Corporate Sustainability and Social Responsibility Report 2018 - MMD-Monitors and Displays Nederland B.V. AOC International (Europe) B.V. Prins ...
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Corporate Sustainability and Social Responsibility Report 2018 MMD-Monitors and Displays Nederland B.V. AOC International (Europe) B.V. Prins Bernhardplein 200, 1097 JB Amsterdam, The Netherlands
Corporate Sustainability and Social Responsibility Report 2018 About this report This report describes our approach to sustainability and CSR practices and the relevant performance and achievements for the year that ended 31 December 2018. The report is prepared citing GRI. GHG emissions have been verified in accordance with the principles and requirements of ISO14064-1and ISO14064-3. The water data was assessed against GRI 303: water resources and swage 2018 and International Standard on Assurance Engagements (ISAE) 3000. Your feedback on this report is welcomed. The suggestions can be sent to Kevin Yang: sustainability.reporting@tpv-tech.com 2
Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Contents
COMPANY PROFILE
ABOUT US 5
OUR STRUCTURE 6
FINANCIAL PERFORMANCE 7
CORPORATE GOVERNANCE 8
STAKEHOLDER ENGAGEMENT 11
OUR PEOPLE 12
SUSTAINABILITY & CSR
SUSTAINABILITY IN OUR BUSINESS 17
SUSTAINABLE PRODUCTS 18
TOWARDS SUSTAINABLE SOCIETY 20
SUSTAINABLE DEVELOPMENT GOALS 21
ENVIRONMENT
CORPORATE FOOTPRINT 22
CORPORATE HQ/ NL OFFICES 24
ENVIRONMENTAL PERFORMANCE 26
CASE IN POINT: ECO-FRIENDLY MONITORS 29
DATA COLLECTION 31
SUSTAINABILITY INDEX 32
APPENDIX 34
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Corporate Sustainability and Social Responsibility Report 2018
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Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
2018
About us
AOC INTERNATIONAL (EUROPE) B.V. (AOC) MMD-MONITORS AND DISPLAYS NEDERLAND B.V. (MMD)
The company was incorporated on 11th April 2011 as a The company was incorporated on 27th November 2008
private limited liability company and is 100% owned by as a private limited liability company and is 100% owned
Coöperatie MMD Meridian U.A. On 24 October 2017 the by MMD Monitors & Displays Holding B.V. which is in turn
legal form of Coöperatie MMD Meridian U.A. has changed ultimately 100% owned by TPV Technology Limited.
from a Coöperatie to a Besloten Vennootschap under the
new name TPV Europe Holding B.V. AOC is a limited liability Principal Activities
company incorporated under the law of The Netherlands. MMD purchases monitors and computer displays from
the TPV Group and sells these products to customers in
TPV Europe Holding B.V. is in turn ultimately 100% owned Europe (business to business), under the brand name
by TPV Technology Limited. Philips and delivers sales, marketing, logistics and service
activities for Philips branded display products in Europe.
Principal Activities
AOC purchases monitors and computer displays from
the TPV Group and sells these products to customers in
Europe (business to business), under the brand name AOC
and delivers sales, marketing, logistics and service activities
for AOC branded display products in Europe.
5
Corporate Sustainability and Social Responsibility Report 2018
Our
Structure
AOC International (Europe) B.V. By combining the Philips brand The organizations share not only
(“AOC”) and MMD-Monitors & promise with TPV’s manufacturing the same parent company but also
Displays Nederland B.V. (“MMD”) expertise in displays, MMD uses a offices, employees, knowledge and
are legally registered in the fast and focused approach to bring markets.
Netherlands, with their head offices innovative products to market.
in Amsterdam. Our parent company, AOC and MMD are wholly-owned In this report, the entities are
TPV Technology Limited (“TPV”), is subsidiaries of TPV, carrying out referred to as our company or “we”.
the world’s largest manufacturer of different activities – AOC for AOC’s This is our first sustainability report
monitors and a leading provider of monitor business and MMD for and further reports are expected to
display solutions, specialising in the Philips’ monitor business. be published annually.
design and production of a wide
range of desktop monitors and LCD
TVs. Due to TPV’s focus on the core
business – the manufacture of IT
display products for various industry
segments – the company benefits
from strong economies of scale and The headquarter entities in The Netherlands are the decision centre
maintains solid relationships with with regards to strategy for business, new technologies and key markets.
panel makers worldwide. The HQ is supported by international corporate offices, wholly-owned
subsidiaries of the parent company:
In 2005, the parent company
acquired parts of the monitor 1. MMD (Shanghai) Electronics Technology Co., Ltd [China (SH)]
business of Philips and in 2008 the 2. Wuhan Admiral Technology Ltd [China (WH)]
two companies reached a brand- 3. MMD Singapore Pte. Ltd [Singapore]
licensing agreement for IT displays 4. TPV Technology India Pvt. Ltd [India]
and public signage. 5. Envision Peripherals, Inc. [USA]
6
Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Financial
performance
Our companies continued to improve and strengthen their performance during the year under
review (ending 31 December 2018). For 2018, the revenue for AOC was € 195,347,742 and for MMD
the revenue was € 294,145,073. During the year, a total of 1,857,845 units of monitors was sold.
AOC NL
AOC International (Europe) B.V. , Amsterdam MMDMMD-Monitors
NL & Displays Nederland B.V. , Amsterdam
Balance sheet as at 31 December 2018 – unaudited Balance sheet as at 31 December 2018 - unaudited
(before appropriation of result) (before appropriation of result)
Assets 31-Dec-18 31-Dec-17 Assets 31/12/2018 31/12/2017
Note EUR EUR EUR EUR Note EUR EUR EUR EUR
Fixed assets Fixed assets
Property, plant and Property, plant and
6 4,032 6,655 6 96,599 122,087
equipment equipment
Financial assets 7 0 0 Financial assets 7 30,616 0
4,032 6,655 127,215 122,087
Current assets Current assets
Inventories 8 12,604,864 12,665,219 Inventories 8 20,261,841 20,747,873
Receivables 9 28,004,361 34,626,674 Receivables 9 47,028,446 33,369,350
Cash and cash equivalents 10 1,760,083 1,166,810 Cash and cash equivalents 10 4,106,584 918,347
42,369,308 48,458,703 71,396,871 55,035,570
42,373,340 48,465,358 71,524,086 55,157,657
Shareholder’s equity Shareholder’s equity
31-Dec-18 31-Dec-17 31/12/2018 31/12/2017
and liabilities and liabilities
Note EUR EUR EUR EUR Note EUR EUR EUR EUR
Shareholder’s equity 11 Shareholder’s equity 11
Share capital 18,000 18,000 Share capital 18,000 18,000
Accumulated gains 2,818,098 1,841,114 Share premium 6,238,008 4,770,294
Result for the year 1,572,143 976,984 Accumulated losses 0 0
4,408,241 2,836,098 Result for the year 61,860
913,578 -591,513
Provisions 12 4,106,624 2,994,642 2,392,694 1,071,760
Provisions 12 9,624,140 5,268,541
Current liabilities 13
Trade creditors 543,305 739,621 Current liabilities 13
Payable to group companies 32,264,700 39,893,707 Trade creditors 334,572 803,943
Other liabilities and accruals 1,050,470 2,001,290 Payable to group
52,063,550 40,790,599
companies
33,858,475 42,634,618
Other liabilities and
3,447,537 4,399,361
accruals
42,373,340 48,465,358 55,845,659 45,993,903
71,524,086 55,157,657
AOC International (Europe) B.V. , Amsterdam MMD-Monitors & Displays Nederland B.V. , Amsterdam
7
Corporate Sustainability and Social Responsibility Report 2018
Corporate
Governance
Board Committees During the year under review, The Board of Directors declares the
the Board consisted of: following:
The Board has appointed five
there are no financial conflicts of
committees to discharge its • one executive director: Dr Jason
interest;
functions: Audit Committee, Hsuan (Chairman)
proper accounting records have
Nomination Committee, • five non-executive directors:
been maintained;
Remuneration Committee, Mr Yang Jun (appointed 22 May
internal controls are sound in design
Investment Committee, and 2017),
and rigorously upheld;
Information Disclosure Committee. Mr Zhu Lifeng (appointed 30 June
Sufficient resources are provided 2017), Dr Li Jun, Ms Jia Haiying
to enable the Board Committees to (appointed 16 March 2017), and
Chairman and Chief Executive
undertake their assigned roles. Ms Bi Xianghui,
and Officer
The Board • three independent non-executive Dr Jason Hsuan currently holds
The Board is responsible for the directors: Mr Chan Boon Teong, the offices of chairman and chief
leadership and control of the Dr Ku Chia-Tai, and Mr Wong Chi executive officer of the group.
group, and oversees the group’s Keung. The Board believes that vesting the
businesses, strategic decisions and All members of the Audit Committee roles of both positions in Dr Hsuan
performance. are independent non-executive provides the group with strong and
directors. Between them, they consistent leadership and allows
The Board has delegated to its possess a wealth of management for more effective planning and
management team the authority and experience in the financial, execution of long-term business
functions for running the group’s accounting, commercial, industrial, strategies. The Board also believes
day-to-day business. In addition, real estate and telecommunications that the group already has a strong
the Board has delegated various sectors. corporate governance structure in
functions to the Board Committees. Independent non-executive directors place to ensure effective supervision
constitute one-third or more of of the management team.
The Board will continue to review the Board and non-executive
and further improve the corporate directors constitute half or more.
governance practices and standards, The group enables the directors,
so as to ensure that its business upon reasonable request and in
activities and decision-making appropriate circumstances, to seek
processes are regulated in a proper independent professional advice
and prudent manner. at the group’s expense. The Board
may provide separate appropriate
independent professional advice to
the directors in order to assist them
in discharging their duties.
8Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Audit Committee Anti-corruption and An employee handbook, including
The Audit Committee is responsible whistle-blowing mechanisms our Code of Conduct, is given to
for providing the Board with every employee upon hiring.
We believe that responsible conduct
an independent review of the We actively encourage our
and integrity are essential in
effectiveness of the financial employees and other parties to
maintaining a strong presence in the
reporting process, internal control report concerns either directly to the
global market. Our anti-corruption
and risk management systems of the management or through our ethics
principles are communicated to
group, overseeing the audit process, hotline, training courses and other
our employees in various forms,
and performing other duties and reasonable channels. In 2018 each
such as handbooks and compliance
responsibilities as assigned by employee received 2 hours of data
and refresher training. We have
the Board. All members of the protection training.
zero tolerance for any form of
Audit Committee are independent bribery, corruption or fraud. Promoting health, safety and
non-executive directors. Between Effective monitoring systems and
them, they possess a wealth of management have been developed well-being
management experience in the to detect bribery, fraud and other The health and safety of our
financial, accounting, commercial, forms of malpractice. In addition, employees is our highest priority.
industrial, real estate and our transparent tendering process Our Health and Safety (“H&S”)
telecommunications sectors. enables related activities to be Committee was established to
conducted in a fair, open and identify, assess and mitigate H&S-
To create value for our stakeholders transparent manner. related risks across our operations.
and customers, it is important that Suppliers are required to sign We have set up and implemented
our risks are managed effectively. anti-corruption declaration forms an H&S management system in line
For us, compliance with laws as a prerequisite to business with local regulatory requirements
and regulations is essential. We transactions. or international standards such as
emphasize personal accountability, OHSAS 18001.
and if a behaviour is observed that is Our whistle-blowing mechanisms
not in line with the Code of Conduct allow employees and third parties During the year, there were no
or corporate values this is addressed to report suspected misconduct, significant operational incidents and
and action is taken. We also have a irregularities and malpractice in the no work-related fatalities.
channel through which employees strictest confidence. All reported
can raise anonymously any concerns cases will be followed up in a timely
they may have. manner. Confirmed cases will be
reported to the Audit Committee.
9Corporate Sustainability and Social Responsibility Report 2018
Labour Standards & The Code may be voluntarily adopted We believe that supply chain
Code of Conduct by any business in the electronics sustainability requires an industry-
sector and subsequently applied by wide effort and we encourages our
We have set out a Code of Conduct
that business to its supply chain and suppliers to adopt RBA Code of
in line with international and local
subcontractors, including providers Conduct as sets out good practices
labour standards which strictly
of contract labour. to ensure that
prohibits the use of child and forced
(a) the working conditions in the
labour in any of our operations
Supply Chain Management electronics industry supply chain are
throughout the world. Mechanisms
Adoption of a well-established safe;
(including third-party assessments)
screening processes is in place for (b) those workers are treated with
have been established to identify,
supplier selection and evaluation. respect and dignity; and
prevent, report, monitor and
New suppliers are required to (c) business operations are
properly handle suspected cases
undertake a rigorous evaluation environmentally responsible and
of unethical practices. For a more
process which considers not only conducted ethically.
holistic approach we have adopted
Supplier Sustainability Declaration technical capability and quality, but
also sustainability performance. The Code encourages Participants to
from our parent company TPV.
Key suppliers are required to sign go beyond legal compliance, drawing
an agreement to confirm their upon internationally recognized
This Supplier Sustainability
commitment to working with us standards, in order to advance social
Declaration sets out the standards
in an environmentally and socially and environmental responsibility
and behaviours required of suppliers
responsible way. and business ethics. The EICC is
to improve conditions for workers
committed to obtaining regular input
and promote a cleaner environment
Under the supplier evaluation from stakeholders in the continued
for local communities and have
mechanisms, our dedicated teams development and implementation of
endorsed the Responsible Business
conduct regular evaluations and ad- the Code of Conduct.
Alliance (RBA), formerly the Electronic
Industry Citizenship Coalition (EICC). hoc audits of supplier performance
to identify areas for improvement. The Code is made up of five sections.
Suppliers are required to undertake Sections A, B, and C outline standards
The Code of Conduct establishes
corrective actions in a timely manner. for Labor, Health and Safety, and the
standards to ensure that working
Failing to comply with our evaluation Environment, respectively. Section D
conditions in the electronics industry
criteria can result in the termination adds standards relating to business
or industries in which electronics
of the business relationship. ethics; Section E outlines the elements
is a key component and its supply
of an acceptable system to manage
chains are safe, that workers are
conformity to this Code.
treated with respect and dignity,
and that business operations are
Source: http://www.responsiblebusiness.
environmentally responsible and
org/media/docs/EICCCodeofConduct5_
conducted ethically.
English.pdf
Considered as part of the electronics
industry for purposes of this Code
are all organizations that may design,
market, manufacture, or provide
goods and services that are used to
produce electronic goods.
10Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Stakeholder engagement
and Materiality
We know that we need to be a sustainable enterprise in order to succeed, and that this entails working with our key
stakeholders to ensure that we are all making efforts to meet targets that are demanding but achievable. We aim to
strengthen our stakeholder engagement in 2019, especially with not-for-profit organizations, and to become more
deeply involved in the Responsible Minerals Initiative (RMI).
Communication
Topics and
Relationship Channels and Outcomes
Issues of Interest
frequency
We maintain effective
Customers visits and communications with customers,
audits, protecting their privacy. Our goal
Law-abiding operations
telephone is to provide customers with high
Customers Product innovation
conferences, quality, innovative technology
Operational integrity
customer satisfaction and services that are efficient and
survey provide flexibility to meet customers’
requirement
Employee remuneration
We ensure that employees have
and benefits
Employee hotline, avenues to share their views and
Communication with and
comment boxes, provide their feedback in order
Employees compassion for employees
internal audit box to provide a healthy working
Education and training
and counselling environment and to enhance their
Occupational safety
sense of belonging
Law-abiding operations
We use a number of formal
communication channels to
account for performance to the
Annual/ special
Prospects of the shareholders, including annual
Shareholder meeting,
Group and its financial reports and interim reports,
Shareholders/ investors conference/
performance quarterly results announcements,
investors meeting,
Corporate governance annual general meeting and video
company visits
Corporate transparency conferencing.
telephone conference
Also we hold presentations, road
shows and conference calls for the
international investment community
Organising annual meeting with
Management of suppliers
suppliers and conducts audits
Law-abiding operations Annual supplier
Suppliers at scheduled intervals so as to
Price competitiveness conference
effectively convey requirements to
Technology/ innovation
our supply chain
11Corporate Sustainability and Social Responsibility Report 2018
Our
People
175
TOTAL EMPLOYEES TOTAL
IN 2018 PER LOCATION
368
IN 2018
575 employees
123
108
209
6 entities
74 74
The Netherlands
China (WH)
China (SH)
Singapore
female
23
India
male
USA
100%
ANNUAL PERFORMANCE REVIEW
36%
FEMALE EMPLOYEES
All permanent employees have received their Electronics companies have a particular challenge
annual performance and in terms of the gender balance, and we are no
career development reviews. exception with 64% of our workforce male and
36% female.
Female employees in
management role
25%
Male employees
in managment role
75%
12Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
In 2018, we employed 577 Recruiting and retaining talent At the top of the pyramid, there is a
employees. All permanent It is vital to our success that we significant preponderance of men as
employees (100%) have received recruit and retain the best talent. the management comprised of only
their annual performance and career We recruit highly qualified people 25% female managers.
development reviews. and maintain a pool of human
resources in accordance with the Heads of department will be involved
In addition to the benefits as group’s manpower requirement and in workshops focusing on diversity
stipulated by law, we provided planning. and inclusion. We will introduce
group health insurance and a We treat all employees and job new skills in our recruitment and
range of employee benefits such as applicants fairly and equally communication processes and in
retirement provision, parental leave, regardless of their gender, sexual our working environment to ensure
and fund for housing construction orientation, marital status, race, that inclusiveness becomes a
(local). colour, nationality, ethnic or national fundamental part of who we are on
origin, religion, age, disability or the road ahead.
union membership.
Electronics companies have a
particular challenge in terms of
the gender balance, and we are no
exception with 64% of our workforce
male and 36% female.
79+12+9 71+12+17
MALE EMPLOYEES FEMALE EMPLOYEES
PER AGE GROUP PER AGE GROUP
Male Under 30 (9%) Between 30 - 50 (79%) Over 50 (12%)
Female Under 30 (17%) Between 30 - 50 (71%) Over 50 (12%)
13Corporate Sustainability and Social Responsibility Report 2018
Employee training 2018
Spain
14Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
We have zero tolerance for Diversity and inclusion are part of Mechanisms (including third-party
harassment and discrimination in our heritage in the Netherlands. We assessments) have been established
any form. Employment is offered want to reflect the society in which to identify, prevent, report, monitor
only to the best-qualified applicants we operate. We aim to also integrate and properly handle suspected
on merit, considering their ability more people from minority groups cases of unethical practices. On
to meet the job requirements, into our companies, enabling us to average a female employee received
irrespective of whether they are build collective strength through 11.13 hours of training annually and
referrals or direct applicants. This better community engagement and male 11.74 hours.
applies to recruitment, selection, and internal and external projects.
terms and conditions of employment We continue to support employees’
including pay, promotion, training, With reference to the standards of growth, and in so doing strive to
transfer and every other aspect the Responsible Business Alliance, realize the full potential of our
of working with us. We regularly our Code of Conduct is in line workforce. Our training programs
review our procedures and selection with international and local labour are regularly updated to meet our
criteria to ensure that individuals are standards which strictly prohibits the ever-changing business needs. We
selected and promoted. use of child and forced labour in any also inspire our employees to pursue
of our operations throughout the further knowledge and encourage
world. them to undertake lifelong learning.
11
The composition of our trainings is
outlined in the chart below.
TRAINING HOURS
On average an employee received
approximately 11 hours of training CURRENT 100% 100% 100%
annually
COMPOSITION
OF TRAININGT
TARGETS
Male employee Female employee
Offices average hours average hours of
of training training 75%
India 16 16
74
USA 2 2
50% 50% 50%
Singapore 8 8
China (SH) 6.45 2.78
China (WH) 36 36
Time management
Communications
Problem- solving
Critical thinking
The Netherlands 2 2
Teamwork
Average
Sales
11.74 11.13
(all locations)
15Corporate Sustainability and Social Responsibility Report 2018
Employee event 2018
The Netherlands
16Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Sustainability
in our business
Sustainability is the key to the success of our business. We believe it offers us the
chance to use our skills, expertise and relationships to enhance the future for
individuals, society at large and the environment we all live in. To this end, we are
committed to building trust through our policy of openness, accessibility, transparency
and integrity.
As part of our new practices, our companies. We always follow Policies leading the way
we have introduced a range of local legislation and regulations on
Our businesses’ Code of Conduct
commitments on sustainability employee-related matters and have
is based on the The Responsible
affecting all aspects of our a range of health and safety policies
Business Alliance (RBA), and
businesses to embed it firmly in and practices in place. These include
describes the high-level ethical
everything we do. Our management policies on occupational health care,
principles that guide how we operate
team will be even more focused on working environment, work-related
and how we treat our customers,
sustainability as a core feature of stress, discrimination and equality.
and the behaviour we expect from
our activities and ensure that all our
our employees. It includes elements
people regard it as an essential part Health & Safety such as care for the environment,
of working with us. We know that, The committee has been established labour rights, how we treat our
in today’s society, everyone expects to identify, assess and mitigate H&S- employees and a commitment to
companies to behave responsibly related risks across our operations. human rights, the right to privacy
if they are to place their trust in We have set up and implemented and measures to prevent bribery
us so we can continue to deliver a health and safety management and corruption. Our policy sets
successful business. systems in line with local regulatory out our values and commitment to
requirements or international ethical business, which we will review
In support of our engagement standards such as OHSAS 18001. and, where necessary, update in
in contributing to sustainable We had zero work-related fatalities 2020.
development, we follow the UN’s during the reporting period.
Universal Declaration of Human
Rights, ILO conventions and the Furthermore, we also extend our
OECD Guidelines for Multinational Health & Safety practices to our
Enterprises in all our operations and contractors and subcontractors,
businesses. who are expected to report to on
any incidents during their course
For 2020 we intend to sign up to of work. According to local laws
several voluntary international and regulations, we adopt various
agreements, such as the UN Global employee insurance and social
Compact and the UN Guiding insurance plans.
Principles on Business and Human
Rights, which support a solid base
for ethical business practices in
17Corporate Sustainability and Social Responsibility Report 2018
Sustainable products &
Responsible materials
We understand that a product’s Sourcing of materials We expect suppliers to steer
environmental footprint is Responsible sourcing of minerals their supply chain towards using
determined largely by its design. is an important part of supplier only conflict-free smelters. A list
A sustainable product design sustainability commitment. We of such plants is available on the
process takes into account both are committed to ethical mineral RMI website, which is continuously
environmental and social factors. sourcing, and take responsibility updated as more smelters are
Sustainability considerations play for avoiding contributing to conflict audited. We request all suppliers
a role in decision-making about minerals. As a member of the RMI using smelters that are not yet
product design, such as the source since 2015, we are dedicated to verified as being conflict-free to ask
of raw materials, the proportion of the control of conflict minerals and these smelters to participate in the
recycled materials used, and the have created a conflict mineral RMI audit programme or switch to
amount of packaging materials management system according to a smelter that has already been
needed. Moreover, prototypes the OECD’s five-step framework for audited and approved.
are thoroughly tested to identify due diligence in the supply chain.
potential environmental and health We intend to do our utmost to To foster long-term relationships,
impacts prior to product launch. This ensure that the products and we incentivise suppliers who are
includes tests for electromagnetic components in our supply chain consistently reliable by prioritizing
interference, ergonomics, energy do not contain metals that have them during the procurement
efficiency, inflammability, explosion contributed to the conflict in the process and affirming their
and other quality assessments. Democratic Republic of the Congo achievements through recognitions
Procedures are in place to address (DRC). and awards.
and follow up findings from these
assessments. Since 2018 we have sent letters According to the latest version of the
on conflict minerals to suppliers Conflict Mineral Reporting Template
Energy-saving design requiring them to carry out due in 2018, 90% of smelters used are
We emphasize energy-saving diligence on their supply chain, to listed in the Responsible Minerals
design and take regulations on identify smelters and to provide Assurance Process (RMAP).
energy consumption into account information upon request.
Our target for 2019 is that
in the design stage. The energy
consumption of products we 95% of 3TG (tungsten,
launched in 2018 was 66% lower tantalum, tin and gold)
than those in 2010 – a significant smelters or refineries in our
improvement. supply chain participate and
receive RMAP certification.
In 2018 a significant number of
our HDMI monitors had an A label
or higher. AOC had 49 models
with A or A+ labels, while MMD
had 47 models with A, A+ or A++.
We are progressing well in our
plan to increase the number of
products with an A label to meet
the ever more demanding energy
preservation intentions of our
customers.
18Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Responsible Minerals The assessment employs a risk- Recycling
based approach to validate smelters’ We are committed to providing
Assurance Process
company level management environmentally responsible
The flagship program of the RMI, processes for responsible mineral
the Responsible Minerals Assurance packaging materials for our products.
procurement. Companies can then
Process (RMAP), formerly the use this information to inform their
Conflict-Free Smelter Program Each of our products is packaged in
sourcing choices. 100% recycled cardboard, while the
(CFSP), takes a unique approach to
helping companies make informed products contain a minimum of 65%
Source: http://www. post-consumer recycled plastic.
choices about responsibly sourced responsiblemineralsinitiative.org/
minerals in their supply chains. media/docs/RMI%20Risk-Based%20 In office administration, we are
Assessment%20Program_2019.pdf tightening controls on the use
Focusing on a “pinch point” (a point
with relatively few actors) in the of paper for photocopying and
global metals supply chain, the printing. For example, we ask that
RMAP uses an independent third- documents for internal use or
party assessment of smelter/ refiner unofficial purposes are printed on
management systems and sourcing both sides of the paper. In addition,
practices to validate conformance we strictly control the procurement,
with RMAP standards and current management and use of office
global standards. supplies and consumables to avoid
waste.
AOC MMD Total
Number of Models 104 127 231
65% post consumer
104 63 167
recycled plastics
85% post consumer
0 64 64
recycled plastics
Number of HDMI monitor models containing post-consumer recycled plastic.
19Corporate Sustainability and Social Responsibility Report 2018
Towards a sustainable
Society
Companies in the electronics sector Customer satisfaction Analysis of our supply chain
like ours can play a key part in management In 2020 we plan to initiate a
helping the move to a sustainable comprehensive analysis of our
To further improve our products and
society and tackling climate change. value chain to identify potential
services, we maintain an ongoing
We know that our customers and issues, particularly in relation to
dialogue with our customers to
our business will face challenges conflict minerals. We are working
understand and address their
as a result of climate change and to systematically embed rigorous
needs. Feedback is acquired through
we are determined to do what assessments and to strengthen our
representative offices, dedicated call
we can, with our stakeholders, to due diligence processes to create a
centres and questionnaire surveys.
contribute to solutions. As part of more robust supply chain.
Feedback is reviewed and followed
our commitment to sustainability,
up. Our after-sales team provides
we will do all we can to bring into
customized services, including
our processes a range of measures
field application engineer support,
to reduce our carbon footprint and
technical support and training.
reduce waste.
At the end of 2018, we set five short Privacy
term sustainability goals for the next We respect our customers’ data
24 months, all to be addressed in privacy and their rights to personal
2019 - 2020. The goals are activities information gathered by our
needed to meet the sustainability products and services. Data and
challenges ahead. privacy protection procedures
are in place and communicated
Social and economic to our employees through regular
training. All collected personal data
contribution is accessible only by authorized
One of our short-term sustainability personnel and handled in a
goals was to establish a science- confidential manner. Our product
based target that puts the focus on development process uses the
climate action in our entire value terms of ensuring customers data
chain. privacy and data protection. We are
also in the process of introducing
In 2018 we evaluated the possibility a privacy policy for our employees
of achieving this and found there which explains how they should treat
was a lack of established methods personal data.
that include monitoring Scope 3
emissions. Since this is where we
have our greatest impact, we are
seeking a way to include these
targets for 2021.
20Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Sustainable Development
Goals (SDGs)
In 2015, the members of the Our focus
UN adopted the Sustainable
Development Goals
(SDGs), which apply to
every country
in the world. SDG 8
Promote sustainable economic
The 17 goals are essential if growth and decent work for all: This
sustainable development is to is a very relevant goal for us as our
occur, and they embrace a range operations can have a significant
of interlinked effects. As a business impact.
that operates internationally, we
know that we play a part in helping
governments achieve these goals.
Our efforts to increase our
sustainability helped us to identify SDG 13
which SDGs we are best able to Urgent action to combat climate
advance. Our products have a change and its impacts: We aim to
widespread presence around the reduce the environmental impact
world, which means that many SDGs of all our products, for example
are directly relevant to us, and this with the PowerSensor facility in our
drives us to direct our resources monitors that detects when the
to those goals where we can do viewer is absent and automatically
the most good and reduce the reduces brightness, cutting energy
negatives. consumption by up to 80%.
The focus of our assessment is
on materiality, which leads us to
SDG 16
concentrate on three SDGs. But
however good our intentions, we Peace, justice and strong institutions:
cannot do this alone, so we will be Like all companies, we have a role
working with partners to ensure the in creating a level playing field for
goals are achieved. business by complying with laws and
regulations, improving transparency,
protecting whistle-blowers and
setting the highest standards of
integrity amongst our employees.
21Corporate Sustainability and Social Responsibility Report 2018
Corporate
footprint
Part of the circular economy continue to encourage these Energy
The electronics industry should be initiatives in the office: Our plans for the sustainability of
able to have a positive effect on the - LED energy-saving lights and our office space have taken on a
environment as long as companies optimised use of natural light more concrete form. Our office
are smart and develop reversible - Light motion sensors in the building in Amsterdam has been
and regenerative designs. We are lavatories certified as category A under
proud of our progress in energy - Air-conditioner units which are the EU’s Energy Performance of
reduction through greater efficiency, linked to a Building Management Buildings Directive.
establishing offices in buildings System using an energy demand
with an A energy label and more system, which increases energy Using energy more efficiently
sustainable methods of transporting efficiency. and opting for renewable
our products. energy sources is essential for
As in the past, in 2018 we undertook Boundary combating climate change and for
various initiatives to reduce carbon Two locations (offices at the lowering an organization’s overall
footprint from the offices, and we Amstel building in Amsterdam environmental footprint.
and offices at the Albert
Plesmanweg building in Water
Rotterdam) have been set as The annual water consumption
the boundary for the 2018 at Amsterdam office was 152.3m3
corporate footprint. In terms of (estimation); Rotterdam office
the Greenhouse Gas Protocol was 21.5m3 (based on an annual
Initiative, emissions attributable water bill reading).
to the business are only in Scope
1 and 2.
In 2018 we operated from two
offices, both under operating
leasing agreements, namely the
Amstel building in Amsterdam
and the Albert Plesmanweg
building in Rotterdam - which was
closed mid-year.
22Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Scope 1 and 2
Our office building in Amsterdam has The data (energy, gas and water) for
been certified as category A under the Rotterdam building were not
the EU’s Energy Performance of fully available for the specific period
Buildings Directive. More specifically, under review and therefore data
the building was classified as Energy from the latest available 12 months
label A (building), as of 23 December has been used for calculation.
2011 by EPBD NL, with a certificate For the Amsterdam office (energy,
valid until 23 December 2021. gas and water) we have calculated
The energy consumption was set at based on m2 of office space used.
38 kWh/m2 (electricity), 6 m3/m2 (gas)
and 0,0 GJ/m (heating).
Offices Annual water intake supplied by third party (m3)
Amsterdam (NL) 152.3
Rotterdam (NL) 21.5
Amsterdam: Ratio of office space used over whole building’s water consumption (estimated);
Rotterdam: Half annual consumption as lease for 6 months (water bill);
Scope Total
GHG Scope 1 CO2e (tonnes) 111.20
GHG Scope 2 CO2e (tonnes) 33.16
GHG Total CO2e (tonnes) 144.37
Energy rates for Amstel building sourced from EPBD NL building certificate; 38 kWh/m2 (electricity), 6 m3 /m2 (gas) and 0,0 GJ/m (heating).
Source Emission factors:: https://www.co2emissiefactoren.nl. WTW used; Minor energy usage for the energy back-up-generators was omitted
due to lack of data for 2018. Biomass consumption (none) and refrigerant losses left out of the Scope 1 emissions. Amsterdam office: Electricity use
estimated 35,631 kWh (18.74 tonnes of CO2 emissions); Natural gas use estimated 5,626 m3 (10.59 tonnes of CO2 emissions). Rotterdam office:
Electricity use 27,415 kWh (14.42 tonnes of CO2 emissions); Natural gas use 4,696 m3 (8.84 tonnes of CO2 emissions). Vehicles: 31,412 litres of fuel.
The corporate footprint assurance statement by SGS Nederland can be found https://eu.aoc.com and on http://www.mmd-p.com
23Corporate Sustainability and Social Responsibility Report 2018
Amstel building, Amsterdam
The Netherlands
24Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
87+13 23+38+318
Leased vehicles
In 2018, we used13 vehicles;
out of which 23% were in category A
label, 38% in category B label, 31% in A B
category C label and 8% in the category
D label regarding the CO2 emission.
One vehicle in the A category label
was gasoline/ plug-in hybride, and the
emission for that vehicle was calculated D
using gasoline only due to lack of data.
C
Leased vehicles per label type
in accordance with the EU car labelling directive
Air travel
In 2018, emissions from air travel sources
totalled 179,000 kg CO2e (88,995 kg
CO2e for intercontinental and 90,005 kg
CO2e for continental flights). Data and
calculation provided by Carlson Wagonlit
Travel, however, this has not been audited
for the 2018 or taken into scope.
Our intention is to deepen our reporting
to include Scope 3 from this point
forward.
Continental vs Intercontinental flights taken
87% continental, 13% Intercontinental
25Corporate Sustainability and Social Responsibility Report 2018
Environmental
performance (suppliers)
Environmental protection is a TPV Display Technology (Beihai) Co., Energy Use
vital part of our corporate social Ltd. 13%; As part of the GHG calculation and
responsibility. We not only focus on TPV Display Technology (Wuhan) Co., verification, CTI Certification identified
HQ offices environmental impact Ltd. 47%; the following energy consumptions per
as corporate footprint, water usage TPV Electronics (Fujian) Co., Ltd. 15%. supplier during the site visits.
etc, but also focus the suppliers’
facilities environmental control. Our GHG emissions for those 3 entities,
data demonstrates that during 2018, for the period 1st January 2018 to
three suppliers which accounted for 31st December 2018 have been
75% of the purchased manufactured verified in accordance with the
units with their percentage principles and requirements of
contribution, were: ISO14064-1 and ISO14064-3.
TPV Display TPV Display TPV
Description Technology Technology Electronics
(Beihai) (Wuhan) (Fujian)
Emission Scope 1: Direct
Canteen cooker
Fixed emissions x x
(liquefied petroleum gas and natural gas)
Generator (diesel oil) x x x
Acetylene cutting machine (acetylene) x
Boiler/ water heater (natural gas) x
Mobile emissions Official car (gasoline) x x x
Official car/ forklift truck (diesel oil) x x
Fugitive emissions Septic-tank (CH4) x x x
Carbon dioxide fire extinguisher (CO2) x x x
Heptafluoropropane fire extinguisher (HFC-227) x
Constant temperature/ humidity testing machine
x x x
(404a/R23)
Water chillers (R134a) x x
Emission Scope 2: Energy
Purchased utilities Electricity consumed on site x x x
26Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Scope 1 and Scope 2
Water Use
greenhouse gas emissions
The water data of the three key
Based on the direct and indirect
suppliers is as tabulated below.
emissions from the onsite energy
The data covers the water intake,
consumptions, CTI Certification
water discharges and the net
extended the identification of
consumption being the difference
GHG emissions to include fugitive
between the intake and the
emissions as tabulated below.
discharge.
Scope 3 was not identified or
quantified. Based on the GHG
The water data was assessed
emissions as per Scope 1 and 2,
against GRI 303: water resources
CTI Certification provided the
and sewage 2018 and the
following calculations of the
International Standard on Assurance
suppliers’ GHG emissions.
Engagements (ISAE) 3000.
TPV Display TPV Display TPV
Supplier Technology Technology Electronics Total (m3)
(Beihai) (Wuhan) (Fujian)
Water intake
47,366.0 190,736.0 911,393.0 1,149,495.0
supplied by third party (m3)
Water discharge
33,555.0 135,122.0 607,452.5 776,129.5
to third party facility (m3)
Net water consumption 13,811.0 55,614.0 303,940.5 373,365.5
% Contribution 3.7% 14.9% 81.4%
Water use (the water intake, water discharges and the net consumption)
TPV Display TPV Display TPV
Scope Technology Technology Electronics Total
(Beihai) (Wuhan) (Fujian)
GHG Scope 1 CO2e (tonnes) 112.3 2,234.7 1,390.0 3,737.1
GHG Scope 2 CO2e (tonnes) 3,764.2 44676.3 10,712.1 59,152.6
GHG Total CO2e (tonnes) 3,876.6 46,911.0 12,102.1 62,889.6
% Contribution 6.2% 74.6% 19.2%
CTI provided the following validity statement on the data certificates; “Based on the data and information provided by [the site] and the
process and procedures conducted by CTI Certification, the GHG assertion is materially correct and is a fair representation of GHG data and
information. CTI Certification concluded with reasonable level of assurance that the GHG emissions for the period 1st January 2018 to 31st
December 2018 have been verified in accordance with the principles and requirements of ISO14064-1and ISO14064-3.”
The water data was assessed against GRI 303: water resources and swage 2018 and International Standard on Assurance Engagements (ISAE)
3000.
27Corporate Sustainability and Social Responsibility Report 2018
Customer event 2018
Germany
28Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Case in point
Eco-friendly monitors
We always aim to provide the safest The sensor detects user presence Zero power consumption
products to our customers. and reduces energy consumption At the flick of the 0 watt hard switch,
The manufacturing plants by up to 80%, whenever the user which is conveniently located at
operate in accordance with is away. the back of the monitor, you can
safety requirements, such as the completely cut off your monitor
Restriction of Hazardous Substances Using the new energy saving design from AC power. This results in zero
(RoHS) Directive and CE certification with a super-efficient power supply, power consumption, reducing your
in the EU (or UL in the US and this monitor achieves a higher carbon footprint even further.
worldwide), and these are regularly energy class, while giving excellent
assessed for quality control. performance. The power-efficient The PowerSensor monitor is made
feature uses new LED backlight using sustainable, eco-friendly
In order to provide and improve technology which maintains materials across its monitor range.
close-to-life services, membership brightness and colour using
systems are established and significantly less energy; this makes All body plastic parts, metal chassis
integrated in the form of a big difference when using many parts and packing materials use
promotions, value-added services, monitors or even just one. 100% recyclable materials. In
interactive broadcasting and pre- selected models, we use up to 85%
and post-sales services. post-consumer recycled plastics.
Strict adherence to RoHS standards
Green Power ensures a substantial reduction or
PowerSensor is a unique monitor elimination of toxic substances like
technology that helps to easily lead and mercury, which have been
reduce energy costs and respect eliminated completely in monitors
the environment. The PowerSensor with an LED backlight.
operates entirely independent from
the PC or operating system. It is a
built-in sensor at the front of the
monitor that transmits and receives
harmless infrared signals to measure
ambient light.
29Corporate Sustainability and Social Responsibility Report 2018
85%
MMD monitors contain
85% post-consumer
recycled plastics
AOC monitors contain
65% post-consumer
100% 66%
recycled plastics
PowerSensor: The energy consumption
All body plastic parts, of products we launched
metal chassis parts and in 2018 was 66% lower
packing materials use 100% than those in 2010
recyclable materials
62%
In 2018 MMD has achieved a
new record of having
62% of the monitors ranging
from A++ to A label
Energy efficiency - Eco LightSensor for the perfect 100% recycled packing
conscious power savings brightness with minimal material
power (MMD)
A++ energy class achieves up 85% post-consumer recycled
to 40% greater energy savings Zero power consumption with plastics with TCO Edge
(MMD) 0 watt hard switch
Halogen-free design to
PowerSensor saves up to 80% Eco-friendly materials meet minimise environmental
energy costs (MMD) major international standards impact
Mercury- and lead-free
eco-friendly design
30Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Data
Collection
2018 is the first reporting year and Environmental data was readily Social data
a base year. There were no changes available for our largest business Data on our social performance was
from 2017, we did not have any units. Our smallest offices, which collected applying a global master
mergers, acquisitions or divestments. mainly have fewer than 10 data system based on SAP. The
people, were not able to report system includes accurate data on
Enomic data environmental data, because they our employees globally, covering
The financial data in this report is are located in large office premises all business units and providing
based on data collected through together with other companies. They basic information on all employees.
our enterprise resource planning typically pay a monthly lump sum to Training data covers our global
and management reporting office space providers, and therefore training programs and it has been
systems. The figures used in the it is not possible to determine their compiled from different reporting
consolidated financial statements specific electricity, heat, or water systems. Data on global training
have been prepared according to consumption. programs has been collected from
the International Financial Reporting a learning management system,
Standard. In addition, some data Integrating data collection our and local human resources
has been collected manually from As of 2018, environmental data personnel. Safety training data has
Microsoft Excel spreadsheets and has been collected through our been collected from the health and
SAP. health and safety reporting team. safety reporting system. The learning
Each location’s data is compiled on management system is expected to
Environmental data Microsoft Excel spreadsheets. improve the coverage and quality of
Performance data on environmental The data is then analysed and our training data as of 2020.
aspects has been collected (when combined into a single file to
possible) from our major business facilitate calculations by head of To collect data on human rights and
units for electricity use, heating, compliance. compliance data, a questionnaire in
corporate flight emissions, water use. the form of Word, PDF and Microsoft
The report also includes information Excel sheets was sent to the person
from our key supplier sister responsible for human resources in
organizations, on the combustion of each location.
fuels in company-owned combustion
sources Scope 1 emissions as well as
Scope 2.
A new database is being developed
in 2019 to help us compile
environmental data on location-
specific data sheets.
31Corporate Sustainability and Social Responsibility Report 2018
Sustainability
Index
General Standard Disclosure Guideline Reporting
Angle Page
Strategy and Analysis
Key brands, products and services 5
Organization Overview
Name of the organization 5
Activities, brands, products and services 5
Location of headquarters 6
Operations network 6
Markets served 6
Scale of the organization 6
Total number of employees by employment, gender and region 13
Supply chain of the organization 18, 20
External initiatives 21
Membership of associations 10, 19
Scope of the Report
Organisational entities covered by the report 6
Report content, scope and determining principles 3
Stakeholder Engagement
List of stakeholder groups 11
List of material topics 11
Identifying and selecting stakeholders 11
Approach to stakeholder engagement 11
Report Overview
Reporting period 2
Date of most recent report 6
Reporting cycle 6
Contact point for questions regarding the report 2
Organization Governance
Governance structure 8
Executive-level responsibility for economic, environmental, and social topics 8
Chair of the highest governance body 8
Nominating and selecting the highest governance body 8
Conflicts of interest 8
32Corporate Sustainability and Social ResponsibilityPresentation
Report 2018
Specific Standard Disclosure Guideline Reporting
Angle Page
Economic Level
Market Performance
Net sales 7
Total capitalization broken down in terms of debt & equity 7
Quantity of products or services provided 7
Direct economic value generated and distributed 7
Environmental Level
Energy
Energy consumption within the organization 22
Energy consumption outside of the organization 26, Appendix
Energy type 26
Water consumption 23
Exhaust Emission
Direct (Scope 1) emissions 23
Energy indirect (Scope 2) GHG emissions 23
Products and Services
Reduction of harm to environment of products and services 18
Percentage of reusing and recycling product and packing materials 18
Compliance with laws and regulations 18
Compliance with environmental laws and regulations 18
Conflict materials 18
Smelter List and annual Conflict Minerals Report 18
Labour and Decent Work
Training and education 15
Average hours of training received by employee yearly 15
Programs for upgrading employee skills and transition assistance programs 15
Percentage of employees receiving regular performance and career development reviews 12
Benefits provided to full-time employees 13
Types of injury and number of work-related fatalities 9
Anti-corruption
Communication and training about anti-corruption policies and procedures 9
33Appendix
Lifecycle
assessment
TPV evaluates LCA (life cycle assessment) for displays with standards ISO 14040/14044 from cradle to grave, including
raw material, manufacturing, distribute, usage and waste. The LCA result with analysis method IMPACT 2002+V2.12
for PHILIPS 240B7Q:
Impact Category Measuring unit Sum
Carcinogens kg C2H3Cl eq 10.14352365
Non-carcinogens kg C2H3Cl eq 11.69639982
Respiratory inorganics kg PM2.5 eq 0.473300012
Ionizing radiation Bq C-14 eq 5972.096587
Ozone layer depletion kg CFC-11 eq 4.06032E-05
Respiratory organics kg C2H4 eq 0.195444105
Aquatic ecotoxicity kg TEG water 61931.2694
Terrestrial ecotoxicity kg TEG soil 18886.87381
Terrestrial acid/nutri kg SO2 eq 9.07137311
Land occupation m2org.arable 12.25719542
Aquatic acidification kg SO2 eq 2.39516294
Aquatic eutrophication kg PO4 P-lim 0.486082809
Global warming kg CO2 eq 414.6133307
Non-renewable energy MJ primary 6374.380265
Mineral extraction MJ surplus 191.1309156
Evaluation Summary of Products Environmental Impact - characterization (IMPACT 2002+ V2.12)
34Presentation
Appendix
The LCA result with analysis method ReCiPe Midpoint (E) for 240B7Q:
Impact Category Measuring unit Sum
Climate change kg CO2 eq 411.0619898
Ozone depletion kg CFC-11 eq 4.41E-05
Terrestrial acidification kg SO2 eq 2.353200902
Freshwater eutrophication kg P eq 0.455233924
Marine eutrophication kg N eq 2.94583951
Human toxicity kg 1,4-DB eq 31916.5442
Photochemical oxidant formation kg NMVOC 1.681212981
Particulate matter formation kg PM10 eq 0.877506254
Terrestrial ecotoxicity kg 1,4-DB eq 0.952475463
Freshwater ecotoxicity kg 1,4-DB eq 21.07880992
Marine ecotoxicity kg 1,4-DB eq 20461.52979
Ionising radiation kBq U235 eq 58.92326493
Agricultural land occupation m2a 29.44268264
Urban land occupation m2a 9.875189739
Natural land transformation m2 0.095750184
Water depletion m3 3.862916016
Metal depletion kg Fe eq 218.0417603
Fossil depletion kg oil eq 127.4403286
Evaluation Summary of Products Environmental Impact – characterization (ReCiPe Midpoint (E) V1.12)
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