Identification of Major Topics

In preparing its sustainability report, Billion continues to adopt a material topic analysis mechanism as the basis for sustainability management and information disclosure.Material topics are identified with reference to SASB Hardware industry indicators, peer disclosure practices, the Company’s operations, and stakeholder concerns.


Building on the topics disclosed in the 2023 and 2024 reports, external experts assessed actual and potential impacts across economic, environmental, and social aspects, including human rights, and considered sustainability priorities emphasized by international initiatives and potential investors. Based on this process, 15 sustainability topics were identified.



The Company further referred to the ESRS double materiality concept and analyzed both sustainability impacts and financial impacts. Through employee surveys and internal discussions, six material topics with significant economic, environmental, social, and financial impacts were confirmed as the basis for disclosure in the 2025 sustainability report.

ESG Topics Materiality Analysis Steps

1. Identify Stakeholders 2. Summarize ESG Issues 3. Survey Issues of Concern 4. Identification of Material Topics 5.Review and Discussion
Stakeholder Inclusiveness Principle Principle of Sustainability Context Materiality Principle Materiality Principle Completeness Principle
Through discussions and feedback from external experts, department heads and colleagues, and with reference to the stakeholder groups identified in the ESG reports of industry peers, identify inclusive stakeholders as the target of material communication. In 2025, employees and other workers, shareholders and other investors, customers, suppliers/contractors, banking institutions, and media were identified as the Company's 6 main stakeholders. Topics were collected based on the sustainability context, with reference to the GRI Standards, SASB Standards, TCFD recommendations, and peer industry topics. A total of 15 topics covering corporate governance, economic, and environmental aspects were identified as the topic pool for materiality assessment and scoring of positive and negative impacts. In 2025, external experts evaluated the topics and, together with internal discussions among company executives and colleagues, assessed their impact on the Company’s sustainable operations as a basis for topic prioritization. Based on the scoring results and the opinions of the Company's management, the materiality of each topic is analyzed and ranked, and material topics are identified. Topics with an average score of 4 or above for positive impact and financial relevance were identified as material to the Company. In addition, topics with a negative impact score of 4 or above were also considered material, even if the likelihood of occurrence was low. In 2025, a total of 6 material topics were identified, and effective management approaches were formulated for each topic. After identification, for the boundaries of material topics, Billion Group prioritizes the issues and incorporates them into annual work or goals. In the future, management will continue to be strengthened, and reviews will be conducted to determine if there is a need to adjust the material topics. Relevant information will be disclosed in the ESG report.

Material Topics Identification Results

Based on external expert assessments, employee surveys, and internal discussions, the Company identified six material topics for 2025: economic performance, customer privacy and information security, supplier environmental and social assessment, employee diversity and equal opportunity, occupational health and safety, and customer relationship management.


These topics reflect the Company’s focus on operational performance, information security, supply chain responsibility, talent development, workplace safety, and customer engagement as key directions for sustainability.


Compared with 2024, “Innovative Product R&D and Marketing” was removed as a standalone material topic and integrated into Chapter 3: Sustainable Product Innovation and Value Chain Management. The previously consolidated topics of “Supplier Social Assessment” and “Supplier Environmental Assessment” continue to be disclosed under “Supplier Environmental and Social Assessment.”


Based on the assessment results, the Company will continue to review its management mechanisms, performance, and disclosures. The relevant content was compiled by the Sustainable Development Committee and submitted to the Board of Directors for confirmation and publication.


Material Topics Objectives 2025

Economic Performance

Short-term Goal (2025) Targets for 2025 Achieved Targets in 2025 Targets for 2026
• The Company’s Power Business Division focuses on developing high-power industrial control power products, deepening relationships with key existing customers, expanding potential business opportunities, and continuing to seek investment targets to enhance Group synergies. • In 2025, driven by the gradual ramp-up and shipment of high-power products as well as ongoing business development, the Power Business Division’s overall revenue increased compared with 2024. In particular, the strategy of focusing on high-power products and newly developed products introduced into the portfolio yielded notable results, with both revenue and gross profit increasing year on year. In addition, amid heightened market exchange-rate volatility in 2025, the Power Business Division effectively managed costs and product mix, keeping its gross margin broadly in line with the 2024 level. • Looking ahead to 2026, Billion Group will continue to leverage its service advantage in providing one-stop integrated PV, energy storage, and EV charging solutions, while deepening its system integration and project execution capabilities. Operationally, the Group will focus on market expansion for core products such as C&I energy storage and solar PV, actively capture industry growth opportunities, and strengthen market deployment and business momentum in line with government subsidy policies and energy transition trends, thereby expanding its business scale and enhancing overall competitiveness.
• Billion Watts completed overseas demonstration sites in Japan and Australia to promote the Group’s own-brand products in international markets. • In 2025, Billion Watts expanded its business into Australia and identified four energy storage site planning projects, one of which began construction in 2025. In Japan, project development was slower than expected due to market conditions and policy uncertainty, and no actual project results were recorded during the year. • In 2026, Billion Group will continue to monitor market changes, adjust its business strategies to strengthen its operational capabilities, and continue to advance sustainable economic activities, aiming to maintain revenue from such activities at no less than 80% of total revenue.
• In 2025, Billion Group continued to monitor market changes and adjust its business strategies to strengthen operational capabilities, with revenue increasing by 25% compared with 2024. • In 2025, Billion Group’s revenue grew by approximately 4.2% compared with 2024, below expectations. This was mainly due to delays in product certification for certain products or services, which affected market promotion and sales schedules. Some customers also adjusted or postponed project development plans due to market changes and uncertainties in government subsidy policies. In addition, changes in U.S. tariff policies and the appreciation of the New Taiwan dollar created external pressure on overall revenue momentum, resulting in the annual operating targets not being fully achieved. —

Supplier Environmental & Social Assessment

Short-term Goal (2025) Targets for 2025 Achieved Targets in 2025 Targets for 2026
• In 2025, the Company and Billion Watts conducted supplier sustainability self assessment surveys, with an overall response rate exceeding 70%. • In 2025, the Company and Billion Watts conducted supplier sustainability self-assessment surveys, with an overall response rate exceeding 77.64%. • In 2026, the Company and Billion Watts will conduct supplier sustainability self-assessment surveys, targeting an overall response rate above 80%.
• In 2025, NoonSpare’s supplier evaluations scored above 80 points, and 95% of suppliers signed the Supplier Code of Conduct for Sustainable Development and completed policy communication to ensure compliance with environmental and social responsibility requirements. • NoonSpare did not achieve its originally planned 2025 supplier management targets, mainly due to changes in the energy storage market and the transition stage of behind-the-meter energy storage products. Product introduction and order intake remained unstable, while supply chain procurement was mostly for testing and small-batch purposes. As stable supplier relationships at scale had not yet been established, supplier evaluations and sustainability survey collection could not be effectively implemented, also affecting NoonSpare’s overall visibility into supply chain sustainability performance. • In 2026, NoonSpare will prioritize evaluations of major suppliers and promote supplier sustainability self-assessment surveys, targeting a response rate above 70%. Major suppliers will be selected based on procurement amount and strategic importance. As the supply chain management mechanism is still in its initial implementation stage, NoonSpare will first focus on establishing the evaluation system and data foundation, and plans to gradually improve survey response rates and evaluation standards in the following years to strengthen sustainable supply chain management.

Customer Relationship Management

Short-term Goal (2025) Targets for 2025 Achieved Targets in 2025 Targets for 2026
• Power Business customer satisfaction to remain above an average score of 9.4. • In 2025, the Power Business customer satisfaction score was 9.17, below target, mainly due to rising upstream raw material costs that led to product price increases and affected satisfaction. The Company will actively negotiate long-term contracts with suppliers to reduce price volatility and its impact on customer satisfaction. • BEC Technologies’ average customer satisfaction score to remain above 9.2.
• BEC Technologies customer satisfaction to remain above an average score of 9.2. • In 2025, Billion Watts’ customer satisfaction score reached 8.94, with a response rate above 48%. The response rate fell short of expectations mainly due to a decrease in trading customers during the year. • Power Business customer satisfaction to remain above an average score of 9.0.
• Billion Watts’ annual customer satisfaction survey to achieve an average score above 9.0 and a response rate above 50%. • In 2025, BEC Technologies’ average customer satisfaction score exceeded 9.5. • Billion Watts’ average customer satisfaction score to remain at 9.0, with a response rate above 50%.
• Billion EVC’s annual customer satisfaction survey to achieve an average score of 9.0. • In 2025, Billion EVC’s average customer satisfaction score was 9.27. • Billion EVC’s average customer satisfaction score to remain above 9.0.
• NoonSpare’s customer satisfaction survey to be conducted semiannually, with annual average customer satisfaction above 90%. • In 2025, NoonSpare’s average customer satisfaction reached 98%. • NoonSpare’s annual average customer satisfaction to remain above 90%.

Information Security

Short-term Goal (2025) Targets for 2025 Achieved Targets in 2025 Targets for 2026
• Fully implement the SmartIT asset management and endpoint security system to strengthen control over servers and endpoint IT equipment. • Billion Electric, Billion Watts, BEC Technologies, Billion EVC (June 6, 2025), and NoonSpare (June 6, 2025) completed full implementation of MDR security software, with endpoint protection capabilities exceeding the expected SmartIT security control requirements. • Replace the ERP system and adopt electronic approval workflows to accelerate Group-wide operational processes.
• Implement M365 across the Group to drive digital transformation and enhance digital resilience. • Employees at Billion Electric, Billion Watts, and BEC Technologies completed the purchase and use of Microsoft Teams for Business. • Billion Electric and BEC Technologies completed Group recertification for ISO/IEC 27001:2022.
• Replace the ERP system and adopt electronic approval workflows to accelerate Group-wide operational processes. • In 2025, each department proposed expected requirements for the new ERP system. The ERP replacement project will begin in 2026, with the scope expanded to Billion Electric and Billion EVC. • Require annual information security training of at least 3 hours for managers, 12 hours for IT personnel, 12 hours for information security personnel, and 3 hours for general users.
— • In 2025, Group-wide information security training was completed, including 3 hours for managers,12 hours for IT personnel, 12 hours for information security personnel, and 3 hours for general users. • Maintain zero major information security incidents.
— • In 2025, no employees fell victim to phishing attacks. • Conduct system replacement and implement electronic approval workflows in 2026.
— • In 2025, no information security incidents occurred, and no complaints regarding customer data loss were reported. —
— • In 2025, Group-wide MDR (Managed Detection and Response) implementation was completed. —
— • Completed backup deployment and recovery drills for key application servers and cloud systems. —
— • In June 2025, the ISO/IEC 27001:2022 information security management system surveillance audit was completed, confirming compliance with management system requirements with no major deficiencies —

Employee Diversity & Equal Opportunity

Short-term Goal (2025) Targets for 2025 Achieved Targets in 2025 Targets for 2026
• In 2025, one inclusive culture awareness session was held, covering gender equality, human rights, and workplace bullying prevention. • In 2025, training courses on gender equality, trade secrets, and ethical corporate management were completed. • In 2026, one inclusive culture awareness session will be held, covering gender equality,human rights, and workplace bullying prevention.
• In 2025, the Company launched an employee satisfaction survey. • In December 2025, the employee satisfaction survey was conducted. • In 2026, the Company will continue to conduct employee satisfaction surveys.
• Starting in 2025, the Company’s relevant policies, procedures, and benefits have incorporated diverse employee care to safeguard employee well-being and create a diverse, equitable, friendly, and healthy workplace. • In 2025, the Company implemented relevant policies, procedures, and benefit measures to strengthen diverse employee care, safeguard employee well-being, and create a diverse, equitable, friendly, and healthy workplace. • The Company will continue to implement relevant welfare programs to care for employees’ lives and build a sustainable and happy workplace. 1. Family-friendly support: wedding and funeral subsidies, childcare allowances,and children’s education scholarships. 2. Physical and mental health measures: (1) Health promotion: Provide group insurance, including life insurance,accident insurance, medical insurance, and cancer insurance, as well as annual employee health checkups. (2) Employee clubs: Continue the operation of employee clubs, including badminton, yoga, and Japanese language clubs, to enrich employees’ leisure lives. 3. Employee clubs: Continue the operation of employee clubs, including badminton,yoga, and Japanese language clubs, to enrich employees’ leisure lives.
• In 2025, NoonSpare planned to hold an all-employee communication meeting once per quarter. • In 2025, NoonSpare held four all-employee communication meetings. • In 2026, NoonSpare plans to hold an all employee communication meeting once per quarter.

Occupational Health & Safety

Short-term Goal (2025) Targets for 2025 Achieved Targets in 2025 Targets for 2026
• Maintain zero major occupational accidents. • Following an assessment in 2025, the ISO 45001 occupational health and safetymanagement system will be introduced in 2026. • Maintain zero major occupational accidents.
• Plan to introduce ISO 45001. • In 2025, NoonSpare completed two fire safety drills. • Introduce the ISO 45001 occupational health and safety management system.
• NoonSpare will continue to conducttwo fire safety drills each year. • The Group had zero major occupational accidents. • NoonSpare will continue to conduct two fire safety drills each year.
— • In 2025, the Yilan Plant held two in-house fire response drills —
— • In 2025, Billion Electric headquarters held one fire safety drill in conjunction with the building. —
— • In 2025, the Group completed employee occupational health and safety training. —

Quantitative Impact of Material Topics

Billion Group's 2025 Material Topic External Expert Identification Scoring Results:

Positive ESG Impact Assessment Results

Topic Avg. ESG Impact Score Avg. Likelihood Score Avg.
Economic Performance 4.73 4.50 4.62
Customer Relationship Management 4.68 4.50 4.59
Customer Privacy & Information Security 4.73 4.20 4.47
Employee Diversity & Equal Opportunity 4.23 4.10 4.17
Occupational Health & Safety 4.14 4.02 4.08
Supplier Environmental & Social Assessment 4.09 4.05 4.07
Product Innovation & Marketing 3.92 3.74 3.82
Training & Education 3.59 3.86 3.73
Anti-corruption 3.36 3.68 3.52
Tax 3.32 3.14 3.23
Materials 3.18 3.00 3.09
Energy 3.23 2.91 3.07
Emissions 2.59 2.09 2.34
Waste 2.45 1.86 2.16
Water & Effluents 2.00 1.68 1.84

Negative ESG Impact Assessment Results

Topic Avg. ESG Impact Score Avg. Likelihood Score Avg.
Economic Performance 4.71 3.39 4.05
Customer Privacy & Information Security 4.68 3.41 4.05
Customer Relationship Management 4.46 3.58 4.02
Occupational Health & Safety 4.37 3.67 4.02
Supplier Environmental & Social Assessment 3.94 3.52 3.73
Product Innovation & Marketing 3.91 3.29 3.58
Training & Education 3.76 3.18 3.47
Employee Diversity & Equal Opportunity 3.58 3.04 3.31
Anti-corruption 3.42 2.61 3.02
Tax 3.18 2.74 2.96
Materials 3.02 2.48 2.75
Energy 2.88 2.26 2.57
Emissions 2.36 1.94 2.15
Waste 2.21 1.72 1.97
Water & Effluents 1.82 1.36 1.59

Financial Impact Assessment Results

Topic Average Financial Impact Score Average Likelihood Score Avg.
Economic Performance 4.74 4.06 4.40
Customer Relationship Management 4.39 3.69 4.04
Customer Privacy & Information Security 4.28 2.96 3.62
Product Innovation & Marketing 4.11 3.23 3.67
Risk Management 4.02 3.08 3.55
Materials 3.61 3.08 3.35
Supplier Environmental & Social Assessment 3.52 2.88 3.20
Tax 3.19 2.77 2.98
Anti-corruption 3.28 2.41 2.85
Occupational Health & Safety 3.14 2.52 2.83
Training & Education 3.03 2.61 2.82
Employee Diversity & Equal Opportunity 2.96 2.47 2.72
Energy 2.69 2.18 2.44
Emissions 2.12 2.54 2.33
Waste 1.87 1.94 1.91