VIVOTEK follows the AA1000 Stakeholder Engagement Standard and uses international sustainability issues and operational needs as reference materials to define the six categories of main stakeholders, i.e. employees, corporate customers, investors and shareholders, society, government agencies, and partners.

Six Types of Stakeholders and their Communication Results

Stakeholders
Scope of Stakeholders
Issues of Concern
Communication Channels
Communication Frequency
Corresponding Chapters
Employee All employees Information on recruitment and retention
Working conditions
Labor rights
Important Company announcements
Employee inquiries
Performance appraisal
Management-labor meetings
Employee Welfare Committee
Intranet
Employee mailbox
Departmental meetings
Individual interviews
Quarterly
Frequently
Anytime
Ad hoc
Ad hoc
Ad hoc
6.4 Employee Rights and Communication
Partners Suppliers, outsourcing contractors, manpower dispatch, and system certification companies Risk management
Partnership management (incl. suppliers)
Personnel recruitment and management
Equipment and calibration maintenance
Telephone calls and emails
Supplier factory visits
Supplier audits
Instrument calibration suppliers and reliability equipment manufacturer emails
Ad hoc
Ad hoc
Every 6 months
Ad hoc
3.6 Supply Chain Sustainability Management
Corporate Customers Domestic and foreign customers (including domestic and foreign government procurement) and distributors Customer relationship management
Company information update (innovation and technology sharing)
Company website
Client meetings
Customer satisfaction survey
Online customer service system
Anytime
Ad hoc
Every 6 months
Ad hoc
3.5 Customer Relationship Management
Investors and Shareholders General shareholders and institutional shareholders Corporate governance and operation disclosures
Long-term strategy and operational outlook
Personnel recruitment and retention
Equipment and calibration maintenance
Financial Reports
Annual Shareholders’ Meetings
Institutional Conferences
Teleconference and emails
Company website
Quarterly and annually
Annually
Twice a year
Ad hoc
Anytime
3.1 Operational Performance
Society Media, social welfare organizations, and management committees Media Relations Maintenance
Social welfare
Discussion of the Working Environment
Company website
Press Releases
Media meals
Telephone calls and emails
Ad hoc
Ad hoc
At least once a year
Ad hoc
No corresponding chapter available. Engagement results are actively obtained through communication channels and frequency.
Government Agencies Competent authorities Patent-related affairs
Laws and event promotion
Environmental safety inspection
Industry promotion and support of industry development
Telephone calls and emails with the Intellectual Property Office
Telephone calls, emails, and Official Correspondence with the FSC and IRS
Telephone calls and emails with the Fire Department
Telephone calls, emails, and event participation with other associations
Monthly
Ad hoc
Ad hoc
Ad hoc
1.3 Association Participation

Six Categories of Stakeholders

Employee: VIVOTEK has a global workforce exceeding 1,300 individuals, spread across its headquarters in Taiwan as well as branches and offices worldwide. The Company places significant emphasis on each employee, developing a comprehensive welfare and employee care policies that align with international initiatives such as gender equality. These efforts foster a sustainable workplace culture that attracts and retains exceptional talent, while ensuring comprehensive protection of labor rights, benefits, and career development. Corporate Customer: VIVOTEK consistently strives to deepen collaborative relationships with corporate customers and foster loyalty. We continually upgrade our after-sales service system and provide comprehensive solutions that cater to customers’ needs.

Investors and Shareholders: VIVOTEK dedicates itself to securing financial support and backing from both individual and corporate shareholders (including the Delta Group) for the Company's ongoing sustainable development endeavors. Partners: Adhering to international human rights advocacy and work protocols, VIVOTEK sets consistent requirements and standards for suppliers, outsourcing contractors, manpower dispatch, and system certification companies. This is done to minimize environmental impact throughout the operational process and align with various international norms.

Government Agencies: To stay ahead of global trends and ensure compliance with government mandates, VIVOTEK is actively updating its product design and planning processes, while setting a benchmark for the surveillance industry. Society: VIVOTEK maintains a long-term relationship with domestic and international media outlets. We proactively disclose key products and operational information to the public, effectively communicating the spirit of sustainable development. We embody the brand ethos of cultivating relationships with online communities. VIVOTEK also cares about the local community and has established good relationships with social welfare organizations and committees to promote social participation.

The sustainability promotion adheres to the following process for identifying relevant materiality and communication results.

STEP01 Establishing a Corporate Sustainability Promotion Team under the president

STEP02 Internally organizing relevant corporate sustainability training sessions

STEP03 Focusing on internal discussions to identify materiality

STEP04 Monitoring the progress of communicating materiality

STEP05 Reviewing the results and formulating sustainability goals

Material Topics Identification Procedures

VIVOTEK regularly communicates with its stakeholders and reviews their feedback, while staying informed about sustainability developments. Adhering to the sustainability policies of the Delta Group and complying with GRI Standards, we identify material sustainability issues. With the expertise of senior management, we assess the economic, environmental, and social (ESG) impact level and likelihood of occurrence for each issue to calculate the positive/negative and actual/potential impact levels. Then, the Corporate Sustainability Promotion Team evaluates and arranges them in order of priority. For 2023, we determined six material topics: Environmental Care, Innovative Research and Development, Economic Performance, Talent Cultivation and Retention, Customer Relationship Management, and Supplier Sustainability Management. Based on these topics, we establish long-term goals, implement specific action plans, and track the progress and effectiveness of key actions to create a positive and sustainable impact on society.

Material Topic Priority and Comparison

VIVOTEK actively responds to stakeholder concerns, while meeting their needs and expectations through various regular communication channels. The Company’s stakeholders represent three key areas: Governance, Society, and Environment. These areas encompass six categories: Employees, Corporate Customers, Investors and Shareholders (including the Delta Group), Social Organizations, Government Agencies, and Partners.

In 2023, the Company assessed six material issues: Environmental Care, Innovative R&D, Economic Performance, Customer Relationship Management, Talent Cultivation and Retention, and Supplier Sustainable Management. Our detailed report consolidates the analysis results and provides insights into the degree of impact, management approach, and boundaries of material topics in accordance with GRI Standards.

Sustainability Aspect
2022 Priority 2023 Priority
Material Topic
Impact Description
Impact Level
Indicator
Corresponding Chapter
Impact Boundary
Positive/
Negative Impact
Actual/
Potential Impact
Internal
External
VIVOTEK Employees
Corporate Customers
Partners
Government Agencies
Social Organizations
Investors and Shareholders
Environment 1 1 Environmental Care Due to increasing awareness of net-zero emissions, governments worldwide are advocating for energy laws and requiring enterprises to take action on climate change. The Company is enhancing its sustainable competitiveness by formulating climate-responsive policies, strengthening energy and supplier management, as well as engaging in green low-carbon development. Negative Impact Actual 302
305
306
5.1 Smart Factory
5.2 Use of Renewable Energy
5.3 GHG Emissions, Water, and Waste Management
5.4 Risks and Opportunities of Climate Change
v v v v v
Governance 2 2 Innovative R&D Investing in research and development (R&D), proactively innovating, and optimizing product as well as business modes in response to market trends and customer needs are key to the Company's competency and operational capacity. Positive Impact Actual Customized Topic
4.1 Innovative R&D and Collaborative Resources
v v v
Governance 3 3 Economic Performance VIVOTEK endeavors to become a trusted leading brand. Guided by the operational philosophy of Integrity, Innovation, Care, and Accountability, we have established a comprehensive governance structure and regulations, pursued excellence in performance, aggressively protected stakeholders’ equity, and developed a sustainable business. Positive Impact Actual 201 3.1 Economic Performance v v v
Society 5 4 Customer Relationship Management We listen attentively to customers’ needs, stay updated on industry trends, and provide solutions as well as professional services to satisfy customers and achieve mutual growth. Positive Impact Actual 416 3.5 Customer Relationship Management v v v
Society 4 5 Talent Cultivation and Retention Each employee of VIVOTEK is a vital partner and valuable asset for sustainable development. The Company fosters employee team-building and strives towards sustainable operations through a solid welfare system, training, career development courses, and a combination of brand activities and internalization. Positive Impact Actual 401
402
404
405
6.2 Recruitment and Retention
6.3 Employee Development and Training
6.4 Employee Rights and Communication
v v
Governance 6 6 Supplier Sustainability Management Suppliers are important partners of the Company. We share common beliefs and advocacies through the establishment of a supplier management mechanism to promote sustainable development in our relationship. Positive Impact Actual 204
308
414
3.6 Supply Chain Sustainability Management v v v v v