乐鑫科技:Espressif2023ESGReport

Espressif｜2023 ESG Report｜ Contents



In-house R&D Commitment 07



IP Management



Environmental Governance and Strategy Technological innovation Innovative and comprehensive service



Climate Risks and Opportunities Product and Service Innovation Optimizing Customer Experience Governance



GHG Emissions Management Solution Innovation Products Quality Management



Energy Saving and Emission Reduction Technical Association Participation Customer Feedback Governance Structure



Circular Economy Lifecycle Protection of Shareholder Rights



Biodiversity Protection Compliance & Ethics



Internal Control and Risk Management



Information security



About Espressif Talent



2023 ESG Highlights Community Symbiosis Diversity and Inclusivity Supply Chain



ESG Management Employee Rights Management



ESG Governance Career Development



Sharing Booms Industry Occupational Health and Safety



Materiality Assessments Espressif Developer Conference 2023 Supplier Code of Conduct



Stakeholder Engagement High-Quality Professional Education Control Risks at the Source



ESG Goals Multi-faceted Responsibility



Management



GRI Content Index



About This Report



Report Feedback and Comments



Espressif｜2023 ESG Report｜Message from Management



Message from Management



In a year of challenges and opportunities, Espressif remained power to support complex Multi-IO, HMI, and AIoT applications Strengthening Governance



commi ted to our core values of openness, sharing, and but also meeting the high-performance computing needs of EspressifTechnology adheres to high standards of corporate



innovation.These principles have driven our continuous applications that combine cameras, displays, and AI processing, governance. By establishing a transparent, e ficient management

development in technology, market, and social responsibility, o fering a more powerful and flexible solution to the market. system, we ensure the healthy and sustainable development of

particularly in our Environment, Social, and Governance (ESG) Open Source and Ecosystem Prosperity the company and continue to drive innovation in technology and

initiatives. management models to adapt to the ever-changing market and

It is worth mentioning that Espressif has always been commi ted societal needs.



to the philosophy of open source and sharing. Our extensive



open technical documents and the vast array of open-source Looking Forward: A New Chapter inTechnology



M code projects on pla forms such as GitHub provide rich learning Espressif will continue to adhere to our values of openness,



M materials and resources for the development of AI models and sharing, and innovation, collaborating with global partners to



Revenue Net Income various applications.This not only significantly improves the explore new technologies and models. We believe our collective

product development e ficiency of downstream developers but e forts will lead to a be ter world.



In 2023, the company reported operating revenues of also promotes the prosperity of our developer ecosystem,



RMB . billion, up 12.74% year-on-year, and net ultimately bringing more B B business opportunities to Espressif ——The EspressifTechnology ManagementTeam



income of RMB . billion, marking a 39.95% increase Technology, realizing a win-win situation for both the company



from the previous year. and the developer community.



Besides, through collaborations with educational institutions and



Driving Innovation, Leading withTechnology contributions to STEM programs, we aim to inspire and empower



young minds, fostering an environment where technology and



In 2023, our technological innovations have achieved remarkable creativity can flourish.



results, particularly in the field of AIoT. Our ESP -S and ESP - GreenTechnology, Shared Future



P chips stand out as milestones on this journey of innovation.



The ESP -S chip, equipped with Edge AI capabilities, supports While pursuing technological innovation, we have not forgo ten



an integrated functionality of voice, connection, and display our responsibility for environmental protection. By developing



control, providing robust support for smart home and industrial low-energy green technologies and sharing these achievements



IoT applications. On the other hand, the ESP -P chip takes a with global partners, we have collectively promoted the industry's



significant step forward, not only o fering higher computational green transformation and sustainable development.





A World-Leading AIoT Platform



About Espressif Espressif System (688018.SH) is a global fabless semiconductor company, established in 2008 and listed in July 2019. We

have eight R&D centers in five countries, including China, India, the Czech Republic, Brazil and Singapore, with a team from

almost 30 countries and regions. Espressif has been dedicated to the research and development and design of so tware

and hardware products in the AIoT field for many years, focusing on developing wireless communication SoCs that are



highly integrated, low-power, high-performance, secure, stable, and cost-e fective. We are commi ted to providing secure,

stable, and energy-saving AIoT solutions. At the same time, we adhere to technological openness, empowering



developers to create intelligent products with Espressif's solutions and build a smart world of interconnected things.



We uphold the "cra tsman" spirit, providing customers with outstanding smart hardware and comprehensive so tware



Wi-Fi MCU global market share solutions to help them quickly realize product intelligence and shorten the development cycle. For this reason, Espressif's

chips and modules have become increasingly popular among customers and are widely used in smart home, consumer

Leading electronics, industrial control, health and medical, vehicular networking, energy management, education, and other fields.

Espressif’s Worldwide Expansion



China



Shanghai Suzhou Wuxi Hefei



Providing a variety of AIoT



Espressif IoT chips solutions to hundreds of India Brazil



global shipment volume millions of users worldwide



exceeds Hundreds of Pune Campinas



1 Billion Millions



Czech Singapore



Republic



Brno





A Complete-Solution Provider Core Values Vision and Mission

Integrity, Passion, Openness, Enabling Intelligent Life for the World

Collaboration, Innovation Advancing the intelligent



Espressif provides a wealth of Espressif o fers solutions for connection of all things through



The ESP RainMaker, ESP-ADF, technical documentation and audio, face recognition, HMI, shared technology



ESP-WHO, Mesh development resources, including technical and device connectivity, which



framework ESP-MDF, etc., specifications, technical are widely applied in smart



accelerate the implementation reference manuals, user guides, home, industrial control,



of AIoT projects API references, test reports, etc consumer electronics, and



other fields



Development Open Source



Framework Technology AIoT Solutions



Resources



ESP-IDF integrates a real-time High-performance Wi-Fi +



operating system, peripheral Classic Bluetooth / Low Power



drivers, networking protocols Bluetooth +Thread / Zigbee +



such as Wi-Fi and Bluetooth, AI SoCs, modules, and



libraries, and development Operating System Hardware development boards.



tools, o fering a wealth of



documentation and sample



resources



Powered by



ESP SOC



Espressif｜2023 ESG Report｜Global Ecosystem

Global Ecosystem



Espressif's open-source ecosystem is highly renowned among the global IoT developer community. Numerous



international engineers and tech enthusiasts actively develop new so tware applications based on Espressif’s



hardware products and foundational so tware development kits.They freely exchange and share their experiences



with the company's products and technologies online.



Development Platforms



Espressif's IoT development framework, ESP-IDF, Espressif's products are also compatible



has a mature and strict development and with development pla forms such as



maintenance process. Adhering to the spirit of Arduino IDE, Amazon FreeRTOS,



openness, Espressif's products also support NodeMCU, MicroPython, Pla formIO, and



operating systems such as Nu tX, Zephyr, Vela, and Mongoose OS.



OpenHarmony, covering a vast global developer



community.



4,100K+ 200+



4,100 K+ views for the most 200+ books wri ten about



popular videos of ESP - Espressif’s SoCs in 10+



powered projects on YouTube languages



CSDN 170,053



The search results for ESP and ESP



on CSDN technical blog reached 170,053



76K+ 102K+



76 K+ members of ESP groups 102 K+ open-source, Espressif-



on Reddit powered projects on GitHub



Espressif｜2023 ESG Report｜Corporate Honors



2023 ESG Rating Results



Wind ESG CSI ESG QUANTDATA ESG



Rating A Rating AA Rating A



AA A



Corporate Honors



2023 2022 2021 2020



ChinaTOP Wireless Connection TopTen "Annual Open Source Contribution The 6th "China IoT Innovation Award”, Tencent Cloud IoT Most Valuable Partner of

Companies, AspenCore Enterprise" in the 2022 China Developers Elecfans the Year 2020,Tencent Cloud



EspressifTechnology is among the first Influence List, CSDN Most Valuable STAR Market Listed Company Forbes China's Most Innovative Companies

globally to support Bluetooth Mesh Protocol Tech G "OutstandingTechnological of 2021, China STAR Market Daily List of 2020, Forbes



1.1, Bluetooth SIG Innovation Award", Shanghai International Most Investment-Worthy Company of the The 14th China Listed Company Value



Best Partner Award of Xiaomi IoT Module Consumer Electronics Show Year 2021 on the Science andTechnology Selection IPO New Star Award, Securities



Business of the Year 2023, Xiaomi 2022 National College Students' IoT Design Innovation Board, SMDC Times



2023 National College Students' IoT Design Competition Best Support Award, National Industry New Star Award, Shanghai Outstanding Supplier of Xiaomi Ecological

Competition Best Support Award, National Association of Higher Education Computer Integrated Circuit Industry Association Chain IoT Module in 2020, Xiaomi



Association of Higher Education Computer Education, National College Students' IoT Member of the Sixth Council of Shanghai Best STAR Market Listed Company of Sci-

Education, National College Students' IoT Design Competition Organizing Commi tee Integrated Circuit Industry Association, Tech Innovation Star in 2020, Awarded by:

Design Competition Organizing Commi tee Most Innovative STAR Market Listed Shanghai Integrated Circuit Industry China STAR Market Daily, Cailianpress



Member of the Fourth Council of Pudong Company, China STAR Market Daily, Association



New Area R&D Institutions Association in Cailianpress



Shanghai, Pudong New Area R&D



Institutions Association in Shanghai





Espressif｜2023 ESG Report｜Key Financial Data



Key Financial Data



In 2023, Espressif's revenue reached 1,433.07 million RMB, with a net income of 136.21 million



RMB.The Non-GAAP net income was 154.94 million RMB. For more financial information, please 1%



refer to our 2023 Annual Report.



26%



Core Financial Data 38%



CNY 2023 2022 2021 Revenue by Revenue by Region



Products China's Mainland



Chips



Revenue 1,433,064,911 1,271,127,201 1,386,371,541 61%



Modules Rest of the World



Revenue YoY (%) 12.74 -8.31 66.77 Others 74%



Research and development 403,713,557 337,121,814 271,689,981



expenses



Net income 136,204,637 97,323,103 198,427,708



Non-GAAP net income 154,942,053 112,049,122 220,215,708 Revenue in Million RMB Gross Margin



Total assets 2,203,800,366 2,082,796,825 2,129,056,143 1,500



Total shareholders’ equity 1,913,000,228 1,826,677,535 1,823,017,913 1,433



1,386 48.9%



47.3% 46.9%



Weighted ROE (%) 7.14 5.36 11.52 1,271



1,250 40.6%



39.6% 40.0%



Net cash provided by 302,597,343 71,321,658 31,460,857



operating activities



Basic EPS 1.7012 1.2129 2.4775 1,000



Diluted EPS 1.6929 1.2127 2.4566 2021 2022 2023 2021 2022 2023



Chip Overall



Espressif｜2023 ESG Report｜2023 ESG Highlights

2023 ESG Highlights



Espressif is commi ted to enabling developers worldwide to utilize our technology by open-sourcing it, facilitating the development of connected, smart devices. We integrate the principles of technological



innovation, societal contribution, environmental responsibility, and energy e ficiency throughout our business operations. Leveraging our extensive experience in the AIoT field, Espressif will continue to



contribute to the creation of a more intelligent, secure, and sustainable IoT future.



1,433 M 57.50% 77.44% 90+



Revenue 250 2023 cash R&D employees O fline training

dividend Ratio



Accumulative



applications for



50% patents and 39.95% 5,000+

so tware



Female Copyrights Net income Vedio learning

directors growth rate sessions



ESG



33.60% 161,800 KM 3.98 t 0%



Dynamic logistics



Female Per capita Work-related



employees planning saves carbon emissions injury rate



Espressif｜2023 ESG Report｜ESG Management



ESG Management By positioning the results of the assessment of material topics within a matrix, we can intuitively see

the most critical issues to internal and external stakeholders.The priority issues to focus on are:



ESG Governance ESG Governance Framework Innovation Management Product Quality Risk Management







Ethics and Integrity



Espressif's Environmental, Social, and Governance (ESG) is Customer Relations Career Development



Anti-Corruption



collaboratively managed by all members, covering the board of directors, Economic Performance Occupational Health and Safety



Board of Directors



managers of various departments, and all employees.The Strategic Corporate Governance Cybersecurity and Data Privacy



Commi tee of the Board of Directors is a specialized governance body Innovation Management



established by the board according to the company's bylaws. It is Customer Relations



responsible for guiding and supervising ESG ma ters. Strategic Commi tee



Corporate Governance



The Strategic Commi tee of the Board establishes an ESG Working Group Product Quality



Economic Performance



responsible for implementing the commi tee's directives into company- Cybersecurity and Data Privacy



wide plans.This includes but is not limited to producing the company's ESG Working Group Career Development



annual Environmental, Social, and Governance (ESG) report, organizing Ethics and Integrity Occupational Health and Safety



assessments to learn about the company's annual ESG performance, the Human Rights Risk Management



risks and opportunities faced, and formulating corresponding Diversity, Equity and Inclusion Anti-Corruption



improvement plans.The ESG Working Group reports to the Strategic Employees Social Welfare



Commi tee of the Board at least once a year on the company's ESG Brand Infulence Sustainable Suppliy Chain



management policies, plans, actions, and reports.



Materiality Assessments Environmental Protection Climate Action



During the reporting period, the company conducted an ESG material topics analysis to help identify the most Energy Use and E ficiency



critical ma ters to the company and its stakeholders and to provide guidance when developing ESG management Biodiversity



plans and measures.The ESG Working Group identified priority issues through the following procedures:



Our process prioritized selecting issues that concern stakeholders. We based our selection on standards such



as the CASS-CSR . , the GRI Standards, the National Standard of China's Guidance for Social Responsibility



Reporting (GB/T - ), and the SDGs Enterprise Action Guide. Governance



Collecting opinions on the importance of concerned issues from various stakeholders through wri ten Social



feedback, surveys, telephone discussions, consulting with the company's management and the board



commi tees; Environment



Assessing and ranking substantive issues based on the judgments of stakeholders and executives and IMPACT ON COMPANY



reporting them to the Strategic Commi tee of the Board.



Espressif｜2023 ESG Report｜ESG Management



Stakeholder Engagement Stakeholder Communication Process



Based on the development of its operations and changes in the external environment, Espressif has identified seven main types of Topics



stakeholders: customers, employees, developers, suppliers, investors, governments, and the social public/media. We recognize Identification Communication Feedback Disclosure



the focus areas of stakeholders and establish communication channels to respond promptly, ensuring that our significant issues



align with stakeholders' expectations, market trends, and business opportunities.



Main Customers Employees Developers Suppliers Investors Governments Social Public/Media



Stakeholders



High-quality products Employee rights Open-source Supplier Management Economic growth Compliance & Social welfare



Comprehensive service Working environment and corporate Community Fair trading Corporate governance Ethics Brand market image



system culture Accessible Honoring contracts Risk management Product safety and Biodiversity protection



Operating capabilities Training and development green and Win-win strategy Information disclosure reliability Corporate governance



Communication channels Opportunity for promotion secure AIoT Sustainable corporation Investors relation Employment Employment



Focus Areas Competitiveness Compensation and decent living technology Compliance & Ethics Competitiveness



Innovation Health and safety Communication Drive Drive technological advancement /



between Information security Industry and market technological Support industry development



Cybersecurity and data privacy Cybersecurity and data privacy developers development advancement / Environmental protection



Compliance & Ethics Personal competitiveness Innovation Innovation Support industry



Corporate governance development



Risk management



Products comply with Quarterly CEO le ter, conveying the Follow the rules Multidimensional assessment CEO a tends every Cooperate with Support education and welfare courses

regulatory compliance company's cultural concepts of the open- for supplier admission shareholders' meeting and government Continuously introduce AIoT



requirements Publishing a monthly company source CSR audits for suppliers regular performance briefing surveys technology and products, enabling



Quarterly business review, newsle ter to help employees community Requirements for certification sessions, engaging in face-to- Participate in more people to enjoy the improvement

targeted discussion on understand company developments Actively in quality, safety, and face communication with policy seminars of life quality through technology



customer situations Providing various online and o fline participate in environmental management investors and symposiums Release company news and latest



Smooth channels for handling training on di ferent topics community systems holds irregular investor Respond to public technology information on various



customer complaints /Timely Annual employee confidentiality, open-source Require suppliers to comply meetings (including online inquiries about domestic and foreign media channels

and e ficient complaint business ethics, and compliance projects, with product regulatory meetings) policies such as the o ficial website's news



Responses resolution training provide compliance Respond to investor inquiries Study the latest subscription channel, WeChat o ficial

At least one customer Biannual performance evaluations, solutions and Require suppliers to adhere to through the online "SSE e- laws, regulations, account, Zhihu, Bilibili,Twi ter, etc.



satisfaction survey per year with irregular performance feedback code Espressif's code of business Interaction" pla form, investor and policy Wildlife conservation programs and



Regular business visits and Implementation of health and safety Open and conduct email, and phone changes regular donations



frequent communication of Providing employees with welfare abundant Regularly conduct supplier Publishing company news Pay taxes in Advocate for green o fice practices



customer needs O fering competitive salaries technical evaluations and through o ficial channels, accordance with Value chain management from an



Open and abundant technical documentation communications allowing investors to understand the law environmental protection perspective

documentation resources Employee satisfaction surveys and resources On-site quality audits the company's development Protect ecological resources



feedback



Tipo f email Timely payment promptly Release report regularly



Espressif｜2023 ESG Report｜ESG Management

ESG Goals



2023 Espressif continued the strategy in 2021 and 2022, integrating the United Nations Sustainable



Development Goals (SDGs) into our ESG management. In line with the company's actual Environmental Social Corporate Governance



environmental, social, and corporate governance practices, Espressif set short-, medium-, and



long-term goals and incorporated them into the company's long-term development strategy.



Subsequent sections provide details on the progress made in implementing the United Nations



Sustainable Development Goals, with each chapter's title page indicating the SDGs addressed by the



disclosed content.

Goals



Environmental Social Corporate Governance



Maintain product innovation and high standards of product quality, striving to



improve customer satisfaction; 100% of employees receive annual training on business conduct

100% use of recyclable green packaging, reuse of trays and bulk Continue to improve the signing rate of supplier codes of conduct and the and ethical standards;



cartons, improving resource utilization e ficiency; coverage of ESG-related system certifications; Adhere to a gender equality recruitment policy and career



Advance Espressif's wildlife conservation plan, spread knowledge Perfect the employee rights protection system, continue to maintain a 0% rate development channels, maintaining a female representation of

about endangered wildlife, and call for more people to join the of work-related injuries; over 25% on the board of directors;



2030 animal protection program; Reduce inequality, maintain diversity in employee nationalities and Continue to execute and constantly improve the existing



Goals Practice low-carbon concepts, advocate for green o fice life, and backgrounds, and firmly eliminate discrimination events; employee training system, instilling awareness of safety, integrity,

improve systems and methods for verifying and tracking the carbon Improve the construction of open-source documentation on major pla forms, anti-corruption, and green o fice practices;



footprint of the supply chain; continuously output open-source project codes and technical tutorials, giving Continuously strengthen the company's information security and

Persist in energy-saving and emission-reduction measures, focus back to the developer community; data privacy confidentiality mechanisms, ensure that employees

on greenhouse gas emissions, identify climate change risks and Persist in high-quality communication methods such as global developer receive 100% of their training, and increase outreach to other



opportunities promptly, and actively respond. conferences; stakeholders.



Continue to support STEM education, provide high-quality professional



educational resources, and create more employment opportunities.



Persist in independent research and development of low-power Ensure that the proportion of women in management positions is maintained at Strengthen an e ficient corporate governance structure and



designs, achieving the vision of saving energy through over 20%; improve various corporate charters and systems, ensuring



Long-term technological innovation; Continuously build a thriving ecosystem based on open documentation and transparency, accountability, and fairness;



Goals Strengthen the influence on the developer community and the open-source code, adhere to a win-win hardware-so tware symbiotic strategy, Optimize supply chain management, ensure e ficient operation of

upstream and downstream, actively empowering the community to and promote the development and progress of the industry. logistics and supply chains, and avoid potential risks.



undergo green and low-carbon transformation and upgrade.



Espressif｜2023 ESG Report｜Environmental Protection

Environmental



Protection



SDGs Goals



Espressif｜2023 ESG Report｜Environmental Protection



01 Environmental Protection Espressif



Recycling Eco-friendly



Environmental Governance and Strategy and Reuse Design



Environmental Management System Governance Procedures



Espressif's commitment to sustainable development is The Strategic Commi tee convenes an ESG Working Group Customers Green Supplier

demonstrated by our adherence to environmental laws and meeting annually to discuss policies, plans, and Value Chain



regulations, including the Environmental Protection Law of performance over the past year.The Chairman submits a



the PRC, the Energy Conservation Law of the PRC, and report of the commi tee's discussions and execution results Green Green



other national and local standards. In line with the ISO to the Board. Issues discussed include climate change at Delivery Manufacturing



14001 standard, we established an environmental the company's operational sites, resource use, and supply



management system. It introduces various programs chain environmental management.



throughout the entire product life cycle to minimize the



environmental impact.



Environmental Risk Management Green



We research potential risks and opportunities and take Warehouse Transportation



Future Blueprint Manufacturer



proactive measures to address climate change. We



promote sustainable development throughout the value



chain with initiatives such as green product design, eco- 2030 Goals development. By 2030, achieve greenhouse Our Vision



friendly manufacturing, green transportation, energy Increase the frequency of carbon emission gas emission intensity (Scope 2) of ≤ 4.87 Espressif believes that creating "impact" is

management, waste disposal, and recycling. data surveys, tracking the monthly usage of tons/person. the purpose of the products.The



To enhance employees' awareness of environmental resources in operations to control resource Long-term Goals significance we want to create goes beyond

management, we conduct mandatory environmental consumption and carbon emissions. In the long term, the company will continue technological products improving life; it lies

training annually. We require all new employees to Improve the tracking of carbon emissions to improve the energy management system, in considering ecological construction and

participate in at least one training session. upstream and downstream and establish a strive to keep carbon emission intensity at a low-carbon environmental protection as the

more comprehensive green database. controllable level and further reduce it. responsibility and commitment. We hope to

52 100% Meanwhile, we will enhance the radiating bring more and be ter changes to the world

As the company continues to grow, we will influence on the industry, empowering the with our strength.



strive to control carbon emission intensity, community to undergo green and low-carbon



environmental training of employees ensuring the company makes a positive transformation and upgrade. 14

sessions received training contribution while maintaining sustainable



Espressif｜2023 ESG Report｜Environmental Protection

Climate Risks and Opportunities



We have identified the impacts of climate change-related risks, then established response measures, and made decisions accordingly.



Climate Risks and Response Measures Potential Opportunities



Climate Risks Potential Impacts Response Measures The abundance of paperless open



Increase backup servers and ensure timely data backups to recover documentation and code resources combined



Extreme High It may cause fires, equipment damage, server malfunctions, recent data. Add high-e ficiency cooling equipment and fire with AI has lowered the barriers of developers,



Temperature data loss, and a fecting operations. extinguishers. Regularly inspect server rooms to detect potential fire thereby feeding back into the company's



hazards and minimize losses. business development.



Extreme More loss or extended transportation time, adversely Purchase necessary insurance. Establish an emergency response Espressif continuously providing global



Precipitation a fecting project progress and operating costs. team. Strictly review key suppliers' business continuity plans, avoid developers with a wealth of free open-source



reliance on a single supplier, and establish backup supply chains. technical documentation, enhancing the



Physical e ficiency of IoT project development, reducing



Risks They may lead to power outages, flooding, safety Develop emergency drill plans to enhance employees' evacuation and the likelihood of rework and returns, thus



Typhoons accidents, or the forced suspension of R&D progress, rescue capabilities. Store backup copies in locations far from data achieving the goal of energy saving and emission

thereby a fecting operating costs. centers or business locations. reduction. On the other hand, the development



The company has taken active steps to integrate eco-friendly and low- of AIGC combined with the company's extensive

Global Some o fices have long been faced with the climate threats carbon concepts into our strategy. We adopt sustainable business open resources, has a tracted more IoT



Warming, of global warming and rising sea levels, which could have a operations in daily work, reducing negative environmental impacts. We developers to join our ecosystem, promoting the

Sea Level sustained impact on the company's operations. also encourage employees to participate in and practice environmental development of our business (see Section 02



Rise actions. Community Symbiosis for details).



Our customers, supply chain, and regulatory departments Espressif regularly discloses annual ESG reports and plans to continue User demand for low-carbon drives our R&D



Environmental have significantly increased their focus on the company's this practice long-term. We compare our current systems with As the IoT market expands, and user demands



Information environmental information disclosure. Failure to disclose international and domestic mainstream ESG standards to identify gaps shi t to intelligent connectivity, with frequent



Disclosure relevant information promptly may lead to a crisis in and promptly improve. demands for low power consumption. Espressif



Transition cooperation or compliance risks. focuses on "connectivity + edge computing,"



Risks Low-carbon As a knowledge-intensive industry, the semiconductor Espressif insists on independent research and development and expands our connectivity technology from Wi-Fi



Technology sector advances rapidly in technology development. invests in R&D, striving to become a leading international chip design 4 to Wi-Fi 6, low-power Bluetooth,Thread, and



Innovation Espressif faces risks in research and development progress company.The company continuously improves its product matrix, Zigbee technologies, and continuously increases

Risk and market promotion failing to meet expectations in avoiding reliance on a single product line. the edge computing capabilities.



developing low-carbon (low-power) chips.



Espressif｜2023 ESG Report｜Environmental Protection

GHG Emissions Management



Direct greenhouse gas emissions arise from sources owned or



1 controlled by the company, such as combustion in owned or Energy Management



controlled boilers, furnaces, vehicles, etc., and emissions produced



by chemical production in owned or controlled process equipment. The company operates in the IC industry's design segment and does not



involve product manufacturing; therefore, our primary energy consumption



comes from o fice operations, employee commuting, and other aspects.To



2 Indirect greenhouse gas emissions from electricity produced by promote low-carbon operations, we tracked Espressif's carbon footprint for the

power generation facilities. first time in 2021. Further, we advanced the implementation of energy-saving



Scope and emission-reduction measures through quantified results.



GHG Emissions Accounting



3 Other indirect greenhouse gas emissions, considering upstream We are aware of the risks brought about by global climate change. Due to



and downstream indirect emissions. Espressif's business characteristics, our carbon emissions mainly come from



purchased electricity for o fice spaces, business travel, and hotel



accommodations, as defined by GHG Protocol Scope 2 and 3. We have



2023 Espressif GHG Emissions collected data on the annual group's purchased electricity, employee travel



Emission Intensity tCO 2021 2022 2023 kilometers, upstream transportation and distribution kilometers, and factory



production carbon emissions for 2023. As shown in the table, we have



Scope I 0.00 0.00 0.00 conducted corporate carbon emission estimates with specific emissions.



Scope II 1,017.24 1,504.83 2,394.49 * This report's calculations refer to the "Greenhouse Gas Protocol (GHG Protocol)"



Purchased Electricity 1,017.24 1,504.83 2,394.49 developed by the World Resources Institute (WRI) and the World Business Council for

Sustainable Development (WBCSD) for the corporate carbon emission accounting for

Scope III 198.90 7,412.67 9,826.26 the year 2023.To facilitate the description of direct and indirect emission sources, the

Purchased Goods and Services 8,941.04 7,229.32 9,464.35 GHG Protocol sets three "scopes" (Scope 1, Scope 2, and Scope 3) for greenhouse



gas accounting and reporting.



BusinessTravel 198.90 168.89 320.40 * Starting from 2023, we have expanded the statistical scope of Scope 3, adding



UpstreamTransportation 28.41 categories "Purchased Goods and Services," "UpstreamTransportation," and



Upstream Leased Assets 14.46 13.10 "Upstream Leased Assets" beyond the "BusinessTravel" category and covering as



1,017.24 1,504.83 2,394.49 many traceable sources as possible.



Total（Scope I & Scope II）



Per Capita（Scope I & Scope II） 1.97 2.75 3.98



Espressif｜2023 ESG Report｜Environmental Protection

Energy Saving and Emission Reduction



Innovation beats challenges Intelligence across industries the system can automatically release a proper amount of fertilizer

or nutritional supplements.



We continuously improve our environmental management During the reporting period, Espressif's products entered more At the same time, this technology can also be applied to warn of

system, focusing on the research and development of low- downstream markets, such as industrial control, education, pests and diseases, enabling field monitoring and helping



energy-consumption technologies. We aim to save energy healthcare, agriculture, vehicle networking, energy management, farmers increase yield and quality while reducing management

through technological innovation. Espressif has made etc., promoting the low-energy chip market. costs.



breakthroughs in low-energy products, with the latest mass-



produced in 2023, ESP -C , ESP -H , and several chips to Intelligent Industrial Control Optimization of logistics



be launched in 2024, all being low-power products. Espressif products have a wide range of industrial control



Low-Power Circuit Design application scenarios. For example, they can connect to various Fuel is the most significant cost within the entire transportation

sensors and actuators to precisely control the production line. By chain. How the packaging and transportation of raw materials,



Espressif incorporates green concepts into chip design process, collecting, analyzing, and interpreting data, our products can work-in-progress, and finished products are optimized directly



reducing energy consumption. Espressif's research and quickly identify problems, thereby improving production impacts Scope 3 carbon emissions.



development of low-power design significantly reduces product e ficiency and product quality and providing strong support for



power consumption. the sustainable development of enterprises. Espressif globally adjusts storage and transportation planning



dynamically, focusing on optimizing e ficiency to reduce



Espressif o fers various solutions that allow users to select power Additionally, Espressif so tware products (such as ESP Insights) environmental impact. New initiatives during the reporting period

consumption modes.These solutions meet the di ferent allow developers to remotely monitor their devices, and all data include:



scenario requirements of IoT applications and assist downstream can be uploaded to the cloud (ESP RainMaker) for remote



device manufacturers in passing strict power consumption maintenance. Using this technology, if a device malfunctions or Increase a foundry in Vietnam for direct shipment to customers

certification tests. For example, Espressif's single live wire switch behaves abnormally, engineers can quickly locate and fix the and optimizing raw material transportation routes resulted in



solution has created a smart switch with lower power issue, reducing downtime and enhancing production benefits. saving a total of 161,800 kilometers.



consumption and superior Wi-Fi performance. Improving packaging design to reduce transportation weight

High Integration Intelligent Agriculture and increase loading e ficiency.



Espressif products can be used to build intelligent agricultural



Espressif's chipsets are highly integrated, reducing the need for systems. Based on AI, machine learning, and the integration of 161.8 thousand KM0.49 tCO

additional components such as resistors, capacitors, inductors, advanced image recognition technologies, data on crop growth



switches, baluns, and power management chips, which reduces can be collected.This data can be transmi ted via Wi-Fi to the



the waste of printed circuit boards. cloud or local servers, where it is analyzed. For example, when Saving transportation distance Saving GHG emissions



the level of specific nutrients in the soil falls below the ideal level,



Espressif｜2023 ESG Report｜Environmental Protection

Circular Economy Lifecycle



Espressif is a fabless company, thus reducing Green Packaging 100% 51%



the environmental impact of transportation



has become an essential task. Improving the environmental impact of



Green Procurement packaging is a crucial element of our green Recyclable green packaging, label area saved per



supply chain. We improve resource utilization reusable trays, and bulk cartons single box packaging



and Manufacturing e ficiency by enhancing packaging design,



using eco-friendly materials, and increasing Certification



Since carbon emissions arise at every stage the recyclability of packaging.



of the product lifecycle, especially in The company's sustainable packaging plan In 2023, Espressif continued to encourage



manufacturing, the company has includes: suppliers to pass environmental certifications.



implemented a series of measures to Smaller, lighter, and more suitable sized Core suppliers have passed the following



minimize environmental pollution as much as packaging. certifications:



possible, including:



Requiring suppliers to sign "Supplier Using recyclable materials instead of



Environmental Commitment," "Supplier plastic.



Corporate Social Responsibility and Replace plastic films with recyclable



Environmental Protection Agreement," materials.



declarations, and collaborating with Convert plastic trays and foam components



suppliers who have obtained environmental to paper or reduce use through design.



certifications. Increasing the reuse of trays, reels, and



Supporting suppliers in the use of bulk cartons.



renewable energy. Reducing the size of unit labels by 20%



Procuring non-toxic and harmless materials. and reducing label usage, saving 51% per



Minimizing water use and expanding reuse. carton packaging.



Reducing land waste and increasing Product packaging materials meet the



resource recycling. 94/62/EC Directive on Packaging and



Packaging Waste.



Standardizing packaging box sizes.



Espressif｜2023 ESG Report｜Environmental Protection



Energy Reservation reserved, machines and lighting equipment are Waste Disposal Rules



turned o f, which saves energy. Besides, the Classification Example Disposal Method



Espressif advocates the environmental protection reservation pla form clearly shows the status of



that everyone is responsible for environmental instrument usage, avoiding conflicts and improving Non-reusable Handled by designated suppliers, medical waste

protection. We raise employees' environmental the e ficiency of our engineers. waste Domestic garbage such as masks are sent to specified incineration

awareness through low-carbon advocacy, making points for harmless treatment.



our o fice more eco-friendly and energy-saving. Waste Management Kitchen waste Kitchen waste, waste Handled harmlessly by professional, qualified



We have a series of measures to guide employees We cooperate with professional waste disposal cooking oil suppliers.



in low-carbon working. For example, we remind companies to handle daily waste, reduce waste Solid Packaging cartons, Regularly collected by designated suppliers,



employees to adjust air conditioners to reduce landfilling, and minimize the negative impact on waste Reusable waste hardware parts equipment scrap and hardware parts go through

waste; we call on employees to turn o f lights the environment. scrapping.



when leaving, save water, recycle paper, and The company generates various types of Hazardous waste Chemical packaging Stored at designated points, disposed by



digitalize o fice operations; we provide employees electronic waste daily, including used servers, containers qualified companies.



with personal tableware and water cups to reduce storage devices, network equipment, computers, Construction Decorative waste Construction waste is stored at designated



the use of disposable tableware; we choose monitors, and electronics used for testing. We waste materials points, dealt with by the contractor.



suppliers certified by the FSC for international collaborate with qualified professional e-waste Generated from Directly enter into septic tanks and discharg into

forest management; we adopt "online interviews" suppliers to ensure proper tracking, processing, Waste Other wastewater restrooms, pantries, and the municipal sewer network a ter meeting



to reduce emissions. and recycling of our electronic waste. water cleaning activities standards.



In terms of waste management, we strictly follow To minimize electronic waste, the company has



the classification policy, store wet and dry waste at designed an inventory management program.



designated points, and handle them according to Portable o fice computers and other electronic



the prescribed procedures. We also participate in products that meet specific criteria can be



caring for stray animals in the community, helping transferred to employees for personal use upon



to find adopters for stray animals. application, aiming to extend their lifecycle.



Laboratory Management



Espressif has increased the e ficiency of lab 158 t 33.5 kg



instrument use by establishing a laboratory



reservation system.This system prevents conflicts Water Usage Hazardous Waste



in experiment scheduling, enables the tracking of



instrument usage, and controls laboratory energy



consumption. 287,100liters



Espressif sta f can schedule laboratory instruments



via a webpage or app. When the laboratory is not Garbage Disposal



Espressif｜2023 ESG Report｜Environmental Protection



Biodiversity Protection 198 %



YoY growth rate of donation



amounts to IUCN (Red List of Species™)



Espressif is concerned about the environment and ecology.To further raise



Blue-footed Booby public awareness, since 2020, we have initiated an endangered species



protection program in reference to the IUCN Red List of Species™. Some of



Least Concern Espressif's development boards are named a ter endangered species, and a



The Blue-footed Booby is a seabird that inhabits portion of the income from these development boards is donated continuously

tropical and subtropical islands in the Pacific to IUCN on a quarterly basis. In the same year, we releasedT-shirts with themes

Ocean.They have bright blue feet, which are of wildlife protection and started using these animal names as names for



easily identifiable and are a sexually selected trait meeting rooms to call on employees to join together in protecting biodiversity.



related to diet.



Clemmys Gu tata



Endangered



Clemmys gu tata is a small, semi-aquatic turtle living in the Great Lakes region of North



America. Although Clemmys gu tata can currently be seen in multiple conservation areas,



its future survival remains a concern due to environmental changes and human poaching.



Kaluga Saola Vaquita



Critically Endangered Critically Endangered Critically Endangered



The Kaluga is a critically endangered giant The Saola, an endangered mammal known The Vaquita is the world's rarest marine mammal, discovered

predatory sturgeon living in the Amur River in as the "Asian Unicorn," has been shrouded in 1958 and now on the brink of extinction. In recent years,



Russia's Far East. Due to its valuable caviar in mystery since its discovery in 1992.To the population of Vaquitas has rapidly decreased due to



being heavily harvested, it continues to face date, scientists have only recorded wild illegal fishing activities, with only about 10 individuals



threats to its survival. Saola on four separate occasions. remaining in their main habitat area in Mexico.



ESP -S -kaluga-1 ESP -S -Saola-1 ESP -Vaquita-DSPG



A multimedia development board A general-purpose development board An audio development board



based on ESP -S based on ESP -S based on ESP



Espressif｜2023 ESG Report｜Community Symbiosis



Community

Symbiosis

SDGs



Espressif｜2023 ESG Report｜Community Symbiosis

02 Symbiosis: Sharing Booms Industry



Espressif's thriving ecosystem begins with the company's Diverse pla forms prosper our ecosystem More job opportunities



open documentation and open-source code.The development The company adopts a B D B (Business to Developer to A thriving open-source ecosystem provides more individuals,



of AI technology catalyzes the achievement of energy-saving Business) business model, dedicated to creating a thriving startups, and research teams with low-cost opportunities to build

and emission reduction while driving industry development developer ecosystem to capture business opportunities. IoT projects, promoting industry growth and creating more job

and bringing more job opportunities to the community. Espressif has held its Global Developer Conference (entirely opportunities. Our impact is not limited to the o fice location; the

Meanwhile, these measures can reduce operating costs and online) for two years.The company also maintains the ESP internet allows everyone in the e-community to benefit.



assist in market expansion, thereby giving the company forum and Bug Bounty reward program, energizing the



stronger motivation to continue investing in such an ecosystem for collaborative development. Giving back



ecosystem, ultimately forming a positive and sustainable



virtuous cycle. Devoted to high-quality education



Actions Lower Costs, accelerating development



Investment in education is our commitment. We spare no e fort Our ecosystem helps spread the company's reputation, and



in sharing the latest technologies with students and faculty to spontaneous promotion by developers reduces the company's

Open resources + AI accelerate development enhance students' industry awareness and competitiveness, marketing expenses and brings more potential business



Espressif provides many self-service resources, including free helping them secure more job opportunities in the future. opportunities to the company.



documentation and open-source code, such as o ficial technical Meanwhile, Espressif encourages employees to participate in



documentation and GitHub code.These resources are presented volunteer activities. Highlight di ferences, more competitiveness



online and easily accessible to developers. Social Impact The company has gained high recognition globally by providing

With the popularity of AI-assisted tools like ChatGPT and Copilot, di ferentiated products and complimentary additional ecological

Espressif's extensive open resources provide nutrition for training Saving more resources services to our customers, thereby enhancing our



AI models. More innovators are using AI assistants to develop competitiveness.



and optimize code for IoT applications built with Espressif All documentation is available in the cloud, and the operations



products, accelerating the development of the IoT application are paperless.These materials reduce redo or return products,



market. e fectively improving user development e ficiency. Holding the Actions



developer conference online eliminates the carbon emissions of



Our commitment to open source ensures the symbiosis with global business travel. Moreover, it has a broader radiating Positive, sustainable



industry partners. Espressif's hardware and so tware are non- scope, impacting developers worldwide. We indirectly achieve virtuous cycle



exclusive and can achieve a win-win situation with other energy-saving and emission-reduction goals by helping clients Giving Positive



companies through so tware symbiosis (such as Wokwi and reduce the consumption of human and material resources. Back Impact



LVGL) and hardware symbiosis (such as Arduino).



Espressif｜2023 ESG Report｜Community Symbiosis



Example 1: Espressif and Wokwi's Symbiosis Example 2：Espressif and Arduino's Symbiosis Example 3：ESP Bug Bounty Program



Wokwi is an online hardware simulation pla form that supports a The Arduino pla form includes both hardware and so tware The Espressif Bug Bounty Reward Program has been in operation

variety of hardware, including Espressif's products.The pla form components.The hardware is a series of programmable for seven years.The program stipulates that for every valid



allows users to run and test their embedded code in the browser development boards, and the so tware is an Integrated security-related bug identified in our development pla form, we

without actual hardware devices. Development Environment (IDE). Like Espressif's, the Arduino pay $500, with an additional $1,729 awarded if the developer



This pla form is free, so Espressif developers can avoid the community is open-source, allowing users to share projects, provides verification testing.The feedback from developers help

transportation carbon emissions associated with purchasing test code, and experiences. us improve the so tware before commercialization, providing



development boards during the experimental phase and issues As early as 2015, Espressif's products had achieved so tware be ter so tware support for customers. Espressif thanks



with development board wear and tear due to failed experiments. symbiosis with Arduino. In 2023, Arduino o ficially launched the developers in the ecosystem for contributing to the company's

Through so tware symbiosis, developers on other pla forms can Arduino Nano ESP development board, featuring the main growth.



become familiar with Espressif products, improving development control chip ESP -S from Espressif, thus tightly integrating the IoT security incidents are a long-term and persistent threat;



e ficiency and promoting the company's brand. Arduino hardware and so tware pla form with the ESP ecosystem. Espressif takes such issues seriously. We respond quickly to



Integrating the two ecosystems will further expand the vulnerabilities and propose mitigation solutions.The company



community, bringing more development opportunities to each has also won global customer trust and recognition for its severe

other. and open a titude towards handling security incidents.



Espressif Security Incident Response Process

Report Evaluate Corrective Public

Incident Issue Actions Disclosure

Espressif｜2023 ESG Report｜Community Symbiosis

Espressif Developer Conference 2023



Since the release of the ESP in 2014, Espressif has established a long-term



cooperative relationship with the developer community, achieving frui ful results.



The developer community will continue to drive innovation in the AIoT field



alongside us. For example, we provide developers with development kits,



documentation, and manuals that can be accessed without signing a non-



disclosure agreement. We also o fer open-source so tware and tools to help the



developer community create IoT products more e fectively.



In September 2023, Espressif held its second Global Developer Conference,



inviting technical experts from Espressif and its partners to give nearly 30



speeches on topics such asThread, ESP -C and Wi-Fi 6 low-power features,



ESP-Mesh-Lite + ESP RainMaker cloud solutions, ESP-IDF, RUST, SquareLine



Studio, and AWS IoT. Like the previous year, this developer conference was



broadcast from two live centers in Shanghai and Brno and streamed over three



pla forms: Espressif's WeChat channel, Bilibili, and YouTube, for 16 hours over two



days, a tracting approximately 70,000 viewers globally.



Espressif is commi ted to sharing the latest products and solutions with global



developers through conferences and building a beneficial, two-way instant



communication pla form. We hope engineers become more e ficient, creative, Senior Principal Engineer CEO CEO



and innovative by using our solutions and embodying a unique Espressif style. Richard Barry Gábor Kiss-Vámosi Surya Jayaweera



Espressif has initiated the call for presentations for the third Global Developer Refactoring FreeRTOS for Introducing SquareLine From Rockets to Cellos: Real-world

Conference. We look forward to the developer community gaining a deeper the Next 20 Years Studio v2 Applications of ESP Series



understanding of our products and future directions.Through such events, we Microcontrollers and Development

aim to gather feedback from customers, developers, and the community to Board Variants



create products that users love.



Espressif｜2023 ESG Report｜Community Symbiosis



More than books on how to use ESP products can be found



cover over languages



Espressif｜2023 ESG Report｜Community Symbiosis

High-Quality Professional Education



Professional education is the cornerstone of writing embedded teaching books, which are The National College IoT Competition is a apply classroom knowledge to reality, and



the semiconductor industry's future used for teaching and the community, large-scale and influential academic gain an in-depth understanding of cu ting-



development. Espressif is devoted to benefiting the developers and engineers. competition in the IoT field in China. It was edge AI technologies through Espressif's rich

cultivating talent for the industry. We have jointly initiated by the Computer Science development resources and competition



launched many school-enterprise Internship Program: From ProfessionalTeaching Steering Commi tee training. Furthermore, Espressif o fers



cooperation projects with various Internship to Employment and the IoT Engineering Professional internship opportunities to outstanding



universities, including collaborative courses, Construction and Research Expert Group. students in the competition, further opening

experimental courses, internships, Espressif signs university-enterprise joint Since its first event in 2014, it has been up future employment pathways for students.

competitions, scholarships, etc. training agreements with universities, successfully held for ten consecutive



providing students with internship sessions. Overseas STEM Education



IoT-Embedded Courses: From opportunities that can lead to employment. Leveraging the powerful global influence of

Theory to Practice Students who pass Espressif's preliminary Espressif has sponsored this Competition for the ESP series chips, Espressif has also



evaluation can apply for an internship. the second consecutive year, providing established STEM education cooperation with

University students must learn about IoT- Students with suitable thesis topics may also teachers and students with the topic multiple overseas universities.This



embedded systems. Universities typically complete them at the company. "Exploring Agricultural Innovation Based on cooperation includes teaching using



o fer embedded experimental courses to help ESP -S " and providing rich development Espressif's hardware and so tware resources,

students learn IoT-embedded development During the internship, students will participate resources, including various AI development conducting IoT workshops, and supporting

based on hardware development boards and in the company's actual R&D projects, boards based on ESP -S , the deep IoT competitions.



so tware programming. working alongside an international team. Due learning library ESP-DL, and so tware



to the nature of the our R&D team, students development frameworks such as voice



Espressif cooperates with universities on can directly communicate with and learn from recognition and face recognition. In this



these courses. Not only do we provide a large many technical experts in the industry and competition, the company invites students to



number of ESP series development boards participate in internal training. focus on smart agriculture and to solve real



as hardware support, but we also bring A ter completing the internship, students who agricultural problems.



Espressif's IoT operating system ESP-IDF, rich pass the comprehensive assessment will



so tware SDKs, and ESP RainMaker into the Espressif supported approximately 200 teams



classroom, allowing students to learn IoT receive an o fer from Espressif's campus from universities nationwide, with 13 teams



project development from scratch. recruitment and become o ficial employees. advancing to the final round.



At the same time, Espressif also provides College IoT Competition Through this competition, students can



technical support for university professors explore, experience, and learn IoT application,



Espressif｜2023 ESG Report｜Innovation

Innovation



SDGs

Espressif｜2023 ESG Report｜Innovation

03 Innovation



The era of rapid development of IoT technology is upon us, external cooperation management strategies. We strictly R&D Expense



with AI technology endowing IoT devices with powerful edge implement the above management methods, encourage



processing capabilities, compatibility of communication research and development personnel to innovate, and avoid 28.2%



protocols promising interconnectivity among devices, low- intellectual property risks.This management system has 26.5%



power technologies further reducing device energy obtained GB/T - intellectual property management 23.2% 40,371 19.8%

consumption, and security technologies safeguarding private system certification and continues to pass annual reviews. 19.6% 33,712



information. 15.8% R&D Exp YoY



IP Achievements 27,169



Espressif has always stuck to the integration of so tware and Since our inception, Espressif has been engaged in research 28 %



hardware and achieved many exciting breakthroughs in the 19,279



field of cu ting-edge IoT, including low power consumption, and development design work in IoT chips. A ter years of 11,975



audio and video encoding, operating systems, development accumulation, we have accumulated core technologies in chip R&D Exp Rate



frameworks, AI, cloud, security, etc. design, AI, RF, device control, processors, data transmission,



and other aspects, possessing multiple IP rights.These 2019 2020 2021 2022 2023



In-house R&D Commitment technologies enable us to be the industry leader in integration, R&D Expense (M RMB) R&D Expense Rate



product size, so tware applications, RF, and computing



In the fiscal year 2023, Espressif's investment in research and capabilities. R&D Personnel



development reached 404 million RMB, accounting for 28.17% In 2023, Espressif was awarded the title of "National Intellectual



of our revenue, with a YoY growth of 19.75%.The company Property Advantage Enterprise." By the end of 2023, the 77.4%



thinks highly of R&D investment, maintaining a high research and 75.7% 75.0% 76.1%



development expense. As of the end of 2023, Espressif's company had obtained 167 patents and so tware copyrights, 484

research and development personnel numbered 484, including 89 approved domestic invention patents, 26 utility 71.3% 484



model patents, one design patent, 28 U.S. patents, and 23 440



approximately 77% of the total group sta f. registered so tware copyrights. 388 R&D Personnel



340



IP Management 246 77%

The company places great importance on intellectual property 250 167



and has designed a complete intellectual property management R&D Personnel



system, including intellectual property planning and layout, overTotal Sta f



patent training mechanisms, patent reward and punishment Applied IP Obtained IP 2019 2020 2021 2022 2023



mechanisms, patent application and review mechanisms, and R&D Personnel R&D Personnel overTotal Sta f



Espressif｜2023 ESG Report｜Innovation

Technological innovation



Espressif is continually investing in cu ting-edge technology. Based on AI, Espressif is building an IoT pla form and supporting AI ecosystem developers. Through deep involvement with Ma ter, Espressif has launched

several chips equipped with 802.15.4 (Thread/Zigbee), enabling IoT devices to interconnect across brands and ecosystems. In terms of security, Espressif SoCs come with comprehensive security systems, providing

users with higher levels of data protection. Meanwhile, in power consumption management, Espressif has transitioned from Wi-Fi 4 to Wi-Fi 6 and supports a broader range of low-power communication technologies.

The positive accumulation of fundamental IoT technology is the cornerstone of Espressif's steady development. The company has formulated a strategy for the collaborative development of so tware and hardware.

Over the years, Espressif has made progressive achievements, implementing IoT SoC, operating systems, development frameworks, AIoT development pla forms, and more.



In 2023, Espressif achieved the following breakthroughs:



Wireless Communication Protocol transmission power and reception sensitivity RISC-V MCU Cloud



Espressif's self-developed Wi-Fi 6 and low- have reached the maximum allowable limits. Since 2020, the MCU all new released Espressif SoCs support almost all mainstream

power Bluetooth chips have been mass- Low Energy products by Espressif based on our self- cloud pla forms. In addition, we have



produced, and the IEEE . . technology developed RISC-V instruction set. During the developed our own lightweight AIoT cloud



product line has been expanded. Espressif SoCs are equipped with outstanding reporting period, the newly released ESP - so tware, ESP RainMaker®, which is highly



low-energy technologies. For instance, when P features a RISC-V -bit dual-core integrated with AWS and supports the building

For example, ESP -C is our first SoC building a smart single-wire solution with processor with a frequency up to 400 MHz. and deployment of customized AIoT solutions

supporting dual-band Wi-Fi 6, it also provides ESP -C or ESP -C , the switch maintains with minimal code.



Bluetooth 5 and IEEE . . connectivity. a Wi-Fi connection with a current as low as Edge AI Security



Its support for the G frequency band 600-800 uA; using ESP -S, ESP -C, ESP -S MCU adds AI vector instructions to



reduces interference and provides more ESP to run ESP-NOW can achieve ultra-low- accelerate, forming a robust hardware Security features are at the core of Espressif

stable, lower-latency connectivity. power data transmission. foundation for AIoT.The ESP -P has higher SoC design. Espressif SoCs integrate



ESP -C, ESP -H, ESP -S , and ESP IoT Development Framework computing power and meets the high- essential security components such as



now all support the Ma ter ecosystem. performance computing needs for multiple secure boot, flash encryption and so on,



ESP-IDF, our open-source IoT development IO, HMI, and AIoT applications. ensuring device security. Digital signature



RF framework has empowered hundreds of peripherals and dedicated critical



millions of IoT devices. ESP-IDF has a clear Espressif's deep learning library ESP-DL management units ensure private keys are



Our RF front-end components are entirely and strict release process with support provides APIs for neural network inference, generated inside the SoC. Hardware access

self-developed, ensuring that Espressif's strategy, ensuring users continue to receive image processing, mathematical operations, protection can achieve access rights



SoCs have excellent performance. For essential fixes applicable. In 2023, ESP-IDF and deep learning models. Amazon Alexa management and privilege separation.



example, in the case of the ESP -C , under was upgraded to v5.1, with 27 version Built-in devices' Audio Front End has certified



the "802.11b, 1 Mbps" mode, both the iterations, bringing many new features. our high-performance algorithms.



Espressif｜2023 ESG Report｜Innovation

Product and Service Innovation



In 2023, Espressif released its first SoC without connectivity features, the ESP -P , and updated ESP-IDF to version 5.1. ESP RainMaker ESP Insights continued to evolve.



ESP32 High-Performance SoC Lightweight AIoT Cloud Software



P4 ESP32-P4 ESP RainMaker®



The ESP -P represents Espressif's breakthrough into the multimedia market as the first SoC without ESP RainMaker provides a complete cloud solution for building IoT ecosystems, bridging the gap



connectivity features. It is powered by Espressif's self-developed high-performance dual-core RISC-V between underlying hardware (chips and modules), the so tware ecosystem (ESP-IDF IoT operating



processor, featuring AI instruction, advanced memory subsystems, and integrated high-speed system, Ma ter, voice assistants, HMI, etc.), cloud backend (built on AWS), mobile apps, and device



peripherals, fully meeting the higher demands of next-generation embedded applications for HMI management dashboards, establishing an open, flexible, and privately deployable cloud infrastructure.

support, edge computing, and IO connection. Customers can quickly build IoT products based on the existing resources of ESP RainMaker, exploring

ESP -P introduces support for MIPI CSI and MIPI DSI interfaces, enabling the integration of high- product diversity with lower investment costs, less R&D input, shorter time, and realizing iteration.



resolution cameras and display interfaces. ESP -P supports capacitive touch input and voice The flexibility and openness displayed by ESP RainMaker in product architecture and business models

recognition, making it an ideal choice for building HMI applications. Additionally, it integrates hardware make it suitable for enterprises of di ferent sizes and types.



accelerators for media encoding and compression and a PPA suitable for GUI.



IoT Development Framework Unified Connectivity Standard



ESP-IDF 5.1 Espressif's Matter Products and Services



In 2023, Espressif released the latest stable version, v5.1 of ESP-IDF, which adds more features and Espressif o fers comprehensive Ma ter solutions, including Ma ter over Wi-Fi end devices, Ma ter over

optimizes the development experience based on v5.0. Thread end devices,Thread border routers, and Ma ter gateway reference designs.To simplify the



Compared to ESP-IDF v5.0, v5.1 supports ESP -C and ESP -H , while ESP -P is currently in development and manufacturing process for customers' products, Espressif also provides one-stop



preview support status. Additionally, ESP-IDF v5.1 introduces several newThread-related features, such service support, such as Ma ter Device Certificate (DAC) generation and the plug-and-play ESP-



as Border Router Self-Hosting Services and Border Router Deinitialization, and adds support for ZeroCode modules, bringing more convenient and e ficient.



numerous BLE controller features for ESP -C , ESP -C , and ESP -H . The company now supports the latest Ma ter 1.2 standard and its nine new types of home appliance

This version not only addresses customer issues and demands and refines the entire development devices. Based on this, Espressif's feature-rich and cost-e fective Ma ter solution pla form can provide

framework. corporate customers and developers with broader innovation space and development opportunities.

Espressif｜2023 ESG Report｜Innovation

Solution Innovation



Based on Espressif's SoCs and so tware frameworks, the company has launched many IoT application solutions to meet the industry's demands.



HMI Smart Screen direct, rapid, and low-power control of smart Regarding audio, our ESP-SR integrates processing, facilitating richer AWS service



devices without a router. It can coexist with components such as AI acoustic front-end connections.



Espressif has developed robust HMI smart Wi-Fi and Bluetooth LE, supporting multiple algorithms, voice wake-up engines, and multi- Furthermore, Espressif also provides a



screen solutions based on the ESP SoCs, series of SoCs. It is widely used in smart command word recognition models, complete set of AIoT solutions, integrating



capable of achieving data visualization, touch appliances, remote control, and sensors. achieving high-quality and stable sound data the ESP-EYE development board, ESP-WHO

and knob controls, voice wake-up and ESP-NOW removes the need to pass through collection. Meanwhile, its algorithms provide AI framework, and ESP-IDF so tware SDK,



recognition, multi-mode gateways, and other complex layers and add/depack headers powerful support for voice interaction with helping to implement AI technology in IoT



functions, constructing user-friendly HMI during data transmission, significantly features like acoustic echo cancellation, blind application development successfully.



applications. Our smart screen solutions are reducing congestion-related stu tering and source separation, and noise suppression. In



widely applicable in fields such as smart delays and resulting in higher response addition, the ESP-Skainet smart voice



home central control, screens for appliances, speeds. assistant combines ESP with AI voice



medical health devices, industrial control, and For example, the ESP -C -based bu ton recognition, supporting a 200+ o fline voice



children's education. ba tery switch addresses wireless switches' command recognition engine and front-end



response lag and gateway needs. It can be acoustic algorithms, o fering engineers a



The ESP -S is suitable for RGB interface used with ESP-NOW without a gateway and convenient solution for rapidly developing AI



screens with maximum resolutions of reacts quickly. Moreover, the product voice interaction applications.



800×480, while the ESP -C supports SPI supports an extended standby time: with ten Espressif's ESP-WHO provides facial detection



interface screens. Espressif's HMI solutions bu ton presses daily, a single-bu ton ba tery and recognition functions.Together with the



support standard GUI development can last five years. ESP -S -EYE AI development board, it



frameworks, including LVGL and Slint. allows rapid construction of image recognition



LE Solutions AI Solutions models; ESP-RTC real-time audio and video



communication solution enables Wi-Fi



Espressif's low-energy solutions include ESP- EspressifTechnology o fers a comprehensive connectivity and audio-video processing,



NOW and the Wi-Fi single-fire line smart range of AI solutions.The advanced ESP - o fering users clear video call experiences;



switch. S AI acceleration feature provides robust the ESP-EYE development board is Amazon



hardware support for intelligent audio and AWS qualified, compatible with FreeRTOS



ESP-NOW is a wireless communication image recognition. operating system, suitable for real-life



protocol defined by Espressif. It enables scenarios of image recognition and voice



Espressif｜2023 ESG Report｜Innovation

TechnicalAssociation Participation



Open-source technology and the movement towards a unified IoT ecosystem are the



future development trends. Espressif participates in global technical associations, working



with industry partners to promote technological innovation.



RISC-V



RISC-V is an open-source instruction set, which promotes an open license and collaborative



model.The RISC-V International Foundation is a global non-profit organization headquartered



in Switzerland. Espressif is a founding strategic member of the RISC-V International



Foundation, and over the years, we have successfully developed RISC-V MCUs and achieved



commercialization.



Matter



Ma ter is a smart home interconnection protocol initiated by Amazon, Google, Apple, and CSA



to achieve interconnectivity among di ferent ecosystems. Espressif joined the Ma ter program



at the outset of the protocol's launch, continuously supporting the development of the Ma ter



certification project. During the reporting period, the company announced entry into the



alliance's board and became a Promoter Member.This means that Espressif will further expand



participation and leadership role within the CSA.



Bluetooth SIG



Bluetooth SIG is an international organization aimed at developing Bluetooth specifications



and promoting Bluetooth technology. Espressif, as a member of the alliance, has always been



actively involved in and promoting the development and implementation of SIG protocols.



During the reporting period, the company announced self-developed Bluetooth Mesh



protocol stack, ESP-BLE-MESH, now supports all the features of the latest Bluetooth Mesh



Protocol 1.1, making it one of the first companies globally to support this update prior to its



o ficial release by the Bluetooth SIG. In the process of promoting the Bluetooth Mesh Protocol



1.1, SIG highly recognized Espressif's outstanding contributions in Mesh Profile Enhancement,



including multiple enhancement features such as CBP, ENH, EPA, PRB, and SBR.



Espressif｜2023 ESG Report｜Talent



Talent

SDGs



Espressif｜2023 ESG Report｜Talent

04 Talent



Employees are Espressif's top priority, each employee and fully encourages them to Diversity and Inclusivity



supporting the company's long-term leverage their talents to do things. Our team Espressif values diversity and our inclusive culture and we strictly forbid medical tests or



development. Espressif has established R&D consists of talents from about 30 countries and encourages us to embrace di ferences and keep examinations with discriminatory intent.



centers in Shanghai, Suzhou, Wuxi, and Hefei in regions, injecting diverse innovative energy into an open mind to new ideas. We are commi ted to



China, and internationally in Singapore, India, the Espressif. creating an environment where employees feel As of the end of 2023, Espressif's workforce has

Czech Republic, and Brazil. We aim to gather The R&D is quite challenging, and Espressif hopes free to express their thoughts. reached 625 employees. Our sta f come from



outstanding global talents to promote the to recruit top talents to join us in tackling di ficult approximately 30 countries and regions, with R&D

advancement of underlying IoT technologies and tasks. Relying on Espressif's values, our team We are firmly dedicated to fostering a fair working personnel accounting for 77.44%.The proportion

contribute to the development of IoT. tirelessly pushes the boundaries of underlying IoT atmosphere. We strictly prohibit any form of of male employees in the company is 66.40%. In

Espressif always insists on development of IoT technology. discrimination based on skin color, age, gender, comparison, female employees account for



technologies, meaning that engineers joining race or ethnicity, disability, pregnancy, religious 33.60%, and female managers comprise 28.13%

Espressif have the opportunity to engage in core Employee welfare is our top concern. Espressif beliefs, marital status, or any other factors in hiring of the management sta f. Additionally, Espressif

R&D work, with ample space for exploration, provides employees with competitive or employment practices. All recruitment and recruits and supports individuals with disabilities,

thereby becoming future technology experts. compensation and benefits, adopts a flat and assessments must be based on personal abilities, providing them with the necessary assistance.



flexible management system, and creates a



Diversity is the source of innovation. Espressif relaxed and vibrant working atmosphere for



respects the di ferent backgrounds and skills of employees. 30 33.60%

3%2% 9% 1%



14% Countries and Regions Female Employees

8%



40% Educational Employee 48% Below 30



Background Distribution Age Distribution Between 30 and 40



Between 40 and 50



PhD 56% R&D Over 50



Master Sales 42%



Bachelor Management



Below Bachelor



77%



Espressif｜2023 ESG Report｜Talent



overall framework, the company sets di ferent The Compensation and Assessment



Employee Rights compensation incentive systems: Commi tee is responsible for formulating and

1. Compensation incentives should consider assessing the compensation plans and



local market conditions and legal regulations; performance of directors and senior



2. For the management team, technical and management.The shareholders' meeting is

Protecting employees' rights is Espressif's New employee care: Espressif assigns business backbone: Comprised of fixed responsible for reviewing the directors'



fundamental commitment. Espressif strictly "mentors" and "buddies" for every new salary, project bonuses, annual performance compensation standards and annual stock



adheres to labor laws such as the Labor hire. Employees are encouraged to report bonuses, and stock incentives; incentive plans. In 2023, the company's 2023

Law, Labor Contract Law. In our overseas any work or life issues, and the company 3. For other employees: Comprised of fixed Restricted Stock Incentive Plan was approved

R&D centers, we respect the laws of will help resolve the problems. salary, project, and annual performance by over 99.99% of shareholders present at

di ferent countries and have adjusted our bonuses. the shareholders' meeting.



employee rights system accordingly. Humane rights: Espressif has zero



tolerance for sexual harassment, sexual Career Development

Beyond legal requirements, we are among abuse, physical punishment, mental or



the first companies on the STAR Market to physical coercion, or verbal abuse, and



initiate stock incentive plans, widely has established systems to prevent such



motivating employees. behaviors.



Espressif has built a learning system. We Reading Culture



Labor and Human Rights Anti-discrimination: Espressif treats believe continuous learning, maintaining Books are the ladder of human progress.



Employment: Contract signing rate is employees equally and protects their though fulness, and adhering to originality Espressif encourages employees to cultivate a

100%, and we do not employ child labor legal rights.There were no discrimination are essential for long-term development. love for reading. We suggest they read 6



in any form. incidents in 2023. Espressif encourages every employee to books each year. We have a library where



Privacy: Espressif protects employee embrace knowledge, expand the boundaries books can be borrowed for free, and



Work-life balance: Espressif provides paid privacy and does not collect private of their thoughts and skills, and reflect this employees can suggest book purchases to

annual leave, and employees enjoy information. in their work. enrich their collection.



statutory holidays. We adopt a flexible Training



work system and o fer team-building Compensation Scheme Promotion



funds to each employee. Espressif has established a training system and Espressif respects every employee's labor. We

Espressif employs sta f globally according to designed training courses to help employees



Compensation and benefits: Espressif local laws and provides competitive learn and improve.Training categories include have established a promotion system based

o fers competitive compensation and compensation incentives to a tract the best new employee orientation, graduate training on performance and rewards employees



stock incentive projects, including five local talent. We implement budget and so on.The company encourages accordingly. In 2023, 100% employees were

insurances, an additional housing management for compensation benefits, departments to conduct various forms of assessed for performance and career



provident fund, commercial medical continuously optimize personnel structure knowledge sharing.The company has over 60 development.



insurance, and others. and compensation incentive systems to o fline training courses and nearly 90 courses



enhance employee motivation. Based on the with 5,000 video lessons. A % training



coverage rate for employees was recorded. 35

Espressif｜2023 ESG Report｜Talent

Occupational Health and Safety



Safety Management Caring for Women 关爱⼥性



Espressif has established the "Safety The company controls potential safety The o fice is equipped with refrigerators and The o fice provides exclusive lactation rooms

Management Standard" system, adhering to hazards that employees may encounter microwaves; the pantry provides pure water with good privacy to address the di ficulties

"safety first, prevention as the main approach, through design, engineering, and and hot water for both drinking and female employees encounter during lactation;

participation by all, and comprehensive management controls, safe work processes, disinfecting cups; and we provide various special lactation leave is also available,



management." In 2023, we carried out 33 on- and necessary safety training. In 2023, the common medicines, such as ibuprofen for avoiding overtime and business trips during

site safety training and periodic online training company lost zero workdays due to relieving menstrual pain and fever. lactation.



covering prominent responsible persons and occupational injuries and employee mortality



safety production management personnel rates. Employee Feed Back



training, general safety training, and laboratory



safety training. Occupational Health Employee feedback is an essential reference for corporate management. Espressif actively listens to



Based on the requirements of the emergency We pay close a tention to each employee's employee voices and encourages them to speak their minds openly. We conduct an "Employee



plan, we have formulated the "Emergency health status. Espressif guarantees Satisfaction Survey" annually to anonymously collect employee feedback for management



Plan for Production Safety Accidents" and employees' occupational safety and provides optimization. Additionally, employees can send emails to a specially designated mailbox or the CEO's



conducted emergency resource surveys, preparedness for emergencies, work injuries, mailbox to report or give feedback on issues within the company.



resulting in the "Emergency Resource Survey and diseases. Additionally, Espressif focuses



Report" to standardize and guide emergency on employees' mental health, o fering training



rescue actions within the company. for new graduates to help them identify and



alleviate workplace stress.



33 0 0% 0%



Lost Workdays Injury Rate Mortality Rate



SafetyTraining



Espressif｜2023 ESG Report｜Products and Service



Business

Sustainably



SDGs



Espressif｜2023 ESG Report｜Products and Service

05 Business Sustainably



"Professional and reliable, creating value for customers" is our strategy. Espressif is commi ted to Quick Glance of Espressif Chip Family and Software

working with partners to advance the intelligent connection, designing outstanding AIoT chips and



focusing on self-developed open-source operating systems and comprehensive solutions. Chips, modules, development boards

As a leading global manufacturer of SoCs, Espressif analyzes customers' demands and o fers a wide range ESP Product Selector Include MPN, market status, basic product

of products, solutions, and services. In 2023, Espressif established high-quality customer relationships with information including cores, antennas,



numerous clients and received many honors, including Best Strategic Partner. packaging, storage, peripherals, etc., as



well as packaging information.



Innovative and comprehensive service Application solutions and so tware



Espressif solution introduction,



Espressif has a comprehensive customer service their own product design work, and with the help recommended chips, supported operating

system, providing customers professional support of Espressif's service resources, they can quickly system ESP-IDF version.



from product design and certification to apply their products to real-world scenarios,



manufacturing. Customers only need to focus on thereby achieving long-term mutual development.



Our service scope penetrates the entire process: Innovative Service Professional and Comprehensive Documentation

Sample testing Product selection, sample testing, Espressif has innovated its customer service Espressif provides a wide variety of technical



and technical support system, aiding customers with any business or documentation and resources.The content



technical issues encountered during includes product ordering information, certification

development to ensure the best experience. information, technical specifications, beginner's

Design In Application development, circuit schematic and PCB design guides, design guides, programming guides,



review and hardware testing ESP Chip & Module Selector testing guides, usage guides, technical



Espressif engineers have developed an online references, hardware resources.



product selector, ESP Product Selector, to simplify FAQ



Pilot Production Production test support, programming support, certification product selection.This selector helps customers



support quickly compare and understand the key The ESP-FAQ launched by Espressif covers



performance parameters and di ferences between development environments, application solutions,

di ferent product series, thereby quickly so tware pla forms, hardware-related issues, and

Mass Production Collect customer demand forecasts, satisfy supply, ensure stable determining selection and accelerating the whole testing, among other common problems. Users



mass production, and improve a ter-sales service process. can quickly search and get answers.



Espressif｜2023 ESG Report｜Products and Service

Optimizing Customer Experience



Communication Multiple Channels for Purchase



Through the CRM system, Espressif manages customer inquiries, business issues, and technical At the same time, we aim to make technology products not only cost-e fective but also more



service requests. Maintaining communication is crucial for optimizing the customer experience. accessible and closer to the general public. Espressif has joined e-commerce pla forms likeTaobao,

We regularly disseminate the latest product introductions and company news through multiple AliExpress, and Amazon and added sample purchase links on the o ficial website product pages.



channels, such as the o ficial website, WeChat, YouTube,Twi ter, Facebook, Bilibili, and email Information Security



newsle ters. We prioritize protecting customer information security. We value every design detail, sign



Espressif engineers engage in various pla forms like GitHub and the Espressif BBS forum to "Confidentiality Agreements" with customers to protect them, and regularly conduct third-party



discuss with the developer community. penetration testing on the company and customer-facing networks to collect and handle customer data

securely and responsibly. As of the end of the reporting period, Espressif has not received any



In 2023, in addition to the online communication window on the o ficial website, Espressif also confirmed complaints about customer privacy infringement.



participated in several renowned industry exchange summits, such as the CES, Embedded World



in Nuremberg, Smart Home Expo in India, and the Guangzhou International Lighting Exhibition,



maintaining close contact with customers and showcasing a rich product line.



The company regularly visits customers and provides on-site support for encountered issues.



Espressif｜2023 ESG Report｜Products and Service

Products Quality Management



Espressif's products and services are sold worldwide, meeting quality issues throughout the product life cycle and analyzes data



international regulations and specific customer requirements.The from various sources to address and resolve issues in a timely The product quality management system includes



company continues to solidify the foundation of its quality manner.



management. Espressif continuously launches innovative products Stating the requirements



and services, creating more customer value. Espressif's quality policy is "Innovative design, perfect quality, Design and development



process optimization, and rapid response."To enhance the quality



Management Systems and Certification awareness of all employees, Espressif conducts presentations in Control of externally provided processes,



various forms and requires all employees to understand their products, and services, as well as production



The company has obtained ISO : quality management connotations accurately and implement them in actual work. and service provision



system certification and established a quality management system, Release of products and services



strictly controlling product quality, focusing on product safety, and As of the date of this report, the company has not experienced any



placing high emphasis on quality management. Espressif monitors major product quality incidents. Control of non-conforming outputs



Market Demands Products Quality Management Delivery



Research Requirement



Product Quality Planning Product Delivery



Customer Confirmation Products SatisfactionCustomer

Request Sample



Design, Development and



Production Planning



Demands Outsourced Quality Reliability Contract



Testing Provision



Production



Contract A ter-sales service Payment



Quotation Technical support Customer



Customer related process Wafer Processing, 产品的制程监控 Customer feedback Complaint



Post-Review Packaging,Testing 不合格品管控



Contract, Order Orders, Contracts, Module Mounting, Assembly Feed Back



Reviews



Espressif｜2023 ESG Report｜Products and Service

Customer Feedback

Customer Evaluation



Espressif values long-term partnerships and has established a customer satisfaction survey mechanism. Espressif conducts periodic visits, phone calls, or meeting communications with customers to fully understand



customers' suggestions regarding the company's products and services. We carry out annual customer satisfaction surveys at the beginning (or end) of each year. Espressif analyzes and addresses customer feedback



results, compiles them into customer satisfaction survey reports, and takes timely improvement measures to continually strive to o fer customers the most competitive products and services.



Customer Satisfaction Survey 2023 Product



Multi-dimensional Assessment The answers to each question in the survey



Product: Product quality, stability; pricing, delivery time, packaging. questionnaire are divided into five levels, with Customer Loyalty Business Support

the lowest score being 1 and the highest score



Business Support:Timeliness of service; the problem-solving ability; timeliness of order being 5. Overall, the results of the 2023 annual



delivery; a ter-sales service; regular visits by the support team and frequency of visits. customer satisfaction survey showed high



combined scores across the six evaluation



Technical Support: Customer awareness; response speed; problem-solving ability of the dimensions. Network and Resources Technical Support

support team; satisfaction level with technical resources and documentation.



Customized Services: Customer awareness; customer satisfaction; satisfaction with the price. Complaint Mechanism Customized Services



We value customer complaints and treat each



Network and Resources: Network resources meet customer needs; customer awareness of one seriously. Our team analyzes, assesses, and



resource access; clarity of technical documentation; which documentation solve problems. improves upon every complaint, addressing all



Customer Loyalty: Intention to repurchase; recommendation index. types of complaints in a positive and e ficient



manner. Espressif manages the complaint 100%



process according to the internal "Customer



Complaint Handling Management Specification."



For the year 2023, all customer complaint events Complaint Handling



Rate



were handled promptly according to corporate



bylaws and the ratio of resolved complaints to



total complaints was 100%.





Espressif｜2023 ESG Report｜Supply Chain Sustainable Development



Supply Chain

Management



SDGs



Espressif｜2023 ESG Report｜



Espressif｜2023 ESG Report｜



Espressif｜2023 ESG Report｜



Espressif｜2023 ESG Report｜Governance



Governance

SDGs



Espressif｜2023 ESG Report｜Governance

07 Governance



Governance Structure nd Diverse Structure



The company has established a complete corporate governance structure, consisting of the shareholders' meeting, bo rs, Supervisors, and



directors, supervisory board, and company management. This creates a governance system where the powers and responsibi Senior Executives



each body and management are clearly defined and are coordinated and balanced with each other. Espressif's governance fram



is constituted by our code of conduct, corporate governance policies, company charter, and other internal control systems. 43%



The shareholders' meeting is the highest governing body of the company. The board of directors is the routine decision-making Independence



with four specialized commi tees: the Strategy Commi tee, Nomination Commi tee, Compensation and Assessment Commi te Independent Directors



Audit Commi tee. The board of directors is accountable to the shareholders' meeting. The supervisory board is the com Non-Independent Directors



supervisory body.The general manager, appointed by the board of directors, is responsible for the company's daily operations.



Governance Structure



Shareholders' Meeting emale



Supervisory Board portion 50%

Strategy Commi tee



Female



Nomination Commi tee Board of Directors Board Secretary Male



Compensation and



Assessment Commi tee Securities A fairs Department Educational



CEO



Audit Commi tee Background



Master 58%



Internal Audit Department Bachelor



Functional Departments



Espressif｜2023 ESG Report｜Governance



Governance Structure Board of Directors



Members



There are 7 directors, of which 3 are independent directors.The list of directors



can be found in the Espressif 2023 Annual Report.



Meetings Frequency



A total of 14 meetings were held in 2023, with an a tendance rate of 100%.



Responsibilities



Assess and appoint senior management of the company, develop the



company's business plan and investment proposals, formulate and amend the



company's charter and basic management systems, decide on the external



investments, asset sales and purchases, and among other ma ters.



Compensation

Strategy Commi tee Audit Commi tee Nomination Commi tee and Assessment

Commi tee



Members Members Members Members



3 directors, including 2 independent directors. 3 directors, including 2 independent directors. 3 directors, including 2 independent directors. 3 directors, including 2 independent directors.

Meetings Frequency Meetings Frequency Meetings Frequency Meetings Frequency



2 meetings held in 2023, with an a tendance 6 meetings held in 2023, with an a tendance rate of 1 meeting held in 2023, with an a tendance 6 meetings held in 2023, with an a tendance

rate of 100%. 100%. rate of 100%. rate of 100%.



Responsibilities Responsibilities Responsibilities Responsibilities



Recommendations on the company's long- Propose external audit firms, supervise internal audit Make recommendations, search for qualified Conduct evaluations and make



term development strategy and major system, be responsible for internal and external audit candidates for directors and managers, review recommendations, and research and review the

investment decisions, etc. communication, review the company's financial candidates for directors and managers, and cdoiremcptoernssaantidonsepnoiloicr iemsaannadgesmcheenmt, eestcf.or48



information and disclosure, etc. make recommendations, etc.



Espressif｜2023 ESG Report｜Governance

Protection of Shareholder Rights



Information Disclosure In 2023, the company disclosed four periodic reports and 106 fulfillment to investors through video and text live broadcasts,



Our information disclosure system includes "Espressif Information temporary announcements. graphical presentations, and ESG reports. Additionally, the newly

Disclosure Management," "Insider Registration Management," established WeChat o ficial account "Espressif Board Secretary"

and "Significant Internal Information Reporting System," Investors Relation further improves the transparency of company information.



applicable to all documents and statements disclosed by the Espressif emphasizes investor relations management, disclosing Shareholder Returns



company in various forms. information through designated websites and media. At the same



time, the company communicates with investors through various Since June 2022, the company has carried out four phases of



The Securities A fairs Department set for the company's means such as the investor relations section on the o ficial share repurchase programs. As of this report disclosure, 2.53



information disclosure a fairs. It is responsible for information website, investor contact email and hotline, investor relations million shares have been repurchased, accounting for 3.13% of

disclosure under the leadership of the board secretary. interactive pla form, and on-site investor research, enhancing the the total share capital, with payment exceeding RMB .



During the reporting period, our information disclosure is truthful, transparency of company information, and protecting interests of million.The company aims to provide long-term investment



accurate, complete, and timely while ensuring all shareholders all shareholders, especially small and medium shareholders. returns, with accumulated RMB . million in cash dividends

have equal opportunities to access information. In 2023, the company held three conferences, five shareholder distributed to shareholders. Since its listing in July 2019, the net

meetings, and 38 investor research sessions (1,195 investment funds raised were RMB . billion, with cash dividends and



institutions), showcasing performance and social responsibility repurchase amounts cumulatively accounting for 48.8% of the



net funds raised from the IPO.



3 5 38 1,195 48.8 %

A





Investor research sessions Ratio of cash dividend and Information disclosure rating

Conferences Shareholder meetings Investment institutions repurchase amounts to raised funds



2021 2022 2023



64.9% 42.1% 57.5%



Cash Dividend Ratio Cash Dividend Ratio Cash Dividend Ratio 49

Espressif｜2023 ESG Report｜Governance

Compliance & Ethics



Compliance and Legality Supervision and Enforcement



Compliance and legality are the baseline for Espressif's development and growth.The company The Internal Audit Department has developed systems for internal auditing, business integrity, anti-



addresses environmental and social issues by adhering to laws, government, and customer fraud, whistleblowing, and conflicts of interest.



requirements.



Supervision is divided into regular and special oversight.The Internal Audit Department annually



The Legal Department, Internal Audit Department, System Reliability Department, and Human formulates an internal audit plan. It carries out regular supervision, conducting routine and continuous



Resources Department are responsible for the construction and operation of the company's supervision and inspection of company operations and timely correcting identified issues. Special



compliance system. We aim to promote the institutionalization and standardization of company oversight is targeted internal inspection conducted based on changes in the internal environment and



compliance management and create an organizational atmosphere. directives from the leadership.The department will propose corrective actions for issues found during



The Quality Management and Supply Chain teams manage issues such as human rights, scrap audits and promptly report them to the company leadership and the audit commi tee.



recycling, hazardous substances, and conflict minerals in the supply chain.The legal and human



resources teams regularly receive guidance on bribery, ethics, employment, and labor practices from Report Email：tipo f@espressif.com



legal advisors and industry associations.The Business team oversees customers' environmental, social, Special Complaint Channel



and ethical requirements. We conduct cross-functional work to ensure compliance for all related teams.



The company's established compliance system prohibits employees and business partners from Integrity is paramount. We encourage employees to speak up when they see something wrong, and a



engaging in illegal or unethical conduct. strict whistleblower protection policy ensures confidentiality. Anyone can use this channel to report



bribery, corruption, conflicts of interest, or other concerns confidentially and anonymously.The Internal



Customers Supply Audit Department is responsible for establishing and maintaining this particular complaint channel,



Chain authorized by the Board of Directors, treats received whistleblowing seriously, promptly addresses and



investigates as necessary, and imposes disciplinary actions as appropriate.



Employees ……



Business Ethics Training and Consulting 19

In 2023, Espressif continued implementing a new code of conduct training across the EthicsTraining

Espressif strives to reach the highest ethical behavior standards. Our Code of Business Conduct guides entire group. During the reporting period, the company conducted 19 professional 100%



our professional relationships with customers, employees, suppliers, shareholders, regulatory agencies, ethics training sessions for new employees, promoting the company's values of



and the community. Our long-term Code of Conduct outlines our core values and sets expectations for integrity and specific regulatory requirements. By se ting up consultation windows, we New Employees

business conduct.This code applies to all employees, and we expect all third parties involved in answered employees' questions about professional ethics. Participation

business with us to follow our Code of Business Conduct.



Espressif｜2023 ESG Report｜Governance

Internal Control and Risk Management



Anti-corruption Policy The Board of Directors is the entity responsible for risk management. It is accountable for the



To regulate the behavior of all employees and prevent fraud, the company has issued the "Anti-Fraud shareholders' meeting for the e fectiveness of the risk management work. Entrusted by the Board, the



and Complaint Management Measures".The audit department is designated as the permanent CEO is responsible for leadership and deployment of risk management work.The Internal Audit



institution for the company's anti-fraud e forts. All employees are prohibited from accepting and paying Department and Quality Assurance Department are the lead departments for risk management work.



bribes or kickbacks, illegally using company assets, embezzlement, misappropriation, or the t of The Internal Audit Department should submit the annual internal audit work plan and the yearly internal



company assets to obtain improper economic benefits. audit work report to the Audit Commi tee before and a ter the end of each fiscal year respectively.



The company aims to avoid corruption.The company's anti-corruption practices primarily involve steps Shareholders’ Meetings



taken by employees to conduct business ethically and maintain cooperation with customers and the Audit Committee



government. Employees are not supposed to engage in bribery or insider trading, avoid conflicts of Board of Directors Third line of defense

interest, compete ethically, and comply with international trade regulations.To protect the reputation of Internal Audit



Espressif, the company has developed several policies and requires employees to adhere to them. Department



CEO



The company’s anti-corruption risk management includes internal supervision and regular external



third-party reviews.The internal audit team regularly audits the company's anti-corruption policies and



procedures. Espressif hires an independent auditor to audit internal control plans, policies, and Legal Department Finance Department Quality Management Second line of defense

procedures annually.The results and suggestions for improvement are discussed with the company's Department



Audit Commi tee and the Board of Directors.The company also expects our partners to comply with all Marketing

Supply Chain



laws and regulations related to anti-corruption. Before cooperating with them, we conduct anti- Department Department R&D Department First line of defense



corruption screenings and regular, risk-based investigations.



Internal Control System Construction Three Defensive Lines of Risk Management



The company has established a robust internal control environment, ensuring the safety and integrity of The first line of defense: Core business departments identify and assess strategic risks, operational



the company's assets. risks, etc., during business operations, decide on management strategies or acceptance, and develop



or adjust internal systems.



Internal Control Organizational Structure The second line of defense is that support function departments assist core business departments in



The company has established an internal control and risk management system, building three lines of risk control e forts, reducing risks in business activities.



defense against ethical risks and ensuring a healthy operation. The third line of defense: Governance function departments oversee the design and execution of



The organizational management system includes the Board of Directors, CEO, Internal Audit and Quality various company risk management measures, identify potential loopholes in the risk management



Assurance Departments, business units, and various functional departments. process, and urge relevant departments to make improvements. 51



Espressif｜2023 ESG Report｜Governance



Business Continuity Management (BCM)



Risk Management Model Risk management process Espressif plays a crucial role in chip development, causing disruption. Our principles include



The Internal Audit Department annually prepares necessitating extensive collaboration with various meticulous risk management, prioritizing



the RCM. It conducts self-assessments, covering suppliers in the supply chain.Therefore, business preventative measures, and building an exceptional

ten cycles, including company-level controls, continuity is of paramount importance. collaborative team.The execution is widely



financial reporting, fund management, sales In line with Espressif's business characteristics, we supported by various teams. Each functional



revenue, procurement, inventory management, have established a comprehensive Business department has a plan for identifying and



asset management, human resources Continuity Plan (BCP) to ensure the rapid restoration addressing potential risks aimed at reducing the

management, R&D management, and IT controls. and ongoing operation in the event of a disaster impact of unforeseen events, thereby ensuring the

The Quality Assurance Department assesses risks safety of our employees and customers.



and opportunities, including macro and micro



risks and opportunities and their mitigation



measures, as well as risks and opportunities.



Internal Control Management internal control standards system and relevant



The company's directors have issued the regulations.



internal control evaluation report for the year Regarding the assessment of significant



2023, and an external audit has produced a deficiencies in the internal controls over non-



verification report on the company's internal financial reporting as of the date of the internal



controls. control evaluation report, no significant



According to the assessment， there were no deficiencies were identified.



significant deficiencies identified, leading the No factors emerged between the date of the



board of directors to conclude that the internal control evaluation report and the date



company has maintained e fective internal the report was issued that a fected the



controls over financial reporting in all major e fectiveness of the internal control evaluation



aspects, in accordance with the corporate conclusion.



Espressif｜2023 ESG Report｜Governance



Information security ISO

Espressif places great emphasis on corporate A collection of internal data privacy policies, 27001

information security and data privacy confidentiality. including employee and applicant privacy



The company has established an information policies, focusing on data retention, destruction, Every Year



security management system aligned with the ISO and encryption.



27001 standard.This ensures that resources, We conduct third-party penetration testing of Pass the annual information Access control of internal information



technology, and management related to security audit of the audit unit and multiple security prevention



and control of core R&D areas



information security are controlled, protecting IT company and customer-facing networks and



assets from unauthorized access or a tacks, routinely scan servers, applications, endpoints, and



preventing various security incidents or human network devices for vulnerabilities at least once a



sabotage, and maintaining company information's year. All identified critical, high, or medium-risk Irregularly



confidentiality, integrity, and availability. issues are remedied promptly.The IT department



checks facility usage monthly and regularly backs Issue reminders from time to time



The company has refined its data compliance up relevant systems and databases to ensure to raise employees' awareness of



the risk of phishing emails



e forts according to legal requirements. It is uninterrupted essential processes of business or



commi ted to responsibly handling personal data timely recovery, maintaining information availability.



and enhancing its security. Our cybersecurity and Additionally, the company periodically releases Annually



data privacy policies align with the principles and reminders to enhance employee awareness of



spirit of China's Personal Information Protection illegal links, including phishing emails. In 2023, the Third-party penetration



testing is conducted



Law and the GDPR, providing information on the company conducted 19 information security-related



19



collection, use, processing, and transfer of training sessions, and 100% of new employees



personal data, such as: completed the annual information security



End-user privacy policies, primarily for ESP awareness activities. 100%



RainMaker products, designed to protect user Information security



related training



privacy; New employees complete



information security



awareness training



Potential customer and developer privacy



100% 乐鑫科技



policies, mainly applicable to personal

information collected during marketing activities;



Core suppliers are subject to



information security reviews



Espressif｜2023 ESG Report｜GRI Content Index

GRI Content Index



In compiling this report, Espressif referred to the GRI Standards (Core option). The following index information indicates which sections of the report respond to GRI disclosure categories.



GRI Standards Description of standards Location of information disclosure in the report



The organization and its reporting practices



2-1 Organizational details About Espressif、AboutThis Report



2-2 Entities included in the organization’s sustainability reporting AboutThis Report



2-3 Reporting period, frequency and contact point AboutThis Report



2-4 Restatements of information AboutThis Report



Activities and workers



2-6 Activities, value chain and other business relationships About Espressif、Innovation、Supply Chain Sustainable Development



2-7 Employees Talent



2-8 Workers who are not employees There are no workers other than employees during the reporting period.



Governance



2-9 Governance structure and composition About Espressif — ESG Management、Governance



2-10 Nomination and selection of the highest governance body Governance



2-11 Chair of the highest governance body Governance、Espressif 2023 Annual Report



2-12 Role of the highest governance body in overseeing the management of About Espressif — Identifying and responding to stakeholder concerns、Governance、Espressif 2023 Annual Report



2-13 Delegation of responsibility for managing impacts About Espressif — ESG Management



2-14 Role of the highest governance body in sustainability reporting About Espressif — ESG Management



2-15 Conflicts of interest Espressif 2023 Annual Report



Espressif｜2023 ESG Report｜GRI Content Index



GRI Standards Description of standards Location of information disclosure in the report



2-16 Communication of critical concerns About Espressif — Identifying and responding to stakeholder concerns、AboutThis Report



2-17 Collective knowledge of the highest governance body About Espressif — ESG Management



2-18 Evaluation of the performance of the highest governance body Governance — Governance Structure、Espressif 2023 Annual Report



2-19 Remuneration policies Talent — Employee Rights、Espressif 2023 Annual Report



2-20 Process to determine remuneration Talent — Employee Rights、Espressif 2023 Annual Report



2-21 Annual total compensation ratio Espressif 2023 Annual Report



Strategy, policies and practices



2-22 Statement on sustainable development strategy About Espressif — ESG Goals、Environmental Protection



2-23 Policy commitments Environmental Protection、Innovation、Talent、Products and Service、Supply Chain Sustainable Development、Governance



2-24 Embedding policy commitments Environmental Protection、Innovation、Talent、Products and Service、Supply Chain Sustainable Development、Governance



2-25 Processes to remediate negative impacts Governance — Moral and legal compliance



2-26 Mechanisms for seeking advice and raising concerns Governance — Moral and legal compliance



2-27 Compliance with laws and regulations The Company had no major violations during the reporting period.



2-28 Membership associations Innovation — Association Participation



Stakeholder engagement



2-29 Approach to stakeholder engagement About Espressif — Identifying and responding to stakeholder concerns



2-30 Collective bargaining agreements No collective bargaining incident occurred in the Company during the reporting period.



Biodiversity



101-1 Policies to halt and reverse biodiversity loss Environmental Protection — Protecting Biodiversity



101-2 Management of biodiversity impacts Environmental Protection — Protecting Biodiversity



101-3 Access and benefit-sharing Environmental Protection — Protecting Biodiversity



101-4 Identification of biodiversity impacts Environmental Protection — Protecting Biodiversity



Espressif｜2023 ESG Report｜GRI Content Index



GRI Standards Description of standards Location of information disclosure in the report



Economic Performance



201-1 Direct economic value generated and distributed About Espressif — Economic Performance、Espressif 2023 Annual Report



201-2 Financial implications and other risks and opportunities due to climate change Environmental Protection — Climate Risks and Opportunities



201-3 Defined benefit plan obligations and other retirement plans Talent — Employee Rights



201-4 Financial assistance received from government Espressif 2023 Annual Report



Market Presence



202-2 Proportion of senior management hired from the local community 100%



Indirect Economic Impacts



203-1 Infrastructure investments and services supported Community Symbiosis



203-2 Significant indirect economic impacts Community Symbiosis



Anti-corruption



205-1 Operations assessed for risks related to corruption Governance — Moral and legal compliance、Governance — Internal Control and Risk Management



205-2 Communication and training about anti-corruption policies and procedures Governance — Moral and legal compliance、Governance — Internal Control and Risk Management



205-3 Confirmed incidents of corruption and actions taken No corruption occurred in the Company during the reporting period.



Anti-competitive Behavior



206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices There were no legal proceedings against improper competitive conduct, antitrust and anti-trust practices



during the reporting period.



Tax



207-1 Approach to tax Espressif 2023 Annual Report



207-2 Tax governance, control, and risk management Espressif 2023 Annual Report



207-3 Stakeholder engagement and management of concerns related to tax About Espressif — Identifying and responding to stakeholder concerns



207-4 Country-by-country reporting Espressif 2023 Annual Report



Espressif｜2023 ESG Report｜GRI Content Index



GRI Standards Description of standards Location of information disclosure in the report



Materials



301-2 Recycled input materials used Environmental Protection — Circular EconomyThroughout the Lifecycle



301-3 Reclaimed products and their packaging materials Environmental Protection — Circular EconomyThroughout the Lifecycle



Energy



302-1 Energy consumption within the organization Environmental Protection — GHG Emissions Management



302-2 Energy consumption outside of the organization Environmental Protection — GHG Emissions Management



302-3 Energy intensity Environmental Protection — GHG Emissions Management



302-4 Reduction of energy consumption Environmental Protection — Energy Saving and Emission Reduction



302-5 Reductions in energy requirements of products and services Environmental Protection — Energy Saving and Emission Reduction



Water and E fluents



303-1 Interactions with water as a shared resource Environmental Protection — Circular EconomyThroughout the Lifecycle



303-2 Management of water discharge-related impacts The company has no factories and does not involve water discharge.



303-3 Water withdrawal Environmental Protection — Circular EconomyThroughout the Lifecycle



303-4 Water discharge The company has no factories and does not involve water discharge.



303-5 Water consumption Environmental Protection — Circular EconomyThroughout the Lifecycle



Biodiversity



304-2 Significant impacts of activities, products and services on biodiversity Environmental Protection — Protecting Biodiversity



Emissions



305-1 Direct (Scope 1) GHG emissions Environmental Protection — GHG Emissions Management



305-2 Energy indirect (Scope 2) GHG emissions Environmental Protection — GHG Emissions Management



305-3 Other indirect (Scope 3) GHG emissions Environmental Protection — GHG Emissions Management



305-4 GHG emissions intensity Environmental Protection — GHG Emissions Management



Espressif｜2023 ESG Report｜GRI Content Index



GRI Standards Description of standards Location of information disclosure in the report



305-5 Reduction of GHG emissions Environmental Protection — Energy Saving and Emission Reduction



Waste



306-1 Waste generation and significant waste-related impacts Environmental Protection — Circular EconomyThroughout the Lifecycle



306-2 Management of significant waste-related impacts Environmental Protection — Circular EconomyThroughout the Lifecycle



306-3 Waste generated Environmental Protection — Circular EconomyThroughout the Lifecycle



306-5 Waste directed to disposal Environmental Protection — Circular EconomyThroughout the Lifecycle



Supplier Environmental Assessment



308-1 New suppliers that were screened using environmental criteria Supply Chain Sustainable Development



308-2 Negative environmental impacts in the supply chain and actions taken Supply Chain Sustainable Development



Employment



401-1 New employee hires and employee turnover Talent



401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Talent — Employee Rights



401-3 Parental leave Talent — Employee Rights



Occupational Health and Safety



403-1 Occupational health and safety management system Talent — Occupational Health and Safety



403-2 Hazard identification, risk assessment, and incident investigation Talent — Occupational Health and Safety



403-3 Occupational health services Talent — Occupational Health and Safety



403-4 Worker participation, consultation, and communication on occupational health and safety Talent — Occupational Health and Safety



403-5 Worker training on occupational health and safety Talent — Occupational Health and Safety



403-6 Promotion of worker health Talent — Occupational Health and Safety



403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Talent — Occupational Health and Safety



403-8 Workers covered by an occupational health and safety management system Talent — Occupational Health and Safety



Espressif｜2023 ESG Report｜GRI Content Index



GRI Standards Description of standards Location of information disclosure in the report



403-9 Work-related injuries Talent — Occupational Health and Safety



403-10 Work-related ill health Talent — Occupational Health and Safety



Training and Education



404-1 Average hours of training per year per employee Talent — Career Development



404-2 Programs for upgrading employee skills and transition assistance programs Talent — Career Development



404-3 Percentage of employees receiving regular performance and career development reviews Talent — Career Development



Diversity and Equal Opportunity



405-1 Diversity of governance bodies and employees Talent、Governance — Governance Structure



Non-discrimination



406-1 Incidents of discrimination and corrective actions taken No discrimination incidents occurred in the Company during the reporting period、Talent



Local Communities



413-1 Operations with local community engagement, impact assessments, and development Community Symbiosis、Espressif encourages our employees to participate in local community



programs volunteer activities.



Supplier Social Assessment



414-1 New suppliers that were screened using social criteria Supply Chain Sustainable Development



Customer Health and Safety



416-1 Assessment of the health and safety impacts of product and service categories Products and Service —Products Quality Management



416-2 Incidents of non-compliance concerning the health and safety impacts of products and There were no violations related to the health and safety impact of products and services during the

services reporting period.



Customer Privacy



418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer As of the end of the reporting period, the Company had received no confirmed complaints related to

data invasion of customer privacy and loss of customer data.



Espressif｜2023 ESG Report｜AboutThis Report

About This Report



Report Introduction Report Data Source



This report is the third ESG report publicly released by Espressif Systems (Shanghai) Co., Ltd. Based on The information, data, and cases used in this report come from the company's formal documents,



the principles of objectivity, standardization, transparency, and comprehensiveness, it discloses statistical reports, financial reports, or public documents, as well as corporate social responsibility



Espressif's ESG philosophy, practices, and the main progress of the reporting year. practice information compiled and summarized by the company's various functional departments.



ReportTime Range Form of report release



The time range of this report is from January 1, 2023, to December 31, 2023. Copyright © 2024 Espressif Systems (Shanghai) Co., Ltd. All rights reserved. All trade names,



To enhance the readability of the report, some contents or data trace back to previous or subsequent trademarks and registered trademarks mentioned in this document are the property of their respective

years. owners, and are hereby acknowledged.The term “Espressif” refers to Espressif Systems (Shanghai)

Co., Ltd. and/or its subsidiaries.This report is wri ten in both Chinese and English. In case of any



Report Organizational Scope discrepancies between Chinese and foreign interpretations, the Chinese version shall prevail.



The organizational scope of this report includes Espressif Systems (Shanghai) Co., Ltd. and its Report Release Cycle



subsidiaries. In the report, "Espressif Systems (Shanghai) Co., Ltd." is referred to as "Espressif This report is an annual report.



Technology", "Espressif", "the Group", "we", or "the Company", as needed.



Report Reference Standard Contact Information



The Chinese Academy of Social Sciences "Guidelines for Writing Corporate Social Responsibility If you have any questions or suggestions about the content of this report, please contact us using the

Reports" (CASS-CSR . ), Global Sustainability Standards Board "Sustainability Reporting following details.



Standards" (GRI Standards), National Standard of China "Guidelines for Writing Social Responsibility Contact Address: Room 304, Building 2, No. 690 Bibi Road, Pudong New District, Shanghai



Reports" (GB/T - ), "Sustainable Development Goals (SDGs) Enterprise Action Guide", and Contact Phone: 021-61065218



Shanghai Stock Exchange "Notice on Strengthening Listed Companies' Social Responsibility and



Issuing the Shanghai Stock Exchange Listed Companies Environmental Information Disclosure Email: ir@espressif.com



Guidelines".





Espressif｜2023 ESG Report｜Report Feedback and Comments



Report Feedback and Comments

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Multiple Choice Questions (Please check the corresponding option)



1. Which of the following stakeholders do you belong to? 5. Do you think the information provided in this report is readable?



〇Government personnel　〇Regulatory authorities　〇Shareholders and investors　〇Employees　 〇High　〇Fairly high　〇Average　〇Fairly low　〇Low



〇Customers 〇Suppliers and partners　〇Community residents　〇 CSR practitioners　



〇Peer companies 〇Others 6. Which topics in the report are you most interested in?



〇Innovation and development 〇Customer communication and satisfaction 〇 Finance



〇 Corporate governance　〇Environmental protection 〇Employee development and training



2. What is your overall assessment of this report? 〇 Employee health and safety 〇Risk management 〇Compliance management 〇Anti-corruption



〇Good　〇Fairly good　〇Average　〇Below average　〇Poor 〇Others_______



7. Do you think this report reflects Espressif's significant impact on the economy, society, and the



3. How do you rate the quality of social responsibility information disclosed in this report? environment?



〇High　〇Fairly high　〇Average　〇Fairly low　〇Low 〇Yes　 〇Somewhat　 〇No 〇Not sure



Please provide your opinions and suggestions for Espressif Technology's environmental, social, and



4. How clear, accurate, and complete do you find the information, data, and indicators disclosed in corporate governance (ESG) e forts and this report:



this report?

〇High　〇Fairly high　〇Average　〇Fairly low　〇Low