Identification of Major Topics
Billion adopted a materiality analysis in preparing the 2024 Sustainability Report, referencing the SASB Hardware industry standards and benchmarking industry peers. External experts evaluated 15 sustainability issues based on their impacts—both positive and negative—on the economy, environment, and people (including human rights), while also considering international initiatives and investor expectations. In line with the European Sustainability Reporting Standards (ESRS), the principle of double materiality was applied to assess both sustainability and financial significance. After internal discussions, seven key topics were identified as the material issues for 2024, serving as the basis for disclosure in this report.
ESG Topics Materiality Analysis Steps
| 1. Identification of Stakeholders | 2. Summarizing ESG Issues | 3. Surveying Issues of Concern | 4. Identification of Material Topics | 5. Review and Discussion |
|---|---|---|---|---|
| Principle of Stakeholder Inclusion | Principle of Sustainability Context | Materiality Principle | Materiality Principle | Integrity Principle |
| In 2024, Billion identified six key stakeholder groups—employees and other workers, shareholders and investors, customers, suppliers/contractors, banking institutions, and media. The identification process was guided by external expert input, internal discussions, and benchmarking against industry peers to ensure inclusiveness and relevance for material communication. | Billion collected potential ESG topics with reference to the GRI Standards and SASB indicators, as well as industry peers. A total of 15 topics covering corporate governance, economic, and environmental aspects were identified and used as the basis for assessing both positive and negative impacts. | In 2024, 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 management’s input, Billion analyzed and ranked the materiality of each topic. Topics with an average score of 4 or above in positive impact or financial relevance were identified as material. In addition, any topic with a negative impact score of 4 or above was also considered material, regardless of likelihood. In 2024, a total of seven material topics were identified, each with corresponding management approaches. | After identification, Billion Group incorporates priority topics into annual work plans and objectives. The Group will continue to strengthen management, review the need for adjustments, and disclose relevant information in the sustainability report. |
Material Topics Identification Results
In 2024, Billion confirmed seven material topics: economic performance, customer privacy and information security, supplier environmental and social assessment, employee diversity and equal opportunity, occupational health and safety, customer relationship management, and innovative product R&D and marketing. These topics will serve as priorities for ongoing action and disclosure in future sustainability reports. Compared with 2023, “Supplier Social Assessment” and “Supplier Environmental Assessment” were merged, and “Risk Management” was integrated into the chapter on Sustainable Governance instead of being listed as a separate material topic. The finalized topics were reviewed by the Sustainability Development Committee and submitted to the Board of Directors for approval.
Material Topics Objectives 2024
Economic Performance
| Short-term Goal (2024) | 2024 Target Achievement (Completed) | 2025 Goal |
|---|---|---|
| Strengthen capital structure through capital market financing to maintain a debt ratio below 40% and enhance operational capability. | Due to increased funding needs, the Company raised additional credit lines from financial institutions. The 2024 debt ratio slightly increased from 35% to 37% but remained below 40%, maintaining a healthy financial structure. | Continue developing high-power industrial power supplies and deepen relationships with existing customers while exploring new business opportunities. The Group will also seek new investment targets to enhance overall competitiveness. |
| Focus on ICT and power business with long-term customer relationships, while expanding into overseas markets and seeking strategic investment opportunities. | Billion Group continued to strengthen relationships with existing clients and actively expanded into overseas markets by establishing a subsidiary in Japan. To enhance product integration and group competitiveness, the Group also invested in a capital increase of NoonSpare Technology Co., Ltd. in April 2024, making it a subsidiary to achieve better synergy through strategic alignment. | Billion Watts has completed overseas demo sites in Japan and Australia to promote proprietary branded products in international markets. |
| — | — | In 2025, Billion Group will continue to monitor market trends and adjust business strategies to enhance performance, with projected revenue growth of 25% compared to 2024. |
Supplier Environmental & Social Assessment
| Short-term Goal (2024) | 2024 Target Achievement (Completed) | 2025 Goal |
|---|---|---|
| Conduct supplier sustainability self-assessment surveys with a response rate of at least 80%. | In 2024, 110 suppliers completed the sustainability self-assessment survey, accounting for 57% of all active suppliers. Some smaller suppliers had yet to establish ESG-related practices, resulting in the response rate falling short of the 80% target. In 2025, the Company will continue strengthening supplier guidance and communication to improve response rates. | Conduct joint supplier self-assessment surveys with Billion Watts, targeting an overall response rate above 70%. |
| — | — | NoonSpare evaluates its suppliers with average scores above 80, and ensures that 95% of suppliers sign and acknowledge the Supplier Sustainability Code and related policies to meet environmental and social responsibility standards. |
Customer Relationship Management
| Short-term Goal (2024) | 2024 Target Achievement (Completed) | 2025 Goal |
|---|---|---|
| Customer satisfaction in the communications and power divisions maintained an average score above 9.2. | The Power and Energy Management Division recorded an average customer satisfaction score of 9.43 in 2024. | The Communications Division maintains an average customer satisfaction score above 9.2. |
| Billion Watts achieved an annual average satisfaction score of 9; customer response rate reached over 48% every six months. | Billion Watts maintained an average score of 9 in semiannual surveys, with response rates over 48%. However, the second half of 2024 fell below expectations due to dissatisfaction in pricing and maintenance services, which will be addressed by improving service quality and staffing. | The Power Division maintains an average customer satisfaction score above 9.4. |
| Billion EVC to begin conducting customer satisfaction surveys in the second half of 2024. | Billion's Communications Division achieved an average customer satisfaction score of over 9.5 in 2024. | Billion Watts achieves an average annual satisfaction score of 9, with a response rate over 50%. |
| — | Billion EVC launched its customer satisfaction survey in the second half of 2024, achieving an average score of 9. | Billion EVC maintains an average annual customer satisfaction score of 9. |
| — | — | NoonSpare conducts customer satisfaction surveys semiannually, with an average annual satisfaction rate over 90%. |
Information Security
| Short-term Goal (2024) | 2024 Target Achievement (Completed) | 2025 Goal |
|---|---|---|
| Billion EVC to begin conducting general information security training in 2024. | Completes group-wide information security training in 2024: 3 hours for managers, 12 hours for IT staff, 12 hours for cybersecurity personnel, and 3 hours for general users. | Fully implement Smart IT asset management and endpoint security systems, strengthening service resilience and enhancing device management. |
| Billion requires a minimum of 3 training hours per year for all managers, 12 hours for IT personnel, 12 hours for cybersecurity personnel, and 3 hours for general users. | Fully implements MDR (Managed Detection and Response) across the Group in 2024. | Group-wide adoption of Microsoft 365 to advance digital transformation and enhance digital resilience. |
| Fully implement MDR (Managed Detection and Response) to safeguard communication systems. | — | Accelerate workflows by integrating ERP system upgrades with electronic signatures and digital approvals. |
Employee Diversity & Equal Opportunity
| Short-term Goal (2024) | 2024 Target Achievement (Completed) | 2025 Goal |
|---|---|---|
| Plans to appoint two female board members in 2024. | Ensures 100% equality in recruitment, compensation, performance evaluation, training, and promotion practices. | Conducts one inclusive culture session in 2025 covering gender equality, human rights, and workplace bullying prevention. |
| Conducts one session each on gender equality, human rights, and workplace bullying awareness. | As of 2024, the board includes two female directors. | Launches an employee satisfaction survey in 2025. |
| — | Holds a gender equality seminar in November 2024. | From 2025, relevant company policies and benefits reflect a commitment to employee diversity and well-being, aiming to build a diverse, equal, and inclusive workplace. |
| — | Offers flexible working hours and benefits exceeding labor law requirements starting in 2024, including parental subsidies and education scholarships for employees' children. | NoonSpare plans to hold quarterly all-hands meetings in 2025. |
| — | NoonSpare holds two all-hands meetings in 2024 and maintains an employee suggestion box. | — |
Occupational Health & Safety
| Short-term Goal (2024) | 2024 Target Achievement (Completed) | 2025 Goal |
|---|---|---|
| Employees receive 3-hour occupational safety and health (OSH) training every three years. | The Yilan Plant conducts two fire drills in 2024. | Maintain zero major occupational injuries. |
| Maintain zero major occupational injuries across the Group. | Billion Headquarters holds two joint fire drills with the building management in 2024. | Plan to implement ISO 45001 Occupational Health and Safety Management System. |
| Billion EVC schedules OSH training in 2024. | ESD (Electrostatic Discharge) Protection Training held on 2024.05.22. | NoonSpare conducts two fire safety drills annually. |
| — | 2-hour OSH training held on 2024.09.24. | — |
| — | Hazard Communication Training conducted on 2024.12.25. | — |
| — | Maintain zero major occupational injuries across the Group. | — |
| — | Billion EVC completes OSH training on 2024.04.30. | — |
Innovative Product R&D and Marketing
| Short-term Goal (2024) | 2024 Target Achievement (Completed) | 2025 Goal |
|---|---|---|
| Enter overseas markets in 2024. | Successfully entered overseas markets in 2024. | Hold two international workshops and release product news regularly. |
| Complete three commercial and industrial energy storage projects. | Completed three projects in 2024. | Deliver at least two projects in overseas markets. |
| Establish a proprietary brand “INVERTER.” | Brand “INVERTER” established. | Launch Pixel View v2.0 in 2025. |
| Develop a 240W industrial power supply with modular design, and adopt eco-friendly WEEE-compliant recyclable design. | Developed 240W industrial power supply with recyclable design. | Develop 100W Power Delivery (PD) power supply with adaptive load adjustment and eco-friendly WEEE-compliant design. |
| Expand telecom business into the Japanese market. | Entered the Japanese telecom market in 2024. | Continue expanding telecom R&D and applications for 5G private networks. |
| Deepen telecom R&D in 5G private network applications. | Completed development and trial deployment of 5G private networks in 2024. | — |
| — | Completed one major international exhibition, with a second scheduled. | — |
| — | Originally planned to expand into the Japanese market through an acquisition, but due to customer restructuring and local government challenges, the plan was cancelled. | — |
Quantitative Impact of Material Topics
Billion Group's 2024 Material Topic External Expert Identification Scoring Results:
Positive ESG Impact Assessment Results
| Topic | Average Sustainability Impact Score | Average Likelihood Score | Average |
|---|---|---|---|
| Economic Performance | 4.73 | 4.5 | 4.61 |
| Customer Relationship Management | 4.68 | 4.5 | 4.59 |
| Customer Privacy & Information Security | 4.73 | 4.14 | 4.44 |
| Innovative Product R&D and Marketing | 4.59 | 4.27 | 4.43 |
| Employee Diversity & Equal Opportunity | 4.23 | 4.55 | 4.39 |
| Supplier Environmental & Social Assessment | 4.09 | 3.95 | 4.02 |
| Occupational Health & Safety | 4.14 | 3.64 | 3.89 |
| Training & Education | 3.59 | 3.86 | 3.73 |
| Anti-Corruption | 3.36 | 3.68 | 3.52 |
| Taxation | 3.32 | 3.14 | 3.23 |
| Materials | 3.18 | 3 | 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 | 1.68 | 1.84 |
Negative ESG Impact Assessment Results
| Topic | Average Sustainability Impact Score | Average Likelihood Score | Average |
|---|---|---|---|
| Economic Performance | 4.59 | 3.73 | 4.16 |
| Customer Privacy & Information Security | 4.59 | 3.14 | 3.86 |
| Customer Relationship Management | 4.32 | 2.27 | 3.3 |
| Occupational Health & Safety | 4.23 | 2.64 | 3.43 |
| Innovative Product R&D and Marketing | 4.09 | 2.59 | 3.34 |
| Training & Education | 3.91 | 3.09 | 3.5 |
| Supplier Environmental & Social Assessment | 3.86 | 3.23 | 3.55 |
| Anti-Corruption | 3.68 | 2.23 | 2.95 |
| Employee Diversity & Equal Opportunity | 3.36 | 2.86 | 3.11 |
| Taxation | 3.23 | 2.68 | 2.95 |
| Materials | 3.05 | 2.55 | 2.8 |
| Energy | 2.95 | 2.18 | 2.56 |
| Emissions | 2.45 | 2.64 | 2.55 |
| Waste | 2.32 | 1.77 | 2.05 |
| Water & Effluents | 1.95 | 1.45 | 1.7 |
Financial Impact Assessment Results
| Topic | Average Financial Impact Score | Average Likelihood Score | Average |
|---|---|---|---|
| Economic Performance | 4.68 | 4.14 | 4.41 |
| Innovative Product R&D and Marketing | 4.05 | 3.41 | 3.73 |
| Customer Relationship Management | 4.27 | 3.18 | 3.73 |
| Customer Privacy & Information Security | 4.36 | 2.86 | 3.61 |
| Materials | 3.73 | 3 | 3.36 |
| Supplier Environmental & Social Assessment | 3.45 | 2.95 | 3.22 |
| Taxation | 3.27 | 2.73 | 3 |
| Anti-Corruption | 3.36 | 2.32 | 2.84 |
| Occupational Health & Safety | 3.23 | 2.36 | 2.8 |
| Training & Education | 3.09 | 2.23 | 2.66 |
| Employee Diversity & Equal Opportunity | 2.91 | 2.59 | 2.75 |
| Energy | 2.77 | 2.14 | 2.45 |
| Emissions | 2.05 | 2.68 | 2.36 |
| Waste | 1.95 | 1.82 | 1.89 |
| Water & Effluents | 1.64 | 1.55 | 1.59 |
