Letter from the Chairman

GRI 102-14
Gear to International Standards through “Tech for Good”: From Carbon Reduction to Carbon Credits

In a world that has been reshaped by the unprecedented events of the past few years, global businesses must swiftly adapt to significant changes in supply chains, market channels, and consumer habits in response to the changing landscape. As a leading Taiwan-based IT service provider in Taiwan, SYSTEX not only continues to refine its fundamental operations but also rapidly leverages core capabilities in “software,” “data,” “algorithm,” “cloud service,” “microservices,” and “cybersecurity” to create exponential growth for our clients. Simultaneously, SYSTEX upholds the “Tech for Good” philosophy, fulfilling our responsibilities as global citizens by using technology to help clients reduce carbon emissions, implement more proactive green solutions, and create a better environment and world.

Our numerous ESG solutions have made us the preferred sustainable partner for corporate clients. With the goal of becoming the best sustainable partner for corporate clients, SYSTEX actively researches and integrates supplier capabilities to empower clients for sustainability. We aim for carbon neutrality and have developed 24 green environmental sustainability solutions, utilizing technology to save energy and reduce carbon emissions, achieve paperless operations, and promote corporate sustainability. Additionally, we offer 10 solutions to protect intellectual property and ensure data security, assisting companies in fulfilling their social responsibilities. Furthermore, we provide 13 services related to corporate governance to help companies implement corporate governance and regulatory compliance while maintaining robust operational health.

Awarded “Excellence in Corporate Social Responsibility Award – Rookie Awards” by CommonWealth Magazine

[Environment] SYSTEX continues to replace energy-consuming equipments, use renewable energy, and optimize energy usage configurations.SYSTEX is committed to promoting energy conservation and carbon reduction measures. In addition to obtaining ISO 14064-1 certificate, SYSTEX also maintains the validity of ISO 14001, ISO 50001 and ISO 45001 Verification. Furthermore, several affiliated companies within the SYSTEX Group have been recognized as “Green Procurement Outstanding Enterprises” by the Environmental Protection Administration of the Executive Yuan and Taipei City Government. SYSTEX itself has been honored with the Taipei City Government’s “Net-Zero Benchmark Award” in the business and industrial category.

[Social] The “Young Turing Program” aims to cultivate world-class software talents for Taiwan. In 2022, we held the first overseas coding competition, attracting teams from multiple countries including Indonesia, Singapore, Vietnam. This Program received the 2022 Taiwan Sustainability Action Awards (TSAA) “SDG4-Silver Award” and the 2022 Taiwan Corporate Sustainability Awards (TCSA) “Social Inclusion Leadership Award.” Furthurmore, SYSTEX, along with partners in the technology ecosystem such as WPG Holdings and Business Weekly Group, jointly initiated the “ESG Technology Innovation Promotion Alliance.” This alliance supports climate change adaptation through “Agriculture, Fishing, and Livestock Industry Innovation” and climate change mitigation through “Energy Conservation and Carbon Reduction Innovation,” contributing to sustainable development goals.

[Governance] SYSTEX made significant progress in sustainable information disclosure. In 2022, it was selected as one of the top 6%-20% among listed companies in the 8th Corporate Governance Evaluation by the Taiwan Stock Exchange. SYSTEX also received the 2022 TCSA “Platinum Award” and was recognized with the “Rookie Award” in the Large Enterprises category at the “Excellence in Corporate Social Responsibility Award” by CommonWealth Magazine. To mitigate risk and enhance operational efficiency, the Board of Directors established a “Risk Management Committee” and formulated risk-related policies to further strengthen corporate governance.

Prioritizing Talents,Continuous Investment in Employees’ Well-being and Learning

In 2021, SYSTEX launched the “SYSTEX Baby Happy Growth Funds” program, which encourages employees to have more children by providing bonuses and additional maternity and paternity leave incentives. As of the end of 2022, the program has supported 195 SYSTEX babies (246 individuals) with a total subsidy of NT$7.08 million. SYSTEX participated in the 2022 CHR Health Corporate Citizen Pledge by CommonHealth Magazine and was awarded the Certificate of Talent Quality-Management System (TTQS), Enterprise Institution Version “Bronze Award” by the Labor Ministry. Also, SYSTEX was recognized with the “Friendly Family Award” in the Labor Ministry’s 2022 Work-Life Balance Awards.

These accolades reflect our years of continuous investment in employee well-being, learning, and happiness. In 2022, SYSTEX was awarded the “Corporate Employment of Sports Instructors Award” by the Ministry of Education and the “Badge of Accredited Healthy Workplace” by the Ministry of Health and Welfare. SYSTEX’s Neihu headquarters building once again received the “Excellent Lactation Room Certificate” from the Taipei City Health Bureau. SYSTEX encourage employees to keep learning, providing both internal and external physical courses. Since 2022, we have also offered employees a self-study platform to choose their preferred courses, allowing for more flexible learning.

Tech for Good, Creating Value for the Shareholders

In 2022, SYSTEX achieved a new record-high revenue for the seventh consecutive year. In addition to our own efforts, we collaborated with domestic and international ecosystem partners, leading the VAD, Industry, and Mega SI ecosystems to seize growth opportunities. By embracing environmental conservation, social responsibility, and effective corporate governance, deepening innovation in digital technology and software applications, and diversifying horizontally, vertically, and ecologically, we rapidly and flexibly respond to challenges posed by economic cycles and environmental changes. We redefine new forms of information service industry services, aiming for stable profitability, creating long-term shareholder value, and aligning with stakeholder expectations and corporate sustainability goals.

Chairman & President, SYSTEX Corp.

Frank Lin