Chairman's Expectation
In recent years, the heavy electrical equipment industry has experienced unprecedented transformations. The energy transition represents an irreversible global trend. The large-scale integration of renewable energy into power grids, the replacement of aging power infrastructure, and the increasing electricity demand driven by AI data centers have collectively propelled power infrastructure to a position of paramount importance. Taiwan occupies a critical role within this context, representing both an opportunity and a responsibility.
As customers increasingly seek systemic energy solutions rather than merely purchasing equipment, and as supply chains prioritize carbon footprint reduction and environmentally sustainable processes alongside delivery time and cost considerations, sustainable transformation emerges not as an option but as an imperative for the survival and development of enterprises. The following discussion will present our expectations and commitments for the future, examined through the lenses of environment, society, and governance.
▌Environmental
Occupational safety and health management is rigorously implemented through the provision of various internal and external training programs, the integration of intelligent monitoring systems and automated equipment to mitigate high-risk operations, the administration of regular health examinations, and the proactive promotion of sports clubs to foster a safe and healthy work environment. The Education and Training Committee is tasked with developing annual employee training plans and budgets that correspond with the Company's strategic development objectives. Adherence to human rights policies is maintained through the establishment of a comprehensive welfare system and the provision of diverse career development pathways aimed at encouraging the younger workforce to engage, remain, and advance within the organization. The principles of diversity, equality, and inclusion are systematically applied to eradicate gender and age discrimination, thereby enhancing the representation of women, as well as middle-aged and older employees, in both technical and managerial roles. Furthermore, effective internal communication channels and a grievance mechanism are instituted to safeguard the rights of all employees. Regular philanthropic contributions, supported by the group's resources, are strategically leveraged to optimize the impact of charitable donations, community outreach initiatives, and cultural and artistic activities, collectively advancing the objective of cultivating a harmonious and inclusive society.
▌Social
Through our “Green Energy Giant” brand, Shihlin Electric integrates solar energy, energy storage, and charging applications to offer smart energy management solutions. We are committed to fostering low-carbon innovation and maintaining our leadership in the green economy. Our capabilities now span across the planning, design, civil works, electrical engineering, and maintenance of solar booster stations, modular substations, monitoring systems, and energy storage sites. Moving forward, we aim to integrate with behind-the-meter energy operations and power dispatching to become a total solutions provider for solar, charging, and storage systems. In the EV segment, we are developing power systems ranging from 10kW to 150kW for electric cars and motorcycles, while actively expanding into the EV charging station market. Since launching our three-phase solar installation plan in 2022, we successfully completed Phase 1 by the end of 2024, achieving 1,940 kW in installed capacity, with a goal completion rate of 102%. As our Heavy Electric Factory expands, our solar installation area continues to grow, and we have successfully obtained T-REC (Taiwan Renewable Energy Certificate) recognition—showcasing our determination and momentum in driving green transformation.
▌Governance
Establish a Sustainability Committee governed by Independent Directors; formally integrate Environmental, Social, and Governance (ESG) performance into the compensation and evaluation of senior management; and provide regular progress reports on sustainability objectives to the board. Implement rigorous internal control and audit mechanisms to mitigate prevalent industry risks such as corruption and bid-rigging; routinely perform scenario analyses addressing climate change, supply chain disruptions, and geopolitical events, and proactively implement countermeasures. ESG Reports are subject to third-party verification; a dedicated sustainability website is established to transparently disclose carbon emissions, thereby enhancing transparency and facilitating stakeholder engagement.
▌Conclusion
Dear Partners, I firmly believe that prioritizing environmental protection, employee well-being, and establishing transparent and trustworthy governance are not only social responsibilities but also essential for enhancing our international competitiveness and securing the trust of our customers and investors. Let us commence today, building upon the three pillars of ESG, and take deliberate steps toward making our Company a benchmark in the heavy electrical industry.
Contact：Sustainable Development Division ESG@seec.com.tw