Sustainable Development
Message from the Management Team
Message from the General Manager
To Stakeholders:
The world is currently in a crucial era of rapid restructuring. Geopolitical risks, supply chain restructuring, and extreme climate are continuously altering the industrial environment, presenting businesses with more severe challenges. Facing a highly uncertain market situation, Phihong firmly believes that “Sustainability is Competitiveness,” and with stable operations and forward-looking planning, has officially launched the “Transformation 2.0” strategy.
Resilience and Transition in Adversity
In 2025, due to geopolitical and tariff factors, the demand in the electric vehicle charging pile market slowed down, resulting in full year revenue of NT$9.796 billion, a decrease of 10.11% compared to the previous year. However, Phihong continues to drive product portfolio optimization and high added-value positioning, not only maintaining strong profitability but also actively entering high-growth areas such as AI server power supplies, low Earth orbit satellites, and high-power Energy systems. We firmly believe that the true value of a corporation lies in its continuous creation of long-term impact amid adversity. Through “Transformation 2.0,” Phihong is transitioning from a leader in traditional power technology to an integrator of energy solutions.
Innovation Technology and Green Growth
Phihong continues to deepen Gallium Nitride (GaN) high-efficiency power technology, promoting high power density and low-carbon design, actively responding to global
energy-saving and carbon reduction demands. In the domains of AI and emerging applications, we are actively positioning in the AI data center and low Earth orbit satellite power supply market. As product verification is gradually completed, related revenue is expected to show significant growth momentum by 2026. The subsidiary, Zerova, continues to drive energy transition with high-power charging equipment and smart energy management systems, gradually building a comprehensive energy value chain.
Sustainable Governance and a Thriving Future
In terms of sustainable governance, Phihong has been verified by SBTi for Carbon Reduction Targets and received a “B level” management rating in both CDP Climate Change and Water Security assessments. Simultaneously, it has adopted the TCFD and TNFD frameworks to strengthen climate and nature-related risk management. In addition, we have continuously received the EcoVadis Gold Award and the RBA VAP Silver Rating, and have been awarded the Happiness Enterprise Gold Award for six consecutive times, demonstrating our long-term commitment to responsible management and career development.
Looking ahead, Phihong will partner with Zerova and global value chain partners to continuously promote low-carbon transformation and sustainable innovation. Through a more resilient business model, we will steadily stride toward an inclusive and sustainable future.
Sustainability is not just a responsibility; it is the ability for a company to define its future competitiveness.
Group General Manager
Message from the Chief Sustainability Officer
Facing dramatic global changes in 2025, corporate sustainability is no longer just a responsibility; it pertains to the core capability of “survival and competitiveness.”
The world is simultaneously facing multiple structural challenges: the intensification of climate change, accelerated supply chain restructuring, rapid increase in AI and energy demand, and significantly heightened geopolitical risks. Especially in the Middle East region, the expansion of conflicts not only impacts the energy market and global trade order but also increases the uncertainty for businesses in terms of energy safety and operational resilience. At the same time, the number and intensity of global conflicts reached a record high, displaying that the business operating environment has entered an “era of high volatility.”
In this context, the connotation of sustainable development is rapidly evolving from being primarily focused on “carbon reduction and disclosure” to emphasizing both “resilience, risk management, and value creation.” International trends also display that ESG is evolving towards a more substantive and performance-oriented development, requiring companies to respond to stakeholder expectations with data and achievements.
Phihong deeply understands that only by integrating sustainability into core strategies can a company maintain a competitive edge in a turbulent environment.
Therefore, we continue to drive the three major pillars of sustainable transformation:
I. Climate Action Intensification: From Carbon Reduction to Low-Carbon Competitiveness
Following the international net-zero trend, we have passed verification for science-based carbon reduction targets under the SBTi framework, and systematically
promoted carbon reduction management across Scope 1, 2, and 3. Through high-efficiency power products and energy-saving technologies, we assist customers in
reducing their carbon footprint, turning Climate Action into a market opportunity.
II. Resilient supply chain: From prioritizing efficiency to coexisting with risk
Amid trends of geopolitical shifts and supply chain reorganization, we strengthen supply chain transparency and localization strategies to enhance operational stability, adopting responsible procurement and human rights management mechanisms to ensure the sustainability and resilience of the value chain.
III. Sustainable Governance Upgrade: From Compliance Disclosure to Decision Integration
We have implemented the TCFD and further aligned with the TNFD framework, incorporating climate and nature risks into the decision-making process. This strengthens the governance and risk management capabilities of the Board of Directors, continuously enhances the quality of information disclosures, and responds to
international regulatory trends.
Looking to the future, sustainability will no longer be an added value but the essence of corporate value. Phihong will continue to uphold “technology-driven sustainability
and sustainability creating value” as its core principles. In an uncertain world, we are establishing the foundation for Long-Term stable growth and collaborating with
global stakeholders to stride toward a low-carbon and inclusive future.
From carbon reduction to transformation, sustainability is no longer a choice, but a necessary path for companies to reshape their value.
Chief Sustainability Officer
Progress of the Sustainable Strategy
Phihong Sustainable Development Milestones
Sustainable Development Committee
Phihong is deeply engaged in stakeholder interests, striving to incorporate Environmental, Social, and Governance (ESG) aspects into its core strategies while pursuing sustainable operations and profitability. In 2014, the company established the “Sustainable Development Committee” following approval by the Board of Directors, and subsequently set up the dedicated unit, the “Sustainable Development Office,” in 2021 to strengthen crossdepartmental communication and collaboration.
To refine the governance pillar, a “Chief Sustainability Officer” position was officially created in 2023, with the role concurrently held by a Special Assistant in the General Manager’s Office. The Committee is chaired by the Group General Manager, overseeing seven functional sub-groups. Members include first-level managers from each unit. Through monthly regular meetings coordinated and executed by the Sustainable Development Office, each ESG implementation project is precisely aligned with the Company’s policies, ensuring the long-term vision of corporate sustainability development
Organizational Structure of the Sustainable Development Committee
Phihong has developed a “three-tier sustainable governance structure.” At the top decision-making level, the “Sustainable Development Committee” is established under the Board of Directors, chaired by the Group General Manager, who is responsible for approving the vision and supervising performance. The middle level is led by the Chief Sustainability Officer who oversees the “Sustainable Development Office,” acting as a hub for crossdepartmental communication and strategic coordination. The execution level consists of “seven functional sub-groups,” where first-level managers lead their respective teams to translate sustainable goals into concrete action plans across the three pillars of Environmental, Social, and Corporate Governance (ESG) and ensure comprehensive implementation.
The Chief Sustainability Officer regularly reports execution results to the Board of Directors, with a total of 4 reports presented in 2025. The report focuses on the progress of Greenhouse Gas Inventory in core plants, the achievements of implementing Product Carbon Footprint (PCF) and the Energy Management System ( ISO 50001), as well as the approval of significant sustainability topics and the report. This series of governance practices
highlights Phihong’s firm commitment to driving sustainable transformation by deeply embedding ESG principles into its corporate culture and operational strategies. The Company actively responds to the United Nations Sustainable Development Goals (SDGs) and fulfills its corporate citizenship responsibilities.
Phihong Sustainable Development Committee
Sustainable Development Committee Operations
Internal Control System for Sustainability Information
To enhance the quality of sustainable reporting disclosure, Phihong referred to the “Reference Items for Determining the Effectiveness of Internal Control Systems” by the Competent Authority. In November 2024,upon approval by the Board of Directors, Phihong formally incorporated sustainability information into the internal control system. Through regular reviews of the system’s design and implementation effectiveness, the Company ensures that the disclosed information is truthful, accurate, and complete. In addition, the company actively implemented management mechanisms and completed the annual audit of sustainability information in 2025. Through concrete actions, it enhanced data reliability and credibility, building a solid foundation for corporate sustainable development.
Plan for the Implementation of IFRS Sustainability Disclosure Standards
To align with the international trend of integrating sustainability information into financial reporting and in accordance with the Financial Supervisory Commission’s “Blueprint for Taiwan’s Adoption of IFRS Sustainability Disclosure Standards,” Phihong plans to officially apply these standards in 2028, with preliminary operations starting ahead of schedule in the fourth quarter of 2025. The plan for the Year 2026 is to use the S1 (General Requirements) and S2 ( Climate-Related Disclosures) published by the ISSB as a basis to comprehensively assess the impact of differences between the current sustainability Information and the new standards. The plan is approved by the Sustainable Development Committee, and the implementation progress and interim achievements are reported quarterly to the Board of Directors for oversight, ensuring steady advancement of all connecting practices.
Phihong's IFRS Alignment Roadmap
Sustainability Performance and Honors
