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Letter from the Chairman and CEO
For Delta, 2018 was a productive year for sustainable development and the implementation of corporate social responsibilities, and we received recognition from many external entities. In 2018, Delta continued to win international recognition for its business accomplishments and the achievements of all of its employees. Delta was listed as an Industry Leader in the Global Electronics Equipment category for the third time and awarded gold class in the Sustainability Yearbook 2018 published by RobecoSAM. We received both the Climate Change Management Level and Water Security Management Level from the CDP, formerly the Carbon Disclosure Project, and won national recognition with the “Presidential Innovation Award” and “National Talent Development Award”. We won “Global Views Monthly” Annual Corporate Special Responsibility Awards, the “Annual Honorary Award”, the “CommonWealth Magazine CSR Award”, and the Taiwan Corporate Sustainability Award. Delta was honored with the “Leadership Award” and “Industry Pioneer” Award from Greenbuild China, and “Most Influential Enterprise of the Year” honorary awards from Southern Weekly. Delta also received NEC’s “2018 Partner – Environment Award” which affirmed Delta’s outstanding leadership in implementing environmental management and supply chain carbon emissions. The U.S. Environmental Protection Agency (EPA) presented Delta with the ENERGY STAR Partner of the Year award for the outstanding energy conservation performance of its Breez ventilation fan. It was Delta’s fourth such award and the second consecutive year of winning the EPA’s Sustained Excellence Award. In addition, the IT Data Center of Delta Taipei Headquarters became the world’s first green data center with USGBC LEED V4 ID+C Platinum certification.

Delta follows its corporate mission "To provide innovative, clean and energy-efficient solutions for a better tomorrow" and has incorporated the United Nations' Sustainable Development Goals (SDGs). Delta focuses on climate action, industrial/innovative infrastructure, global partnership, sustainable cities and communities, affordable and clean energy, quality education, and responsible consumption and production. Delta's actions not only prove the consistency of its long-term CSR strategy and the United Nations' goals, but also allow the Company to review its sustainable development plans for operations, products, supply chain, and society to uncover new business opportunities to change international trends and maximize overall synergy.

Delta continues to improve corporate sustainability in terms of corporate governance, environmental protection and energy savings, employee relations, and social engagement. For corporate governance, we enhanced the functions of the Board of Directors, improved supervision, and improved management functions. In response to the impact of climate change on the world and increasingly severe loss of life and property, Delta understands that the aforementioned risks have a financial impact on our operations. We have therefore evaluated the risks and opportunities of climate change and the financial impact in accordance with the "Recommendations of the Task Force on Climate-related Financial Disclosures" in regards to operations. In addition, we established the Supply Chain ESG Committee to implement supply chain ESG risk management. We initiated full ESG audits in 2018 and established targets for 2020 to reduce greenhouse gases emissions, water usage, and waste in the supply chain to respond to the impact of climate change.

For environmental protection and energy savings, Delta signed the We Mean Business initiative for climate change in 2015. In addition to committing to "corporate self-motivated carbon reduction", "disclosure of climate change information", and "participation in climate policy", Delta joined the EV 100 global initiative in 2018 and set up electric vehicle charging stations in main plants and regional headquarters to provide employees and customers with a friendly EV usage environment. We also expanded our use of electric buses to reduce the impact on the environment. In addition, Delta actively participated in international initiatives for carbon emissions reduction. We adopted science-based targets for carbon emissions reduction and set goals to reduce carbon concentration by 56.6% in 2025 from 2014. We continued to install renewable energy equipment in 2018 by adding PV systems in plants and purchasing renewable energy certificates to achieve our science-based targets for reducing carbon emissions by 16.8% and to demonstrate Delta's resolve for reducing carbon emissions.

Delta continued to invest in plant management, product energy conservation, and green building energy conservation. We implemented energy and water conservation and waste reduction management in more than thirty main production plants across the world. A total of 1,846 energy conservation projects were implemented in our main production plants from 2011 to 2018, and we reduced approximately 186,000 tons of carbon emissions. The status of water productivity intensity and waste intensity in 2018 declined by 19.8% and 2.5% respectfully from the baseline year of 2015, and it fully exemplified Delta's commitment to environmental sustainability. In regards to conserving energy through our products, Delta continuously invests in innovative R&D and has vigorously enhanced the energy conversion efficiency of all of our product lines over the years. Delta’s high-efficiency, energy-saving products have helped our global customers save nearly 28.1 billion kWh of electricity between 2010 and 2018. This is equivalent to reducing approximately 15.06 million metric tons of emissions. In terms of energy conservation for green buildings, the Zhongli R&D Center and multi-purpose building in Ako Energy Park in Japan were added in 2018. Both buildings received LEED Gold certification and used many of the latest energy-saving products and solutions developed by Delta. In addition to our green building plants and offices, Delta's Wujiang Data Center received the world's first LEED v4 ID+C Gold certification. Certified green buildings saved a total of 17.82 million kWh of electricity and reduced 11,235 tons of carbon emissions in 2018. These were Delta's contributions to reduce carbon emissions for the earth.

With regard to employee relations and social engagement, talent cultivation remains the core driving force for our corporate sustainable development. Delta is committed to building a top employer brand, and we have transformed our business development strategy to that of a total solution provider. Our business scope encompasses power and electronics, automation, and infrastructure. In this transformation process, demand for talent has changed from hardware research and development in the past to talents that specialize in the integration of hardware and software. Delta continues to invest in innovative talent development plans and build a culture and work environment conducive to learning to attract outstanding talents. We shall create competitive advantages for all talents, help the Company achieve continuous growth, and fulfill our corporate social responsibilities.

Sustainable development is the ultimate goal of every company, and Delta continues to improve and fulfill its targets. We shall also use our core competencies to fulfill the UN Sustainable Development Goals. Delta makes full use of our advantages of regional operations across the globe to actively participate in international initiatives, improve sustainability, and promote cross-border and cross-sector cooperation. We shall consolidate these powers and use our influence to construct a low-carbon and sustainable future for future generations.

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