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Commitment

Our Commitment to Sustainability

Our commitment to sustainability (which includes corporate social and environmental responsibility (CSER)) is represented in our Core Values of Integrity, Commitment and Innovation. We strive for environmental sustainability, social responsibility, responsible sourcing, business ethics and compliance, corporate citizenship and employee volunteerism to have a sustainable operation and a long-term, positive impact on our stakeholders: investors, customers, employees, suppliers and our communities.  

We adopt a stakeholder-orientated approach to governance and are committed to conducting an ethical, lawful, profitable, and sustainable business that creates value over the long term. We are not actively or directly involved in any political advocacy or lobbying groups nor do we provide financial contributions to political organizations. Our engagements on these issues are mainly through industry associations that we support together with our industry peers, or through community engagement with non-profit organizations.

Through our extensive sales and distribution network we provide customers around the globe with a broad portfolio of innovative, energy-efficient, and eco-friendly products. It is our firm belief that our stakeholders’ well-being is supported by CSER considerations and such considerations are integral to our ongoing organizational success and operational resilience.

Stakeholder Engagement

Our decision to support sustainability influences our company operations worldwide: responsible manufacturing, the health & safety of employees, local compliance, quality standards, human resource and human capital management, research and development, product innovation, supply chain management, business ethics, investor relations, and corporate citizenship. We engage with our stakeholders, specifically employees, customers and investors, for feedback on our sustainability efforts.

We view sustainability as a competitive advantage and have adopted a sustainability-oriented approach to assess and address related risks that may influence our operational activities, business results, and financial performance. This includes considering the importance of economic, environmental, and social factors as they impact our business and stakeholders. By engaging with stakeholders to identify sector- and company- specific risks and opportunities, we may develop proactive strategies to uphold our sustainability standards. We also assess our progress and leverage industry standard certification and audit processes to ensure sustained accountability and long term performance.

We are privileged to partner with our customers in building sustainable products and applications that contribute to the health and well-being of our communities and our planet.

Code of Conduct

We align our business practices and operations with the Code of Conduct published by the Responsible Business Alliance (RBA), formerly the Electronic Industry Citizenship Coalition (EICC), a leading industry coalition dedicated to corporate social responsibility in global supply chains. Diodes' CSER Code of Supplier Conduct and Human Rights and Workforce Labor Rights Policy are based on the RBA Code of Conduct. The RBA Code of Conduct establishes standards to ensure safe working conditions in the electronics industry and in industries in which electronics is a key component including the supply chains that support those industries. The RBA Code of Conduct seeks to ensure workers are treated with respect and dignity, and that business operations are environmentally-responsible and ethically-conducted. The RBA Code of Conduct is in alignment with the UN Guiding Principles on Business and Human Rights and is based on international principles and norms that we support and incorporate in our business practices, including the United Nations (UN) Universal Declaration of Human Rights, the International Labor Organization’s (ILO) International Labor Standards and Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises, and ISO standards.

Through its rigorous RBA Validated Assessment Program (VAP), Diodes endeavors to ensure that its operational activities are consistently conducted in alignment with the RBA Code of Conduct and Diodes’ quality standards and procedures.

In particular, two of our manufacturing sites in Shanghai received Silver status recognition from the RBA during their initial RBA audits.

Letter from the Chairman, President, and Chief Executive Officer

 

Dr. Keh-Shew Lu

 

As an international semiconductor company with a global footprint, Diodes and its worldwide subsidiaries are committed to prioritizing our stakeholders—customers, shareholders, employees, suppliers, and the communities in which we operate. We recognize the role we play in society and are committed to maintaining a sustainable and successful business over the long term by taking a stakeholder-oriented approach.

We are dedicated to creating and maintaining long-term value for our stakeholders and we engage in activities that will lead to sustainability and shared prosperity for our business and our communities.

Building on the foundation of our core values—integrity, commitment, and innovation—and advancing the mission of profitability growth to expand shareholder value, we are committed to:

  • Fostering a corporate culture of trust, diversity, and inclusion where everyone is treated with dignity and respect, and diverse perspectives are valued;
  • Delivering products to our customers through innovation and responsible supply chain management that promote sustainability;
  • Dealing fairly and ethically with our suppliers and engaging a diverse supplier base;
  • Investing in our employees through fair compensation and benefits as well as professional development opportunities;
  • Supporting the communities in which we live and work by protecting our environment through sustainable business practices and being involved in community engagement; and
  • Generating long-term profits for our shareholders through continuous investment, business growth and innovation, as well as transparency and effective engagement with our shareholders.

Each of our stakeholders is integral to our sustained success and we are committed to delivering long-term value to our customers, shareholders, employees, suppliers, and communities.

We value the feedback and perspectives from our stakeholders and take our commitments to our stakeholders seriously. The Diodes hotline, hosted by an independent third party, provides employees, suppliers, and others an opportunity to report concerns regarding potential compliance, ethical, or safety matters on a confidential or anonymous basis. These perspectives allow us to continuously improve and challenge ourselves to always do better and achieve higher goals.

By leading with integrity, commitment, and innovation, and serving our stakeholders through these commitments, we believe everyone will enjoy and benefit from the long-term prosperity of Diodes.

Sincerely,

Dr. Keh-Shew Lu

Chairman, President and Chief Executive Officer

Diodes Incorporated

For a PDF copy of the above statement, click here

Governance and Oversight

CSER is a strategic focus for the Diodes management team and the Diodes Board of Directors (Board). To further accelerate our commitment to sustainability, and with the support of the Board, we created a Steering Committee to focus on CSER and the ongoing assessment of our operations and their impact on the communities in which we operate. 

The CSER Steering Committee is headed by our Vice President of Operations and is comprised of representatives from multiple functions including corporate governance, regional management, operations management, legal and compliance, human resources, and quality. The Steering Committee approves CSER-related policies, long term objectives, and external disclosures and reporting. The Steering Committee also has operational control of environmental, health and safety, and social risks, and provides guidance on actions needed to address these risks.

Given our global manufacturing footprint and strong commitment to environmental responsibility, we also formed a Task Force represented by regional environmental, health, and safety (EHS) subject matter experts. This Task Force is supported by the General Counsel and Corporate Compliance Officer to focus on harmonizing our EHS metrics and leverage best practices. Both the Task Force and the Steering Team conduct regular review meetings to assess performance and drive continuous improvement.

The Task Force works closely with the Steering Committee, which provides periodic updates to the Board and engages frequently with the CEO and Lead Director on sustainability issues. With oversight and support from the Board, we have developed and implemented business strategies, and managed business operations in ways that are resilient to sustainability-related risks, including the impacts of climate change and pandemics.

In addition to the Board’s increased oversight of sustainability efforts, the executive bonus compensation includes a measurable CSER component to further demonstrate and enhance the management’s commitment to CSER.

We also engage in regular dialogue with stakeholders and sustainability rating agencies to solicit feedback as we continue to sharpen our focus on sustainability. Taking into account sustainability standards that are appropriate for the semiconductor industry, and for companies with a manufacturing footprint and scale of operations that are comparable to ours, specific sustainability performance metrics are identified where appropriate as we strive for continuous improvement. We believe these collective sustainability efforts help us create and maintain long-term profitability for our shareholders.

Responsible Disclosures

As part of responsible reporting to our stakeholders, and specifically institutional investors, we are committed to providing information that reflects the Seven Principles for Effective Disclosures  published by the Task Force on Climate-related Financial Disclosures (TCFD). 

We also refer to the TCFD voluntary framework around these thematic areas of corporate activities—governance, strategy, risk management, and metrics and targets. We support the industry-specific metrics recommended by the Sustainability Accounting Standards Boards (SASB) for the Technology and Communications Sector specific for the semiconductor industry, and use them as guidance in our development of disclosures. 

We focus our disclosures on the key sustainability issues identified by SASB Materiality Map®and will continue to update these to provide material and relevant information to our stakeholders.

We actively work to make our sustainability disclosures more comprehensive, accurate, and transparent. The information disclosed is based on internally-available data and the management’s good faith estimates, approximations, and analysis. The information has not been independently audited or verified by third parties. Past performance is not an indication of our future performance or results. Our performance, the measurement of our performance, and any assumption used in measuring our performance on these environmental and social factors, will continue to evolve over time. We value feedback from our stakeholders and we can be reached at compliance@diodes.com

 

1SASB Materiality Map® is a registered trademark of The SASB Foundation

Corporate Social and Environmental Responsibility Statement

Last Updated: August 2020

Diodes Incorporated and subsidiaries (collectively, “Company”) are committed to operating in an economically, socially, and environmentally sustainable manner, while recognizing the interests of our stakeholders.

As a participant in the global community, we recognize the impact we have on the communities in which our employees, customers, suppliers and other stakeholders live and work. By living our core values – integrity, commitment, and innovation - continuously through our actions in the way we conduct business and interact with our stakeholders, we uphold our commitment to be a responsible corporate citizen and positive contributor to our global community. We adhere to responsible and ethical business practices and we strive to contribute back to our communities.

The Company is committed to a safe and healthy workplace for all our employees. We value diversity and inclusion as it contributes to our competitiveness in the global marketplace. The Company is dedicated to ensuring that our employees, customers and suppliers are treated with dignity and respect. In addition to compliance with applicable laws and regulations of the countries in which we operate, we also look for opportunities to contribute to the well-being of the communities which we serve.

The Company is also committed to the protection and preservation of the environment and our communities. We design and manufacture products using sustainable practices to minimize our impact on the environment.

The Company strongly believes in and actively supports environmental protection, health and safety performance, and other social responsibility requirements to which the Company subscribes. We identify and leverage global best practices and guidelines to help us ensure responsible stewardship and sustainable operations for the long term benefit of our stakeholders.

Please click here for a PDF copy of our CSER Statement.

Corporate Social and Environmental Responsibility Conduct

Diodes' CSER Code of Supplier Conduct is based on the Responsible Business Alliance (RBA) Code of Conduct, formerly the Electronic Industry Citizenship Coalition (EICC), as it establishes standards to ensure safe working conditions in the electronics industry and in industries in which electronics is a key component, including the supply chains that support those industries. The RBA Code of Conduct seeks to ensure workers are treated with respect and dignity and that business operations are environmentally-responsible and ethically-conducted. The RBA is the world’s largest industry coalition dedicated to corporate social responsibility in global supply chains.

Through its rigorous Validated Assessment Program (VAP), Diodes received Silver recognition at two of its Shanghai manufacturing sites during their initial RBA audits.

United Nations Global Compact Principles Index

The United Nations Global Compact provides a principle-based framework for companies worldwide to adopt and integrate sustainable and socially responsible policies into their business activities, and encourages companies to strive towards achieving the Sustainable Development Goals to provide a better and more sustainable future for all.

As a global corporate citizen, Diodes embraces the ten general principles outlined in the UN Global Compact that are founded on internationally recognized conventions relating to human rights, labors, environment, and anti-corruption. We are committed to these sustainability and responsible business practices. Referenced below are links to the relevant portions of Diodes’ Sustainability website that support the corresponding UN Global Compact principles.

Categories

Principles

Diodes’ Response

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.

See

Commitment

section

 

Principle 2: Businesses should make sure that they are not complicit in human rights abuses.

See “Commitment,”

Social

Responsibility

/Business

Ethics

sections.

 

 

Labor

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

See “People

section

 

 

 

Principle 4: Businesses should support the elimination of all forms of forced and compulsory labor.

See “Supply

Chain,”

and “People

section.

 

Also refer to

our

Human Rights

and Workforce

Labor Rights

Policy,” 

UK Modern

Slavery Act

Statement,”

and “California

Transparency

in Supply

Chain Act

Statement.

 

Principle 5: Businesses should support the effective abolition of child labor.

See “Supply

Chain,”

and “People

section.

 

Also refer to

our

Human Rights

and Workforce

Labor Rights

Policy,”  “UK

Modern

Slavery Act

Statement,”

and

California

Transparency

in Supply

Chain Act

Statement.

 

Principle 6: Businesses should support the elimination of discrimination in respect of employment and occupation.

See “People

section and

Supply

Chain/

Supplier

Diversity

and

Inclusion

sections.

 

Also refer to

our “Human

Rights and

Workforce

Labor Rights

Policy."

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges.

See “Social

Responsibility

/Sustainable

Products,”

Supply Chain

/Responsible

Use

of

Materials

in

our Products,”

and “Supply

Chain/

Supply

Chain

Management

sections.

 

Also refer to

our

Environmental

Policy” and

Climate

Change Policy.

 

Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility.

See “Social

Responsibility

/Sustainable

Products,”

Supply

Chain

/Responsible

Use of

Materials

in

our Products,”

and

Supply

Chain/

Supply

Chain

Management

sections.

 

Also refer

to our

Environ-

mental

Policy

and “Climate

Change Policy.

 

Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies.

See “Social

Responsibility

/Sustainable

Products

section.

Anti-corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

See “Social

Responsibility

/Combating

Corruption

and Bribery".

 

Also refer

to our “Anti-

Bribery and

Anti

-Corruption

Policy.

 

Awards and Recognitions

Mick Conlon (holding trophy) and colleagues receive the 2019 TechWorks Manufacturing Site of the Year Award for Diodes Incorporated (Oldham) - alongside compere Penny Power OBE and Techworks CEO, Alan Banks (right) and John Summers and Dominic Flynn of sponsor Logos Logistics

At Diodes, we set high performance targets for our business operations, and continuous improvement is at the core of our day-to-day activities. We leverage a variety of resources to assess our company’s progress against our CSER performance goals, and to drive continuous progress.

We value the feedback from our stakeholders and are appreciative of the various awards and recognition earned from governments and agencies worldwide. These awards acknowledge our continuous efforts to strive for excellence and successfully reach out to our communities.

As an example, our U.K. operations and key employee representatives have been widely recognized as recipients of various awards such as The Manufacturer Top 100, Queens Award for Enterprise Promotion, Engineering Employers Association Leadership Award, Oldham Civic Award and Oldham Outstanding Contribution Award. In addition to our corporate community efforts, the various awards received by our employees are a strong testament to their individual professional contributions as Diodes employees. For example, Dr. Gerry McCarthy, managing director of our Greenock facility, was awarded the President’s Award in the Inverclyde Chamber of Commerce Bee’s Knees Business Awards 2019, in recognition of his special and significant contribution to the Inverclyde business community.

 

 

The following are additional examples of awards we have received in recent years:

 

  • United States
    • Outstanding Community Service Awards from the Chinese Institute of Engineers (CIE)/ USA, Dallas –Fort Worth Chapter
    • Corporate Friend Awards as appreciation for the support for the Asian American Community from the DFW Asian-American Citizens Council (DFW AACC)
    • Certificate of Appreciation for Outstanding Community Service from the Office of the Mayor, City of Richardson, Texas

Corporate Friend Award

Outstanding Community Service Award 2020


Outstanding Community Service Award 2019

 

  • Taiwan
    • Multiple “High Performance Corporate Enterprise for Employment of Foreign Worker “ awards issued by the Taoyuan government
    • Certificate of Appreciation recognizing Diodes’ support of Long Term Care of People in Vegetative State issued by the Genesis Social Welfare Foundation
    • Certificate of Appreciation recognizing Diodes’ support of the Disadvantaged Groups issued by the Taoyuan Guanyin Kind Garden Organization
    • Certificates of Appreciation recognizing Diodes’ support of the people of disabilities issued by various disability welfare non-profit organizations such as the Eden Social Welfare Foundation, Chin Jen Disability Welfare Foundation, and Chenshenmei Social Welfare Foundation
    • Certificate of Appreciation recognizing Diodes’ support of the financially disadvantaged communities through the 1919 Food Bank Program issued by the Chinese Christian Relief Association
    • Certificate of Appreciation recognizing Diodes’ support of activities establishing the funding for Elderly Care issued by Mennonite Christian Hospital
    • Certificate of Appreciation Diodes’ support of medical care in remote areas issued by the St. Mary’s Hospital
  • China
    • Safety Management Standardization certificate (grade 3) from the China Ministry of Energy Management, Chengdu Bureau
    • Clean Production Audit Acceptance certificate from the Sichuan Ecology and Environment Department
    • Top 10 Best Environmental Protection Company award from Chengdu High Tech Park Commission
    • Clean Production Audit Acceptance certificate from the Shanghai Ecology and Environment Department
    • Advanced Corporate Enterprise for Fire Safety Promotion from Shanghai Zizhu High-Tech Park
    • ISO50001 Energy Management System certificate from the China National Accreditation for Conformity Assessment
    • Green Development Advanced Corporate Enterprise certificate from the China Songjiang Export Zone Management Committee
    • Work Safety Standardization Management certificates (grades 2 and 3) from the China State Administration of Work Safety
    • Awards from the China Songjiang District government for projects involving energy online monitoring renovation and motor renovation systems
    • Safety Factory Award from the China Jinan Public Security Bureau
    • Water-saving Corporate Enterprise award from China Shandong Development & Reform Commission, Housing and Urban Development Office, and Shandong Industry and Information Technology Office
    • Worker Pioneer Award from China Jinan Central Labor Union
    • Advanced Corporate Enterprise for Employment of Disabled Workers from the China Jinan government Disabled Workers’ Working Committee
    • Badminton in Foreign Enterprises Championship (NEC Software Cup), runner-up group awards.

Green Development Advanced Corporate Enterprise Certificate

Top 10 Best Environmental Protection Company Award

Industry Production Excellence Award (2019) issued by the Shanghai Songjiang Economic and Technology Development Zone Administration

Certificate of Honor, Industry Production Excellence Award (2019) issued by the Shanghai Songjiang Economic and Technology Development Zone Administration

 

  •  Europe
    • Chairman’s Award issued by the Center for Engineering Education & Development (CeeD) recognizing Diodes Greenock facility’s high performance and ongoing investment into workforce engagement and development
    • Manufacturing Site of the Year, issued to the Diodes Oldham site by TechWorks in recognition of industry excellence driving the tech economy
    • Healthy Working Lives Award – Gold Award issued by Public Health Scotland recognizing Diodes’ efforts in improving the health, safety, and wellbeing of the workers in a structured and productive way
    • International Safety Award (ISA) Merit issued by the British Safety Council recognizing Diodes’ demonstrated commitment to occupational health, safety, and wellbeing. 
Award Image

Healthy Working Lives Award

International Safety Award