From the President

To all partners and friends with an interest in the sustainable development of Realtek:

2022 marked the 36th anniversary of Realtek Semiconductor Corporation, and another year of achieving record-breaking results! We would like to express our sincere gratitude to our partners and friends from various sectors for their continuous attention, support and care, as well as for their long-lasting contribution to the development and growth of the company.

Realtek recognizes that the sustainable operation of an enterprise is inseparable from the steady and diverse development of the world. Therefore, we have established and continued to develop various sustainable operation management policies that are in line with the international initiative, practicing ethical management, implementing environmental sustainability, developing and cultivating talents, promoting social inclusion and responding to the global common good philosophy. The 2022 Realtek ESG Report presents sustainable development issues we focus on, aligning the global sustainable development and responding to the expectations of internal and external stakeholders. Through systematic and in-depth review of material sustainable issues, we have developed sustainable operation actions and short-, medium- and long-term goals; Realtek have faithfully presented the sustainable strategies and significant progress we have implemented, and incorporated them into the Realtek’s ESG Report for all stakeholders and partners to read and understand.

In 2022, Realtek paid close attention to the changes in the pandemic, actively put forward the comprehensive operational response plan, and promoted internal pandemic prevention measures and risk management. Additionally, we place great emphasis on the issues of global climate change, and proactively responded to the international net zero initiative. In order to achieve the goal of sustainable operation and jointly mitigate the climate change crisis caused by the greenhouse gas emission, Realtek has committed to achieving the major goal of net zero carbon emission by 2050. It plans to gradually reduce total carbon emissions and achieve net zero emissions by continuously developing low-carbon products, improving energy efficiency of equipment, construction and certification of office buildings in accordance with green building standards, increasing the use of renewable energy, and implementing supply chain carbon reduction target management. In concerted efforts with global supply chain partners, we attach importance to climate change issues, jointly seek innovation and breakthroughs, contribute to the improvement of human well-being, and work together to move forward for global sustainable development.

Sound Management, R&D and Innovation, and Corporate Governance

Ethical management, innovation, and R&D form the core foundations of sustainable development of Realtek. We adhere to the belief of self-confidence, trusting in people, teamwork, innovation and vitality to implement stable operations through sound management. Realtek has continued to deliver technology breakthroughs and develop innovative products to provide customers with the best integrated solutions. We have developed market-leading products and continued to create greater value for customers and end users in various fields. In terms of economic performance, in 2022, Realtek's annual revenue reached TWD111.79 billion, up 6.0% from the previous year, and again reaching a record high in annual revenue. In terms of product innovation and R&D achievements, the Company has continuously won a number of domestic and foreign awards, including the “Best Choice Award – Best Product of the Year Award”, “Best Choice Award – Gold Award”, “Best Choice Award – IC and Component Category Award” and 31st “Taiwan ExcellenceAward” at COMPUTEX Taipei. In addition, we continued to invest in innovation and R&D resources to enhance our intellectual property patent portfolio, resulting in a steady growth of the number of pending and approved domestic and foreign patents, as well as the recognition of the “2022 Top 100 Global Innovators” by Clarivate, demonstrating the Company’s excellent capabilities in continuous innovation and our contribution to promoting industrial progress with technological innovation.

For the past 36 years, based on the principle of sound and ethical management, Realtek has continuously strengthened the functions of the Board of Directors. Further, through a careful and prudent corporate management strategic planning, combined with the implementation of corporate governance by various responsible departments within the organization, we ensure the operation process of the organization to be in line with the sustainable development direction, implement legal compliance and risk management, improve the transparency of information disclosure, safeguard the interests of shareholders, respect and protect human rights. Meanwhile, we openly communicate ESG-related issues with stakeholders. Corporate governance and ethical management are key tasks and responsibilities in our fulfillment of corporate sustainable development. We will continue our efforts and share results in the future.ourefforts and to share results in the future.

Talent Development Strategy and Corporate Culture

Realtek is a knowledge and technology intensive semiconductor IC design industry, where talent and intellectual property are the most important resources. These are the driving force behind the advancement and cornerstone of deepening the company’s sustainable competitiveness. Over the years, Realtek has continuously pursued talent development strategies to enhance innovation and optimize the organizational competitiveness, in order to respond to short-, medium-, and longterm operational and strategic development needs. Our human resource policy is based on valuing and respecting talent. Safety and happiness are as important as work quality, and values "learning and development to strengthen organizational effectiveness," and promote “Innovation and service to achieve the full participation and value creation for all.” In terms of knowledge and innovation development, the Realtek Corporate University offers six academies with various training programs for the continued development and reinforcement of organizational learning and competitiveness. In 2022, we continued to expand campus collaboration capacity and industry-academic exchanges, established the “Enterprise Internship Creative Academy” to carry out diversified talent deployment strategies and cultivate future science and technology professional talents for the country. Realtek attaches great importance to the work-life balance of employees to combine diverse employee welfare benefits and create a friendly work environment while advancing the spirit of teamwork and energy. We also implement employee health care services and environmental testing projects to provide employees with a safe and reliable working environment.

Realtek’s corporate culture is defined by self-confidence and trust in people, teamwork, innovation, and vitality. Self-confidence comes from professionalism, while trust in people derives from sharing, belief in the team, and helping others. Teamwork comes from members coordinating with and supporting the team spontaneously of their own volition. Innovation arises from leadership and breakthroughs that actively create new value, new fields, and new opportunities. Vitality is about proactivity and passion. We believe that our organizational culture provides consensus on direction of development and successful collaboration within the organization. Its practice by every Realtek employee is behind our unique and sustained competitive advantages.

Product Responsibility and Environmental Protection – Implementing Green Pledges

Realtek deeply recognizes the impact of global climate change and the substantive impact and changes brought to the world by issues such as natural resource depletion. Over the years, we have been paying close attention to environmental issues such as climate change and greenhouse gas emissions, formulating environmental sustainability policies, and making every effort to implement green commitments. From innovation to R&D of green products, reducing carbon emissions, saving water resources, improving energy efficiency and implementing waste management. We incorporate various environmental management measures into the overall operation process of the organization. We continuously implement improvement plans and have obtained the SONY Green Partner Certification and the ISO 14001 international standard certification to demonstrate responsibilities of environmental sustainability and achieve Realtek’s excellent green commitment and environmental management performance.

In terms of green products, Realtek incorporates the concept of green energy in the R&D and design stage. Our commitment to environmental protection is reflected in our innovative R&D process of IC circuit design and throughout the supply chain. In the course of product innovation and pursuing stable growth and profitability, we also simultaneously pursue and implement the improvement of product durability and the reduction of energy use during the product life cycle, making practical contributions to the global energy saving and carbon reduction initiatives and goals. To this end, in 2022, Realtek officially implemented the Task Force on Climate-Related Financial Disclosures (TCFD) project to improve the mechanism of the climate change management. Through a comprehensive process of identifying risks and opportunities of climate change, the Company quantifies the financial impact of climate change issues, gain a clear understanding of the overall picture of climate change risks and opportunities, and actively address potential challenges and opportunities related to climate change, so that the impact of each climate change can be effectively monitored, controlled and responded in advance to grasp the opportunities for operational development and innovation. At the same time, we continue to advocate environmental protection issues and promote education and training, and reach a consensus on environmental protection responsibility among all employees through systematic management to implement environmental sustainability goals in practice.

Social Care and Sustainability Outlook – Common Prosperity with the Global Society

Fulfilling corporate citizenship is one of Realtek’s operational goals. We plan to carry out social care projects, taking into account diversity and inclusion, and specific needs, and continue to integrate resources such as funds, manpower and supplies to practice corporate social citizenship participation. The program encompasses six major areas: youth growth and safety care for women and children, rural community care and educational assistance, social mutual aid actions, academic research and social institution sponsorship, charity projects, and individual cases, to practice social participation and create social prosperity.

In 2022, Realtek cooperated with the “Trees for Humanity” project of OldTree to jointly promote the education of knowledge on protecting trees, and brought natural environmental knowledge to children and root in the concept of environment friendliness through learning and interactive inspiring activities. In addition, Realtek invested resources to support the “Accomdemy” community, and invited employees and their children to participate in the “IoT Robotic Arm Hackathon” parent child educational course, so as to transform the technological expertise of Realtek itself and its community partners into simple and understandable knowledge sharing and transmission, and enhance parent-child relationship through entertainment. With its own technological innovation, application and service advantages, Realtek continued to invest in social participation issues, collaborating with various professionals and stakeholders to stimulate and create positive influence of new corporate social citizens.

Last but not least, Realtek understands the expectations and needs of various stakeholders and deploy the blueprint for sustainable development. We will adhere to the positive, rigorous and prudent approach, continue to promote sustainable development, and achieve sustainable operation through practical actions. We would like to express our gratitude to our partners for their continuous interest to Realtek Semiconductor, and to work with us to support global sustainable development initiatives.

Realtek’s corporate sustainable development goals and commitments are as follows:

  • Commitment to sustainability goals,honesty, and integrity
  • Implementation of green energy policies and environmental responsibility
  • Sustainable talent development and a safe environment
  • Active cooperation on service and quality requirements
  • Innovation and R&D to enrich the world and improve convenience
  • Continued progress to warm the hearts of more people

We are dedicated to ensuring the sustainable development and putting our utmost effort into our organization. We integrate the principles of sustainability into our operational policies and goals, makes sustainability part of the mindset of every Realtek employee. We strive together to implement and fulfill Realtek’s sustainable development goals and commitments!