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ESG

ESG Promotion Organization

ESG Promotion Organization

1. ESG Risk Assessment

The company refers to the topics listed in the GRI Code and collects issues of concern to stakeholders to conduct risk assessments on environmental, social and corporate governance issues related to the company's operations. Each topic is based on the "level of stakeholder concern" and "impact on the company" evaluate the significance of the impact and formulate relevant risk management strategies.

2. ESG Promotion Units: Sustainable Development Committee, Sustainable Development Committee Working Group

The company established the Social Responsibility Committee in 2015, and on February 23, 2022, the board of directors resolved to change it to the Sustainable Development Committee and passed the amendments to the Organizational Rules of the Sustainable Development Committee and the Sustainable Development Code of Practice.

To promote corporate sustainability and related initiatives, a Sustainability Committee working group has been established under this Committee. The General Manager acts as the convener and appoints the group leader to oversee the implementation of relevant matters. The progress of these initiatives is disclosed in the Corporate Sustainability Report and reported to the Board of Directors annually. On May 9, 2023, the Board of Directors was briefed on the promotion of sustainability initiatives, including the 2022 sustainability performance, the preparation of the 2022 Sustainability Report, and the progress of greenhouse gas inventory and verification planning. On May 8, 2024, the Board was presented with the assurance discussion topics for the 2023 Sustainability Report and the deliberation of the 2023 Sustainability Report, which was approved by the Board at the same meeting.

三、Policy on Linking Executive Compensation to ESG Performance

Executive ManagementSpecific ESG Performance Indicators for 2024
President / Vice PresidentE – Environmental
1. Climate Change Mitigation and Adaptation:Promote net-zero commitments, including greenhouse gas (GHG) inventory and verification.
2. Energy and Water Resource Management
S – Social
1. Legal Compliance and Risk Control:Ensure no improper labor practices within the company or its supply chain.
2. Community Engagement and Public Welfare Participation:Engage in activities such as beach cleanups, donations, and other charitable events.
3. Employee Welfare and Occupational Safety:Establish an Occupational Health and Safety Management System (OHSMS) to create a safe working environment.
G – Governance
1. Regulatory Compliance:Ensure compliance with laws and industry regulations across jurisdictions.
2. Business Ethics and Anti-Corruption:Prevent bribery and insider trading.
3. Protection of Shareholder Rights:Safeguard fair compensation distribution for employees, including frontline staff.
Assistant Vice President1.Assist the Company in implementing the four major occupational health and safety (OHS) programs and establishing an Occupational Health and Safety Management System in accordance with ISO 45001 certification standards.
2.Promote workplace safety and prevent incidents involving unlawful conduct or harm.

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Policy on Linking Executive Compensation to ESG Performance

四、Supervisory Role of the Board of Directors in Sustainability Development

The Board of Directors reviews the sustainability management policies, strategies, and objectives proposed by the Sustainability Committee and evaluates the measures taken. When necessary, the Board may provide recommendations to the Sustainability Committee or request the Committee to conduct further discussions.

Key Focus Areas of the Sustainability Committee in 2024

Date MeetingReporting MattersDiscussing Matters
MotionConclusion/ Follow-up
113/2/20

1st Term, 6th Meeting
ESG Committee
  1. The last discussion and implementation status of the Sustainable Development Committee
  2. Implementation of the 2023 Sustainability Report Compilation
    • Verification and Operational Procedures
    • Working Group
    • Compilation Schedule and Planning
    • Chemical Industry - Sustainability Disclosure Indicators
    • Information Statistics - Environmental
    • Information Statistics - Economic
    • Information Statistics - Social
    • Explanation of Government Subsidy Applications in 2024
Stakeholder Identification for the 2023 Sustainability ReporShareholders or Investment Institutions, Employees, Customers, Partners (Suppliers, Contractors, Industry Peers), Government Agencies/Industry Associations, Local Communities, Financial Institutions
Discussion on the Writing Direction and Content of the 2023 Sustainability ReportChapter
Chapter 1: Overview of Company Organization
Chapter 2: Stakeholder Identification and Communication
Chapter 3: Corporate Governance
Chapter 4: Sustainable Environment
Chapter 5: Corporate Commitments
Chapter 6: Social Responsibility
The report will be executed according to the chapter planning direction outlined in the 2023 Sustainability Report. If the working group encounters issues or has suggestions during the writing process, these can be brought up for discussion in the next meeting.
113/5/7

1st Term, 7th Meeting
ESG Committee
  1. The last discussion and implementation status of the Sustainable Development Committee
Deliberation on the 2023 Sustainability ReportThe certification timeline for ISO 14064 and the 2050 net-zero emissions target must also be disclosed in the Sustainability Report. Based on the recommendations of Independent Director Mark Hsiao-Kang, the Sustainability Report was revised accordingly. The revised report was unanimously approved by all directors present.

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Reporting Matters
Discussing Matters
  1. The last discussion and implementation status of the Sustainable Development Committee
  2. Implementation of the 2023 Sustainability Report Compilation
    • Verification and Operational Procedures
    • Working Group
    • Compilation Schedule and Planning
    • Chemical Industry - Sustainability Disclosure Indicators
    • Information Statistics - Environmental
    • Information Statistics - Economic
    • Information Statistics - Social
    • Explanation of Government Subsidy Applications in 2024
Motion:
Stakeholder Identification for the 2023 Sustainability Repor

Conclusion/Follow-up:

Shareholders or Investment Institutions, Employees, Customers, Partners (Suppliers, Contractors, Industry Peers), Government Agencies/Industry Associations, Local Communities, Financial Institutions

Motion:
Discussion on the Writing Direction and Content of the 2023 Sustainability Report

Conclusion/Follow-up:

Chapter
Chapter 1: Overview of Company Organization
Chapter 2: Stakeholder Identification and Communication
Chapter 3: Corporate Governance
Chapter 4: Sustainable Environment
Chapter 5: Corporate Commitments
Chapter 6: Social Responsibility
The report will be executed according to the chapter planning direction outlined in the 2023 Sustainability Report. If the working group encounters issues or has suggestions during the writing process, these can be brought up for discussion in the next meeting.

Reporting Matters
  1. The last discussion and implementation status of the Sustainable Development Committee
Discussing Matters
Motion:
Deliberation on the 2023 Sustainability Report

Conclusion/Follow-up:

The certification timeline for ISO 14064 and the 2050 net-zero emissions target must also be disclosed in the Sustainability Report. Based on the recommendations of Independent Director Mark Hsiao-Kang, the Sustainability Report was revised accordingly. The revised report was unanimously approved by all directors present.

PerspectiveRisk assessment issuesRisk management unitControl mechanism
EnvironmentEnvironmental protectionOccupational Safety Office
  • ISO14001 environmental management system.
  • ISO14001 environmental management system.Establish an "Environmental Safety Management Committee" to promote environmental protection measures.
Air pollution controlOccupational Safety Office
  • The "Environmental Safety Management Committee" regularly reviews air pollution prevention issues every quarter.
Water Resources ManagementOccupational Safety Office
  • Water resources issues are reviewed regularly by the "Environmental Safety Management Committee“ every quarter.
Greenhouse gasesOccupational Safety Office
  • Assess climate change risks and opportunities from regulations and natural disasters, and regularly disclose greenhouse gas emissions in sustainability reports every year.
Energy resource managementDepartment of Public Utilities
  • Regularly conduct monthly "energy saving meetings" to review various energy management measures.
Waste ManagementOccupational Safety Office
  • Waste management issues are reviewed regularly by the "Environmental Safety Management Committee" every quarter.
Compliance With environmental regulationsOccupational Safety Office
  • Regularly report on regulatory compliance and risk management and control in the "Risk Management Committee" twice a year
SocietyOccupational safety and healthOccupational Safety Office
  • ISO45001 occupational safety and health management system.
  • An "Environmental Safety Management Committee" has been established to hold regular meetings every quarter to review the implementation and promote improvement measures.
Labor-employer relationshipHuman Resources Department
  • "Management meetings/department meetings" are held regularly every month.
  • Establish a "Personnel Review Committee" to discuss major personnel issues.
Social WelfareGeneral Affairs Section
  • Establish a "Green Charity Society" to promote participation in charity activities.
Labor regulations complianceHuman Resources Department
  • Regularly report on regulatory compliance and risk management and control in the "Risk Management Committee" twice a year
Corporate GovernanceCorporate Governance StructureHuman Resources Department
  • Board of Directors
Board of Directors and Functional CommitteesBoard of Directors
  • Board member Diversity Policy.
  • Establish organizational rules and procedures in accordance with laws and regulations.
  • Create a corporate governance officer to assist with meeting operations.
Internal controlAudit offices of various departments
  • Supervision shall be made by the heads of each department in accordance with the established operating methods and procedures.
  • The audit unit performs audit operations regularly.
  • Internal audit supervisor communicates with independent directors and reports to the board of directors.
Integrity managementGeneral Manager's Office Audit Office
  • Formulate the "Code of Integrity Business", "Integrity Business Operation Procedures and Conduct Guidelines" and "Ethical Code of Conduct".
  • Regular education, training and promotion to convey integrity management policies and management measures.
Operational risk managementGeneral Manager's Office
  • A "Risk Management Committee" has been established to hold regular meetings twice a year and report the implementation of risk management to the Board of Directors on a regular basis every year.
Communication with stakeholdersFinance and Accounting Department
  • The company website has set up a "stakeholder area" to provide contact windows and contact information.
  • Establish a communication mechanism (regular/irregular) to communicate with relevant stakeholders.
Corporate Governance ComplianceFinance and Accounting Department
  • Regularly report on regulatory compliance and risk management and control in the "Risk Management Committee" twice a year
  • Arrange director education and training and participate in promotional meetings with competent authorities.

Environment

Risk assessment issuesProject

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Risk management unit:

Occupational Safety Office

Control mechanism:
  • ISO14001 environmental management system.
  • ISO14001 environmental management system.Establish an "Environmental Safety Management Committee" to promote environmental protection measures.
Risk management unit:

Occupational Safety Office

Control mechanism:
  • The "Environmental Safety Management Committee" regularly reviews air pollution prevention issues every quarter.
Risk management unit:

Occupational Safety Office

Control mechanism:
  • Water resources issues are reviewed regularly by the "Environmental Safety Management Committee“ every quarter.
Risk management unit:

Occupational Safety Office

Control mechanism:
  • Assess climate change risks and opportunities from regulations and natural disasters, and regularly disclose greenhouse gas emissions in sustainability reports every year.
Risk management unit:

Department of Public Utilities

Control mechanism:
  • Regularly conduct monthly "energy saving meetings" to review various energy management measures.
Risk management unit:

Occupational Safety Office

Control mechanism:
  • Regularly conduct monthly "energy saving meetings" to review various energy management measures.
Risk management unit:

Occupational Safety Office

Control mechanism:
  • Regularly report on regulatory compliance and risk management and control in the "Risk Management Committee" twice a year

Society

Risk assessment issuesProject

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Risk management unit:

Occupational Safety Office

Control mechanism:
Risk management unit:

Human Resources Department

Control mechanism:
  • "Management meetings/department meetings" are held regularly every month.
  • Establish a "Personnel Review Committee" to discuss major personnel issues.
Risk management unit:

General Affairs Section

Control mechanism:
  • Establish a "Green Charity Society" to promote participation in charity activities.
Risk management unit:

Human Resources Department

Control mechanism:
  • Regularly report on regulatory compliance and risk management and control in the "Risk Management Committee" twice a year

Corporate Governance

Risk assessment issuesProject

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Risk management unit:

Human Resources Department

Control mechanism:
  • Board of Directors
Risk management unit:

Board of Directors

Control mechanism:
  • Board member Diversity Policy.
  • Establish organizational rules and procedures in accordance with laws and regulations.
  • Create a corporate governance officer to assist with meeting operations.
Risk management unit:

Audit offices of various departments

Control mechanism:
  • Supervision shall be made by the heads of each department in accordance with the established operating methods and procedures.
  • The audit unit performs audit operations regularly.
  • Internal audit supervisor communicates with independent directors and reports to the board of directors.
Risk management unit:

General Manager's Office Audit Office

Control mechanism:
  • Formulate the "Code of Integrity Business", "Integrity Business Operation Procedures and Conduct Guidelines" and "Ethical Code of Conduct".
  • Regular education, training and promotion to convey integrity management policies and management measures.
Risk management unit:

General Manager's Office

Control mechanism:
  • A "Risk Management Committee" has been established to hold regular meetings twice a year and report the implementation of risk management to the Board of Directors on a regular basis every year.
Risk management unit:

Finance and Accounting Department

Control mechanism:
  • The company website has set up a "stakeholder area" to provide contact windows and contact information.
  • Establish a communication mechanism (regular/irregular) to communicate with relevant stakeholders.
Risk management unit:

Finance and Accounting Department

Control mechanism:
  • Regularly report on regulatory compliance and risk management and control in the "Risk Management Committee" twice a year
  • Arrange director education and training and participate in promotional meetings with competent authorities.