ESG QNAP Sustainability Initiatives
Social sustainability
In the area of social sustainability, QNAP remains committed to supporting disadvantaged groups and engaging in a variety of philanthropic initiatives. We regularly collaborate with charitable organizations and social welfare institutions to provide donations of essential supplies, volunteer services, financial contributions, and purchases of charitable gift sets, helping improve the living conditions of disadvantaged communities. At the same time, we encourage departments to organize ESG-themed team-building activities. Through hands-on participation in community service and sustainability experiences, employees can deepen their understanding of social issues and strengthen their awareness of environmental sustainability, transforming QNAP’s corporate influence into lasting, positive change.
Green Sustainability Initiatives
QNAP has always been attentive to environmental issues and has undertaken various green initiatives to support environmental sustainability.
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Go Paperless Initiative
According to the calculation formula provided by the Environmental Quality Protection Foundation: 1 sheet of A4 paper weighs approximately 4 to 6 grams. Each box of A4 paper weighs about 25 kilograms (5,000 sheets). To produce one ton of pulp, approximately 24 trees with an average height of 12 meters and a diameter of 15 to 20 centimeters need to be felled. Each ton of pulp can produce 40 boxes of paper. Therefore, the production of 1 box of A4 paper requires the felling of approximately 24/40 = 0.6 trees! QNAP is fully aware that continuing in this manner would lead to environmental depletion, so it has taken the following Go Paperless Initiative since 2014:
- Since 2014, payroll has gone paperless.
- Starting from 2018, Edenred electronic gift certificates have been used instead of paper gift certificates. In the office building, washrooms are equipped with hand dryers, with no paper towels.
- Since 2019, we have implemented digitization in our systems, using electronic signatures to reduce paper usage.
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Recycling Nespresso Coffee Capsule
Used coffee capsules and coffee grounds are collected and returned to designated recycling bins. Aluminum shells from recycled capsules can be used to make Nespresso capsule packaging. Recycled coffee grounds can be sent to collaborating organic farms to become organic fertilizer for a healthy soil ecosystem. Nespresso is currently collaborating with Taoyuan Organic Farm and the Department of Horticulture and Landscape Architecture at National Taiwan University to conduct industry-academia collaborative research to create local sustainable value through the recycling of coffee grounds.
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First Year of QNAP ESG
2023 is the first year of QNAP ESG. We have launched a series of new environmental actions under 'QNAP ESG Sustainability Initiatives'. Through green initiatives and periodic environmental lectures or information-sharing events, we strive to increase employee's daily awareness on sustainability, and we are committed to continuous improvements in our facilities and offices to further enhance environmental sustainability.
In 2020, office building washrooms were upgraded to use touch-controlled faucets to save water. -
Earth Day
Earth Day is an important global observance that raises public awareness of climate change and environmental protection. QNAP continues to support related initiatives. Through hands-on participation and internal advocacy, we integrate energy-saving and carbon-reduction principles into daily operations and employee behavior. We also extend these efforts beyond the company to external engagement, working together to advance sustainable development.
- Implemented a daily one-hour lights-out policy at noon across all offices, taking practical action in support of Earth Day.
- Supported the 2023 Earth Day beach cleanup events, advancing marine environmental conservation and sustainability initiatives.
- Participated in the "2024 One Million Green Actions" campaign initiated by the Taiwan Earth Day Network, completing a total of 126 green actions.
- Participated in the "2025 One Million Green Actions" campaign initiated by the Taiwan Earth Day Network, completing a total of 300 green actions.
- Supported Earth Hour Taiwan by implementing a one-hour lights-out from 20:30 to 21:30 on March 28, 2026. Promoted this energy-saving, carbon-reduction initiative across QNAP social media platforms to inspire broader public participation.
- Supported Earth Day 2026 by distributing reusable eco-friendly bags to employees, encouraging the replacement of single-use plastics to foster a green lifestyle.
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Promoting a Green Workplace
- Promote energy saving and carbon reduction, including shutting down computers and monitors after work and scheduling NAS power on/off times.
- At our Xizhi headquarters, we launched a waste-reduction initiative that began with the return of personal waste bins. It also includes sorting of waste and food scraps, reuse of rubber bands, and education on proper recycling practices and procedures.
- Fully discontinued single-use utensils and now provide reusable shared tableware.
- Installed sparkling water dispensers with fruit-syrup flavoring and encouraged employees to bring their own reusable cups to reduce the use of bottled beverages and single-use plastics.
- Introduced a catered lunch program for employees, with meals served on trays instead of ordering takeout bento boxes and paper meal boxes. We partner with Adulam Kitchen, a sheltered workshop, to support employment opportunities for disadvantaged individuals and families of formerly incarcerated people.
- Adopted a meal-pickup app to replace paper meal slips, reducing printing and resource waste.
- Replaced office copiers with eco-friendly models that use recycled plastic components and plant-based toner to lower their environmental impact. Internal copy paper has also been switched to recycled paper to reduce paper consumption.
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Sustainability Advocacy and Action
- Shared the RE-THINK marine debris guide website to help colleagues understand the sources and types of marine debris, and to raise awareness of ocean conservation through interactive learning.
- Promoted the National Geographic Ocean Conservation Run to advocate ocean sustainability and environmental protection.
- Promoted the sixth edition of the Taiwan Seafood Guide from the Ocean Conservation and Fisheries Sustainability Foundation of Taiwan. The guide helps colleagues make sustainable seafood choices and raises awareness of marine resource conservation and sustainable eating.
- Promoted the interactive ocean exhibition Blue Beyond the 2%, to raise awareness of issues related to World Oceans Day and of plastic reduction.
- Promoted the Environmental Protection Bureau’s “Accelerating Net Zero, Reducing Plastic This Summer” series of events to advocate for plastic reduction and environmental sustainability.
- Supported Greenpeace’s reusable cup lending program to encourage reuse and a low-plastic lifestyle.
- Joined the“2023 Sustainable Eating Festival” and invited colleagues to take the seven-day plant-based challenge, promoting low-carbon eating.
- Promoted a low-carbon food-and-agriculture tour that combines local farming with agri-food education, supporting the sustainable development of Baishihu.
- Shared information from the Ministry of Environment’s “Net-Zero Green Living Guide” page to help colleagues learn more about net-zero living.
- Shared information on the exhibition marking the tenth anniversary of the “Old Shoes Save Lives” campaign, supporting resource circularity and international humanitarian causes.
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Environmental Education and Sustainability Awareness
- 2023 Q2: Hosted the plastic-reduction lecture Healthy Seas, Less Plastic, attended by 47 colleagues.
- 2024 Q4: Hosted the lecture The Encyclopedia of Recycling, attended by 109 colleagues.
- 2025 Q1: Hosted the lecture Low-Carbon Eating and Healthy Living, attended by 159 colleagues.
Celebrating Our TPEx Listing with Lasting Compassion
Advancing CSR with the Down Syndrome Foundation
To celebrate our listing on the Taipei Exchange (TPEx), an important milestone for the company, we are also putting our social sustainability commitments into practice alongside our strong performance. On this occasion, we purchased 1,300 charity gift boxes from the Down Syndrome Foundation, for a total of NT$227,500. We hope to support charitable organizations through concrete action and turn our company’s growth into a positive force that gives back to society.
Charity Fundraising Activities
Since 2022, we have been supporting local charitable activities, including volunteering at the Huashan Foundation Xizhi Station and organizing charity briefings during yearly festivals.
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Spring Festival Knitting Volunteer Activities
- 2026:
Colleagues were invited to knit pillowcases and festive beanies for seniors living alone or in vulnerable circumstances who are served by the Huashan Foundation. Five colleagues took part, claiming and hand-knitting 6 pillowcases and 6 beanies. These were presented to the seniors during the Lunar New Year to bring warmth and good wishes to their holiday in the cold of winter. - 2025:
During the Lunar New Year, we rallied a group of caring volunteers. Fifteen colleagues took part, claiming and hand-knitting 20 warm scarves and beanies for seniors living alone or in vulnerable circumstances who are served by the Huashan Foundation. We hope this handmade warmth, made with heartfelt care, brought them a beautiful and cozy winter. - 2024:
Ten colleagues took part in the Lunar New Year knitting volunteer project, claiming 15 handmade items. The scarves and beanies were made for seniors living alone or in vulnerable circumstances who are served by the Huashan Foundation, to give them a lovely and warm winter.
- 2026:
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Mid-Autumn Festival Charity Mooncakes
Purchasing Mooncakes to Support Mid-Autumn Festival Charity Initiatives
QNAP started to purchase charity mooncakes produced by charitable organizations since 2022. Our support would help these organizations to increase their income and benefit the vulnerable groups and families they serve.- 2022: Purchased 1,010 boxes of mooncakes from Ren You Sanatorium Hanxin Mooncakes, totaling NT$372,750.
- 2023: Purchased 779 boxes from the stores of St. Coletta Catholic Training Center for Special Needs, totaling NT$311,600.
- 2024: Purchased 680 boxes from the Keelung Bear House, totaling NT$304,640.
- 2025: Purchased 807 boxes of mooncakes from Hideaway Cafe and 817 boxes of cookies from Table-Corner, totaling NT$399,680.
In 2023, QNAP made mooncakes even more meaningful through the Mooncake Charitable Donation Initiative. QNAP encouraged employees to donate the mooncakes they received from the company to underprivileged children in rural areas. The mooncakes were donated to the Eden Social Welfare Foundation's affiliated Canaan Bakery, which operates three shelters in Taichung City. A total of 130 boxes were donated, amounting to $42,900.
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Dragon Boat Festival Knitting Volunteer Activities
Twenty-two (22) people participated in the Dragon Boat Festival Knitting Volunteer Activities. A total of 40 handmade items, including key bags and sachets, were presented to the elderly living alone and those served by the Huashan Foundation.
Huashan Foundation Festival Charities
Two Huashan Foundation Festival Charities briefing sessions were held in 2023, with a total of 25 participants.
Listing Charity Gift Boxes
To celebrate our listing on the TPEx, we purchased 1,300 charity gift boxes from the Down Syndrome Foundation, transforming our milestone into positive social impact.
Seasonal Charitable Donation Initiative
Since 2019, QNAP has been organizing biannual blood donation events. In 2020, a Christmas Charity Supplies Donation event was launched. Starting in 2023, QNAP expanded its philanthropic scope to launch more quarterly charity activities, including book donations, laptop donations, shoe donations, and more.
2026 Q1
- QNAPer Blood Emergency Donation Campaign: Sixty-five colleagues took part and donated 103 units of blood. This drive also marked a milestone, as cumulative donations officially surpassed 1,000 units.
2025 Q4
- QNAPer Blood Emergency Donation Campaign: Fifty-six colleagues took part and donated 86 units of blood.
- Christmas charity donation drive: collected 11 boxes of supplies. These were passed on to 5Wayhouse to help children in remote areas of Hualien, and to the Garden of Hope Foundation to help survivors of gender-based violence rebuild their resilience.
- Partnered with COCO Fresh Tea & Juice as a co-branded fundraiser for ECPAT Taiwan to support its services. A total of 270 drinks were purchased, with NT$100 donated per cup, for a total donation of NT$27,000.
2025 Q2
- Old shoes donation: donated 21 pairs of shoes, 35 items of clothing, and 6 bags for schoolchildren and residents in extremely impoverished areas of Africa
2025 Q1
- QNAPer Blood Emergency Donation Campaign: Sixty-seven colleagues took part and donated 104 units of blood.
- Supported the Taiwan Earth Day Association’s 2025 million Green Actions campaign, collecting 300 green actions.
2024 Q4
- Together with IEI Integration Corp., took part in KPMG Taiwan’s December 2024 Charity Month donation drive, “Delivering Faith, Spreading Love Everywhere,” donating 10 laptops.
- Q4 2024 Christmas drive, “Christmas Love Fulfilled”: a campaign to collect new shoes for children in remote areas. A total of 230 pairs of shoes were collected and sent to children in Shulin District, New Taipei City (5 pairs); Wufeng Township, Hsinchu County (14); Shuili Township (19) and Ren’ai Township (34), Nantou County; Tai’an Township, Miaoli County (15); and Linbian Township (71) and Changzhi Township (72), Pingtung County.
- QNAPer Blood Emergency Donation Campaign: Fifty-eight colleagues took part and donated 92 units of blood.
2024 Q3
- Launched a back-to-school supplies drive and donated 2 boxes in total to the Hebron Home tutoring class of a Keelung church and to the Christ’s Manger after-school care class.
2024 Q2
- Donated 4 laptops: 2 to the Yanguang tutoring class run by the Changhua County Yanguang Social Welfare Association, and 2 to the Delugu tutoring class run by the Nantou County Ren’ai Township Cooperative Community Development Association.
2024 Q1
- Old shoes donation: 11 boxes in total, comprising 4 boxes of shoes, 6 boxes of clothing, and 1 box of bags.
- QNAPers’ Call to Action: Come Donate Blood and Share the Love! Fifty-seven colleagues took part and donated 92 units of blood.
2023 Q4
- Christmas charity donation drive: 8 large boxes in total, donated to the Bethany Children’s Home and 5Wayhouse.
- QNAPer Blood Emergency Donation Campaign: Sixty-three colleagues took part and donated 93 units of blood.
2023 Q3
- Launched a charity drive for school supplies, donating a total of 2 boxes to the Xizhi Loving Care Charity Association in New Taipei City.
- Responded to the charity initiative by SPBook secondhand bookstore to collect secondhand books. A total of 99 books were collected, and the proceeds from their sale will be donated to the Children Are Us Foundation.
2023 Q2
- Donated a total of 7 laptops, with 5 laptops going to the After-school Accompanied Reading Class at the Sanxia Church Association Junior High School and Elementary School, and 2 laptops going to the Samuel Tutorial Class at the Keelung Wulun Loving Care Association.
- Donated to the Morning Light Foundation a total of 41 boxes of rapid test kits (20 per box) and 50 boxes of masks (50 per box).
2023 Q1
- Launched a donation drive for used shoes for a total of 9 boxes.
- QNAPer Blood Emergency Donation Campaign - A call to donate blood and show love! A total of 60 people participated.
2019-2022
- QNAPer Blood Donation Campaign - Donate blood and show love! A total of 277 people participated, with a cumulative total of 349 bags donated.
- Christmas Goods Donation Campaign - A total of 15 boxes were donated.
ESG Sustainability Experience and Education Activities
QNAP continues to promote ESG sustainability experience and education activities. By combining environmental education, local culture, and sustainability topics in hands-on participation, we encourage employees to deepen their understanding of and commitment to ESG. We hope this leads to greater attention to environmental sustainability and social responsibility.
Food and Agriculture Sustainability Experiences
2024
- Visited the eco-friendly rice mill and spoke with eco-friendly organic farmers to learn about sustainable farming practices. We also saw how regional revitalization drives local agriculture and community development.
2025
- Took part in a sustainable farm experience at Haojia Farm, supporting local smallholder farmers and joining a guided nature tour to experience sustainable tourism and local culture first-hand.
- Took part in an agri-food education experience at Hoka Farm, where we potted strawberry plants by hand and cooked natural jam to learn about local ingredients and sustainable eating.
Mountain Environment Stewardship
2024
- Held a mountain cleanup at Xiangshan in Taipei, helping colleagues understand the importance of keeping natural environments clean.
- Joined the Dakeng hiking trail cleanup organized by the Taichung City Tourism and Travel Bureau, helping to clean up the mountain trails.
2025
- Took the initiative to organize a cleanup of the Dakeng hiking trail in Taichung. The collected waste was consolidated and removed by the cleaning authority.
- Held a mountain cleanup at Xiangshan in Taipei. Picking up litter first-hand raised colleagues’ awareness of environmental protection.
Ocean Environment Sustainability Actions
2024
- Held a beach cleanup at Daan Seaside Paradise in Taichung, raising colleagues’ awareness of marine pollution and the conservation of marine resources.
2025
- Held a beach cleanup around Lishui Fishing Port in Taichung, calling on colleagues to join in clearing coastal waste and marine debris.
Community Volunteer Service
2024
- Took part in a toy volunteer activity at the Banqiao Toy Bank, helping to sort and categorize second-hand toys so they could be redistributed to other children in need.
Workplace sustainability
QNAP is committed to fostering a healthy, vibrant workplace that prioritizes employees’ physical and mental well-being and work-life balance. Through health promotion initiatives, employee care programs, and a range of support measures, QNAP strives to create a safe, supportive, and inclusive work environment.
Employee Diversity
The Company has a total of 934 employees, including 666 male employees (71.3%) and 268 female employees (28.7%). Most employees are between 30 and 50 years of age. For the Company's employee structure by gender, age, managerial/non-managerial status, and diverse workforce categories, please refer to Tables 1, 2, and 3.
Compensation and Benefits
The QNAP Remuneration Committee is responsible for regularly evaluating the achievement of performance objectives by directors and managerial officers and reviewing the Company's overall compensation policies, systems, standards, and structure. In addition, the Company has established appropriate procedures and guidelines for employee compensation management in accordance with its Salary Management Regulations. Under the oversight of the Remuneration Committee and the requirements of the Salary Management Regulations, these procedures serve as the Company's standard operating procedures for employee compensation.
To attract outstanding talent, QNAP hires employees at compensation levels above the statutory minimum wage for entry-level employees. The base salaries of both male and female employees exceed the statutory minimum wage, at 1.23 times the statutory minimum for male employees and 1.20 times for female employees, respectively. The relevant male-to-female compensation ratios and local minimum wage comparisons are presented in Table 1, while the average and median annual compensation of non-management employees are presented in Table 1.
Table 1：Male-to-Female Compensation Ratio Compared with the Local Minimum Wage
| Year | 2024 | 2025 | Variance Analysis | ||
|---|---|---|---|---|---|
| Compensation/Gender | Male | Female | Male | Female | |
| Entry-Level Employee Base Salary | 37090 | 34400 | 35266 | 34274 | － |
| Statutory Minimum Wage for Entry-Level Employees | 27470 | 27470 | 28590 | 28590 | Statutory Wage Adjustment |
| Multiple Above Statutory Minimum Wage | 1.35 | 1.25 | 1.23 | 1.2 | － |
| Male-to-Female Compensation Ratio | 1.08 | 1 | 1.03 | 1 | － |
Note 1：The above statistics cover the Xizhi Headquarters, Qidu Plant, and offices in Xinsheng, Hsinchu, Taichung, and Kaohsiung.
Note 2：Entry-level employees are defined as non-management employees in manufacturing units.
Labor retirement
Taiwanese employees’ years of service under the old pension system were settled in 2009 (ROC year 98). Taiwanese employees hired since 2008 (ROC year 97) are all covered by the new pension system as required by law, in accordance with the retirement standards and pension reserve contribution requirements of the Labor Standards Act and the provisions of the Labor Pension Act. The company contributes no less than 6% of monthly salary to each employee’s individual pension account. Foreign employees are covered by either the new or the old system, as required by law.
Statutory and Enhanced Employee Benefits
- Labor Insurance: Provided in accordance with the Labor Insurance Act and the Company's internal work rules.
- National Health Insurance: Provided in accordance with applicable government regulations governing National Health Insurance.
- Retirement Benefits: Provided in accordance with the retirement provisions of the Labor Standards Act, regulations governing retirement reserve contributions, and the Labor Pension Act.
- Group Insurance: The Company provides employees with commercial group insurance covering medical benefits in the event of injury or illness. As the Company fully covers the insurance premiums, the coverage also serves as compensation for expenses that the Company is responsible for in connection with occupational injuries or survivor benefits.
- Leave: Statutory leave is provided in accordance with applicable laws and regulations.
- Employee Group Insurance: Coverage includes life insurance, accident insurance, accidental medical insurance, hospitalization insurance, and cancer insurance.
- Employees are provided with accident and medical insurance coverage during business travel.
- Employees are entitled to birthday leave.
- Employees are entitled to three days of new hire leave after completing three months of employment.
- Other Benefits: Subsidies are provided for marriage, childbirth, hospitalization, and funeral expenses.
- Employees receive Ticket Xpress electronic gift vouchers on their birthdays and for the Dragon Boat Festival and Mid-Autumn Festival each year.
- Employees receive an annual cash travel allowance of NT$10,000, as well as travel and shopping benefits provided by the Employee Welfare Committee.
- Subsidies are provided for department team-building activities, including group meals.
- Employees are eligible for special discounts on the purchase of Company products.
QNAP Activities
- Spring Gala
- Corporate charity activities, including blood donations, environmental workshops, clothing and book donations
- A variety of employee clubs, including badminton, basketball, and boxing aerobics
- Quarterly employee birthday celebrations
- Long-service employee recognition
- 2024 20th Anniversary Sustainability Sports Day
- Free stress-relief massage service provided by visually impaired masseurs
- Affordable and convenient snack and beverage vending machines (Xizhi Headquarters / Hsinchu)
- Fresh meal box vending machines (Xizhi Headquarters / Xinsheng)
- Free snacks (Taichung / Kaohsiung)
- Car and motorcycle parking applications (subject to each office’s circumstances)
- Preferential offers and group purchases from partner merchants and corporate partners
Employee Health and Wellness
The Company is committed to building a comprehensive and supportive workplace that prioritizes employees' physical and mental well-being as a foundation for sustainable business development. To achieve its multifaceted health and wellness objectives, the Company has established a comprehensive program encompassing preventive medicine, stress relief, and physical fitness:
- Comprehensive Preventive Care and Health Checkup Follow-Up: Each year, the Company partners with qualified teaching hospitals to provide employees with comprehensive health checkups at no cost, exceeding statutory requirements. The checkups cover cardiopulmonary function, liver and kidney indicators, metabolic markers, ultrasound imaging, and other examinations. Following the checkups, physicians and health management professionals provide individual consultations. For employees with abnormal results or specific high-risk factors, the Company proactively arranges consultations and health education with occupational health physicians, creating a comprehensive health protection network for employees.
- Ongoing Stress Relief and an Inclusive Workplace: The Company provides regular stress-relief massage services by visually impaired massage therapists at its headquarters and various locations. By engaging professional visually impaired massage therapists, the Company provides employees with convenient opportunities for relaxation while promoting work-life balance and supporting employment opportunities for disadvantaged groups, thereby putting its corporate social responsibility into practice.
- Health Promotion and a Vital Workplace:In response to public health needs, the Company provides influenza vaccinations and subsidies for necessary health screenings, such as gastrointestinal endoscopy and cardiac examinations. The Company also regularly offers fitness programs, including cardio boxing, on-site physician consultations, and various health education seminars. These initiatives raise employees' health awareness from the inside out and help create a sustainable, healthy, and supportive workplace.
Family-Friendly Marriage, Childbirth, and Family Care Measures and Outcomes
The Company recognizes that employees are the cornerstone of sustainable business development and that a stable family life provides essential support for employees in pursuing their careers. Accordingly, the Company actively promotes work-life balance. In addition to protecting employees' basic rights in accordance with applicable laws and regulations, the Company provides a range of enhanced benefits that go beyond statutory requirements. By extending its support network from employees to their family members, the Company strives to build a comprehensive support system for happy and healthy families.
Exercise Classes and Clubs
To promote employees’ physical and mental well-being and foster team interaction, QNAP has long supported a variety of sports clubs and class activities.
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Basketball Club
20 members
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Badminton Club
20 members
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Boxing Aerobics Club
20 members
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Yoga Club
11 members
Group Recreation Activities
Through large-scale group activities, we strengthen team cohesion, promote cross-departmental interaction, and build a vibrant workplace culture.
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Family Day
In 2019, we held the “QNAPers All In! Treasure Hunt Bonus Challenge” at Lihpao Land in Taichung, with 528 participants.
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Team-Building Activity
In 2023, we held a paintball battle with 400 participants.
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Spring Gala
2025: “Swing for the Fences, Reach New Heights,” with 663 attendees.
2024: “20th Anniversary Sports Day and Spring Gala,” with 491 attendees.
2023: “Casino Night Fever” themed gala, with 850 attendees.
Labor-Management Relations
QNAP places great importance on labor-management relations and regards employees as important assets of the Company. All Company policies and regulations follow the Labor Standards Act as the guiding standard. The Company regularly convenes labor-management meetings and establishes effective communication channels to facilitate harmonious operations based on mutual respect and sound labor-management relations. Important matters are also communicated through internal bulletin boards, corporate communication software, email, and other channels to ensure that all employees clearly understand the Company’s operational policies
For further details, please refer to the Sustainability Report.
Employee Learning and Development Programs
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Technical and Professional Skills Courses
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Diverse General Education Courses and Lectures
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Management Courses and Online Learning Platform
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Internal Technical Sharing and Exchange
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External Training Subsidies
Stress Relief and Wellness Programs
Mental Health Support｜Fostering a Safe and Supportive Workplace
Healthy Eating Promotion｜Encouraging Healthy Lifestyle Choices
Health and Wellness Promotion｜Creating an Active Workplace
Work-Life Balance Support｜Helping Employees Achieve a Better Life Balance
Occupational Health and Safety
QNAP’s Qidu production site has successfully implemented the ISO 45001 Occupational Health and Safety Management System and obtained an international certificate issued by a third-party certification body in October 2025. This ensures that the Company’s safety management system complies with international standards and incorporates goals for employees’ physical, mental, and emotional well-being into its occupational health and safety management system, thereby strengthening the Company’s commitment to occupational health and safety.
The Company regularly reviews workplace safety conditions, conducts employee health examinations, and provides periodic safety and health awareness campaigns. The Company also communicates workplace safety precautions and health management information to all employees through internal communications, fostering a culture of health and well-being.
Governance sustainability
Corporate governance is the cornerstone of sustainable development. QNAP fully implements governance commitments across information security, the Secure Software Development Lifecycle (SSDLC), product security incident response, and software supply chain security. We are dedicated to adopting international standards and institutionalized processes to ensure outstanding trustworthiness of our products, data, and services, earning the trust of investors, customers, and regulatory authorities through concrete actions.
Governance policies
Information Security Policy
Our management commitment to the confidentiality, integrity, and availability of information assets, covering organizational structure, risk assessment, education and training, and continuous improvement mechanisms, in compliance with the ISO 27001 international standard.
QNAP Secure Software Development Lifecycle
From requirements, design, and implementation to verification and maintenance, every stage incorporates threat modeling, static and dynamic code scanning, security reviews, and penetration testing to systematically reduce vulnerability risks.
In 2025, in accordance with the materiality principle, the Company conducted risk assessments across various aspects of environmental, social, and corporate governance issues related to its operations. The results are presented in the table below.
| Aspect | Risk Item | Risk Description | Mitigation Measures |
|---|---|---|---|
| Environment | Climate Change | Extreme weather events caused by climate change, rising energy costs, and increasing carbon taxes or carbon reduction requirements may affect the supply chain and operating costs. | Since 2023, the Company has conducted greenhouse gas inventories and implemented energy conservation and greenhouse gas emissions reduction measures. In addition to replacing lighting with LED fixtures, the Company is progressively replacing aging air-conditioning equipment, continuing to promote energy-saving initiatives and water conservation strategies, and properly managing and reducing waste to minimize potential environmental impacts. |
| Workplace Environment | Occupational accidents or poor environmental hygiene may result in workplace injuries or work stoppages. | The Qidu Plant has implemented ISO 45001 and regularly conducts workplace hazard identification and environmental monitoring to identify and mitigate potential safety risks, reduce the incidence of occupational accidents, and continuously provide a safe working environment. | |
| Social | Human Resources | Intense industry competition may lead to talent attrition, skills gaps, or reduced innovation capabilities. | Strengthen recruitment channels and employer branding to enhance talent attraction. Develop retention and incentive programs for key positions to reduce turnover risks, while promoting technical documentation, knowledge and skills transfer, and development of key talent to maintain operational continuity and technical capabilities. |
| Concentration of Purchases or Sales | Excessive concentration of customers or suppliers may affect operations if a key customer or supplier encounters difficulties. | Major materials, including PCBs, power supplies, and RAM, are sourced from diversified suppliers. | |
| Market Competition | Intense competition, new market entrants, or substitute technologies may result in a decline in market share. | Chinese manufacturers have actively captured the consumer market through low-price strategies, which has had some impact on the overall pricing structure. However, the Company primarily focuses on the mid- to high-end market, where the impact has been relatively limited. Going forward, the Company will continue to monitor market trends and adjust its strategies as appropriate to maintain its competitive advantage. | |
| Corporate Governance | Technological and Industry Changes | Rapid technological advances or changes in industry structures may result in product obsolescence or declining competitiveness. | In recent years, the rapid development of AI and cloud storage has had a significant impact on product development directions. Integrating AI and cloud storage has therefore become an important product development priority. Deep integration of AI and addressing the demand for AI-enabled storage are key strategic considerations. QNAP also provides corresponding solutions and supporting measures to address the demand for and integration of cloud storage. In response to rapid technological advances and changes in industry structures, the Company continuously adjusts its directions and strategies, develops new products and solutions, and enhances product competitiveness in the market. |
| Investment | Changes in the value of investment targets |
Short term: Conduct prudent assessments and risk analyses for all investment projects. Medium term: Implement investment controls in accordance with internal management procedures. Long term: Continue to strengthen investment review mechanisms and post-investment management, adjusting management mechanisms and enhancing performance requirements as necessary to reduce financial impacts. |
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| R&D | R&D results may fall short of expectations, resulting in unrecoverable development costs or the replacement of patented technologies. | Increase cross-functional technical collaboration and resource support to shorten R&D bottlenecks. Adjust product launch strategies, such as releasing selected software functions first, to reduce overall R&D investment risks. | |
| AI computing challenges |
Short term: Adapt product designs to meet the requirements of AI technologies, including high-speed and high-static-pressure fans. Medium term: Strengthen thermal and structural simulation analysis during the early design stage and establish principles for model selection and tiered application. Long term: Collaborate with partners to advance new technologies and establish AI cost governance and supplier risk management mechanisms. |
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| Technology | Hackers exploiting advanced AI technologies to identify system and product vulnerabilities |
Short term: Cyberattacks may have significant impacts on the Company’s P&L, revenue, and reputation. At this stage, the Company will focus on strengthening cybersecurity systems and protection. Medium term: Make ongoing investments in AI-powered cybersecurity defense tools and incorporate additional operating expenses (OPEX) into the management of the cybersecurity incident response teams (PSIRT/SOC). Long term: Shift security left by using AI to counter AI, including the implementation of AI-powered automated source code reviews, to identify and remediate potential vulnerabilities before attackers can exploit them. |
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| Interest Rate and Foreign Exchange Rate Fluctuations | Volatility in international financial markets may result in changes in financing costs or investment returns, affecting financial performance. |
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| Foreign exchange gains and losses |
Short term: Continue to strengthen management of foreign exchange fluctuation risks and continuously monitor information on exchange rate movements. Medium term: Closely monitor exchange rate trends and conduct foreign currency conversions at appropriate times to mitigate risks arising from exchange rate fluctuations. Long term: Implement hedging measures for foreign currency assets or liabilities at appropriate times to reduce the impact of exchange rate fluctuations. |
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| Loans to Others and Endorsements/Guarantees | Inappropriate investment or financial credit decisions may result in credit losses or liquidity risks. | Currently, the recipients of the Company’s loans and endorsements/guarantees are wholly owned subsidiaries, and the overall risk is relatively limited. Nevertheless, to ensure the proper use of funds, the Company will continue to strengthen the management and oversight of funds provided to subsidiaries. | |
| Inflation | Rising operating costs |
Short term: Inflation has not had a material impact on the Company’s profit or loss; however, the Company continues to closely monitor inflationary conditions. Medium term: Implement measures to adjust operating results in response to inflation and mitigate its impact. Long term: Establish mechanisms to respond to inflation and adjust procurement practices to reduce operating costs. |
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| Information Security | System breaches, data leakage, or service interruptions may affect operations and reputation. | The Company has established comprehensive cybersecurity protection measures for internal networks and endpoint devices. However, it cannot guarantee that critical servers will be completely protected against severe cyberattacks. Unknown vulnerabilities or severe cyberattacks may result in the loss or disclosure of trade secrets and confidential information. The Company continuously monitors major external cybersecurity incidents and vulnerabilities and strengthens internal systems to prevent exposure to attack risks. | |
| Legal | In business activities involving contract execution and performance, intellectual property acquisition and use, product liability, investments and mergers and acquisitions, labor relations, and cross-border transactions, unclear rights and obligations, inappropriate allocation of legal liabilities, infringement of rights, or improper dispute resolution may result in risks including damages, litigation, transaction suspension, asset impairment, and reputational damage. |
Short term: Identify and assess legal risks associated with major transactions, significant contracts, product launches, intellectual property, and potential disputes. Establish immediate escalation and legal consultation mechanisms for high-risk matters to reduce risks related to contractual liabilities, infringement of rights, and litigation. Medium term: Incorporate legal review into decision-making for major products, investments, partnerships, supply chains, and market entry. Continue to improve standard contracts and provisions concerning liability limitations, intellectual property ownership, confidentiality, and dispute resolution, while establishing management mechanisms for major cases, external counsel, and litigation disputes. Long term: Establish a group-wide legal risk governance framework integrating global subsidiaries, external legal resources, contract management, intellectual property, and dispute case information. Leverage legal technology to enhance legal risk alerts, knowledge accumulation, and decision-making efficiency, thereby strengthening the Company’s global operations and long-term competitiveness. |
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| Market | Intensifying industry competition |
Short term: Continue to strengthen the software ecosystem and user experience, conduct competitor analysis and customer satisfaction surveys, identify gaps in product functionality and user experience, and implement rapid improvements. Medium term: Strengthen the QuTS hero/QTS software ecosystem, expand the range of applications available through the App Center, and increase user engagement and switching costs. Long term: Maintain a long-term focus on niche markets, including high-end enterprise storage, audiovisual editing, and AI-powered video surveillance. |
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| Crisis Management | Complete production line disruption (e.g., due to fire, power outages, earthquakes, etc.) |
Short term: Conduct regular fire drills and evacuation exercises and maintain on-site generators and emergency water supplies. Medium term: Establish backup systems for critical production equipment and processes. Long term: Ensure that the plant can resume operations within the critical recovery window following a major natural or man-made disaster. |
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| Regulatory Compliance | Changes in laws and regulations, international trade rules, cybersecurity requirements, or environmental regulations may increase compliance costs or restrict business activities. | QNAP’s global compliance strategy must encompass cybersecurity, privacy, consumer protection, product safety, export controls, competition law, and intellectual property rights. These requirements should further be embedded into internal policies and procedures to establish a traceable and auditable governance matrix. Through internal policies, standardized contracts, the Product Security Incident Response Team (PSIRT), Software Bill of Materials (SBOM), General Data Protection Regulation (GDPR) and cross-border data governance, consumer rights processes covering warranties, returns and exchanges, and information disclosure, intellectual property lifecycle management, supply chain audits, and continuous monitoring and annual updates through a regulatory intelligence system, QNAP can integrate global regulatory requirements throughout product development, operations, and the product lifecycle. This approach positions compliance as a core asset for building brand trust and maintaining market competitiveness. |
Governance commitments
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ISO 27001
Information security management
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SSDLC
Secure software development lifecycle
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PSIRT 24/7
Product security incident response
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SBOM
Software supply chain security
