Sustainable Impact
As a leading manufacturer of motion control and system technology, HIWIN is dedicated to improving the quality of life and work environment for society. We uphold a spirit of technological innovation and continuous improvement, providing our customers with top-quality products and services. Additionally, we strive to create long-term value for stakeholders and fulfill our commitment to sustainable impact on society.
Since 2022, HIWIN has implemented a sustainable impact assessment method that incorporates the Triple Bottom Line (TBL) management approach. This approach considers the economic, environmental, and social aspects from a Profit & Loss perspective. By evaluating the positive (benefit) and negative (cost) impacts of various value chain activities on social welfare and translating them into a consistent monetary language, we can effectively manage the risks and opportunities associated with our business processes.
The analysis reveals that in 2022, HIWIN contributed a total of US$472.16 million to stakeholders. This contribution encompasses operating net profit, tax payments, dividend distributions, employee remuneration, depreciation, and amortization, among others. These activities not only generated added value income for stakeholders but also fostered economic growth in society. However, the production process resulted in an environmental cost of US$9.44 million due to the environmental footprint and resource consumption. Furthermore, occupational accidents consumed medical resources and posed health risks, resulting in social costs of US$910.8 thousand. In the upstream supply chain, HIWIN’s procurement demands drove a total output value of US$814.07 million and provided US$27.68 million in wages to workers. Nevertheless, the supply process also incurred US$13.03 million in environmental costs. Regarding downstream product applications, we prioritize the analysis of our Intelligent ballscrew (BS) and Cross Roller Bearing (CRB) product series. The sales process generated a total output value of US$3.26 million for customer industries.Additionally, the energy-saving and automation innovative designs of these products allowed us to avoid carbon emissions and occupational accidents, resulting in a positive contribution of US$2.41 million.
Moving forward, we will expand the assessment of the influence of product innovation design and applications. We will also strengthen sustainable supply chain management and implement more efficient production methods to reduce the environmental impacts of the value chain and enhance social well-being. By doing so, we aim to create even more significant positive outcomes for our stakeholders.
Note:
- 1. Upstream procurement utilizes the Input-Output Model to calculate the economic benefits resulting from supply-demand effects in the industry chain, as well as the associated environmental issues, job opportunities, and salary income. Reference sources include the 2020 Report on Input-Output Tables (Directorate-General of Budget, Accounting and Statistics, 2020), the Green National Income Account Report (Directorate-General of Budget, Accounting and Statistics, 2022), Energy Balances in Taiwan, Republic of China (Energy Bureau, 2022), and the EXIOBASE 2 database, among others.
- 2. The direct economic contribution is assessed using the Gross Value Added (GVA) method to evaluate the positive impact generated for stakeholders in the operational process. This includes operating profits, dividends (for investors), remuneration (for employees), taxes (for the government), and depreciation and amortization (for suppliers).
- 3. The environmental footprint impact is calculated using the Environmental Profit and Loss (EP&L) methodology, which considers the carbon social cost, human health loss cost, and ecosystem damage cost resulting from greenhouse gas emissions, air pollution, wastewater, waste, and water resource consumption. Reference sources include the US EPA (2016), OECD (2012), and CE Delft (2018).
- 4. The future benefits of occupational development are evaluated using VBA (2021) to assess the professional skills and knowledge acquired by employees through the company’s training program. This not only enhances productivity but also improves employability for their future career development, thereby influencing their average annual expected salary.
- 5. The social cost of occupational hazards is determined based on the UK HSE (2017) guidelines, considering the value of employees’ willingness to pay to avoid occupational hazards and the input of medical resources.
- 6. Health risks are assessed by considering potential factors of cardiovascular disease in employees, such as hypertension, hyperlipidemia, hyperglycemia, and obesity. The attributable relationship between their health risks and workload, as well as the potential input of medical resources, is evaluated. Reference sources include WHO (2008) and Chieh-Hsien Lee (2009).
- 7. Downstream product applications focus on the Intelligent Ballscrew (BS) and Cross Roller Bearing (CRB) series products. We analyze the supply and demand relationship between sales volume and customer industrial output value, and assess the indirect economic value created by product sales. Additionally, we compare energy and time-saving efficiency, calculate the avoided carbon social cost, and assess the risk of occupational hazards.
- 8. Considering variations in economic conditions across different countries, the value coefficient is adjusted based on the Gross National Income (GNI) per capita measured by Purchasing Power Parity (PPP) in each region. The time frame is aligned with the currency value as of 2017 as the baseline. The methodology is referenced from OECD (2012) and PwC UK (2015) studies.