery). It has become a Company milestone towards building a circular economy.

In terms of social development, talent competitiveness remains the key for Delta's continuous growth. Delta continues to engage universities across the world to recruit key talents from the United States, Europe, Japan, India, Singapore, and Malaysia. We use social media marketing and global internship programs to create a world-class employer brand. The Company offers competitive compensation structures to recruit and retain talents, and we pay particular attention to designing a connection and fairness between the Company's business performance and employee salaries. We also assess salary rates and economic indicators around the world to implement suitable adjustments. Delta has actively transformed into a brand company and solution provider. Delta uses a key talent echelon inventory and cultivation strategies to identify three major fields for learning to promote talent rotation and development of inter-disciplinary skills. In addition, Delta has greatly improved an online learning platform to help provide online learning resources in all regions so that employees can take local courses and study in different regions. We also actively expanded the Delta Management System (DMS). In 2019, Delta's global training expenditures totaled 10,330,748 USD and 47 hours per employee. With regard to employee relations and balanced diversity, Delta adheres to human rights standards, introduces human rights risk management, facilitates employee communication, and provides comprehensive health management to safeguard work and life balance. We also provide a care system that is more comprehensive than the legal requirements.

Delta has adopted three key strategies, including: popularizing green building and transportation; promoting science, energy education and climate action; and cultivating active talent, to make our contributions to society. The DeltaMOOCx online learning platform was designed by the Delta Electronics Foundation for regular high schools, engineering high schools, as well as technical universities to provide free online courses. To promote water risk resource awareness, Delta and the NHK Enterprises team produced an environmental protection documentary focused on water resources titled “Water with Life”. The screening of the documentary attracted more than ten thousand viewers including government decision makers, companies, and senior executives of media companies.

Sustainable development is a long-term business that benefits everyone. Delta shall continue to improve and use our core competencies in power and electronics to respond to the United Nations Sustainable Development Goals. We shall continue our efforts in cross-border and cross-sector collaboration to expand our influence and create a sustainable world for future generations.