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Introduction

The contents in this report refer to Global Reporting

I itiati e s

Sustainability Reporting Guidelines (Version 3.1) and Environmental

Reporting Guidelines (2007 Edition) and the topic includes

Co pa

Profile ,

Poli

and

Goal ,

Gree

Management

“ ste ,

Gree

Produ t ,

Gree

Fa tor ,

Gree

Life ,

etc.. We expected

that the stakeholders can understand

I e te s

devotion and

aspiration of green sustainability through this report. Inventec will

continue to fulfill social responsibility and promote green

sustainability for enhancing the industrial competitiveness and

reaching the win-win of economic and environmental.

Reporting Scope

1. Reporting Period

1

st

Jan. 2011 ~ 31

th

Dec. 2011

2. Boundary and Stakeholder

This report reveal the performances of environmental and

relevant green sustainability issues in Taiwan sites(IET, TAO, TRDC),

China sites(IPC, IPE, IPT, ICC), Czech site(ICZ) and Mexico site(IMX).

This report was made for engaging with primary stakeholders

(customers, employee, government and suppliers) and showing our

efforts.

Contact Information

We are appreciate your encourage and concern. For any

inquiries or comments about this report, please contact:

INVENTEC CORPORATION

Inventec Building, No. 66 Hou-Kang Street Shihlin District, Taipei

11170, Taiwan

Environment and Quality Center

Tel

+886-2-2881-0721

Fax

+886-22882-1258

E-mail

[email protected]

Publication

Frequency

Annually

Previous publication Date

18

th

Apr. 2011 (CER)

Publication Date

30

th

May. 2012

Inventec Corp. all right reserved.

(3)

CONTENTS

Message from Chairman and President... 1

Green Factory

………

.... 20

Company Profile

………

... 2

Clean Production

..

………

..

……

21

Policy and Goal

………

... 6

Energy and Climate

………

.

22

Green Management System

...

... 9

Pollution Control

………

..

26

Occupational Health & Safety Management...

10

Green Life

………

... 28

Environmental Management

………

... 11

Biodiversity Conservation

...

29

Hazardous “u sta e Pro ess Ma age e t…………....

12

Health and Safety...

30

Greenhouse Gas Management

……

..

………

..

.. 13

Education

………

...

32

Green Product

..

………

... 14

Appendix

……

...

………

.

………

. 35

Green Design and Process.

………

...

15

Communication

………

.

36

Green Product Certification

..

……

... 17

Environmental Expenditure

...

37

Green Supply Chain

.

………

..

……

.

17

Reporting Guideline

………

..

.

..

38

(4)

Message from Chairman and President

Dear my friends,

Inventec’s

Social Responsibility

Since Inventec founded, Ye Guoyi, founder, set a corporate philosophy: "Innovation, Quality, Open Mind, Execution", "Open Mind" and

E e utio are unique for Inventec. "Open Mind" means a modest heart, do anything for love as a starting point; "Execution" means well implementation. Inventec's corporate philosophy, not only led all employees to the great achievements, but also develop a business culture that care for community needs and continuously feedback to the society. Social responsibility is to commit corporate governance and being a well corporate citizen, Inventec promotes Corporate Beliefs", encouraging colleagues advance learning. Tale ts Assets is the first priority in I e te s CorporateBeliefs and “o ial‘espo si ilit is its ultimate commitment. "Corporate Governance" is internal and "Corporate Citizen" is external of "Social Responsibility". Corporate

Go er a e should thoroughly review the risks and problems under the iceberg principal. Corporate Citize is fulfilled by protecting the environment, promoting the culture, helping the disadvantaged and supporting the community.

New Business of Sustainable Energy Development

2011 was a difficult year for Inventec, but it s also an important year of accumulating momentum of green transformation for us. Facing the climate change, international society has continuously raised green economy initiative. Green energy industry obviously becomes a new driver of economic growth. Inventec has started a new business of green energy since 2010. We add "Sustainable Energy" into five missions (Year 2011~2013) and expect to take advantage of our green innovation and manufacturing to create higher value for society and the environment.

Advance Green Sustainability and Feedback to Society

In order to better respond to green sustainability issues, Inventec established environmental goal and policy, from the employee, enterprise, supply chain to environmental conservation-oriented, pursuing sustainable development and do our best to protect the environment. On the dimensions of employees, we focus the environmental education; form a habit to spontaneously protect the environment. On the dimensions of operations, we are seeking to reduce the environmental impacts of products from product design, manufacturing, supply chain management, product assembly to customer service and so on. On the dimensions of industry, we are actively promoting the green supply chain and providing assistances and resource integration to our suppliers. On the dimensions of climate change, we have built a management system, promoting energy saving and carbon reduction. In addition, we shared our experience to our partners in the annual conference.

In the future, we will maintain good interaction with our stakeholders, meet the expectations of our stakeholders, continue to promote green management, and encourage our employees actively feedback to the community. With these efforts mentioned above, we expect to bring the society more warm regards and pursue the sustainable development of the earth.

Fulfill Social Responsibility

Advance Green Sustainability

Paul Wang

(5)

Company Profile

Corporate Philosophy

Social Responsibility

Five Missions

Sustainable Energy Business

Uphold the beliefs

Fulfill the responsibilities

Achieve the missions

Innovation

Ownership

Sustainable

Energy

Cloud

Service

Mobile

Broadband

(6)

2011 Inventec Green Sustainability Report

Company Profile

Company Philosophy

Since Inventec founded, Kou-I Yeh, founder, set a corporate philosophy: "Innovation, Quality, Open Mind, Execution", "Open Mind" and E e utio are unique for Inventec. "Open Mind" means a modest heart, do anything for love as a starting point; "Execution" means well implementation. Inventec's corporate philosophy, not only led all employees to the great achievements, but also develop a business culture that care for community needs and continuously feedback to the society.

Inventec Profile

Company

Inventec Corporation

Foundation Year

1975

Headquarter

Taipei, Taiwan

Chairman

Richard Lee

President

Paul Wang

Product

Laptops, Server, Electronic Mobile Devices

Market Area: America, Europe and Asia

2011 Revenue

338,417,380 Thousand NT dollars

(Taiwan Stock Code.: 2356)

Social Responsibility

The Chairman of Inventec, Richard Lee promotes Corporate Beliefs" in order to encourage employee learning. The beliefs start with "Value Our Core Asset-People" and finally to the Uphold Corporate Social Responsibility", including "Believe in Equal Opportunity", "Demonstrate Personal and Corporate Integrity", "Emphasize Learning and Sharing", "Encourage for Innovation and improvement", "Lead Industry as First Mover", "Endeavor to Delight Customers", "Enhance Our Industry Reputation" and "Increase Shareholder Value". The Chairman emphasized that Uphold Corporate Social responsibility" is a common belief to Inventec and it divides into two aspects to fulfill, The one is "Corporate Governance" within the company, which holds in good faith engagement to stakeholders. Another is "Corporate Citizen" outside the company, which plays the role of a good corporate citizen and it divides into four parts to be fulfilled, Prote t the E iro e t , Pro ote the Culture ,

Help the Disad a taged and “upport the Co u it .

Company Profile

(7)

2011 Inventec Green Sustainability Report

Five Missions

It must be based on high value-added products and services innovation to maintain the value of the company's growth momentum and creating sustainable development opportunities under the environment in meager profit. Going forward, Inventec will actively promote five missions (Year 2011~2013), which are including " Innovation Ownership", " Sustainable Energy", " Cloud Service", " Mobile

Broadband" and " Emerging Market", for technology integration and innovation. The Long-term strategy is to pursue economies of scale and efficient use of resources. Hardware manufacturing is not I e te s only focus. More importantly, It connects with the software and the application of technology to create "difference advantage", to strengthen the company's core competitiveness, to enhance the growth momentum, and to create new opportunities for sustainable development.

Company Profile

Company Profile

Innovation

Ownership

Sustainable

Energy

Cloud

Computing

Wireless

Broadband

Emerging

Markets

1. IP & Knowledge

Assets

2. Business

Transformation

3. Management

Innovation

1. PolySilicon Solar

Energy

2. Green

Design/Operation

3. Environmental

Protection

1. Container

Datacenter

2. IaaS and

Applications

3. Green & Energy

Saving

1. Smart

Phones/Pads

2. Broadband Access

3. Digital Home

Devices

1. BRICS

Opportunities

2. China Local

Demand

(8)

2011 Inventec Green Sustainability Report

Company Profile

Sustainable Energy Business

Because of the global climate change, huge swings in energy prices, limited energy reserves, environmental awareness raising and so on, many governments have responded to Gree Economic I itiati e , which was promoted by United Nations, accelerating the development of energy saving and carbon reduction programs and promoting green technology research and development to create opportunities for economic growth.

Inventec is optimistic about the future of green technology development, promoting one of the five missions: "Sustainable Energy". We invested in solar energy industry and expected to become a green environmental company with advantage of manufacturing, management and innovation. I e te s solar related companies include the investment of the ISEC, IENC, E-TON, etc. It will contribute to the future development and application of solar energy and green product through the consolidation of solar industry chain and can provide more green solutions and services to achieve the green sustainable visions: Gree Inventec , Gree Tai a and Gree Earth .

5

(9)

Policy and Goal

Environmental Goal

Environmental Policy

Environmental Program

Green Product

Green Factory

Green Life

Comply with

Environmental Laws & Regulations

Become Best

Environmental Practice in Industry

Promote Integrated Environmental Supply Chain

Environmental Training and Certification Contribution Reward to

Best Environmental Practices

Environmental Integration with Supply Chain

Partners

Aim to Environmental Goal

Fulfill Environmental Policy

(10)

2011 Inventec Green Sustainability Report

Goal, Policy and Program

Inventec attaches importance to environmental protection, derived from the "environmental protection" in the "social responsibility" of 10 beliefs. In order to fulfill corporate social responsibility and practice the 5 missions of "Sustainable Energy", we established Inventec's environmental goal, policy and program to guide the power of employee, moving forward to the sustainability of corporate and environment.

Environmental Goal

To promote green competitive advantages, enhance corporate image, and achieve sustainable development, Inventec s President developed a full range of environmental goals in implementation of environmental policies and environmental programs as follows:

 Green Product: Showing the efforts and achievements of improving Earth's environment through green product.

 Green Factory: Reducing the environmental impacts from the production by energy saving, consumption reducing and pollution prevention

 Green Life: Cultivating respect and familiarity to the Earth by developing personal daily habit.

Environmental Policy

In order to meet international trends and customer requirements and pursue sustainable development, we made environmental policy from the employee, enterprise, and supply chain to environmental conservation-oriented as follows:

 Comply with Environmental Laws & Regulations: Complying with environmental laws and regulations on a personal level.

 Become Best Environmental Practice in Industry: Becoming an environmental benchmark on the enterprise level.

 Promote Integrated Environmental Supply Chain: Promoting environmental protection activities and integrating supply chain system on the supply chain level.

 Pursue Environment-sustaining Development: Contributing to enterprise and Earth for sustainability development on the environmental level.

Environmental Program

In order to fulfill environmental policy, developing environmental program, as guidelines for implementing all the environmental projects as follows:

 Environmental Training and Certification: Establishing a certification standard and request employees to comply with environmental regulations.

 Contribution Reward to Best Environmental Practices: Establishing a reward method and request employees to be a environmental benchmark.

 Environmental Integration with Supply Chain Partners: Building collaborative mechanisms and promote integrated eco-industry.

 Community Environment-sustaining Development: Supporting community to protect the environment and advance the sustainable development of community.

Goal and Policy

(11)

2011 Inventec Green Sustainability Report

Move Forward to Sustainability of Corporate and Environment

Promote the Culture

Goal, Policy and Program

Corporate Governance

Protect the

Environ-ment Help the

Disadvan -taged

Support the Community

Corporate Citizen

Sustainable

Energy

1. PolySilicon

Solar Energy

2. Green Design

/Operation

3. Environmental

Protection

S

o

cia

l R

e

spo

ns

ibi

lit

y

( Social Responsibility

is one of 10 beliefs)

( Sustainability Energy

is one of 5 Missions)

Inventec Environmental Goal, Policy and Program

External

Internal

(12)

• Occupational Health & Safety Management

• Environmental Management

• Hazardous Substance Process Management

• Greenhouse Gas Management

Green Management System

OHSAS 18001/TOSHMS

Occupational Health & Safety Management

IECQ QC 080000

Hazardous Substance Process Management

ISO 14001

Environmental Management

ISO 14064

Greenhouse Gas Management

Assure working Environment

and Safety

P

D

C

A

Green

Management

System

Maintain the Local Environment

Mitigate Global Climate Change

Protect the consumers and theirs

environment

(13)

2011 Inventec Green Sustainability Report

Occupational Health & Safety Management

Green Management System>OHS Management

Occupational Health & Safety Management System

Policy

Plan

• Hazard identification, risk assessment and risk control

• Legal and other requirements

• Objectives

• OH&S management programs

Check and Action

• Performance measurement and monitoring

• Accidents, incidents, non-conformance and corrective and

preventive action • Records and records

management • Audit

Do

•Structure and responsibilities •Training, awareness and

competence •Consultation and

communication •Documentation

•Document and data control •Operational control

•Emergency preparedness and response

Management

Review

P

D

C

A

Continuous

Improvement

Labor Safety and Health Committee

Inventec set up the Labor Safety and Health Committee in each site, which handle the operations of safety and health risks and management system. There are several members in the committee. There is a regular quarterly meeting to discuss about the relevant laws and regulations, internal and external requests, education plans, machinery prevention, hazards of equipment or materials, working environment measurement result of measures that should be taken, etc. The resolution, decided by the committee, should be implemented by function units to ensure the effectiveness and continuous operation of occupational safety and health management system.

Occupational Safety and Health Management

System

Inventec s Occupational Health and Safety Management System upholds the spirit of continuous improvement, and is based on PDCA cycle, bring the function of self protection and control into full play. It can reduce potential health and safety risks, thereby reduce operational risk and increase good image for company.

All sites, excluding IMX, passed the validation of occupational safety and health management system (OHSAS18001) since 1998. In order to upgrade the system operation and management, IET and TAO conducted the Tai a Occupational Safety and Health Management System

(14)

2011 Inventec Green Sustainability Report

Action

Plan

Check

Do

• Environmental Aspect

• Legal and Other Requirements

• Objectives, targets and Programs

• Resources, roles, Responsibility and Authority • Competence, training and awareness • Communication • Documentation

• Document Control

• Operational Control

• Monitoring and Measurement

• Evaluation of Compliance

• Nonconformity, Corrective action and Preventive Action

• Control of Records

• Internal Audit

•Management Review

•Continuous Improvement

• Emergency Preparedness and Response

Environmental Management

Green Management System>Environmental Management

Environmental Management System

11

Policy

Environmental Management Committee

Inventec set up E iro e t Management Co ittee in each site. The regular meeting is held by management representative to review the environment policy, annual internal audit results, environmental laws and regulations assessment and the achievement of environmental performances, objectives and targets. We take actions and future improvement measures based on the review to ensure the effectiveness of environment management system.

Environmental Management System

To prevent the pollution and implement clean production, Inventec had conducted ISO 14001 environmental management system since 1996. Currently, IET, TAO, IPC, IPE, IPT, ICZ, etc. has obtained ISO 14001 international environmental management system certificate.

To enhance the o pa s competitiveness, Inventec takes environmental management seriously. For meeting international trends and customer requirements and pursuing sustainable development, we made corporate environmental policy from the employee, enterprise, and supply chain to environmental conservation-oriented.

Each site conducts policies, sets up targets, and takes actions based on its corporate level policy. In order to achieve the targets and reduce the potential environmental risks, Inventec plans and implements the improvement actions in the aspects of pollution control, energy and resource saving, waste reduction and other related hazards preventions. For the "continuous improvement", Inventec identifies all environmental aspects and significant environmental aspects through

(15)

2011 Inventec Green Sustainability Report

Hazardous Substance Process Management

Green Program Committee

To reach the green goal, Inventec formed a lead-free and RoHS team in 2004, leading all tasks which need to meet RoHS requirements and in response to the increasingly stringent environmental regulations. Since 2006, the task range of team has been expanded to Halogen Free and IECQ QC 080000 system management and the name was changed to Green Program Committee (GPC) in 2009, responsible for all green product issues.

Currently, "Green Program Committee" is responsible for integrated strategy planning of green product, the usto er s request response, new environmental project planning, etc. The important green issues will be reviewed in the regular meeting. The task team may be arranged as needed to complete the tasks for checking the implementing status under the standards and the compliance of environmental regulations and usto er s request.

Hazardous

Substance

Process

Management

System

Inventec integrated the Hazardous Substances Free (HSF) control requirements into quality management system according to the requirements of IECQ QC 080000 hazardous substance process management (HSPM) system. Not only to comply with RoHS and WEEE, but also take the specific local regulations and the agreements with customers into account.

Inventec conducted IECQ QC 080000 since 2006. The IET, TAO, IPC and IPE passed the validation in the same year. Inventec was the lead

company to obtain the first IECQ QC 080000 certificate in the NB industry in Taiwan. In addition, Inventec actively implemented IECQ QC 080000 global validation for seven worldwide sites (including IET, TAO, IPC, IPE, IPT, ICZ, and IMX) in 2009. It s also the first company to pass the global validation in the NB industry in Taiwan. Inventec continuously passed IECQ QC 080000 regular evaluation audit in 2011 and has a re-certificate plan in 2012 to ensure the effectiveness of IECQ QC 080000 management system.

Hazardous Substance Process Management System

(16)

2011 Inventec Green Sustainability Report

Carbon Disclosure and Communication

Global climate change does not only cause serious impacts on environment, but also put human in dangers, such as economy, health and safety, food crisis, etc. Encountering the high valued toward carbon issues in the international, Inventec is aware of the importance of carbon disclosure and communication. We continued to respond 2011 CDP (Carbon Disclosure Project) questionnaire and reveal our carbon management information through other ways, such as report, website, posters and annual supplier conference. Inventec in addition to actively respond to customer concerns issues, but also to promote the importance of carbon management to our employees and suppliers, and to review the company's internal management, strengthening the communication with stakeholders.

Greenhouse Gas Management System

Energy saving and carbon reduction are important methods of mitigating climate change and global warming, the first step of energy saving and carbon reduction is greenhouse gas (GHG) accounting. Implementation of greenhouse gas accounting in addition to be able to meet the requests from government, customers and international investors, and to understand sources of greenhouse gas emissions of Inventec for establishing reduction direction and target and tracking the reduction performance.

Inventec conducted greenhouse gas accounting since July 2008. We set up a GHG inventory team to implement it and extend to other worldwide sites (IPC, IPE, IPT, ICZ, IMX) based on the experience of the

pilot in Taiwan, establishing global GHG management system. Currently, we have completed five years (2007-2011) of the greenhouse gas inventories. To enhance the efficiency of the greenhouse gas accounting, we developed "Inventec GHG Portal" in 2010 and go-live in January 2011. It can reduce a lot of manual time and human error by using this portal, and also save paper, energy and reduce carbon emissions.

For getting the recognition by intended users, all the GHG accounting tasks complied with international standard: ISO 14064-1, and we implemented the internal and 3rd party verification after GHG inventory

finished. Now we passed GHG 3rd party verification for 2007-2009 and plan to implement GHG 3rd party verification for 2010-2011 in 2012.

GHG Reduction Target

In order to effectively reduce greenhouse gas emissions, Inventec made a long-term reduction target in 2010 and expected to fulfill our corporate social responsibility.

Reduce 10% GHG Emissions by 2020 based on 2010 level

PS. Scope includes IET, TAO, TRDC, IPC, IPE, IPT, ICZ, IMX

2008

2009

2010

2011

GHG Inventory Conducted

GHG Management System Established

Passed 3rd Party GHG Verification (2007-2009)

Invetec GHG

Portal Co du ted

13

Greenhouse Gas Management

(17)

Green Design and Process

Green Product Certification

Green Supply Chain

Green Product

Green Factory

Green Life

Green Product

Inventec Cloud Computing Module

Green Data Center

The Statistic of Green Mark

Certification in 2011

P15

P17

(18)

2011 Inventec Green Sustainability Report

Green Design and Process

Green Design Principle

Green design is environment design. It takes environmental and safety aspects into considerations throughout product life cycle. The concept of green design is conducted from product development to manufacturing process by raw materials selection and easy disassembles design. It can reduce the environmental impacts of products, while keeping product price, function and quality. Inventec green design principles are as follows:

 Try to seek how to reduce environmental impacts

 Minimum total energy consumption within product life cycle

 Reduce land load

 Design for clean production and use

 Design for durability

 Design for function optimization

 Design for 3R (reuse, recovery and recycling)

 Avoiding to use hazardous materials

Inventec Green Data Center

With the rapid development of cloud computing technology and services, the energy demand of data center has been taken seriously. Currently, How to develop a data center which can keep technology growth and save energy is an important consideration of design.

Inventec upholds the principles of green design and takes the advantage of hardware design and manufacturing. In 2011, we worked with Chu gh a Tele o to develop "Inventec Cloud Computing Module Green Data Center", providing a new generation of green solution.

The advantages of this green data center are as follows:

 Multi-functional module design

 Less voltage transformation

 Less car container (2 containers)

 Higher density of system (840 units server/container)

 Reach green target: system efficiency>80%, PUE<1.12

To Assess whether the data center can save energy, it depends on

Po er Usage Effectiveness (PUE): . The calculation of PUE is "total facility power" divided by the "IT equipment power" in the data center. Lower PUE value is representing the energy saving, spending less energy in non-IT equipments. The non-IT equipments include air condition, power (UPS), lighting system, etc. Therefore, how to design a low PUE data center is the focus.

By the comparison between the efficiency of Inventec cloud computing module green data center and that of general data center, the power can save 1,308 MWh per year. It not only can reduce electricity cost, but also can effectively reduce greenhouse gas emissions (800 tonnes CO2e per year), in efforts to mitigate global warming.

Power Usage Effectiveness

PUE = Total Facility Power/ IT Equipment Power

15

(19)

2011 Inventec Green Sustainability Report

Green Design and Process

RoHS Process

The maximum permitted concentrations of Lead (Pb), Mercury

(Hg), Cadmium (Cd), Hexavalent chromium (Cr6+), Polybrominated

biphenyls (PBB), Polybrominated diphenyl ether (PBDE) in the

process should follow the request of

‘estri tio

of Hazardous

Substances (RoHS) Directive.

I e te s

suppliers in addition to

follow the RoHS directive should also meet the request of

Inventec HSF Management

“ta dard

. Besides, in order to achieve

environmental goal (Green Product, Green Factory and Green Life),

we use XRF devices to inspect incoming materials and internal

control in production to avoid nonconforming materials use.

Halogen-Free Process

More and more electronic companies have declared that halogen

compounds will be gradually phased out in their products since

Greenpeace released "Guide to Greener Electronics" in 2006. We

assess the technical feasibility and improve the technology of clean

production based on the request of Halogen-Free. Currently,

Inventec have conducted the Halogen-Free process in the

production by

usto er s

demands to minimum the damage of

environment and human which is caused by halogen compounds.

Inventec Cloud Computing Module Green Data Center

Items

General Data

Center

Inventec Green Data Center

Efficiency

74.72%

81.72% (raising 7%)

PUE

2.2

1.118

Power

Consumption

2,660

MWh/year

1,352 MWh/year

(Save 1,308MWh/year, equal to

800 tonnes CO

2

e)

PS. Electricity Emission Factor was used from Taiwan Bureau of Energy (2010 version).

Inventec Green Data Center VS. General Data Center

(20)

2011 Inventec Green Sustainability Report

Green Product Certification

Green Mark

(NB) Certification Statistic

TGM

16

SEPA

19

CECP

23

EPEAT

Gold

25; Silver

14

Inventec Green Mark Certification in 2011

Green Supply Chain

suppliers under the well guidance and management, and achieved win-win goal through multiple evaluation and information sharing.

Multiple Evaluation

The requests for our suppliers on general demands of quality, cost, delivery and service extend to green product and corporate social responsibility through multiple evaluation to ensure that suppliers can meet our requests of green design, green process, hazardous substances limitation, child labor prohibition, human rights protection, safety of working environment.

To ensure that suppliers can comply with I e te s requests is hereby set up a "Vendor Management (VM) Tea to manage our suppliers in materials control, manufacturing, packaging, shipping and other management processes through survey and on-site audit. The members in VM team include RD, Procurement and CE, are responsible for planning and implementation of supplier evaluation.

Information Sharing

To ensure that suppliers understand the trends of green product and

I e te s requirements, Inventec sets up contact windows for different environmental issues, and effectively promotes green issues to suppliers for reaching the consensus of green product through multiple communication channels, such as I e te Supplier Portal and annual supplier conference.

17

Green Product>Green Product Certification

Green Supply Chain

Green product for Inventec is oriented in addition to obey the basic regulatory requests, also meet usto er s requirements, such as the use of low toxicity and recyclable materials. The green product confirmed rate, green parts incoming rate and lead-free (RoHS) process implementation rate have reached 100%. In addition, all products of laptop on the design of energy efficiency, can meet Energy Star 5.0 standard.

In addition to the factors of the raw materials, process and market, Green Mark takes product lifecycle into consideration in order to avoid transference of pollutants in different stages of life cycle. Therefore, the rules of the standard were made depend on different products. The standard was set by selecting best environmental performance 20~30% in the similar products on the market.

In order to provide better environmental services to our customers, there were totally 16 models of notebook computers got the Tai a Green Mark , 19 models got Chi a“EPA , 23 models got China CECP, and 39 models got USA EPEAT.

(21)

2011 Inventec Green Sustainability Report

Green Supply Chain

(1) Inventec Supplier Portal (iSupplier)

The RoHS (Restriction of the use of certain hazardous substance in electrical and electronic equipment) directive was published in February 2003 by European Union. This directive took effect on 1 July 2006 and restricts the use of six hazardous materials in the manufacture of various types of electronic and electrical equipment. Therefore, Inventec established a platform, called Inventec Supplier Portal (iSupplier), for supplier use in July 2007. It is an important platform between Invetenc and suppliers to share and review the product quality and environmental information.

The iSupplier is covering four categories, the environmental, quality, safety and design changes. It can efficiently provide data as we needed through systematic management and automation E-Mail. In addition, the Safety and CE team in Inventec can review and feedback the data, which were imported by suppliers, through iSupplier.

(2) Annual Supplier Conference

Inventec holds supplier conference each year and invites our partners to participate in it, and to ensure our suppliers understand

I e te s requests and new trends in environmental issues. We also share the implementation experiences and arrange the keynote speeches in the conference. We investigate the implementation status of suppliers through the questionnaire and feedback response in the conference; it s an important communication between Inventec and suppliers. Regarding the holding date and agenda of conference in 2011, please refer as follows:

No.

Date

Location

No. of

Person

No. of

Supplier

1

2011/8/3

Chongqing

51

30

2

2011/8/10

Shanghai

283

177

3

2011/8/19

Taipei

212

139

2011 Inventec Annual Supplier Conference

Green Product>Green Supply Chain

Conference Topics

Supply Chain Sustainable Management:

Explain the trends and pressures in supply chain and expect suppliers can work with Inventec for sustainable development.

Energy and Carbon Management:

-Share the I e te s experiences of carbon management, including environmental policy and goal.

-Promote energy management and focusing carbon management.

Carbon Footprint and Water Footprint:

Introduce carbon footprint and water footprint and explain

I e te s future requirements.

Biodiversity Conservation:

Promote the actions of Biodiversity Conservation to our suppliers.

Conflict Mineral:

Explain the plan for Conflict Mineral survey.

Non-financial Information Disclosure:

(22)

2011 Inventec Green Sustainability Report

Green Supply Chain

2011 Inventec Annual Supplier Conference in Chongqing

Around 40% of suppliers have the ability

of GHG accounting

Around 40% of suppliers were request

by their customers to disclosure carbon

footprint of product

At

least

50%

of

suppliers

have

established IECQ QC 080000 HSPM

system

At least 50% of suppliers have IT system

to control the hazardous substances in

their products

At least 50% of suppliers have inspection

devices to check the conformity of HSF

standards

Around 40% of suppliers have realized

the risks of hazardous substances in

their products

Suppliers Survey

19

Green Product>Green Supply Chain

2011 Inventec Annual Supplier Conference in Shanghai

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Clean Production

Energy and Climate

Pollution Control

Green Factory

Green Factory

Green Life

Green Product

Performances of Clean

Production

GHG Emissions in 2011

P21

P24

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2011 Inventec Green Sustainability Report

Clean Production

Clean production audit is not only an important basis for companies to implement clean production, but also an important means for energy saving, consumption reduction, pollution control and efficiency improvement.

Inventec Pudong factory (IPC, IPE, IPT) have worked with China government to promote clean production and have built the clean production audit process since August 2010. Within about a year, we tried to identify the defects on energy and resources consumption and pollutions control in the manufacturing process through clean production audit process, then we planned and implemented a series practical of clean production actions, and further specified related production activities, and built the clean production audit process.

We totally have completed 34 actions of clean production in Pudong factory since 2008. IPC reduced a total of 2936.46 tonnes CO2e per year through 11 actions of implementation, such as reducing the waste of ICT tools card and wiping paper, increasing utilization of equipment, saving energy of public facilities. IPE reduced a total of 2436.89 tonnes CO2e per year through 11 actions of implementation, such as reducing the amount of scrap components and cases, saving production line space, saving energy of public facilities. IPT reduced a total of 2032.13 tonnes CO2e per year through 12 actions of implementation, such as saving solders, reducing the amount of waste battery, saving energy of public facilities. Under the short term targets achieved, Inventec will consolidate clean production audit process and enhance employee awareness of clean production and environmental protection for the continuous operation of clean production system.

Preparation

Pre-audit

Audit

Evaluation

Implementation

Action Selected

Continuous

Improvement

Clean Production Audit Process

Site

Actions

completed

Performance

IPC

11

Reduce 2936.46 tonnes CO2e/yr

Save 3,000 tonnes water

IPE

11

Reduce 2436.89 tonnes CO2e/yr

Save 29,400 tonnes water

IPT

12

Reduce 2032.13 tonnes CO2e/yr

Save 18,000 tonnes water

Clean production Performance

PS: all actions had taken since 2008.

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2011 Inventec Green Sustainability Report

Energy and Climate

Energy Management and Statistic

Energy consumption affects not only operating costs, but environmental pollution and impacts. How to make efficient use of energy is one of the important issues of sustainable development for companies. To well manage energy, Inventec keeps energy monitoring to seize the opportunity of improving energy efficiency.

The power consumption in 2011 was 192,062 MWh (Million Watt

Hours), slight raising 0.6% than previous year. The natural gas consumption in 2011 is 2,426 KM3, raising 14% from previous year. The

main reason is because the amount of IPE employee was increasing and that caused the increasing of natural gas consumption in the kitchen. The main energy consumption (Power, Natural Gas) within 2007-2011 were compared as follows:

2007-2011 Power Consumption for Each Site

Green Factory>Energy and Climate

2007-2011 Natural Gas Consumption for Each Site

0 50,000 100,000 150,000 200,000 250,000

2007 2008 2009 2010 2011

(MWh) (Year)

IMX ICZ IPT IPE IPC TRDC TAO IET

14,996

184,574 186,318 190,916 192,062

0.0 50,000.0 100,000.0 150,000.0 200,000.0 250,000.0

2007 2008 2009 2010 2011

(KM3) (Year)

IMX ICZ IPT IPE IPC IET

1,476

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2011 Inventec Green Sustainability Report

Energy and Climate

Water Consumption Statistic

In recent years, water resource management issue is becoming more and more important due to rainfall patterns rapid changing and uneven rainfall distribution. The water demands for Inventec are cleaning water, cooling tower water, gardening water and drinking water (production process without water). The total water consumption in 2011 is 1,190 thousand cubic meters, approximately flat to the 2010. The water consumption per capita in 2011 is around 44.5 cubic meters per person and it s not big differences compared with previous two years.

Water-saving Actions

The sources of water consumption in Inventec are mainly from daily life use and air condition. Thus, our water-saving actions focus on the measures of flow control and water recycle to achieve the purpose of water-saving. The water-saving actions for each site are as follows:

Site

Investment

(TWD)

Water-saving Actions Summary

IET

480K

Water pipes replacement, flush

frequency of urinal adjustment

TAO

4K

Use water-saving and sensor on the

faucet

TRDC

2,530K

Bore groundwater wells

IPC

0

Change the concentrated multiple in

wastewater treatment system by

season

IPE

245K

Horizontal examination and smart

water meter setup

IPT

0

Water yield of faucet adjustment

23

Green Factory>Energy and Climate

0 10 20 30 40 50 60 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

2007 2008 2009 2010 2011 (M3/Capita)

(KM3)

(Year)

IMX ICZ IPT

IPE IPC TRDC

TAO IET Water Consumption per Capita

1,060 1,057

1,227

1,190 1,190

(27)

2011 Inventec Green Sustainability Report

Energy and Climate

GHG Emission Statistic

Inventec conducted greenhouse gas (GHG) accounting since July 2008 and so far completed five years (2007-2011) of the GHG inventories. Besides, in order to improve the efficiency of GHG accounting, we built a platform, called I e te GHG Portal in 2011 to ensure all accounting tasks can be completed by the portal. It is not only can improve the efficiency, but also can save a lot of manual time and paper and reduce human errors. This is also an action of energy saving and carbon reduction. For getting the recognition by intended users, all the GHG accounting tasks complied with international standard: ISO 14064-1, and we implemented the internal and 3rd party verification after GHG inventory

finished. The time period for this inventory was from 1st Jan. 2011 to 31th

Dec. 2011 and the scope included nine sites (IET, TAO, TRDC, IPC, IPE, IPT, ICC, ICZ and IMX), ICC was the first time to implement.

According to the inventory results (see the right figure), the total GHG emissions are 170,525 tonnes CO2e. The GHG emissions of Pudong factory (IPC, IPE, IPT) and Chongqing factory (ICC) are 147,647 tonnes CO2e, 87% of total emissions, as the major source. For the source distribution (see the figure in next page), power consumption is the major source, 94.3% of total emissions, natural gas is secondary, 3.6% of total emissions. Therefore, taking actions on energy conservation and equipment energy efficiency is a major direction for reaching the carbon reduction target, which can also lower long-term operating costs.

GHG Reduction Performance Tracking

To effectively reduce greenhouse gas emissions, Inventec set a carbon reduction target in 2010 (Please refer to Page 12) to track the reduction performances. The 2011 emissions measured by the target boundary (not including ICC) are 160,564 tonnes CO2e, cutting 1.6% of total emissions compared to target base year. We will continue to promote energy saving and carbon reduction actions in the future and expect to reach the target successfully.

Green Factory>Energy and Climate

2007-2011 GHG Emissions for Each Site

0

50,000 100,000 150,000 200,000 250,000

2007 2008 2009 2010 2011

(Ton CO2e) (Year)

IMX ICZ ICC IPT IPE

IPC TRDC TAO IET

144,855

173,745

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2011 Inventec Green Sustainability Report

Energy and Climate

Energy Saving and Carbon Reduction Actions

To reduce the environmental impacts caused by climate change, Inventec continues to promote the actions of energy saving and carbon reduction. There were totally 37 actions taken in 2011 and cost 13,498 thousand NT dollars. The actions for each site are summarized as follows:

Site Amount of Action

Investment (TWD)

Actions Summary

IET 6 624 Use T5, LED lighting system, setup air curtain in cafeteria, setup temperature control in Fan Coil Unit…

TAO 2 56 Use T5 Tube, diesel oil reducing

TRDC 3 1,347 Use T5 Tube, Heat dissipation material of Cooling Tower Replacement, Cooling Tower maintenance

IPC 11 0 Pressure adjustment of air compressor, lighting system control、temperature control in chillers…

IPE 6 128 Lighting system control, use anti Radiation curtain, setup time control device on exhaust fan …

IPT 5 11,343 Phase out high power consumption of nitrogen generators, Lighting system control, Power system loading adjustment by season

IMX 4 0 Lighting system control, un-plug equipment or computers, which are not used

Heat dissipation material

of Cooling Tower

Replacement

Use LED Lamp

T5 Tube Replacement

High Power

Consumption

of Nitrogen

Generators

Phase out

Lighting

Control

25

GHG Sources Distribution

Actions of Energy Saving and CO

2

Reduction

Green Factory>Energy and Climate

Power: 94.3%

Halon: 0.2% Natural Gas: 3.6%

Gasoline: 0.2% Diesel: 0.3% Refrigerant: 0.9%

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2011 Inventec Green Sustainability Report

Pollution Control

Air Pollution Control

The exhaust in production process contains particles, Tin and its compounds, oil smoke, etc. There are dust collectors, Process exhaust fan, range hood and electrostatic precipitator devices in sites. We have a regular examination by 3rd party every year and the result complied with

related regulations to avoid surrounding pollutions.

Wastewater Treatment

There is not any process wastewater in Inventec. Our wastewater sources are mainly from domestic wastewater. There only is a sewage treatment facility in TRDC; the wastewater of other sites was collected by sewage pipeline or sewer, and then was taken to the local sewage plant for treatment.

Chemical Management

With the development of science and technology in recent years, it not only enlarge chemical categories and complexity, but also increases the hazard risks of chemicals to human health and the environment. Therefore, how to establish an effective management system is one of the important issues of moving towards sustainable development for company. In order to accurately ensure the chemicals safety, Inventec made the management procedures for hazardous chemicals control and set up the hazardous chemical storage area for 24-hour monitoring. In addition, to enable the employee to correct use of chemicals, we regularly hold training courses to prevent chemical disasters occur. For common categories of chemicals and its purchasing volume in 2011, please refer to the right figure:

No. Chemical Title Purchasing Volume

1 Alcohol (99.8%(for electronic use), 98%(Analysis level), industrial alcohol, medical alcohol(75%)

10.5 KL

2 Methanol 11.6 Ton

3 Degreaser 12.4 KL

4 Anti-oxidant 0.39 Ton

5 SM816 soldering flux 102.9 KL

6 Sin-na thinner 20 gallon

7 Alpha soldering flux 0.88 KL

8 Chemical-YC-0205 35.6 KL

9 Thinner 8401 9.6 KL

10 Lien-ching 98 0.25 Ton

11 Cleaning agent(Wei-meng, C-36, C-55, C-68, X-201, circuit cleaning solvent, environmental cleaning solvent)

67.9 KL

12 PCB cleaning agent (C807) 0.22 Ton

13 Belly cleaning agent 0.19 Ton

PS. The list items are based on the chemicals, usually used in Pudong factory

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2011 Inventec Green Sustainability Report

Pollution Control

Waste Treatment

The ways of waste treatment of Inventec all complied with local regulations. Inventec select qualified vendors and keep monitoring the flow of treatment by our specialist. There is a special area for waste storage in each site and person in charge of handling the recycling and disposition of Industrial waste. We set up the warehouse and waste organic solvent storage area for the harmful/hazardous waste, in which there are complete fire-fighting equipments and well control for avoiding accident occur. The ways of waste treatment in the factories are as follows:

Waste Statistic

In 2011, the total amount of waste in Inventec is about 16,326 tonnes. Notebooks and mobile devices account for 70.4% of total amount and server and cloud services is 29.6%. Compared by the ways of waste treatment, recycling (87%) is major, followed by incineration (5.7%) and landfill (5.3%). Please refer to the following statistics.

Category

Waste Treatment Way

Trash

Taiwan, Czech

Incineration

China, Mexico

Landfill

Solvent

Incineration

Paper

Recycle/Reuse

Plastic

Recycle/Reuse

Solder

Recycle/Reuse

Medical Waste

Incineration

Electronic Waste

Recycle/Reuse

Acid

Heat Treatment

Mix Hardware

Recycle/Reuse

Battery, Light Tube

Recycle/Reuse

Kitchen Waste

Compost/Animal Feed

27

Waste Statistic in 2011

Green Factory>Pollution Control

0 2,000 4,000 6,000 8,000 10,000 12,000

NB, Mobile Devices Server, Cloud Services

Others 241 84

Incineration 214 721

Landfill 518 352

Recycle/Reuse 10518 3677

Weight(Tonnes)

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Biodiversity Conservation

Health and Safety

Education

Green Life

Green Factory

Green Life

Green Product

Activities of Biodiversity Conservation

Occupational Health & Safety

Award-winning Records

P29

P31

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2011 Inventec Green Sustainability Report

Biodiversity Conservation

Tree Planting Activity Participation

Forest is not only an important habitat for many animals and plants but is one of important roles to stable global climate. Excessive exploitation and habitat destruction result in a great loss of forest resources and the serious impacts on biodiversity and climate change issues.

Inventec in response to "international year of the forests 2011", which proclaimed by United Nations, participated in the "1 man 1 tree, Yes, I can do the" tree planting activity, held by BCSD Taiwan, and expect to more people to pay attention to biodiversity problems and limited forest resources.

Factory Greening

In order to integrate the architecture and natural environment in the factory and reduce local ecological impacts caused by the operations,

Inventec set eco-pool in the Pudong factory and planted a variety of native plants, turf in the surroundings for the purpose of air cleaning and the environment beautifying.

Park Maintenance

Inventec not only concerns about the environmental protection in the factory but the improvement of local community and environment. We are aware of the importance of ecology conservation for the surroundings, as a result, we actively promote the biodiversity conservation and cherish natural resources. It s a kind of corporate social responsibilities for us.

Inventec works together with community residents to preserve the living environment. We long-term maintain the ShihLin QianGang Park and provide services such as seasonal flowers and tree planting, surroundings cleaning and maintenance to increase interaction with the residents and provide a clean public space in the community.

廠區綠化照片

Tree Planting Activity

Pudong Factory Greening

ShihLin QianGang Park Maintenance

29

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2011 Inventec Green Sustainability Report

Health and Safety

Emergency Response and Training

Handling real time of in-site emergency situation, avoiding disaster expansion and losses, and controlling real-time information and communication, are the main works of accidents emergency response management. Inventec regularly holds the fire drills every year and enables colleagues to understand how to use fire equipment, evacuation routes and the related emergency responses within the plant. The emergency response team is also organized to plan the emergency response measures and recovery actions for accident risk

management.

The emergency responses and fire drill trainings for each site in 2011 are as follows:

Sites

Holding Date

IET

2011/4/29

2011/12/14~16

TAO

2011/6/1

2011/11/18

TRDC

2011/6/3

2011/11/10

Pudong Factory

(IPC/IPE/IPT)

2011/8/19

2011/11/25

ICZ

2011/2/18

IMX

2011/10/27

IMX Disaster Medicine Training

IET Evacuation Training

TRDC Fire Fighting Training

TAO Fire Fighting Training

Pudong Factory Emergency Rescue Training

Pudong Factory Fire Drill Mobilization

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2011 Inventec Green Sustainability Report

Health and Safety

Workplace Safety

Inventec regards "staff safety" as its first priority, with the goal of zero disaster in the workplace. We have regular security and health check for ensuring the safety of employees, such as fire fighting equipment inventory and maintenance, motor room inspection, special area control, operations personnel qualification, smoke area control and building security inspection, etc. In addition, there are reward systems to encourage employees active improve the workplace through the proposal.

Award Recognition

The awards of occupational safety and health in 2011 are as follows:

 Ministry of the Interior, Taiwan: Excellent Blood Donor Award

 Department of Labor ,Taipei City Government: Excellent Labor Safety and Health Unit Award

 Council of Labor Affairs: Zero Accident Record Award

 Department of Health ,Taipei City Government : Well Breastfeeding Room Certification

 Department of Labor ,Taipei City Government : Outstanding Self-Management Unit Award

 Department of Labor ,Taipei City Government : Excellent S e l f -Management Unit Award

Inventec (IET) since May 2006 without any work accidents and occupational injuries, awarded " 2011 Zero Accident Record".

Inventec (IET) effectively promoted safety and health self management of workplace and awarded "2011 Excellent Self-Management Unit" and Outsta di g Self-Management U it . It s only company for the electronics industry (includes NB and Server) to get this honor.

Inventec (IET)

promoted occupational safety and health management and awarded by the selection "2011 Excellent Labor Safety and Health Unit".

Inventec (IET) promoted health and safety management of breastfeeding room and

a arded Well

Breastfeeding Room Certification" in getting full score of evaluation.

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2011 Inventec Green Sustainability Report

Education

Environmental Education

To achieve the goal of Green Life, Inventec continued to organize training courses on environmental education in 2011. The employees can understand environmental trends and new knowledge in those courses and exercise it in the work. For the training hours for each site, please refer to the right figure:

Site

Course Topics

Hours

IET

Inventec HSF management standard introduction and the trends of hazardous substances control, Quality system and hazardous substances process management system validation Introduction, Environment and labor safety and health management system training course, Inventec GHG Portal Introduction, etc.

1,969.5

TAO

Inventec environmental education, Labor safety and health, EU regulations introduction, Environmental protection introduction, Taiwan ecological environment, etc.

981.14

IPC

IPE

RoHS/HF process restriction, ISO 14001 Introduction, Environment, health and safety management, Requests of environmental laws and regulations, Green product related regulations and systems, Quality system and hazardous substances process management system introduction, Biodiversity conservation, etc.

4,485.5

IPT

Occupational health and safety management for new employee, HSF management, EICC introduction, Environment, health and safety management, Labor and ethic introduction, Inventec GHG Portal 2nd training, etc.

9,660

Environmental Training Hours Statistic in 2011

Environmental Training Courses

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2011 Inventec Green Sustainability Report

Education

Environmental Website

Inventec established a variety of types of environmental websites for employees use within the company. It provides a good interaction platform to enable employees to keep the latest news, information and the progress of the implementation of internal projects. Inventec internal environmental websites are as follows:

1. Green Inventec

In order to ensure employees to keep up with new environmental information, Inventec provides the update of EU laws and regulations of green products, environmental standards, education and training materials, IECQ QC 080000, ISO 14001, OHSAS 18001 and so on.

2. Green Sustainability Information

To effectively collect the green sustainable information of sites, and make I e te Green Sustainability ‘eport , Inventec established "Green Sustainable information" website in 2011 to upload related data for function units.

Green E-paper

To enhance the staff's environmental conscious and strengthen the sustainable development concept, Inventec collected monthly information such as the latest environmental legislation and industrial sustainable benchmark, and its risks for the company and discuss the actions. We periodically issued Inventec green e-paper and Inventec HSF monthly journal to relevant employees for reference.

Green Inventec

Homepage

33

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2011 Inventec Green Sustainability Report

Education

In addition, the employees are able to get sustainable disclosure reports through this website, such as Corporate Social Responsibility Report, Green Sustainability Report, Corporate Environmental Report, so that employees can understand the effort for green sustainable works each year.

Environmental Poster

Inventec realized that we must work together with all employees to reach the goal of Green Life. Therefore, making environmental posters and slogans displayed at every area of the company, reminding employees of the importance of environmental protection at any time.

Green Sustainability Information

Homepage

参照

Outline

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