Promotion of sustainable development implementation and differences/reasons between market-listed and public limited company’s Code of Practice on Sustainable Development

Promotion items

Implementation status

Situation and Reasons for Differences from Code of Practice on Corporate Social Responsibility for Listed Companies

1.      Whether the Company has established and promoted sustainable development management structure, as well as set up relevant special (part-time) unit to follow up through Board of Directors authorization to high-order management level for handling, as well as under Board of Directors supervision?

The Company has already appointed the chairman office to take charge of the proposal and implementation of sustainable development policy and system, and also disclosed its implementation status in financial statement and reported to the Board of Directors once every year.

No difference

2.      Does the company assess ESG risks associated with its operations based on the principle of materiality, and establish related risk management policies or strategies?

1.      This disclosure data covers sustainable development performance and risk assessment boundary of the Company’s major bases from 2021/01 to 2021/12 mainly in Taiwan.

2.      The Company has regularly identified and evaluated the major issues and formulated relevant risk management policies and strategies according to sustainable development principles, as below:

(1)    Environment and society:

n   Product responsibility: The Company requires its suppliers to identify and manage the chemicals and other substances that may cause harm to the environment, so as to ensure that these substances are safely handled, transported, stored, used, recovered or reused and disposed to minimize the harm to the environment, by the rigorous quality management, to provide customers with good product quality and service quality, so as to improve the customer satisfaction, which is the cornerstone of sustainable development of theCompany.

n   Occupational safety: The Company has the occupational safety staff to conduct the hazard assessment and continuous risk improvement for all work contents and work areas of the Company. Through various related occupational safety training, it can reduce the occupational safety accidents and fulfill the responsibility of protecting the employees.

(2)    Corporate governance:

The Company has stipulated the “Codes of Integrity Management”, “Code of Ethics” and “Measures for Preventing Insider Trading”, to standardize its internal operation and management, as well as relevant internal control system, and fulfill its social abilities.

No difference

3.      Environmental issues

(1)    Does the company endeavor to utilize all resources more efficiently and use renewable materials which have low impact on the environment?

(1)    In addition to the demand for quality regarding the IC components that the Company represents, the products of our upstream original manufacturers are also considered based on their life cycle. From raw material production, transportation, production, product transportation, product use to product disposal after discarding, etc., their impact on the environment during the entire process is taken into consideration. Therefore, the Company also effectively executes criteria regarding the management of hazardous substances, pollution prevention, energy-saving, water-saving, and waste reduction, etc., in its own operating office areas and storage centers. Hoping to gradually form a green supply chain from our upstream (original supplier), midstream (the Company) to downstream (customers).

No difference

(2)    Does the company endeavor to improve the efficiency of resource utilization and use recycled materials which have a low impact on the environment?

(2)    The Company is committed to the recycling and utilization of various recyclable materials and uses recycled materials with a low impact on the environment.

No difference

(3)    Does the company evaluate potential risks and opportunities brought by climate change, and take response measures to climate-related issues?

(3)    The Company is not in the manufacturing industry and faces potential risks of climate change mainly at environmental and operational levels. For example, as extreme climate change causing resource shortages and personnel having difficulties adapting physically, resulting in increased raw material costs, suppliers struggling to complete production, and increased transportation costs, etc. These could all potentially lead to climate change directly or indirectly impacting our operating results. The Company recognizes that climate change is a major issue, hence adopting countermeasures including improving the efficiency of resource utilization, reducing water consumption, and practicing solar power generation.

No difference

(4)    Does the company compile statistics of greenhouse gas emissions, water use, and total weight of waste in the past two years, and does it establish policies for energy conservation & carbon reduction, greenhouse gas emission reduction, water use reduction, and other waste management?

(4)    To response the influence from climate change on operating activities, the Company, except for actively introducing new products, continues to promote its energy conservation and carbon deduction policies. The implementation status of 2021 are as follows: (covering Taipei Head Office and Taoyuan Factory in Taiwan District)

1)     Greenhouse gases:

(a)    Scope 1: Office electricity consumption of recent two years

(b)   Scope 2: Solar-powered electricity production and carbon emissions deduction of two years

Note: The calculation basis for 2021 and 2020is abided by MOE Energy Bureau’s published 2020 Year eletricity carbon emission coefficient: 0.502 KG CO2e/kWh

No difference

2)     Water consumption:

3)     Wastes:

4)     Paper sheets:

4.      Social issues

(1)    Does the company formulate appropriate management policies and procedures according to relevant regulations and the International Bill of Human Rights?

(1)  The Group supports and voluntarily abide to the “UN Global Covenant”, “United Nations Universal Declaration of Human Rights” and “ILO Declaration on Fundamental Principles and Rights of Work” and principles that disclosed on international covenants of human rights,  stipulates staff working rules and management measures in accordance with labor laws, to maintain and safeguard staff’s legal rights, and through its Staff Welfare Committee.

No difference

(2)    Does the company have reasonable employee benefit measures (including salaries, leave, and other benefits), and do business performance or results reflect on employee salaries?

(2)  In addition to labor laws, the Company pays according to staffs’ education and experience backgrounds, professional knowledge and abilities, individual performances and other additional conditions, and equal to male and female. In addition to basic salaries, it also provides bonuses by referring staffs’ performances. As stipulated in the Articles of Association, the Company shall allocate 7.5~10% as staff remunerations, and offer holiday allowances in domestic and overseas.

To promote occupational diversity and equity, Female employees in the company of 2021 account for 52%.

No difference

(3)    Does the company provide a safe and healthy working environment and provide employees with regular safety and health training?

(3)  The Company has formulated the Code of Practice for Safety and Sanitation, and assigns labor safety personnel for performing regular safety inspection pursuant to laws and regulations, inspection and declaration on building public safety, as well as monitoring on drink water, illumination, concentrations of carbon dioxide, etc. every year, with retrofitted air regenerating device to improve operating environment quality and safety. In addition, to implement occupational safety policy, the Company also organizes 4-hour occupational safety training, to assist site medicare workers in work environment hazards identification (including maternal health protection, unlawful infringement prevention in workplace, etc.), and conducts overload and human factor assessments every year specific to high-risk case for assessment and management. It as well attaches importance to staffs’ health through organizing health lectures, and offer health examination once every two years which is superior to the laws and regulations. The Company also set up first-aid personnel and emergency response team, to guarantee staff work environment safety and promote employee health. Furthermore, it also carries sterile working environment, and provides its staffs with non-toxic and free-from-care places for eat, with regular or irregular outdoor activities to adjust their mental and physical states, as well as encourages them to set up clubs within the company.

The Company has also set up occupational safety verification team, led by the general manager, to verify occupational safety every year, and report to Ministry of Labour pursuant to occupational safety laws and regulations. Any suggested improvements will be submitted by the team for a specific implementation.

Statistics of the Company’s 2021 year staff occupational accident events are as follows:

No difference

(4)    Does the company set up effective career development and training programs for its employees?

(4)  In addition to creating a good working environment, the Company also encourages employees to take on-the-job training to enrich their relevant professional skills.

1)      Internal training

Unit supervisor and colleagues may act as the lecturers in their professional fields and share their experience and professional knowledge through job training, to enhance colleagues’ professional skills and improve competences in solving problems.

2)      Newly-employed staff training

Upon registration, Human Resources Department will introduce the company profile, organizational profile, office environment, administrative regulations, company welfare, etc. (2h for every person), and organize regular trainings (6h) on new employees to present company operating conditions and corporate culture and promote their sense of belonging and identity.

3)      External training

Arrange colleagues to participate in external courses to improve their work abilities, competences and management abilities.

4)      Further education and subsidy

Provide full subsidy to encourage colleagues to participate in further education and thereby improve their work knowledge and abilities.

Please mark relevant talent training hours of 2021 in Note 1.

No difference

(5)    Whether the Company obeys relevant rules and international codes in terms of product and service, client health and safety, client privacy, marketing and labeling, etc., and formulates corresponding consumer protection or equity policy as well as complaint procedures?

(5)  The Company plays the role of connecting technology and creating value through providing services. To practice relevant sales and technical services, we must sign agency sales contracts that meet laws and international regulations with our domestic and foreign upstream manufacturers, before proceeding with relevant sales and services. Because the intellectual property rights of the products sold belong to our upstream original manufacturers, the product labels must also comply with the original manufacturers’ specifications. Additionally, the company’s website has a designated area for stakeholders to protect policies of consumer rights and keep appeal procedures smooth.

No difference

(6)    Does the company have a supplier management policy, require suppliers to comply with regulations on environmental protection, occupational safety and health, and labor rights, and what is its implementation status?

(6)  The Company has set up a “Supplier Control Procedure” and disclosed the “Supplier Control Policy” on the company website, which requires suppliers to comply with relevant regulations on issues such as environmental protection, occupational safety and health, and labor rights. The Company evaluates suppliers annually based on quality, delivery, and service then determines the frequency of dealing with each supplier according to the evaluation results.

No difference

5.      Whether the Company has referred international standards or guidelines for the preparation of reports, sustainable development report and other disclosure reports for company’s non-financial information? Whether the aforesaid report is with any certainty or guarantee from a third verification unit?

The Company’s “Code of Practice on Corporate Social Responsibility” which was formulated in 2014/02/18 , has been renamed as “Sustainable Development Practice Codes” since 2022/03/16 to cooperate with international development tendency and achieve its sustainable development target. For this reason, “pure heart for humanity,  forward-looking science and technology, value-added partnerships, feedback to society” is the quality policy we always adhere to implement the sustainable operation and create fine working environment. Under the pursuit of competitive power and stable profit growth, the Company, except for feedback to its shareholders, clients and staffs, also keeps social responsibilities in mind, observes laws and disciplines, as well as respects human, community and environment related policies.

The Company expects to prepare and file perpetual reports in accordance with the “Operational Measures for the Preparation and Filing of Perpetual Reports by Listed Companies” and the “GRI Standards” in 2022.

6.      In case of the company has stipulated its sustainable development codes according to the Market Listed Corporate Code of Practice on Sustainable Development, please state its functions and differences: the Company has already stipulated Sustainable Development Codes in its website, and strictly abides by during daily operation.

7.      Other Important information which are helpful for promoting sustainable development implementation:

n   The Company highly regards the importance of social responsibility and actively participates in community activities. We interact amicably with suppliers and stakeholders, ensuring the protection of our consumers’ rights.

n   The Company supporting local agricultural products with substantial actions. Selecting local small farmers to supply seasonal and local ingredients; encouraging employees to primarily purchase these agricultural products and extending the concept to the ingredients of the employee cafeteria in hopes of helping disadvantaged farmers in rural or specific areas with these actions; also reducing food miles at the same time, achieving energy conservation and carbon reduction; as of 2021, the purchased items have summed up about 150 items and the revenue on average of ~$228 million/year.

n   Promate Group actively implements corporate social reciprocation and supports baked goods made by mentally challenged children with substantial actions, hoping to distribute income to disadvantaged groups and achieve long-term care. Therefore, the Group always orders gifts from the Children Are Us bakery on Mid-Autumn Festival or other major festivals; as of 2021, the purchases have summed up to exceed NTD 240,000. The Group also encourages employees and the general public to join and help disadvantaged groups operate more smoothly, spreading love to the corners in need.

n   The Company had organized “Mid-Autumn Gift-Bulk Rice” activity before the Mid-Autumn Festival of 2021, which was ideated from environmental protection and recycling, namely staffs “provided containers” to collect rice to home. The activity was not only beneficial to staffs’ health, but reduced plastic pollution, and brought us one step closer to world “plastic-free” status.