Sustainability
Letter from the Chairman/CEO
Letter from the Chairman
To the partners who attend to the sustainable development of WPG Holdings,
Since 2021, the world has continued to face the impact of the Covid-19 pandemic and the Ukraine-Russian war. While the supply chain problems in the electronics industry have been relieved, the heating up of the pandemic has cast a shadow over corporate operations. In spite of facing many challenges, with the efforts of all colleagues, WPG Holding's revenue, net profit, and EPS in 2021 all hit record highs.
With the increasing stress on ESG in domestic and abroad, it has also prompted companies and governments to reflect on the importance of social and environmental issues, and it has also demonstrated the long-term accurate strategic positioning and investment of WPG Holdings. Internationally, we are upgraded to BBB in MSCI ESG rating in 2022, ranking the best in the global semiconductor component distributors; domestically, the Company is rated among the top 6-20% in the 8th Corporate Governance Evaluation.
WPG Holdings is focusing on the following five core aspects: "Corporate Governance, Sustainable Supply Chain, environmental sustainability, Human Capital, and Social Participation", and continues to make steady progress. While delivering good operational performance, we also collaborate with stakeholders to enhance our ESG competitiveness.
In terms of corporate governance, we continue to dedicate our efforts to setting up an effective corporate governance structure. In 2021, we added a female independent director, expected to improve the multiple perspectives of the Board of Directors’ decision-making and enhance the functions of the Board of Directors; and the Chief Sustainability Officer was established in January 2021 to deepen sustainable development. On top of that, in February 2022, the permanent ESG Office was officially established, which actively promotes a variety of sustainability projects and tracks the implementation of resolutions, determining the priority of ESG in organizational affairs. Corresponding to recent trends, we continue to incorporate different sustainability issues in our corporate development strategies.
For sustainable supply chains and services, intending to increase the efficiency of the logistics of the global electronic supply chain, we have proposed a new business model of "Logistics as a Service (LaaS)", which uses automated intelligent equipment to twist the traditional warehousing practices. The required parts of customers are directly sent to their production workshop at all speeds (B2B2P; Business to Business to Production Workshop), while improving the efficiency of the supply chain, we also expect to reduce overall carbon. The development of new business can also generate profits for stakeholders to achieve a win-win situation for the industry.
For environmental sustainability, WPG Holdings is very concerned about the environmental issues, so we aggressively save energy and reduce carbon emissions, and enhance the use of green energy; in response to the climate change crisis, the Annual Shareholders' Meeting in 2021, announced climate action goals corresponding to Paris Agreement; not only promise to achieve Net Zero Emissions by 2050, but also to achieve Net Zero Emissions in own operations including office buildings and warehouses by 2030, and comply with the framework of the Task Force on Climate-Related Financial Disclosure (TCFDtan) to strengthen climate governance. Meanwhile, the Company actively developed clean technological product solutions with engineers and customers, to assist in promoting the transformation of the green industry, and to create a sustainable supply chain together with value chain partners.
For human capital, WPG Holdings persists in developing employee functions, and is committed to creating a friendly workplace that is inclusive, diverse, innovative, and open. We set competitive compensation through the fair appointment of staff, performance management, talent cultivation, and compensation surveys and analysis. The company also conducts diversified education and training courses to encourage work-life balance. We believe that employees are the most crucial asset. It is always at the core of our strategy to keep on attracting and motivating the talent to involve. In 2021, we launched the "Employee Stock Ownership Trust Plan"(ESOT), attracting more than 90% of employees to participate. During the pandemic period, to protect the health of our colleagues, we have launched several pandemic prevention measures. We put the health and safety of our employees as the priority, and through rolling adjustments to advance deployments, to enhance the overall pandemic prevention capacity of the workplace and reduce the impact of the pandemic on business operations.
For social participation, we continued to encourage colleagues to participate in various social welfare to achieve a positive impact cycle on society. WPG is committed to youth training and caring for the disadvantaged. Through industry-academia cooperation, we share supply chain management knowledge and resources and provide a stage for the development of the youth in society, with the hope to connect the industry and academia to cultivate the elites in the industry in Taiwan and strengthen industrial competitiveness.
Looking forward, WPG Holding will consider the sound corporate governance as the cornerstone, continuing to practice the vision of " The First Choice of Industry • The Benchmark of Industry", and fully implement the core values of “Teamwork, Integrity, Professionalism, and Effectiveness", pressing on improving sustainable management, to build a resilient and sustainable enterprise, and construct long-term competitiveness; upholding the spirit of openness, carrying on with listening to the voice of the market, and maintain good interaction with our stakeholders, such as customers, suppliers, employees, banks, investors, government agencies, etc, jointly pursuing the perpetual goal of "Grow Together, Strive Together and Win Together”.
Chairman Simon Huang
Letter from the CEO
Since early 2020, the spread of the COVID-19 pandemic around the world has led to adjustments in the political, economic and industry status. We believe that 2020 is a turning point, as uncertainties from the COVID-19 pandemic, US-China trade war and tech war significantly affects the adjustment and structure of various industry supply chain globally. It is indeed challenging to respond to “broken chain” crisis quickly, to restruct supply chain and the same time to seize the opportunity of transformation.
WPG commenced digital transformation since 2015 and has achieved great performance in the first stage in 2020. Thanks to excellent internal and external cooperation including our front-end staff, warehouse staff, technical colleagues and IT team, WPGDADAJIA, WPGDADABANG and WPGDADATONG all achieved the target of "202020%" set by the BOD Outing in 2017, which was an outstanding performance!
In the past 5 years, WPG’s front-end and back-end departments have been focusing on customer needs and seeking available tools and procedures in their professional fields for "Digitalization in Business - From Offline to Online Services". The company explored new possibilities, and provided various services to major stakeholders.
In the next decade, starting from 2021, WPG plans to develop new generation models, including LaaS (Logistics as a Service) to BPaaS (Business Process as a Service), starting from First Principle Thinking to Zero-Based Thinking, and imagine new industry business dimensions for the next decade.
WPG’s core business of electronic component distribution will be based on lean operating processes and structures. Under strong ambition and service spirit, the business management team’s main targets include: "Global Deployment, Large-Scale, Double Output Value, Happy Enterprise, Platform Empowerment, and Seamless Succession". The company will further develop and deepen the Objectives and Key Results (referred to as OKR) mechanism introduced in 2019 so that the front- and back-end services and teams in all regions can obtain the guidelines and planning context. The teams work together and form alliances with the hope that WPG will remain strong and resourceful under the changing business environment, and develop steadily and quickly towards the vision of “To Become the First Choice of Industry. To Become the Benchmark of Distribution.".