2009 BenQ Corporation

Corporate Social Responsibility

Report

1

About the Report

▍Publication

BenQ Corporation announced split of OEM and Brand operations in September

2007 and has focused its global operation on Brand BenQ thereafter. To fulfill the

commitment to corporate social responsibilities, BenQ will publish CSR report

annually. The first report was released on April 23 2009. This is the second report and

has qualified by Global Reporting Initiative (GRI) as Application Level B.

▍Boundary & Scope

The report covers strategies, objectives, implementation measeures and

performances of BenQ in Taiwan region in 2009. Unless otherwise mentioned, the

report is formulated on the comparison base of 2008.

▍Reporting Principle

This report was written in accordance with version 3 of Sustainability Reporting

Guidelines by Global Reporting Initiative (GRI G3), and chapters were arranged by

relevant issues deriving from the experience of communications with different

stakeholder groups in 2009.

▍Contact Information

Please feel free to contact us regarding any comment or concern.

BenQ Corporation

16 Jihu Road, Neihu, Taipei 114, Taiwan

Tel：+886-2-2727-8899

Fax：+886-2-2656-2438

E-mail：CSR@BenQ.com

Website：http://corp.benq.com.tw/

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Index

1 Message from the President: 4 Everlasting Responsibility and Steadfast Commitment

2 BenQ Introduction 7 2.1 Company Overview 2.2 Global Operational Strategy 2.3 BenQ Culture

2.3.1 Corporate Vision and Brand Mission 2.3.2 BenQ Culture –Integrity, Passion & Professionalism, Execution &

Excellence, and Caring & Contribution 2.4 Achievements in 2009 2.5 Associations

3 BenQ Corporate Responsibility 14 3.1 Corporate Sustainable Development 3.2 Communication with Interested Parties

4 Environment, Safety and Hygiene 17 4.1 ESH Management

4.1.1 SA and ESH Policy 4.1.2 ESH Organization and Responsibility 4.1.3 ESH Certification and Monitoring 4.1.4 Biodiversity

4.2 Legal Compliance 4.3 Green Office Management

4.3.1 Energy 4.3.2 Water 4.3.3 Recycling 4.3.4 Other Resource Management

5 Investor Relations 23 5.1 Corporate Governance 5.2 Supervision and Risk Management

5.2.1 Countermeasures of the Finance Risk 5.2.2 Risk Management of Supply Chain 5.2.3 Risk Evaluation of Climate Change

5.3 Anti-corruption

6 Product and Service 28 6.1 Quality Policy and Quality Management System 6.2 Product Management 6.3 Ecodesign

6.3.1 Product Design Improvement 6.3.2 Energy Saving and Carbon Reduction 6.3.3 Packaging Design Improvement 6.3.4 Ecolabels

6.4 Product Carbon Footprint 6.5 Customer Care Quality

7 Vendor and Logistics Service Provider 38 7.1 Management principles 7.2 Vendor selection 7.3 LSP selection

8 Human Resource 42 8.1 Employee Profile

8.1.1 High Quality Workforce 8.1.2 Age and Gender Distribution

8.2 Our Commitment

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8.3 Workplace Safety 8.3.1 Workplace Safety 8.3.2 Occupational Health 8.3.3 Working Environment 8.3.4 Human Rights

8.4 Employee Relations 8.5 Training and Talent Development

9 Humanistic and Social Concern 52 9.1 BenQ Foundation

| BenQ Award | Reading for Hope | Assistance plan for Miaoli Digital Opportunity Center

9.2 Social Concern | Aug. 8 Green Light Plan | Supporting Local Agriculture | Encouraging Carbon Reduction Commuting

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1

Message from the

President

Everlasting Responsibility

and Steadfast

Commitmment

Commitment

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Everlasting Responsibility and Steadfast Commitment

Since its inception, BenQ has embraced "Bring Enjoyment 'N Quality to Life" as

its corporate vision, aspiring to realize the ideal of helping people to enjoy the pleasure

brought by science and technology via the provision of the branded quality products

and services of BenQ.

We are fully aware that the in addition to the pursuit of profits and growth, the

most important significance for the formation of any enterprise is to fulfill its social

responsibility by creating unique values, which can last for a long time, transcending

time and space, and produce positive influence on society and people.

Consequently, BenQ has spared no effort in the two major tasks of

environmental protection and talent cultivation. We have resorted to various channels

to promote the concepts of energy conservation, environmental protection, and

preservation of resources and have strived to materialize the concepts in our daily life

and works via institutionalized requirement and dedicated monitoring.

We adhere to rigorous demands of our own for every link of our operation, from

product design and R&D, supplier selection and management, materials,

manufacturing, to customer service, thereby meeting international quality and

management standards and the Restriction of Hazardous Substances Directive (RoHS)

of the European Union. We have also passed ISO 9001 for the certification of quality

management, ISO 14001 pertaining to environmental management, and SA 8000

regarding social responsibility, which testify to our dedication to the corporate social

responsibility.

BenQ LCD TV and LCD Monitor have obtained the carbon

footprint-certification of PAS 2050 by the British Standards Institution (BSI) of the

U.K., an achievement which leads other Taiwanese 3C manufacturers and underscores

the company’s commitment to the realization of a low-carbon society. Also, BenQ was

awarded the champion in the A industry and commerce category of the “Taipei City

Golden Energy Conservation Award 2009” by the Taipei City Government, an

acknowledgement of the company’s remarkable achievement in pushing energy

conservation and carbon abatement over the past two years.

Staff is BenQ's most cherished asset. Therefore, in addition to the provision of a

safe and comfortable working environment to our staffers, as evidenced by the passage

of the OHSAS 18001 certification regarding vocational safety and hygienic

management, we also care their physical and mental health, which won us the

affirmation of Taipei City excellent award for promoting healthy working

environment in 2005 and Taipei City piloting award for promoting healthy working

environment in 2007. We have been assisting our staffers in achieving growth in

expertise and spirit via the organization of various lectures, courses, and events.

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As a company of international brand, BenQ owns excellent talents with different

nationalities and cultures. The cross-culture communications and exchanges have

broadened our vision and enhanced our understanding of the world. We expect that

every staffer can find a stage in the company for the demonstration of their talent and

play the role of a preacher in spreading our steadfast value of integrity, thereby

injecting a positive and upward force into the society. BenQ is a brand of both

technology and humanity. Along with our effort to closely follow the pulse of times

and pursue technological innovation, we also believe that the sustainable development

of life is rooted in land, nature, humanity, and emotion. Via the products and services

of BenQ, as well as personal commitment of BenQ staffers, we will leave our

descendants the legacy of a good environment and pleasant lives.

Conway Lee

President & CEO of BenQ Corporation

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BenQ Introduction

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2.1 Company Overview

BenQ Corporation Brand Launch Dec. 5, 2001

Common Stock NTD 3.855 billion

Net Sales(2009) NTD 29.6 billion Headquarters 16 Jihu Road, Neihu District, Taipei City, Taiwan 114 Number of employees 1,137 (395 in Taiwan) (as of Feb. 28, 2010) Chairman KY Lee Vice Chairman Jerry Wang President & CEO Conway Lee

BenQ Corporation (now Qisda Corporation) was founded in 1984 with the

research, development and manufacturing of computer peripherals as its business

focus while later on expanding to optronics, communications and digital multimedia

sectors. On Dec. 5, 2001, BenQ Corporation launched its own branded business to

market and sell its products using the BenQ brand name.

BenQ Asia Pacific Corporation was founded on March 13, 2000 and has hence

been involved in the creation of BenQ branded business and its management as well as

the sales and marketing of BenQ branded products in the Asian Pacific region. BenQ

Asia Pacific Corporation was renamed BenQ Corporation and BenQ succeeded BenQ

global branded business after its spinoff from Qisda Corporation in 2007.

BenQ Corporation, a leading provider of networked digital lifestyle devices, is a

multi-faceted company with strength in product design, visual technology, mobile

technology and 3C-convergence technology. BenQ offers unrivalled breadth and depth

of products and integrated technologies, in line with the brand’s pledge of “Bringing

Enjoyment and Quality to Life,” including LCD monitors, LCD TVs, digital projector,

digital still cameras, mobile communications products, Personal Computers (Joybook

laptop PCs, Joybook Lite Netbooks, nScreen All-in-One PCs), eBook readers, storage

devices, storage media, and human interface devices, such as mice and keyboards to

end users, government units and schools.

The long-cultivated R&D prowess, comprehensive global sales and marketing

network, and unique brand positioning and design philosophy have all contributed to

BenQ’s success following the brand launch in 2001. In 2008, BenQ’s ranked fourth

place worldwide in projector sales and sixth place in non-PC-bundled LCD monitor

sales. BenQ’s has received over 230 design awards in a short span of 8 years; BenQ

products boast outstanding market performances worldwide.

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Product Category

2008 Market Share 2009 Market Share

LCD Monitor 3.2 %

(WW Top 6) 3.1 %

(WW Top 6)

Projector 6.81 %

(WW Top 4; Asia Pacific Top 2)

7.66 % (WW Top 3; Asia Pacific, China

and Latin America Top 2)

(Source：Projector / Futuresource 2008~2009; LCD Monitor/ DisplaySearch 2008~2009)

2.2 Global Operation Strategy

BenQ’s global sales and marketing network covers Europe, North America, Latin

America, China and AMEA (Asia Pacific, Middle East, Africa) consisting of 43 sales

offices in 28 countries and with brand presence in over 100 countries:

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The management team of BenQ Corp. embraces the following policy guidelines,

in order to have the BenQ brand stand out in the competitive international

marketplace and achieve sustainable development.

◆ Central global strategy, local execution

To consolidate the foundation for developing an international brand,

BenQ has set up a decision-making center for global marketing and service

management system at its headquarters for carrying out institutionalized

quality marketing and service management, in the hope of grasping market

demand and improving service and supplier management, thereby augmenting

the overall operating efficacy.

◆ Expand core business and extend to innovative new business for sustainable

growth

Continue deep cultivation of 3C-produc business, roll out cutting-edge

and differentiated products to tap markets with high growth potential and

emerging markets, via integration with upstream technological partners,

enhance product competitiveness and brand value, and consolidate brand

status. Grasp market pulse, dedicate to the development of innovative products

with high added value, and expand the scope of brand business by capitalizing

on the company’s R&D strength in visual technology, mobile technology, and

design, as well as the advantage of BenQ group in key components/parts and

technology.

2.3 BenQ Culture

2.3.1 Corporate Vision and Brand Mission

BenQ emphasizes the fusion of user-friendly technologies and art to create

innovative products designed to allow customers to see, hear, feel, and experience a

networked and digital lifestyle. The blending of technology and art is intended to

advance customers' quality of life while working or learning and for entertainment

and leisure. BenQ has embraced “Bring Enjoyment ‘N Quality to Life” as its corporate

vision and brand mission, aspiring to realize the ideal of helping people to enjoy the

pleasure brought by science and technology via the provision of the branded quality

products and services of BenQ.

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2.3.2 BenQ Culture –Integrity, Passion & Professionalism, Execution & Excellence, and

Caring & Contribution

The rise of BenQ in the 3C industry is rooted in concrete principles. Accordingly,

we also rely on the guidance of these principles to attain our future goals. They are

embodied in BenQ’s values and are based on the concept that uncompromising

integrity guides our workplace behavior, decision-making, and execution, as well as

illuminates BenQ's corporate vision of Bringing Enjoyment and Quality to Life. The

values that underlie both the identity of our company and the integrity of its

employees are defined by PEC²: Passion & Professionalism, Execution & Excellence,

and Caring & Contribution.

2.4 Achievements in 2009 Since the birth of the BenQ brand in 2001, BenQ Corporation has turned its

corporate mission “Bring Enjoyment ‘N’ Quality to Life” to its brand mission, aiming

to become an enterprise that can truly influence and upgrade consumer lifestyle

through quality branded technology products and joyful experience when using our

products. In its first brand-theme commercial, BenQ unveiled the “technology +

enjoyment=(fun)2” formula, highlighting its goal of providing the technology that

consumers want along with the added value of enjoyment. BenQ’s unique brand

positioning and “digital networked lifestyle product” strategy has won it interntional

acclaims since 2003; the brand was also selected as one of the Top Global Taiwanese

brands in the same year. In 2004, BenQ spsonsored the UEFA 2004, and through the

sponsorship, the BenQ logo had conspicuous exposure in every major area of the

event. BenQ’s brand name began to gain increasing acknowledgement throughout

Europe and has been recognized as a top technology brand in the region.

BenQ’s unique design philosophy has also been acclaimed widely in the

international design arena. Its products featuring lifestyle design have won more than

57 iF Design Awards, 38 G Mark Awards and 41 red dot Awards. These achievements

have grealy increased the value to BenQ’s technology products. BenQ has helped

polish the global image of the Taiwanese hi-tech industry by directing the world's

attention to its extraordinary design ability.

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Month Achievements

2009/12 ◆8 iF Design Awards 2010

2009/12 ◆BenQ LED Monitor V2400 Eco granted editor’s choic award by「Digital

Home Monthly」

2009/10 ◆1 Good Design (G-Mark) Award 2009

2009/8 ◆5 iF China Design Award 2009

2009/6

◆Champion of “Taipei City Energy Conservation Award” for the

company’s remarkable achievement in pushing energy conservation

and carbon abatement from 2007~2008

2009/5 ◆BenQ nScreen i221 All-in-One PC granted editor’s choic award by “PC

Home Monthly”

2009/4 ◆BenQ nScreen i91, nScreen i221 All-in-One PC granted editor’s choic

award by “Digital Home Monthly”

2009/4 ◆BenQ nScreen i91, nScreen i221 All-in-One PC granted editor’s choic

award by “Computer DIY Monthly”

2009/3 ◆5 Red Dot Design Award 2009

2009/3 ◆4 2009 Taiwan Excellence Award

2009/3 ◆BenQ nScreen i91 All-in-One PC granted editor’s choic award by

“CNET”

2009/1 ◆BenQ E1050/E1050t digital cameras granted “Reader’s Favorite of Best

Fasion’’ award by “PC Home”

Note：Refer to http://corp.benq.com.tw/page/?pageId=476 for more BenQ achievements

nScreen i91 nScreen i221 DC E1050/E1050t V2400 Eco

BenQ 2009 media recognition awards

BenQ 2009 Taiwan Excellence Award Products

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BenQ 2010 iF Design Award Products

Awarded 2009 Taipei City Energy Conservation Award

2.5 Associations Participaticipation in associations is one of BenQ’s operational strategies.

Associations membership enables BenQ to access useful informtion, such as latest

activities in the industry, branding operation and Government projects. BenQ can also

disseminte our CSR experiences or achievements through seminars organized by

seminars. BenQ Corp.’s memberships in associations in 2009 are:

Association Management

Role Membership

Role Association of Administrative Committees of Neihu Technology Park (AACNTP) ■ ■

Taipie Neihu Technology Park Developmnt Association (TPDA) ■ ■

Taiwan Excellent Brand Association (TEBA) ■ ■

Taipei Computer Association (TCA) □ ■

Besides, we also take part in various international movements, such as energy

conservation and carbon abatement pushed by Climate Savers Computing and

Carbon Trust and the elimination of hazardous substances and development of

low-halogen products by Green Peace and iNEMI(International Electronics

Manufacturing Initiative).

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３

BenQ

Social Responsibility

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3.1 Corporate Sustainable Development Sustainable development of the society and the environment is always a key issue

in the eyes of BenQ from the viewpoint of a global citizen and it’s a cornerstone and

corporate mission for BenQ to create a business of sustainale development. We

incorporates the CSR requirement into our corporate strategy which covers but not

limited to corporate policy, interior management mode, operating procedures, and

personnel training. Besides, we continuously take effective actions in fields of

corporate governance, R&D, green product, personnel training and social care, with

the aim of bringing maximun profits to customers, the environment, and interested

parties.

Since 2006, BenQ has initiated schemes on social and environmental

responsibility, internally advocated and built a work ethic stressing corporate social

responsibility, and actively implemented CSR criteria to secure a safe working

environment. The company has also offered guarantee for and respect of employee’s

rights and interests, acheived pollution prevention via suppliers’ manufacturing

process and product design, and fulfilled commitments to corporate social

responsibilities.

In order to achieved the targets, BenQ has actively taken the following actions

base on corporate social responsibility policy,

◆ To comply with legal requirements

◆ To advocate employment freedom

◆ To perform human care

◆ To prohibit discrimination

◆ To establish communications mechanism

◆ To enhance employment welfare

◆ To cultivate employee capability

◆ To protect intellectual property rights

◆ To implement information disclosure

◆ To promote social culture and to care disadvantaged minority

◆ To popularize social responsibility

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3.2 Communications with Interested Parties As a global leading OBM enterprise, we believe that it’s very crucial to be

sufficiently aware of the demands and recommendations from interested parties.

BenQ would like to be informed of all issues and questions put forth by interested

parties via various channels. According to our internal and external communications

experiences in Taiwan from 2008 to 2009, interested party include six major groups,

namely investor, customer, employee, supplier, community and non-govermental

organization (NGO).

Interested Parties

Interests & Concerns Communications

Frequency & Channels BenQ Responding Method

Investor Revenue, Profitability, Business growth

Monthly Sales Status Seminar, Quaterly Board Meeting, Annualy Meeting of Stockholders

BenQ is a non-public offering company and most shareholders are employees of the Company except the parent company - Qisda Corporation. We hold Sales Status Seminar to disclose operation status and receive comments or suggestions from investors. According to legal requirement, BenQ releases relevant material and information via Qisda.

Customer

Product specification/ function, Green products, Environment-related substances

Customer Service Call, Website

Users could get required information via BenQ customer service center and related website. Besides, we actively comply with worldwide mandatory regulations and incorporate product design concept of energy saving and low carbon in advance to ensure prodcut compliance

Employee

Working environment, Employee welfare, Company growth

Daily e-paper, Monthly Sales Status Seminar, Quaterly Brand / Cultural Activity, Quarterly welfare meeting, Quarterly labor/employer meeting, Quartely dining party, Employee questionaire in every two years

Employees could get relevant information about company events, sales status and future growth via daily e-paper and monthly sales status seminar. Meanwhile a variety of brand & cultural activities, film and poster promotions, employee questionnaire are held to motivate employees. Morover, BenQ cares for employee welfare, executes planning and reviewing of each activity, and evaluates service quality of food contractors. In addition, to enhance the working and living convenience of employees, BenQ also actively attends meetings of AACNTP & TPDA of Neihu Technology Park.

Supplier Supply chain management, Green Product Spec.

Quarterly Business Review Meeting(QBR)

BenQ helds QBR meetings with suppliers and communicate with them on topics of annual policy, goals, green product specifications and green supply chain management.

Community CSR, Social concern Quarterly meetings of AACNTP & TPDA, BenQ Foundation

By attending such meetings, BenQ directly and indirectly act on Government’s Policy and obtains feedback to our CSR achievements. BenQ Foundation is our best sponsor for public service activities.

NGO Green products, Environment-related substances

Representative mail box, Fax and Tel

Global environmental issues have become manufacturer’s duties and responsibilities . BenQ receives inquiries and comments via mail box, Fax and Tel, and responds to NGO after confirmation and analysis by related departments.

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４

Environment, Safety

and Hygiene

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4.1 ESH Management

4.1.1 SA and ESH Policy

BenQ has strived to not only fulfill its commitment by providing better products

and services but also devoted itself to the practice and promotion of social

accountability, environmental protection, and safety and health management to care

for and contribute to the society and improve quality of life. From now on, BenQ will

incorporate social accountability, environmental, safety and health management, and

business philosophy into an efficient process for the execution of the SA and ESH

Policy.

We execute the SA and ESH Policy with the following guiding principles:

◆Continual improvement in the protection of labor rights.

◆Green design concept and reducing the use of environmental pollutant.

◆Continual improvement in pollution prevention, energy conservation, safety,

and health assurance.

◆Compliance with standards of social responsibility, regulations, and customer

requests.

Following:

◆Internal review and continual improvement to uphold the rights of employees.

◆Implement Green design and reduce the use of environment-related substances

◆Continual improvement in pollution prevention and energy conservation to

reduce the impact to environment.

◆Compliance with standards of social responsibility, regulations, and customers’

requests.

◆Educate employees about the importance of environment, safety and health.

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4.1.2 ESH Organization and Responsibility

To reach the goals of ESH, BenQ has established a SA and ESH Management

Committee with the CEO and all department chiefs as the committee members. A

management representative has been assigned by the CEO to be responsible for

implementing the decisions of Committee of SA and ESH Management and task

assignments of Committee of SA and ESH Management, based on the company

property. The ESH policy was authorized and approved by the CEO. The management

representative and his/her task force team will be in charge of formulating and

implementing the company’s ESH strategies. Periodic reviews of ESH performance

will be carried out.

BenQ SA and ESH Task Force

4.1.3 ESH Certification and Monitoring

BenQ headquarters has introduced ISO 14001 for environment management

system, OHSAS 18001 for occupational health and safety management system(ESH)

and SA 8000 for social responsibility management system. Meanwhile, the

implementation of actions mandated by regulations has also been certified by

respective ceritification bodies. To optimize the effectiveness of ESH system, we

conduct internal audit once a year to improve and adjust non-conformities promptly.

Accredited certificatfication organizations are also invited to do external audits. Upon

professional advices of a certificated organization, we can revise goals and strategies of

ESH system to correspond to our continuous development policy.

BenQ is a branded supplier without manufacturing oepration. Knowing that

environmental protection is key to our sustainable development and employees are

our greatest assets, we continue following the ESH system and requesting suppliers to

do the same as well.

Chief Member President

Member managers of all departments

ESH

Management Representatives

Task Force Team General Secretary,

Secretary

Regulation Identifiers

Aspect Identifiers

HR

RD

Facility Engineering

Auditors

Material Management

Communication

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4.1.4 Biodiversity

BenQ headquarters is located at Neihu Technology Park in Taipei City, Taiwan.

Since the split of OEM and Brand in 2007, we have focused on product R&D and

never engaged in any activity, production or service which has significant impact on

biodiversity. Moreover, we do not own, lease, or manage any factory or office which is

located at protected zones or areas with the high biodiversity value.

4.2 Legal Compliance Building an excellent working environment and taking Corporate Social

Responsibility seriously are always a main objective of BenQ. Within the years of 2008

and 2009, we did not commit any non-compliance mistake.

4.3 Green Office Management

Besides research and development on green products, BenQ also commits to

green office. In order to create a working environment that is friendly to nature, we

not only carry out power/water conservation and resource recycling in the workplace,

but also commit to the formation of a green office. Although our efforts may not look

as significant as other industries, we believe “Many a little makes a mickle.” By doing

this little by little, we have not only provided a comfortable environment to our

employees, but also instilled environmental conservation concepts into the minds of

all BenQers.

4.3.1 Energy

1In 2009, the total power consumption of BenQ headquarters building was

3,771,800 kWh. To conserve energy and maximize energy efficiency, we have installed

T8 LED lamps with luminosity of 80~95(1m/W) and an average life of 12,000~20,000

hours. In comparison to an incandescent lamp, T8 LED lamps boast 6~10 times in

illumination efficiency, with average life lasting 12~20 times longer.

Besides, we implemented following power-conservation measures in 2009:

◆Decreasing the usage rate of elevators in off hours.

◆Adjusting the electricity system of air conditionors, and shorteninh usage hours

◆Reviewing and controlling power consumption after office hours.

◆Reducing the unnecessary illumination in public areas.

◆Turning off unnecessary illumination outside early.

◆Inspecting office actively to avoid unattended usage of lighting or computers.

◆Adding a checklist before buying new equipment to maximize the efficiency of

1 The energy consumption information in BenQ 2008 CSR was calculated based on floors actually used

by BenQ itself. As the management unit of BenQ headquarters building responsible for its energy conservation, we would like to extend the coverage of the inforamtion to the entire building from 2009.

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its power consumption.

Thanks to energy conservation policies, the power consumption of BenQ

headquarters in 2009 dropped 6.5% to 3,771,800 kWh from the 2008 level, which in

turn was 6.3% lower than the previous year.

BenQ has dedicated to the cause of energy conservation and carbon abatement

for a long time. In addition to adjusting the electric usage of air conditioning and

illumination, we have been pushing power conservation among our employees. From

2006 through 2009, we saved 832,800 kWh in power consumption in toal. BenQ

participated 2009 Taipei Energy Saving Prize Competition and was awarded a

champion reward, due to the remarkable performance of saving 570,200 kWh of

power, translted to reduced emission of 364 metric tons CO2, from 2006 through 2008

and EUI (Energy Use Intensity) of 103 kWh/m2-yr, a far cry from the average 190.4

kWh/m2-yr of offices in Taiwan (data from Ministry of Economic Affairs 2009). From

the basis, BenQ will keep moving forward to protect our environment, our country

and our world.

Energy Conservation Performance of BenQ Headquraters from 2006 to 2009 Year 2006 2007 2008 2009

Power consumption (kWh) 4,604,600 4,304,800 4,034,400 3,771,800 Reduction in power

consumption y/y 0%

(baseline) 6.5% 6.3% 6.5%

Emission Coefficient (kg CO2e/kWh)

0.638 0.637 0.636 N/A

CO2 Reduction(tons CO2e) 0 (baseline) 191.3 172.2 167.03

4.3.2 Water

Water is extremely precious in Taiwan, so we have to commit to water

conservation and wastewater treatment. BenQ has become a branded company since

2007 and thus there is only the problem of wastewater from office, not from

manufacturing. All water we used is from waterworks and we don’t pump

groundwater. In 2009 BenQ headquarters building consumed 31,955 tons of water.

In addition, we consign testing organization to measure our wastewater quality

every year to ensure the wastewater does not impact the environment. All testing

results have been lower than the discharge standards of the government.

4.3.3 Recycling

“Waste material is a resource placed in the wrong place.” Waste classification and

recycling is our main focus. To facilitate proper classification of waste materials, we

have set up diffrennt recycling areas in our office for glass, aluminum foil packs, metal

containers, and plastic bottles. We also recycle wastepaper, used disks and used

batteries. In 2009, BenQ collected recyclable materials up to 24.6% of all waste

produced in its Taiwan office. It was 5.6% higher than 2008.

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4.3.4 Other Resource Management

Wastepaper is always one of main waste resources in office. In 2009, BenQ

reduced paper consumption progressively via new resource management. We

encouraged employees to bring their own cups, cut down paper towel consumption,

eliminate disposable tableware, replace hard copies with files, and replace one-side

prints with two-side prints. Gusiness card printint also entails paper consumption. We

have used recycled paper to print business cards since 2008 and added a recycling logo

on the bottom right-hand corner of the business cards to highlight the importance of

resource recovering.

4.4 Plan for GHG Inventory

With global warming and greenhouse gas (GHG) emissions having become a

common issue, BenQ has embraced many energy conservation measures and got

remarkable achievement. To accurately trace GHG emission status, BenQ planned for

the establishment of a GHG database in 2009 and set Year 2010 as our baseline for

GHG inventory.

According to GHG Protocol released by World Business Council for Sustainable

Development (WBCSD) and Word Resource Institute (WRI), GHG inventory is

devided into three scopes. BenQ will conduct both quantitative and qualitative

inventory for Scope 1 and Scope 2 but only qualitative evaluation for Scope 3. Scope 1

includes diesel of emergency generators, gasoline of transportation buses and business

cars, fire extinguisher with carbon dioxide, air conditioners and refrigerants in BenQ

headquarters building; Scope 2 includes electricity of the building; Scope 3 covers the

energy consumption of transportation cars, business trip and contractors of food and

beverage in BenQ headquarters building.

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５

Invertors Relations

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5.1 Corporate Governance

BenQ abides by the five major corporate governance codes, i.e. to protect the

rights and interests of shareholders, strengthen the power of the Board of Directors,

develop the function of supervisors, respect the rights and interests of interested

parties, as well as promote information transparency, aiming at building up the

operation of the Board of Directors as the top guideline.

Board members are elected by shareholders and composed of seven directors and

one supervisor, who are all professional managers with the expertise in commerce, law,

finance, accounting or other required areas. The Chairman is Mr. K.Y. Lee., who does

not hold a concurrent administrative position. The Board deems the interests of the

Company and shareholders as top priority, as well as conducts operation evaluations

and material resolutions quarterly (in case of material events, urgent provisional

meetings will be convened). If the items to be resolved relate to the interests of

directors, which may conflict with the rights and interests of the Company, the

director will be disqualified for such resolution. Furthermore, supervisors and

accountants also play a supervisory role to monitor the implementation of business of

the Company and the Board, so as to protect the rights and interests of shareholders

and strengthen the power of the Board.

BenQ is a non-public offering company. Currently, except for Qisda Corporation,

most shareholders are employees of the Company. BenQ upholds and promotes the

transparency of operation and the fairness of information transmission, as well as

releases material information by way of Qisda Corporation, in terms of making

business and financial information available for shareholders, customers and other

interested parties via a unified source. Shareholders may submit suggestions or

business directions through monthly business briefings, quarterly meetings of Board

of Directors, and annual shareholders’ meeting.

Moreover, pertaining to the performance management of employees and

managers, BenQ sets the objectives for the next six months every half a year, as well as

determines the performance per the attainment of set objectives and distributes bonus

accordingly. With respect to the performance management of the Board of Directors,

their remunerations are subject to the resolution of the annual shareholders’ meeting.

In the future, BenQ will maintain sounder decision-making and enforcement

organizations to increase operational efficiency and implement corporate governance.

25

5.2 Supervision and Risk Management

BenQ sets, confirms amd manages annual economic, environemtal and social

performamces via comparison with other branded companies, internal evaluation of

each department, and both of internal and external auditing programs.

Possible risks and opportunities, including the compliance with international

regulations, code of conduct and principles, are monitored and reviwed in Risk

Management Committee meeting held by the management team every half a year

(Urgent provisional meetings can be convened, when necessary):

Shareholder Meeting

Board of Directors

President/CEO

Audit Office

Technology Product Center

Supply Chain

Manage Center

Computer &

Mobile BU

Patent Technology

Dept.

QM Center

Advanced Biz

Develop Center

Display BU

Strategic Procure

Center

Customer Care

Center

Digital Content

Service dept.

Lifestyle

Design Center

Branding

Manage Center

Finance

Center

ㄐ

ITS Center HR Center Legal Office Global Biz

Planning

Office

◆Identification by each committee member

◆Self-evaluation by each committee member

◆Review and Approval by committee

◆Approval by the president

◆Improvement Plan by committee groups

◆Audit and Approval by committee

◆Execution by committee groups

◆Monitor/Trace/Audit/Approval by committee

Identify Risk Indexes

Self-evaluate Risks

Execute/Follow-up Improvement Plan

Execute/Follow-up Action Items

Annual Report of Risk Management

26

5.2.1 Countermeasures of the Finance Risk

BenQ adheres to the policy of not engaging in high-risk and high-leverage

investments, lending capital to non-related parties, and guaranteeing for non-related

parties. Derivatives are transacted for hedging and not for speculation. Under the

guidance of the company’s hedging principle for derivatives 2008, there didn’t occur

relevant operational risk. In the future, BenQ will trade in derivatives mainly for

avoiding risk associated with fluctuation in exchange and interest rates, to and

continue to evaluate foreign-currency positions and risks, so as to reduce operational

risk.

5.2.2 Risk Management of Supply Chain

To reduce the impact of supply-chain disruption on business operation, BenQ

embraces the following risk management strategy:

◆ Except for monopoly and unique technical vendors, we maintain at least two

qualified vendors for supply-chain operation. In case one vendor suspends

supply and services, another vendor will immediately steps in in the shortest

time.

◆ Keep searching qualified potential vendors, so that when all current

cooperating vendors suspend their supply and services, the qualified potential

vendors will immediately take over the task in the shortest time. 5.2.3 Risk Evaluation of Climate Change

According to Assessment Report 4 (AR4) released by IPCC(Intergovernmental

Panel on Climate Change) in 2007, the current climate change such as global warming

arised mostly due to human activities. Global change has caused enormous impacts on

worldwide ecosystems, water resources and sea shore areas, and directly or indirectly

affected human life. Thus each government and enterprise regards greenhouse gas

(GHG) as inescapable duty and responsibility for sustainable development.

BenQ is fully aware of potential risks and impact aspects deriving from climate

change. With resources of talents, innovation capabilities and risk management

capabilities, we believe the risks could be transformed into strengthes and

opportunities which can help expand green comsuming marketing, enhance the

fuifillment of CSR, and protect the environment. Most of all, we can thereby promote

green Brand imaging and achieve sustainable objectives.

27

Aspect Potential Risks Strength and Opportunity

Finace

◆Cost-up of energy bill, insurance fee,

transportation fee

◆Cost-up of compliance with worldwide

GHG/product carbon footprint

regulations

◆Asset and investment for Low-Carbon

Economy (LCE)

BenQ has actively monitored possible added

cost deriving from climate change and trend of

worldwide development of GHG or product

carbon footprint regulations, standard or

criteria; for LCE, BenQ Group has entered green

energy industry in advance.

Management

◆Strategy and ability for risk management

◆Capability of asset damage and crisis

management

◆Coporate green strategy and

commitment for energy conservation

and carbon abatement

The risk management has been periodically

evaluated and traced; the crisis management

will be enhanced. Meanwhile, we plan to have

set up CO2 inventory of organization in 2010

and set reduction goal accordingly.

Product &

Service

◆Demands for green procurement,

low-carbon product and energy saving

product

◆Demands for product carbon footprint

◆Demands for more energy saving and

greener service contents

BenQ has strong R&D capability and has

launched several low-carbon and evergy saving

products. We finished product carbon footprint

of LCD monitor and LCD-TV in 2009, and will

disclose carbon footprint of projector and

notebook PC in 2010 as well as provide cloud

service for ebook products.

Supply

Chain

◆Demand for carbon footprint disclosure

and CO2 inventory of supply chain

◆Supplier’s capability of stable delivery

◆Demands for greener service of Logistic

Suppl Providers (LSP)

Our major suppliers have started to buid up the

capability of life cycle assessment and carbon

footprint. The transporation ratio of air freight

has been reduced to 20%, and LSPs with greener

service are highly encouraged.

5.3 Anti-corruption

Consumer electronics is a competitive business and the risk regarding corruption

may affect our business integrity, which is the keystone of BenQ’s social responsibility

policy. In BenQ, we do not tolerate corruption of any kind and therefore have included

criteria and responding measurements into the company’s rules and employee’s

guidebook, respectively.

To ensure the understanding of anti-corruption rules by employees, BenQ

provides appropriate training, such as the Win Camp, which is an orientation program

for all new recruits that covers corporate culture, business ethics and etc. Besides, we

also have several communications mechanisms for employees to prevent any

inappropriate manner. To date, there has been no incidence of corruption at BenQ and

we will continue to work hard to uphold our principles in order to consolidate

business integrity, and to make sure we remain corruption-free.

28

６

Product and Service

29

6.1 Quality Policy and Quality Management System

BenQ’s quality policy is “To Deliver Defect-Free, Competitive Product & Services

to Our Customer on Time”. Quality is the guiding belief of each BenQer. Our core

competence lies in advanced and reliable product quality.

The structure of Quality Management System is built based on ISO 9001:2008

and ISO 14000:2004. Besides, BenQ has implemented additional quality control

measurements to enhance the systm and ensure the quality objectives:

◆ Designation of ranking managers to be responsible for quality management

system and sending Quality Engineer to each vendor’s manufacturing site for

quality inspection prior to shipment.

◆ Weekly review of quality index by each product line’s Quality Manager and

analyzing quality issues from collected data.

◆ Monthly review of operation and management by the president.

◆ Evaluation of the quality of each product line’s vendor to assure a better

quality.

6.2 Product Management

To meet customer demand is BenQ’s consistent commitment. BenQ has

formulated and continuously improved product development process to ensure the

quality of product design and production. Our development flow is listed below:

Note: EVT (Evaluation Verification Testing); DVT (Design Verification Testing); PVT (Production Verification Testing)

To protect Earth, BenQ has established green product management system and

required all materials, components/parts, packaging and manufacturing processes to

comply with worldwide regulations such as:

◆ Hazardous subatances management: EU RoHS directive, REACH regulation

and etc.

◆ Tack-back waste e-products: EU WEEE Directive and etc.

◆ Energy-saving design: EU EuP(ErP) Directive, China Energy Labelling and etc.

◆ Others: EU Battery Directive, Package and Package Waste Directive and etc.

P

rop

osal p

hase

Plan

nin

g Ph

ase

Design

Ph

ase

EV

T P

hase

DV

T P

hase

PV

T P

hase

Mass P

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uctio

n

30

6.3 Ecodesign

BenQ green products cover four design categories: product design improvement,

energy saving and carbon reduction, packaging improvement and ecolaels:

6.3.1 Product Design Improvement

A. Environment-related substances Management

All BenQ products have to meet Hazardous Substances Guideline

(SUP-QM-07-02) which covers EU RoHS Diective and other legal and voluntary

restricted substances. In 2009, we managed following items:

RoHS Substances Other Legal and Voluntary Restricted Substances

Sum of Cd, Pb, Hg, Cr6+ PCB and PCT Ozone Depletion Substances

Cd and its compounds PCN PAHs

Pb and its compounds SCCP(C10~C13) Organic Tin coumpounds

Hg and its compounds PVC(only for packaging & mechanical parts)

Asbestos

Cr6+ and its compounds PFOS Radioactive Substance

PBBs Formaldehyde Ni and its compounds

PBDEs Azo dyes REACH SVHC(survey only)

Furthermore, we monitored worldwide study reports and suggested control

criteria on possible hazardous substances in electric and electronic products, such as

BFR/PVC-free topics advocated by iNEMI, Green Peace and draft RoHS revision. As a

Brand’s commitment, BenQ plans to accomplish following objectives of hazardous

substances by 2010:

BenQ

Green Product

Product Design Inprovment Energy Saving & Carbon Reduction

Packaging Design Improvement Eco Labels

◆ Environment-related substances Managemen

◆ Easy-recycling Design

◆ Recycled Plastics

Power consumption Criteria ◆

Energy Saving Design ◆

CECP, Eco-labelling ◆

EPEAT, Energy Star ◆

TCO’03/’05 ◆

PC3R/TGM/TEL ◆

◆ Reducing Packaging

Materials

◆ Reducing Packaging Volume

◆ Recycled Packaging Materials

◆ Green Printing

31

◆ Hg: to install LED lighting source to replace traditional CCFL and raise the

quantities of LED products year by year.

◆ As: to adopt arsenic free glass substrate in each product line

◆ BFR: to use BFR-free (<1,000 ppm) plastics (>25g) in all products

◆ PVC: to use PVC-free (<1,000ppm) packaging and mechanical plastic parts in

all products

◆ Phthalates: to ban specified Phthalates (<1,000ppm) in all products

B. Easy-recycling Design Principles

In order to lower environmental impact and facilitate material recycling, BenQ

has embraced the following design principles:

◆ Use single material for plastic parts

◆ Plastic parts can be disassembled with common tools

◆ Identify the material used for plastic parts (>25g) based on ISO 11469

◆ Adopt recycled plastics as much as possible

◆ Embrace the design of snap-in, rather than glue-in or welding, for the

connection type of mechanical parts.

◆ Use less screws and fewer types of bolts

◆ Avoid unnecessary surface coating and metal deposition on casing parts

◆ Avoid paiting, plating and printing in post-treatment

◆ Embrace common color codes or available paints

In general, the Recycling rate, Reuse rate and Energy recovery rate of BenQ

products is over 75%, and can rise to 80% in 2010, in compliance with draft EU WEEE

Directive. Furthermore, in EU, USA and Taiwan BenQ provides recycling service

within local recycling framework to ensure all e-wastes and packaging wastes are well

recycled and disposed.

C. Recycled Plastics

To echo the ecodesign concept of “from cradle to cradle”, we also have adopted

more than 10% recycled plastics (counted by total plastic weights) in several eco

models:

V2400 Eco

Recycled plastics>10％ V2200 Eco

Recycled plastics>15％

U121 Eco

Recycled plastics>15％

nScreen i221 Eco

Recycled plastics>15％

32

6.3.2 Energy Conservation and Carbon Abatement

A. Worlwide Power Consumption Standards and Criteria

BenQ products have already met standby/off mode requirements of EU EuP(ErP)

Directive. In a move leading most peers, we will incorporate off mode of 0.5W

addressed in 2013 criteria in 2010 LCD monitors and launch a leading spec. of 0.1W in

2011 LCD monitors.

In addition, ourl LCD monitors, All-in-One (AIO) PCs, Notebook PCs are ready

for version 5.0 requirements of Energy Star Program and Adapters can meet Level V

requirements of Energy Star for External Power Supply ver. 2.0.

B. Energy Saving Design Principles

As most power consumptions occur in the usage phase of electric and electronic

products, we embrace following energy saving design principles:

1. LCD Monitor ◆ To use parts with energy saving function

or high conversion efficiency as possible

◆ To adopt LED panel with high illumination efficiency and low power consumption

◆ To design backlight module with Ambient Light Sensor and Proximity Sensor to adjust power consumption

◆ To set backlight enter Power Saving mode if no image signal and enter Power Off mode in several miniutes if still no signal

◆ To set the peripherals enter Standby mode atuomatically

◆ To lower Standby consumption by Burst mode if PWM is entering Power off

◆ To add “Eco preset” mode and show up the power saving percentages

◆ To remind users with icon of power consumption index when adjusting backlight

◆ To remind users the time to rest by adding OSD Timer

2. Digital Projector ◆ To adopt high efficiency and high

conversion efficiency parts

◆ To design with LED lighting source

◆ To enhance brightness and transparency by improving Color Wheel layout

◆ To design with zero power consumtion circuit by adding AC power switch

◆ To control light source enter ECO (energy saving) mode by software

◆ To minimize power consumtion by flexible control of each module switch

◆ To raise brightness performance and increase usage efficiency of projector

3. Notebook PC ◆ To use Solid State Disk (SSD) to save 15%

power consumption

◆ To design modules of Bluetooth, TV, Ethernet, Wireless and backlight with zero power consumtion circuit if no using

◆ To save at most 30% power by providing function of Switchable Graphics

◆ To save about 5% power by auto sensoring Ethernet or entering power saving mode

4. Digital Camera ◆ To lower power consumption by special

software ◆ To save 10% power by adjusting

brightness of LCD panel automatically with BenQ’s power saving technique

33

By adopting the above design principles, our 2009 eco models have pretty good

performance in energy saving:

Product 2009 Eco model Benchmarking Model Power On saved W

Power On hrs/day

Energy saved KWhr/yr

Cost saved NTD

Reduced CO2

Kg CO2e

AIO nScreen i221 Eco Normal Desktop (200W)

149 8 435.08 1,061 277.15

Notebook Joybook U121 Eco BenQ S61 6.51 8 19.01 46 12.11

LCD TV VK3211 BenQ VB3222 40 8 116.80 285 74.40

Projector MP772/MP575 BenQ MP771/MP722 80 8 256.96 627 163.68

LCD V2400 Eco BenQ G2411HD 18 8 56.06 137 35.71

DSC C1030 Eco BenQ C1020 0.2 1 0.07 0 0.05

Note：1.Taipower, Energy Charge: 2.5 NTD(Sumer); 2.41 NTD(Non-Sumer), July 2008

2.Taipower, CO2 emission coefficient of power: 0.636 Kg CO2e/kWh, 2008

3.Usage scenario assumptions: Power-on for 8 hrs/day; Standby/Off for 16 hrs/day

6.3.3 Packaging Improvement

Product packaging is also an important category of BenQ ecodesign. In 2009 we

revised packaging design to achieve compact size, raised loading rate, and reduced

energy consumption for transportation and its cost.

A. Reducing Packaging Materials

Taking LCD monitor V2400 Eco as an exemple, we used recycled papers instead

of EPS as cushion and thereby enhanced the recycling rate of packaging. With slim

packaging design, in addition to reducing packaging materials, we saved 56% shipping

space and lowered the transporation cost and the environmental impact it may cause.

2008 LCD Monitor Benchmark Project 2009 LCD Monitor Project Improved

34

B. Reducing Packaging Volume

For instance, plastic partitions for DSC products are replaced with recycled

papers, user manuals are replaced with e-file, and optimized packing is attained by

meticulously calculating the size of packaging and pallets, thereby saving 20% volume

in total.

2008 DSC Benchmark Project 2009 DSC Project Improved

C. Recycled Packaging Materials

All 2009 Eco models embraced recycled boards (>80% recycled content). We plan

to extend the use of recycled packaging materials to all models from 2010 and increase

the recycled contents for recycled boards to 85%.

D. Green Printing

Except for 80% recycled boards, all 2009 Eco models also adopted mono color of

soy ink printing on gift boxes to save 70% inks and facilitate the recycling of packaging.

In 2010, we plan to use more soy ink both in each product’s gift box and spec. sheet.

Gift Box of U121 Eco Gift Box of nScreen i221 Eco

6.3.4 Eco Labels

Eco Label products stand for about 25% advanced products in the market. BenQ

has not only embraced the ecodesign concepts of energy conservation, carbon

abatement, low environmental impact and environment friendly materials, but applied

for ecolabels to underscore the compliance of our eco models with the latest

requirements for green products. Based on registered dates, in 2009 we were granted

ecolabels as follows:

35

A. China Eco-label 2009 Registered Products

China CECP

Projectors: MP525, MP575, MP626(V), MP670(V), MP724, MP727(ST), MP776(ST), MP777, MP782(ST-V), EP3225, EP3230, EP3725D, EP3726D

China Environmental Labelling

LCD Monitors: V2200 Eco, V2400 Eco

LCD TVs: VK3211

B. USA

Eco-label 2009 registered products

EPEAT

LCD Monitors: Gold-V2200 Eco, V2400 Eco; Silver-E2220HD, E2400HD

Notebook PC: U121 Eco

AIO PC: nScreen i221 Eco

Energy Star

LCD Monitors: E910(T), E2220HD(P), E2420HD(P), G610HDPL, G702AD, G920HD(A), G920W(A), G920W(A)L, G922HD(A)L, G922HDP(A)L, G2020HD(A), G2222HD(A)L, G2222HDH, G2222HDA, G2420HD, G2420HDBL, G2411HD(A), G2411HDB, M2700HD, 2200 Eco, V2210(Eco), V2220(P), V2400 Eco, 2410B, V2410T, V2410(Eco)

Notebook PCs: S35, S43, U102, U103, U121, U122

AIO PCs: nScreen i91, nScreen i92, nScreen i221

C. EU

Eco-label 2009 registered products

TCO’03 LCD Monitors: G610HDA, G610HDAL, G2411HD, G2411HDA

TCO’05

LCD Monitors: G920W(A), G920W(A)L, G922HD(A), G922HD(A)L,

G922HDPL, G2420HDBL, V2200 Eco, V2210,

V2210B, V2210 Eco, V2400 Eco,V2410 Eco, V2410,

V2410B, V2410T

D. Japan

Eco-label 2009 registered products

Japan PC Green Label (PC3R)

LCD Monitors: E900HDP, E2220HD, E2420HD, M2200HD, M2400HD, G2220HD, G920HD, G2411HD, G922HD, G925HD, E900HDP

AIO PCs: nScreen i91, nScreen i221

E. Taiwan

Eco-label 2009 registered products

Taiwan Green Mark

LCD Monitors: E900HD, E900HDA, E2200HD, E2200HDA, SE2231, MK2432

Projectors: MP575, MP623, MP724, MP727, MP735, MP772ST

Notebook PCs: U121 Eco

Taiwan Energy Label LCD Monitors: M24K, MK2432, SE2231

36

6.4 Product Carbon Footprint

Product Carbon Footprint is a measurement of any direct and indirect CO2

emissions during whole life cycle of the product (ISAUK Research Report 07-01, 2007).

BenQ supports sustainable activities aimed to keep the Earth better and closely follows

worldwide trend of carbon footprint measurement criteria for Country, City,

Enterprise, Indivisual and Products. For BenQ itself, we set year 2010 as the baseline

for GHG inventory. We co-worked with vendors of LCD monitor (G2020HD) and

LCD TV (VB3223E) in launching our pioneering models to disclose product carbon

footprint based on PAS 2050 standard created by BSI, Carbon Trust and DEFRA. Both

products are the first ones to be awarded with certifications of carbon footprint in

Taiwan industry.

Product LCD Monitor (G2020HD) LCD TV(VB3223E)

LCI Boundary ◆B2C(business-to-consumer)

◆Include packaging

◆B2C(business-to-consumer)

◆Include packaging

Manufacturing/Sell-in

China Taiwan

Life span 6 years*1 7.2 years*3

Usage Senario

◆On mode: 6 hrs/day*2

◆Sleep mode: 2 hrs/day*2

◆Off mode: 16 hrs/day*2

◆On mode: 5 hrs/day*4

◆Sleep/Off mode: 19 hrs/day*4

Carbon Footprint

Within Life Cycle

Total Carbon Footprint

443 kg CO2e 1,255 kg CO2e

Verification by BSI Taiwan SGS Taiwan

Note：1.Taiwan EPA, Project Summary Report(No. EPA-94-HA15-03-A085), May 2006.

2.Environment and Development Foundation,”PCR- for the Preparation of Environmental Product Declaration (EPD) of TFT-LCD Monitors”, November 2008.

3. Masahiro Oguchi, Takashi Kameya, Suguru Yagi, Kohei Urano, Product flow analysis of various consumer durables in Japan, RECYCL-1965, 2007.

4. AU Optronics, “PCR- for the Preparation of Environmental Product Declaration (EPD) of TFT-LCD TVs (draft)”, 2009.

37

6.4 Customer Care Quality

BenQ’s customer care is provided through the establishment of service centers

and service network built by authorized service providers worldwide. Our Website has

also published information listed below:

◆ Corporate Information

◆ Product Information

◆ Promotions

◆ Online Shop (Depends on Regions)

◆ Product Warranty

◆ Product Support Information

◆ Software Updates.

◆ Contact Information for Service Center, Authorized Service Provider.

Customer satisfaction surveys are conducted by BenQ’s five regional sales offices

worldwide regularly. Survey results are used for the benchmarking and auditing of

each service center & authorized service provider. Displacement of or request for

quality improvements will be sent to those service center or providers that fail to meet

the requirements of BenQ’s standard service quality.

All authorized service providers are asked to provide service records by uploading

them to a database for all regional sales offices to review. BenQ’s headquarters in

Taiwan also does service data analysis on a daily basis for service quality assurance to

ensure continuing improvements.

38

７

Vendor and LSP

39

7.1 Management Principles

Since the split of OEM and Brand, BenQ has outsourced R&D, manufacturing

and logistics operation to professional suppliers and logistics service providers. To

enhance business competitiveness, we focus on brand marketing, product and

technology developoment, global logistics, after-service and integrate all suppliers and

logistics service providers’s resources.

The speedy growth of new computing and internet technologies has contributed

to global economic developed but also produced ecological impacts day by day. For

sustainable development, BenQ requires suppliers and logistics service providers to

obtain ISO 9001 and ISO 14001 certification as a demonstration of social

responsibility.

7.2 Vendor Selection

To provide best service quality and the most environment-friendly products to

customers, BenQ follows standard procedure for vendor selection. Through the

qualification and auditing processes, we wish to build a lasting relationship with

vendors that could colaborate with BenQ in fulfilling social responsibility. Since 2008,

BenQ has reinforced our requirements for existing ventors on social

responsibility-related issues and advocated same ideas among potential vendors.

In BenQ management system and control flow, potential vendors have to

cooperate actively with BenQ for auditing program and documents review on issues

regarding environment caring and social responsibility, in order to enter QVL

(Qualified Vendor List):

For vendors that cannot offer copies of SA 8000 certificates, an improvement

plan or a pledge to follow the standards of SA 8000 is required and BenQ will track the

progress of their phase-in plan. For vendors that cannot offer copies of ISO 14001 or

OHSAS 18001, BenQ will require them to produce a phase-in or improvement plan.

Regarding aforementioned operational procedure, 100% of current vendors have

passed related documents review and tracks. In the meantime, before a QVL vendor

becomes a formal supplier, BenQ would carry out RFQ (Request for Quotation)

process to guarantee that their production and products conform to environment

assessment and safety requirements.

Vendor

Basic Info.

Required

documents

s

QVL to provide：

◆ ISO 14001

◆ OHSAS 18001

◆ SA 8000

QVL

Review

40

In RFQ stage, except for general specs, BenQ also requires the compliance with

quality, EMC, safety and green product specs such as ecodesign requirements for

EuP(ErP) and BenQ Restriction of Hazardous Substance Guideline (SUP-QM-07-02).

If vendors fail to commit or fail at auditing, they could not be awarded the project. Via

such process, BenQ assures the products can meet customer needs.

From 2010, BenQ will launch more green products and enhance green supply

chain management. We will ask suppliers to implement carbon footprint inventory,

RoHS revision(draft) and low halogen product etc. step by step, in order to offer the

safest and most environment-friendly products to customers. Furthermore, by

introducing such movements, we wish to collaborate with qualified vendors, fulfilling

together the commitment to the healthiness of customers, so as to safeguard the

ecological environment and protect the planet we live on.

7.3 LSP Selection

BenQ not only verifies conformance of transportation service to our

requirements but also demands logistics service providers (LSP) to provide ISO 9001

and ISO 14001 certification in LSP selection procedure. If vendors can provide ISO

9001 and ISO 14001 certification and conform to our requirement for freight cost and

service, they are likely to become qualified LSPs.

Regarding transportation process, the capacity of marine transportation is larger

than air transportation and carbon dioxide emissions per unit of marine

transportation is also lower than air transportation. Most BenQ cargo is shipped via

marine transportation. For the sake of carbon abatement and ecological environment

protection, we had raise the share of marine transportation to 80% in both 2008 and

2009, compared with 60% in 2007, leaving only 20% to air transportation.

Reference：International Chamber of Shipping, “Shipping, World Trade and the Reduction

of CO2 Emissions”, 2009

41

Many shipping firms have slowed down sailing speed for economical benefit and

environmental protection. 2According to related research, when the speed of a ship

drops from twenty-four knots to eighteen knots, it would reducefuel wastage and

carbon dioxide emissions by 60%. BenQ not only chooses logistics service providers

which conform to the requirement of energy conservation and environmental

protection but also actively look for transportation services featuring energy

conservation and low carbon emission in the market.

2 Theo E. Notteboom, Bert Vernimmen, “The effect of high fuel costs on liner service configuration in container shipping”, Journal of Transport Geography, 2008

42

８

Human Resource

43

8.1 Employee Profile

As of Feb 28, 2010, BenQ had hired 1,137 employees worldwide in Asia, Australia,

Europe, and the Americas. There are over 47 various nationalities among employees;

34.7% of employees are in Taiwan headquarters, and the other 65.3% employees are in

other overseas offices.

Year Worldwide Overseas Taiwan

2008.09 1,694 1,207 487

2009.02 1,399 998 401

2010.02 1,137 742 395

Note：The above information is without Temporary workers

Employment Type Male（％） Female（％）

Permanent 63.7 36.3

Temporary 15.4 84.6

Note：The above information is based on Taiwan area by 2009.12.31.

8.1.1 High Quality Workforce

BenQ employs high quality workforce. 92.4% of our employees have Bachelor

degree or higher; 40.8% employees have Master degree.

Education Background（％）

Master and above Bachelor Other

40.8 51.6 7.6

8.1.2 Age and Gender Distribution

BenQ believes in equal opportunity for both sexes and for people of all ages, an

attitude which is fully reflected in out recruiting and talent cultivation policies. The

average age of staff is 35 years old, with 53.8% in their 30s to 40s. Male workers

account for 62.2% , while female workers amount to 37.8%.

Age Distribution（％）

＜30 years old 30~40 years old ＞40 years old

21.9 53.8 24.3

Gender Distribution（％）

Female Male

37.8 62.2

44

8.2 Our Commitment

BenQ believes that compensation and benefits are an important issue to our

employees, and therefore have developed a competitive compensation policy.

Every full-time employee in Taiwan is guaranteed to have monthly salary,

Dragon-Boat Festival bonus, Mid-Autumn Festival bonus, and Year-End bonus.

Performance bonuses are granted according to individual performance and company

performance every year. Employee dividend sharing from BenQ’s profits are also

allocated to our employees.

All employees are guaranteed to be paid higher than the basic wage set by the

Labor Standards Act. The employee’s compensation is determined by employee’s

professional experience, personal performance, and educational background.

Candidates with identical background will have identical starting pay, regardless of

their race, religion, political affiliation, gender, marital status, and membership of

labor union. Employees are always paid on schedule and can inquire about salary

details on Online Salary Inquiry System which guarantees confidentiality, saves ink

and papers, and fosters employees’ self-management. Any compensation payment is a

reward for employees’ contribution and as thus shall not be deducted in advance, as

penalty for breach of contract or as indemnity.

In compliance with local legal requirement, on the first day when joining BenQ,

all employees are provided with Labor Insurance, National Health Insurance,

Engagement/Volunteer Leave, and other required leaves. All employees are also covered

by group insurance which is additional to the local legal requirement, such as life

insurance, health insurance, cancer medical-expense insurance, accidental death and

dismemberment insurance, accident insurance aviation clause, and so on. The

retirement plan for our employees conforms to the local legal requirements. In Taiwan,

the structure of retirement plan is based on either defined benefit or defined

contribution plan; and premium is paid each month directly by BenQ to either the

legal pension account or the personal pension account under the Labor Standards Act

and the Labor Pension Act. The pension policy in our worldwide operation offices are

compliance with each country’s local pension law.

When significant operational changes that might affect employee’s rights arise,

according to the local labor law, we provide employees 10 days of advance notice if

employee’s service period is longer than 3 months and shorter than 1 year; 20 days of

advance notice if employee’s service period is longer than 1 year and shorter than 3

years; and 30 days of advance notice if employee’s service period is longer than 3 years.

45

8.3 Working Environment

8.3.1 Workplace Safety

BenQ headquarters has been certified OHSAS 18001 for an occupational health

and safety management system. Inspired by the vision of a happy company, we have

integrated global standards and government regulations to establish our ESH

management system. We not only strive to prevent the happening of traditional

environment-related events and work-related accidents, but also establish entrance

control mechanism and employee opinion system to safeguard the personal and

property safety of employees.

We sett up an entrance control system at the entrance of the building to protect

the staff. In order to enhance the safety in the office, we provide a system named

“1234” to collect opinions from our employees.

Based on continuous improvement cycles, BenQ formulates a series of regular

inspections in accordance with regulations for environmental soundness. An ESH task

force team identifies and evaluates risk, provides task assistance, and implements

improvement and actions as part of management system. Committee of ESH

management would review these key issues to ensure addressed property. Comments

from the members of committee of ESH management and staff are used in planning

our safety training as well as the frequency of safety inspections.

Although the office working style is simple, it highlights the importance of

emergency responses. To avoid major accidents, such as fire accidents, food poisoning

or natural disasters, many kinds of emergency response procedure have been

established. Periodical courses of evacuation drill, emergency response training, and

equipment training are held to effectively and efficiently minimize the impact of

occupational hazards.

With systematic safety management, in 2009 both of our Disabling Frequency

Rate(FR) and Disabling Severity Rate(SR) were 1.42. All the accidents belong to traffic

accidents, rather than those related to company environment or working. Encouraged

by this accomplishment, we seek further improvement of our performance to ensure a

more comfortable and safe environment for all employees.

Item Schedule Inspection Results

Drinking Water Jan, April, July, Oct Under the standards of regulation

Noise (Surrounding) Oct Under the standards of regulation

Noise (Workplace) June, Dec Under the standards of regulation - 85dB(A)

Illumination June, Dec Under the standards of regulation Office area>300Lux, Others>100Lux

Concentration of Carbon dioxide

June, Dec Under the standards of regulation - <5,000ppm

46

Item 2008 2009

Disabling Frequency Rate (FR) 0 1.42

Disabling Severity Rate (SR) 0 1.42

Evacuation drill

8.3.2 Occupational Health

We’ve been creating a healthy and vibrant workplace for our employees for years.

In this workplace our employees can be fully committed to their works without any

distractions. We’ve been taking the occupational health examination conducted by

Taipei City Government since 2005, and won the honor of the best workplace in 2005

and 2006. In addition, we were certified as a healthy workplace by Bureau of Health

Promotion, Department of Health, Taiwan in 2007 and 2009.

◆2005 Awarded the Best Workplace Prize

◆2005 Awarded the Eden Prize

◆2006 Awarded the Healthy Workplace Legacy

Prize of Taipei City

◆2007 Granted Piloting Health Award

◆2007 Awarded Badge of Certified Healthy

Workplace

◆2008 Excellent Healthy Workplace designated

by Director of Burea of Health Promotion

◆2009 Badge of Certified Healthy Workplace

47

We take strategic approaches, including regular health examination programs and

the provision of health-promoting activities and medical facilities to the staff, to creat

a healthy workplace for our employees. Any unusual report/data from the health

examination will be treated for further diagnosis or follow-up evaluation. Other

health-related activities are held regularly for all colleagues including interesting

healthy promotion program, presentation of health knowledge, training course for

“first aid” and occupational safety knowledge, such as:

◆ Why cancers occurr suddenly

◆ Course for eyes protection for Computer workers

◆ DIY for massage and relaxation–the prevention of cardiovascular disease

◆ Repetitive Strain Injury for Computer workers

We also cooperate with Eden Social Welfare Foundation in running an in-house

massage room, where massage professionals from the Foundation help our employees

relieve their tensions and stress. The service not only improves the health of colleagues

but also provides working opportunities to the blind people. In 2009, the service was

provided to over 1,000 persons/timet. We also have a well-equipped nursing room,

which is granted a 5 Star rating by two Parenting magazines.

In additionl to offering all employees the opportunities of trainings and

development, we do our best to make BenQ a blissful enterprise by conducting the

Happy Mall program. This program encourages our employees to pursue personal

health and fulfillment, while devoting themselves to the company.

48

Weight control activity In-house massaging service

Breastfeeding-Friendly Workplace Regular healthy examination

8.3.3 Livinging Environment

In an expression of its care for employees’ daily life, BenQ provides them a

comfortable living environment, various services and facilities including a canteen to

supply meals during lunch and dinner times, a coffee shop, a fitness center, a

gymnasium, massage service, wellness center, a mailroom, and etc to create a pleasant

workplace for all the staffers to spend their working hours.

49

8.3.4 Human Rights

BenQ headquarters has embraced SA 8000 for social accountability management

system since April 2006. We have started ESH plan based on the standards of the

management system to safeguard the right of employees. External audit is conducted

once a half year to ensure effective management. Our policy on labor rights follows:

◆Child Labor: BenQ does not employ child labor.

◆Forced Labor: BenQ respects employee’s free will and forbids any forced labor.

◆Health and Safety: The company has passed the certifications of ISO 14001 and

OHSAS 18001.

◆Freedom of Association: BenQ has diverse communications channels and

respects the right of all employees to form and join organizations of their

choice.

◆Discrimination: BenQ does not engage in or support discrimination in hiring,

remuneration, access to training, promotion, termination, or retirement.

◆Disciplinary Practices: BenQ forbids any abusive punishment or behavior.

◆Working hours: BenQ complies with local laws on working hours.

◆Remuneration: BenQ ensures that wages and benefits are rendered in full

compliance with local laws and deductions from wages are not made for

disciplinary reasons.

BenQ SA and ESH policy is compliant with standards of social responsibility,

meaning that BenQ does not employ child or forced labor, but provides a healthy and

safe workplace and ensures convenient communications channels for employees.

There’s no discrimination against race, gender, marital status, age, political affiliation

or religion. We care for staffers and ensure remuneration shall meet at least legal or

industrial standards. No harsh or inhumane treatment is allowed. From recruitment

on, BenQ complies with the standards of the policy. No incident of discrimination,

forced labor or child labor was identified in 2008. To be a responsible corporate citizen,

we also request our suppliers to follow our insistence on human right.

8.4 Employee Relations

BenQ puts in place a variety of internal communication channels, including

“1234 mailbox”, staff meeting, management meeting, welfare committee meeting and

food committee meeting, etc. Through these channels, the employees can deliver their

opinions and get instant and effective responses.

Employee rights to the freedom of collective bargaining are embodied in

quarterly labor-management meeting. The ratio of employee representatives to

management representatives is 1 to 1.6. The employee representatives are elected

directly by all employees in each department. These representatives are responsible for

expressing opinions raised by all employees. The conclusions for every issue under

discussion are recorded in quarterly labor-management meeting minutes, which will

be sent to all relevant departments for reviews and implementations.

50

BenQ Communication Frame

8.5 Training and Talent Development

Talent is the cornerstone of BenQ's competitive advantage. Supporting and

developing BenQ talent has always been a key management principle. Based on the

needs of the company, employee skill courses and management leadership programs

have been held continuously to reinforce BenQ's competitive edge. Additionally,

instillation of knowledge and corporate culture into daily work behavior of employees

has become an indispensable tool in the development of talent and the development of

the company.

In 2009, every employee received at least 47 hours of training in various topics,

including corporate culture, professional skill enhancement, and leadership

development. In total, 305 courses were offered and attended by over 3,321 persons.

Further, BenQ encouraged group learning by supporting the sharing and transfer of

new knowledge and skills between teams, departments, and business divisions. For

new employees, we offer training program to introduce corporate culture, branding,

and fundamental working skills under the auspices of Win Camp.

Be

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e

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Ma

na

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Monthly Sales Status Seminar

Department meeting

Interview Supervisors

1234 mail box

Director Meeting

Welfare Committee

Food Committee

Labor-capital meeting

HR Structure

Sex harass

Complaint Channel Responsible

person

51

BenQ learning system includes New employee training, Competency training and

Leadership/Managerial training. Each employee can participate in these training

courses by individual or department demand. For effectively communications, we

formulate ESH training courses including health and safety, management system,

emergency response, green products, environmental protection, and social

responsibility according to legal requirements and the characteristics of the company

and industrial environment. We also encourage employees to apply for subsidy to

attend external training programs.

BenQ Learning

System

New Employee

trainingCompetency Training

Leadership and

Managerial Training

Corporate Culture

Core

Competency

Professional

training

Managerial

Competency

New

Manager

Training

Senior

Manager

Training

Top

Manager

Training

Employees can join e-learning courses, freely inquire about the training timetable,

and register for training courses directly via E-Learning System (Learning@BenQ).

At year end, each employee has to conduct performance appraisal and propose

next year’s Individual Development Plan, via internal and/or external training, to

improve their professional and general skills. Sustainable management is not only

based on product innovation and process improvement, but rely on an organism-like

organization able to effortlessly adjust to challenges posed by the environment. BenQ

supports this concept and continues to strengthen organizational learning capabilities

and employee training and development. Cultivating our competitive strength now

will determine our ability to face the challenges of the future.

52

９

Humanistic and Social

Concern

53

Bringing enjoyable technology to the stage of the world, walking step by step with

global vision, BenQ always believes that the goal of an enterprise is not only making

profit and being on the stage of the world but also fulfilling a firm commitment to the

world and human being.

9.1 BenQ Foundation The establishment of BenQ Foundation has embodied BenQ’s commitment to

offering humanistic outreach to the community. Founded in 2003, the Foundation

acts as a catalyst to disseminate the spirit of “Bringing Enjoyment and Quality to Life”

through educational programs, charitable donations, awards and scholarships. The

Foundation believes these efforts will foster the long-term development of beauty and

truth in arts and literature as well as future concrete innovations for society. Here’s

the exceprt of BenQ Foundatoin’s many activities:

▍BenQ Award

With the advent of the digital era, aware of the importance of digitally recording

this wave of digital revolution, the BenQ Foundation has organized the BenQ Award to

promote the value of creative writing and to encourage writing on the subject of how

technologies have brought us a beautiful new world.

The BenQ Award aims to encourage participants creating literary works based on

their daily experiences and presenting them digitally in a new digital aesthetics and

literary style.

Event Promotion Competition theme

數位感動創意生活

54

▍Reading For Hope

To narrow the gap of educational resources between urban and rural areas, BenQ

Foundation has joined hands with Commonwealth magazine in pushing the “reading

for hope” program, which includes the donation of books and magazines to

elementary schools in remote areas, enabling their schoolchildren to access good books

anytime, anywhere. Under the auspices of the program, the foundation has also

sponsored reading-assistance activities at four remotely located elementary schools for

four years in a row, including Juiping elementary school in Linkou village of Taipei

County, Sanfeng elementary school in Hsinchu County, Chihsing elementary school in

Taichung County, and Chenhai elementary school in Tainan City. Volunteers from the

group, dubbed “Q seed volunteers,” first receive training to become storytellers and

then assist schoolchildren in reading illustrated book to arouse their reading interest,

so that they can form correct value concept and develop the capability for lifelong

learning.

“Reading for hope” features reading under such guiding methods as activities,

drama, and play, which are coupled with the vivid and lively tones and body language

of volunteers to lead schoolchildren to be immersed in the stories of illustrated books,

so that they can form correct value concept. In every session of “reading for hope,”

volunteers can be spotted making serious preparation and brilliant performance,

striving to achieve the best effect via painstakingly producing sophisticated stage

properties or costumes or undertaking rehearsals repeatedly. Volunteers invariably

present the contents of books to children in most lively manner and attract their

concentrated attention, thereby instilling the morals of the books in their minds

deeply.

The cultivation of correct value concept is carried out not only via interaction in

classes but also play and interaction between volunteers and children during class

breaks which deepens mutual trust and builds an emotional tie, inducing children to

regard volunteers as targets of trust and learning. Meanwhile, volunteers also derive

utmost happiness from their contribution when they spot solid growth potential in

those children. In 2009, over 200 Q volunteer persons took part in the “reading with

hope” events at six elementary schools located in the remote villages of Juiping of

Taipei County’s Linkou, Telung of Taoyuan County, Sanfeng of Hsinchu County,

Chihsing and Houli of Taiching County, and Chenhai of Tainan County.

55

▍Assistance plan for Miaoli Digital Opportunity Center

BenQ Foundation takes part in the “plan for pushing the creation of digital

opportunities in remote villages,” starting with the provision of assistance to nine

“digital opportunity centers” (DOC) in Miaoli County in 2008 and further expanding

the scale to 12 centers in 2009. The foundation forges optimal courses in the three

major aspects of digital learning, tourism industry, and local culture for the centers,

not only helping community members augment their information-application

capability but also contributing to the marketing of local agricultural products and

tourist attractions, as well as joining hands with community leaders and senior

students in establishing digital archive for local culture.

Effort over the past two years has generated abundant results, converting many

students from a computer novice to a veteran capable of marketing their products via

blogs or online auction, thereby improving their livelihood. A good example is a

villager nicknamed “Brother Red Date” in Kungguan village of Miaoli County, who

successfully applied digital technology in marketing red dates after two years of serious

learning. He subsequently became a famous figure online and gained even wider fame

following the coverage of his story by cable-TV news channel TVBS.

56

BenQ Foundation has also erected online marketing platform for several varieties

of local fruits, such as top-grafted pear of Sanwan, Wendan shaddock of Hsihu, and

sweet persimmon of Shilin, which, plus the pushing of collective purchase among the

group’s employees, has elicited warm reception and scored remarkable result. Another

key task is the digital recording of Hakka and aboriginal culture, such as the Hakka

deity play, Earth God culture, weaving operation of the Atayal tribe, and the paSta’ay

festival of the Saisiyat tribe.

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9.2 Social Concern

▍Aug. 8 Green Light Plan

After typhoon Morakot wrought havoc in Taiwan in summer 2009, the BenQ

Group was among the first donors, contributing NT$100 million to the relief

operation and urging others in the society to open their pockets too. In addition,

BenQ launched an in-house “You are the hope” program, encouraging its employees to

make donations, whatever the amount, to help Aug. 8 flood victims during the

typhoon weather their plight. The program elicited warm response from BenQ staffers,

who gave out NT$1 million together. Donations made by the group companies,

staffers, and China’ss Changhong Electric Co., Ltd. totaled NT$230 million, which is

managed by BenQ Foundation. The group has set up a panel to oversee the

implementation of the relief program, dubbed “Aug. 8 Green Light Plan,”which has

listed the education of the children in disaster areas as the primary objective.

After discussion with the Ministry of Education, the BenQ Foundation offered

assistance for the campus reconstruction of Taiwu elementary school in Pingtung

County and Chialan elementary school in Taitung County, employing the group’s

green technology to build a campus on the basis of green architectural design and

energy-conservation concept, which highlights co-existence of humans and nature.

The foundation also assisted schools and tribes in disaster areas in constructing

solar-energy systems, as a back-up power source during the occurrence of major

natural disasters in the future.

The “Aug. 8 Green Light Plan” panel consists of architect Kuo Hsu-yuan, Fu Tsu

Construction, the construction and solar-energy teams of AU Optronics, designer

Hsiao Chin-yang, and writer Chu Hsin-yi, as well as award-winning directors Yang

Li-chou and Chen Wen-pin, who together produced documentary for the life of Taiwu

and Chialan tribes and schools.

In addition, as computer equipment of many schools and communities in

disaster areas were seriously damaged, the BenQ Foundation donated 1,000 PCs,

including PCs, notebook PCs, and projectors featuring one-piece injection-molded

body, to schools and digital opportunity centers in dozens of municipalities.

58

▍Supporting Local Agriculture

BenQ supports Taiwanese agriculture by purchasing fruits from Fanlu Township

Farmers’ Association, Chiayi County. With the enthusiastic support of our employees,

about 1,000 boxes of persimmons were sold out in the purchase, bringing revenue of

hundreds of thousands of NT dollars to the Farmer’s Association. This purchase not

only represented the largest amount for a single order, but also encouraged the

work-harding farmers to keep devoting to quality Taiwanese agriculture.

59

Meanwhile, BenQ group also responds to the new concept of diet, “low food

mileages”, by purchasing the healthiest, freshest Taiwanese agricultural products. By

taking actions in daily life, BenQ leads its colleagues to reduce the emission of CO2 and

achieve the goal of carbon abatement. In 2009 we held several purchasing activities:

Month Purchasing Item Place of origin

Jan Orange Gukeng Township, Yunlin County

April Organic Tomato Puyan Township, Changhua County

Junly Pear Sanwan Township, Miaoli County

Sept. Pomelo Ruisui Township, Hualien County

Sept. Pomelo Madou Township, Tainan County

Nov. Persimmon Dongshi Township, Taichung County

Nov. Persimmon Motaining, Taichung County

▍Encouraging Carbon Reduction Commuting

In order to reduce CO2 emissions, BenQ provides parking spaces for bicycle sto

encourage staffer cycling to work. Besides, BenQ held a series of “Tour de East Taiwan”

campaign to provide staffers an opportunity to get closer to nature and experience

human culture. To date, the activitiesd have attracted the participation of 202

persons/time.

To respond to the company policy, colleagues have set up bicycle club by their

own. They have riding activities every Tuesday night and on holidays. It’s a great

chance to visit the outskirts of Taipei via a vehicle which produces no carbon emission.

60

▍GRI G3 Index

Aspect GRI G3 Index Page

Strategy and Analysis

1.1 Statement from the most senior decisionmaker of the organization about the relevance of sustainability to the organization and its strategy

5

1.2 Description of key impacts, risks, and opportunities 26-27

Organization Profile

2.1 Name of the organization 8

2.2 Primary brands, products, and/or services 8

2.3 Operational structure of the organization 25

2.4 Location of organization’s headquarters 8

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report

8-9

2.6 Nature of ownership and legal form 8

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries)

8

2.8 Scale of the reporting organization 8

2.9 Significant changes during the reporting period regarding size, structure, or ownership

8

2.10 Awards received in the reporting period 12-13

Report Profile

3.1 Reporting period for information provided 1

3.2 Date of most recent previous report (if any) 1

3.3 Reporting cycle (annual, biennial, etc) 1

3.4 Contact point for questions regarding the report or its contents 1

Report Scope and Boundary

3.5 Process for defining report content 1

3.6 Boundary of the report 1

3.7 State any specific limitations on the scope or boundary of the report 1

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations

1

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

21

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement

20

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report

1

GRI Content Index 3.12 Table identifying the location of the Standard Disclosures in the report 60-63

Assurance 3.13 Policy and current practice with regard to seeking external assurance for the report

64

Governance

4.1 Governance structure of the organization 24-25

4.2 Indicate whether the Chair of the highest governance body is also an executive officer

24

4.3

For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members

24

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body

24,50

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives and the organization’s performance

24

61

Aspect GRI G3 Index (Cont’) Page

Management

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided

24

4.7

Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics

24

4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

10,18,49

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles

25

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance

24

Commitments to External Initiatives

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization

25

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses

31,36

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization

13

Stakeholder Engagement

4.14 List of stakeholder groups engaged by the organization 16

4.15 Basis for identification and selection of stakeholders with whom to engage 16

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

16

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

16

62

▍GRI G3 Performance Indicators Economic Performance Indicators Page

Management Approach 24,44

EC2 Core Financial implications and other risks and opportunities for the organization’s activities due to climate change

26-27

EC3 Core Coverage of the organization’s defined benefit plan obligations 44

EC9 Add Understanding and describing significant indirect economic impacts, including the extent of impacts

26-27

Environmental Performance Indicators Page

Management Approach 18

EN2 Core Percentage of materials used that are recycled input materials 31,34

EN3 Core Direct energy consumption by primary energy source 20

EN6 Add Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives

32-33

EN8 Core Total water withdrawal by source 21

EN9 Add Water sources significantly affected by withdrawal of water 21

EN11 Core Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

20

EN12 Core Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

20

EN18 Add Initiatives to reduce greenhouse gas emissions and reductions achieved 20-22

EN21 Core Total water discharge by quality and destination 21

EN25 Add Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff

20,21

EN26 Core Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

33-34

EN28 Core Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations

20

Social Performance Indicators Page

Management Approach 18,49

Management Approach of Labor Practices and Decent Work 44

LA3 Add Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations

44

LA5 Core Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements

44

LA6 Add Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs

49

LA7 Core Rates of injury, occupational diseases, lost days, and absenteeism, and number of workrelated fatalities by region

45-46

LA8 Core Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases

47-48

LA10 Core Average hours of training per year per employee by employee category 50

LA12 Add Percentage of employees receiving regular performance and career development reviews

24,51

LA13 Core Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity

43

LA14 Core Ratio of basic salary of men to women by employee category 44

63

Social Performance Indicators (Cont’) Page

Management Approach of Human Rights 49

HR4 Core Total number of incidents of discrimination and actions taken 49

HR5 Core Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights

49

HR6 Core Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor

49

HR7 Core Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor

49

Management Approach of Society 49

SO8 Core Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations

20

Management Approach of Product Responsibility 29

PR3 Core Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

29-30

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▍External Assurance

BenQ self declared the application level of this report is Level B. The report has

qualified by Global Reporting Initiative (GRI) as Application Level B.

Some portions of this report are externally verified, such as SA 8000, ISO 14001,

and OHSAS 18001. We will seek the possibility of external verification after assessing

the cost-effectiveness of the third-party certification.