2024 Advantech Sustainability Report

2024 Sustainability Report

About Advantech's Sustainability Report 03‌

Message from the Executive Management 04

Sustainability Vision and Goals

1. Talent and Employee Relations

   1. Employee Structure 251

   2. Third Party Verification Statement 257

      2

      Corporate Management and Governance

      1. Operational Performance and 28

         1. Talent Cultivation and Development

         2. Employee Communication and

            Benefits

         3. Diversity, Equality and Inclusive Workplace

            141

            171

            181

   3. Third Party Assurance Report 259

   Publication of the report - Planned to be published annually

   Corporate Governance Structure

   1. Information Security Management 40

      1. Human Rights Protection 188

      2. Occupational Health and Safety 196

Current Issue: August 2025 Last Issue: June 2024

Management

Innovation and Services

Creation

Altruism and Social Welfare

206

219

225

Next Issue: Scheduled in August 2026

Advantech Co., Ltd.

Enola Chen, ESG Corporate Sustainability Development Office

Address: No. 1, Alley 20, Lane 26, Ruiguang Road, Neihu District,

Taipei City, Taiwan

Tel: +886-2-7732-3399 ext 7794

Email：csr@advantech.com.tw

Official website：Enable an Intelligent and Sustainable Planet - ESG

In order to implement the paperless policy, the electronic version of this report is simultaneously published on the Company's website. For any suggestions or inquiries about this report, please contact:

About Advantech's Sustainability Report

Message from the Executive Management

1. Sustainability Vision and Goals

2. Corporate Management and Governance

3. Innovation and Services

4. Green Operations

5. Talent and Employee Relations

6. Altruism and Social Welfare Appendix

3

2024 Corporate Sustainability Report

Report editorial principles

Advantech Co., Ltd. (hereinafter referred to as Advantech) has published its 2024 Corporate Sustainability Report, transparently presenting to stakeholders and the general public the company's strategies, management policies, achievements, and future aspirations in governance, environment, and social aspects. This report was issued in August 2025. The annual key tasks are based on the GRI (Global Reporting Initiative) Universal Standards 2021 Reference option, the Financial Supervisory Commission (Taiwan, ROC)'s requirement that certain industries disclose sustainability indicators (Industry category: computer and peripheral equipment industry), the Sustainability Accounting Standards Board (SASB) industry standards (applicable category: Hardware), and the reporting principles of AA1000.

Report boundaries and scope

This report's boundary includes significant locations of operation and main factory areas: Advantech has Ruiguang, Yangguang, and Linkou Taiwan (collectively referred to as ACL) and Advantech Kunshan Manufacturing Center (AKMC). Overseas bases include: Advantech Corporation (ANA), Advantech Europe B.V. (AEU), Advantech Japan Co., Ltd. (AJP), Advantech KR Co., Ltd. (AKR), Advantech China Co., Ltd. (ACN). The manufacturing capacity of the aforementioned bases accounts for 100% of Advantech's total manufacturing capacity, the consolidated revenue accounts for 92.8% of the overall Group, and the number of employees accounts for 94.8% of the total number of employees.

Sustainability information related to the aforementioned operational sites and major factory areas is disclosed in this report. Additionally, content

regarding the Advantech Cultural and Educational Foundation is provided on a voluntary basis to highlight the Foundation's contributions to ESG initiatives during the reporting period. Any data scope adjustment or data boundary difference within the scope of this report will be marked in the relevant text or chart in each chapter of the report. Advantech's annual report follows International Financial Reporting Standards (IFRS) and covers Advantech along with its subsidiaries and affiliates. The reporting scope differs from that of this Sustainability Report. Only a portion of the companies listed in the consolidated financial statements are included in the list of companies covered by this report. The scope and boundary of this report are detailed in Appendix 3. Within that list, items indicated with an asterisk denote the report's boundary and scope.

Note: Some of the texts and graphs in this report have used abbreviations of their company codes, such as the aforementioned ACL, AKMC, ANA, AEU, AJP, AKR, and ACN. Please refer to the descriptions in "Report Boundaries and Scope" for the full names of the abbreviated names. If the word RBU appears in the chart mentioned above, it refers to the Regional business unit, i.e. AKMC, ANA, AEU, AJP, AKR, ACN. Any mention of headquarters in the text or chart refers to Advantech Ruiguang, Yangguang, and Linkou Taiwan (collectively referred to as ACL). If the information has been re-edited, it will also be explained in the relevant chapter.

Reporting period

This report mainly presents various performance data for 2024 (2024/1/1 - 2024/12/31). This report will also partially disclose previous information during this period, or on subsequent strategies, goals, and plans. Advantech's financial report and sustainability report share the same reporting period.

Reporting standards

This report follows the Reference option of the GRI Standards and discloses Advantech's strategy,

2024Sustainability Report

management approach, projects, and performance in terms of corporate sustainability. The figures of the financial statements in this report are expressed in NTD, and the performance related to environment, safety and health is expressed in internationally accepted indicators. If there are any estimates or assumptions, they will be noted in the relevant chapters.

Report verification

This report has received assurance from the independent third-party unit SGS Taiwan Limited, conforming to the requirements for AA1000AS* Type 2 high-level assurance. Reporting follows the GRI (Global Reporting Initiative) Universal Standards 2021 Reference option, the sustainability indicators mandated by the Financial Supervisory Commission (Taiwan, ROC) for specific industries (Industry: computer and peripheral equipment industry), and SASB standards (Industry: Hardware). The Statement of Warranty is attached as the appendix to this Report.

Note: AA1000AS is the AA1000 Assurance Standard for Accountability Principles of Sustainable Development published by Accountability Organization in the UK. It is one of the international verification standards currently mainly for corporate sustainability reports.

Report assurance

In accordance with the Taiwan Standard on Assurance Engagements 3000 (TWSAE3000) " Assurance engagements that are not audits or reviews of historical financial information", PwC Taiwan conducted independent limited assurance on the implementation of the selected KPIs, and prepared the Limited Assurance Report, please refer to the appendix of this report. For assurance indicators, refer to Appendix: GRI, SASB, and Assurance Indicators Index.

About Advantech's Sustainability Report

Message from the Executive

2024Sustainability Report

Management

1. Sustainability Vision and Goals

2. Corporate Management and Governance

3. Innovation and Services

4. Green Operations

5. Talent and Employee Relations

6. Altruism and Social Welfare Appendix

4

With the unveiling of ChatGPT, generative AI (GenAI) has undoubtedly become the hottest global topic in 2024. The surge in AI applications is driven by the substantial increase in computing power and Large Language Models (LLMs). Numerous companies are now starting to explore using GenAI for copywriting and content generation, as well as intelligent virtual assistants and automated code development, aiming to boost corporate productivity. Aside from continuous innovation in Data Center AI applications, Gartner Group research indicates that the market size for Edge Computing & Edge AI is expected to expand from Ç131 Billion in 2023 to Ç511 billion. Edge Computing has long been Advantech's core strength and we plan to collaborate with major global AI chip vendors, focusing on renewable energy, smart manufacturing, smart healthcare, and smart cities to offer corresponding Edge AI solutions in conjunction with our partners, with specific implementation involving the establishment of an experience center in Linkou Industrial Park. Furthermore, at Computex in May 2025, Advantech will present our Edge AI hardware and software solutions to customers, allowing them to understand Advantech's evolution from a global leader in industrial computers to a global leader in edge computing and Edge AI.

In 2024, Advantech continued to improve in sustainability performance, retaining the fifth position among InterBrand Taiwan brands, with a brand value reaching USÇ912 million. In terms of Corporate Governance Evaluation for TWSE listed companies, Advantech has consistently maintained our standing within the top 5%. Furthermore, in 2024, the Company improved from 12th to 4th place in the Taiwan's Excellence in Corporate Social Responsibility Award and received the first prize in the 2024 Global Views ESG Corporate Sustainability Award. Overall score in the Dow Jones Sustainability Index (DJSI) improved by 3 points, ranking seventh in the Computers & Peripherals and Office Electronics sector.

As new sustainability issues emerge, specifically global climate change, corporate decarbonization, biodiversity and forestation protection, DEI (diversity, equity, inclusion), and supply chain carbon reduction, there remains many areas where Advantech can continue to improve. Looking forward to 2025, the ESG Corporate Sustainability Development Office has defined the following key issues. External experts, partners, and internal teams are engaged to continuously drive sustainable transformation:

Environmental

partners, adopting an approach that integrates power plant investment, self-generated renewable energy, and third-party renewable energy transfer. Over

the next six years, around 40 million kWh of renewable energy is expected to be supplied to support our Taiwan operations in reaching renewable energy goals. The Company's other overseas properties, including the North California building and the new South California headquarters in North America, as well as the Kitakyushu plant in Japan, have adopted self-installed solar panels to meet approximately 70-80% of our office electricity needs.

subsidiaries to complete our GHG inventory in 2024. In 2025, these initiatives will be extended to the Netherlands subsidiary. Advantech also launched a carbon pricing project, starting with a pilot program in the IIoT business group and planning to extend it to all other business groups and operational units. We also developed the AI Product Carbon Footprint platform to accurately calculate product carbon footprints in response to the sustainable raw material policy, the introduction of carbon reduction designs into product planning, and other important projects aimed at materializing decarbonization.

integrated report in Q4 of 2024. The report is expected to be released in 2025 to

keep abreast of international developments and strengthen our response towards nature and climate impact. Advantech hosted over six volunteer events focusing on biodiversity and forest conservation. Furthermore, at the location of our operational office, Advantech's Netherlands subsidiary teamed up with a non-profit organization (NPO) to establish a bee eco hotel and organize employee engagement activities.

Social

employment and entrepreneurship. Sustainability education initiatives are advanced via the ACT Dreamer Platform, the ESG Impact Project, and PBL (Program Based Learning). The former facilitates co-creation of potential ESG business opportunities projects with external stakeholders, while the latter integrates the spirit of the SDGs and PBL approaches to foster sustainability literacy from an early age. Advantech fosters social investment and shares prosperity through three main pillars: sustainable education, IoT innovation, and cultural literacy. Furthermore, the

Company is evaluating social impact through monetization for the first time.。

diverse generations and backgrounds forms the bedrock of our operations and innovation. In 2024, DEI activities were expanded to overseas subsidiaries, plant

‌2024Sustainability Report‌

About Advantech's Sustainability Report

Message from the Executive Management

1. Sustainability Vision and Goals

2. Corporate Management and Governance

3. Innovation and Services

4. Green Operations

5. Talent and Employee Relations

6. Altruism and Social Welfare Appendix

staff, and migrant workers, and they were carried out in conjunction with key annual events, with an emphasis on the development of cultural intelligence. Additionally, the HCM (Human Capital Management) platform was also officially launched in the Kunshan plant. In 2025, we plan to expand the platform to five subsidiaries in Southeast Asia as well as the Japan subsidiary. From a high-level strategic perspective, Advantech has initiated a talent information digital transformation plan and implemented data visualization. These measures enhance our talent

recruitment, development, and retention strategies, empowering Advantech's global workforce to generate value for a sustainable and intelligent planet.

Governance

security defenses of edge computing equipment and IoT technology.

With our core business as the focal point, we

work with industry partners to roll out sustainable intelligent solutions l ike Intelligent Energy Management System (iEMS), smart healthcare, smart factory, and smart transportation. This will gradually raise Advantech's sustainable economic activities and their share of revenue. The revenue

share from Advantech's sustainable intelligent solutions, calculated according to the EU Taxonomy framework, is 55.6%. This makes a positive contribution towards mitigating climate change and enhancing climate adaptation. Advantech will strive for low-carbon innovation and continue to move forward.

ESG sustainable governance：In 2023, Advantech introduced a mechanism that links senior supervisors' sustainability performance with incentives. This approach involves analyzing domestic and international sustainability trends to set KPIs that

integrate corporate operations, risk management, and ESG materiality. The goal is to establish actionable sustainability performance indicators that promote ESG accountability and deliver tangible results. In 2024, KPI and remuneration plans were also formulated specifically for the execution level. The aim is to use these incentive mechanisms to ensure ESG achievements are realized and to share the benefits of this progress.

Sustainable supply chain management：To expedite the deployment of carbon reduction efforts, Advantech uses our Vendor Day to pursue carbon reduction and

sustainability objectives with our partners. This involves acknowledging outstanding suppliers and continuing to conduct ESG empowerment education for suppliers. In 2025, Advantech will require specific supplier categories to carry out carbon footprint assessments to advance the net zero vision together.

In conjunction with our value chain and internal/ external stakeholders, Advantech will put corporate sustainability actions into practice to achieve

its vision of "Enabling an Intelligent and Sustainable Planet".

Chairman

KC Liu August, 2025

5

President of General Management Eric Chen August,2025