Sustainability

　　OuTo execute Corporate Social Responsibility well and protect basic human rights of all employees、customers and relative shareholders, we follow international human rights principles, such as UN Universal Declaration of Human Rights、The UN Human Rights Norms For Business、UN Global Compact、UN International Labor Organization、Electronic Industry Code of Conduct and so on. We respect international guidelines of human rights, including Freedom of association、Child labor avoidance、Freely chosen employment、Non-Discrimination and Humane treatment.

1. Labor Rights
　　BaTo protect labor rights, all employment contracts of each labor have to meet the local laws.

2. No forced employment
　　Per employment contract, it should be agreed by the willing of labors and there is no forced employment. There is also no human trafficking and enslavement.

3. Labor child avoidance
　　We avoid strictly to hire any person under the age of 16. Young worker who is between the age of 16 to 18, should be protected not to do any work which is dangerous or may compact to the health. Young workers are also not to work overtime or work at night.

4. Working hours
　　Working hours should not exceed the limit of local labor laws. Unless emergency or abnormal situation, the limit of weekly working hours is 60 hours and there is one day off in 7 days.

5. Wages and Benefits
　　We follow the local laws to pay the wages to employees, including the minimum wage、overtime payment and legal benefits. We also not allow deducting the wage for discipline management.

6. Humane treatment
　　There is to be no harsh and inhumane treatment including any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion or verbal abuse of workers; nor is there to be the threat of any such treatment.

7. Non-discrimination
　　We shall not engage in discrimination for employee staffing, performance appraisal and promotion, including race, gender, religion, political affiliation, age, marital status and so on.

　　The company had set up the " Sustainability Development Committee " in 2021. Appoint the chairman as the Committee Chairperson, the president as the deputy Chairperson, and three independent directors as members. There is an executive secretary under the committee who is held by the head of ADM Division. The committee is responsible for formulating and reviewing the company's sustainable development policies, regulations or management guidelines. The committee also report the annual sustainable development implementation results and working plans for the next year to the board of directors every year.

The company designates the Administrative division to be the concurrent post unit of promoting business integrity, with the members including the head of the administrative division, the Sustainability management representative, human resources and general affairs personnel, etc., responsible for the development supervision and implementation of integrity management policies and prevention plans and report to the board of directors.

　　Our company’s employee welfare measures, training, retirement systems and implementation, labor agreements, and maintenance measures of the rights and interests of employees are as follows:

1. Employee Benefits Measures:
　　Based on laws and regulations, in order to better take care of staff life, our company provides labor insurance, health insurance, allocates labor pension, annual special leave, group insurance, regular health check, food, parking, travel expense, and private car public oil cost, and staff travel subsidies, doctor health consultation in the factory, massage services, year-end tail, bonuses, staff dividends, birthday gifts, Labor Day, Dragon Boat Festival, and Mid-Autumn Festival coupons, community and corporate activities, employee stocks, and marriage, funeral, hospitalization, and fertility subsidies. Besides, there are breastfeeding rooms and fertility bonuses are provided to encourage fertility.

2. Staff Training
　　Our Company has the "Education and Training Management Approach" to cultivate staff’s professional knowledge and skills to train them performing their capabilities, increasing work efficiency, and ensuring the quality of work to achieve our company’s goal of sustainable development. In addition to the education training for new staff to make newcomers fast integrate into the organizations, department heads and staff can also hold company-wide or departmental training courses and seminars in accordance with the project needs for environmental trends inside and outside the enterprise to strengthen staff’s complete training pipelines and enhance their professional ability and core competencies. Also, we have the "On-the-job Training Management Approach" to promote the company personnel training as well as their professional knowledge and skills. The reading room is set to provide books and magazines for colleagues to read

3. Employee Retirement System and Implementation
　　Based on the Labor Standards Act, our company allocates 4% of the total wages paid as the retirement reserve in the pension account of Taiwan Bank. In line with the implementation of the new Labor Pension Ordinance, the service years of the staff of originally the old Labor Pension Ordinance choose to apply the new system or the new system are of the determined allocation system, of which the retirement scheme under the provision of the Labor Pension Ordinance, our company allocates 6% of the total wages paid as the retirement reserve in the labor retired individual account of the Labor Insurance Bureau. When the staff retires, their pension is paid according to the provisions of the Labor Standards Act.

4. Agreement between Labor and Capital:
　　Our company’s provisions are all based on the Labor Standards Act. To follow the guidelines, employees can communicate with our company through the welfare committee and the labor meeting for the issues of the systems and working environment of the company to maintain good interaction between employers and employees. To the Published day, our company’s labor relations are harmonious and there is no labor dispute.

5. Employee Benefits Maintenance
　　Our company sets up management practices and system related to employee benefits in employee rights and obligations as well as welfare projects. Also, we regularly review and revise related approaches and systems to maintain all employees’ rights and interests.

Protection Concerning Working Environment and Personal Safety
1. To provide a healthy and safety environment, our company is qualified with the OHSAS 18001 occupational health and safety management system certification. Every year, the qualified testing facility is commissioned to detect harmful factors on the interior working environment to protect employee safety.

2. Access control is implemented in office space and every half year, fire and first aid training is held once for fire drill and emergency contingency exercises.

3. Our company set security personnel at entrances and exits for directing traffic. At off work time, the counter staff can help call the taxi and our cooperative Taxi line to carry our staff to protect employees’ safety.

4. Nurses are employed to conduct employee health check, health care, and health promotion work. There are resident physicians serving in our company for medical counseling.

Developing Sustainable Environment:

1. In response to climate change and to make good use of corporate social responsibility, the company continues to promote energy saving and carbon reduction, greenhouse gas reduction, water use reduction, and other waste management policies.

2. The company actively participates in customers' "Carbon Disclosure Project (CDP)," announcing greenhouse gas check data information regularly on the program website every year. Also, with the ISO 14001 Environment Management and ISO 14064 Greenhouse Gas Management System in our factories cooperating with the RBA（Responsible Business Alliance）team, various energy-saving and carbon reduction measures are actively promoted and regulatory trends are followed for preparations as soon as possible. Each factory has passed the ISO 14064-1 certification of greenhouse gas inventory from the third party. Every year, related verification and confirmation is conducted.

3. According to RBA, ISO14001, OHSAS18001, ISO14064 and other criteria, audit and improvement related to environmental safety and health, workplace health, labor rights, energy saving and carbon reduction, etc. is conducted to connect customers, the company and suppliers form the sustainable value chain. In the future, our company will continue to work hard to implement the concepts of the sustainable value chain with all partners. Besides, we will continue to promote environmental management affairs. For example, through advocacy, education training, benchmark management, auditing and tracking improvement, we make efforts to maintain environmental management and meet customer requirements at the same time. At present, the factory sites can continue refinement and progress on reducing, recycling, and alternative use.

4. According to the requirements of the ISO14001 Environmental Management System, the factories set up environmental management policies and systems for implementation. Every year, internal audits are conducted by the qualified internal auditors inside the company. Then, the management level conducts management review. Further, we commission a third-party fair agency to conduct an audit to continue the refinement of the environmental management system, meet customers’ request at the same time, and realize the enterprise’s social responsibility of sustainable management.

5. Waste classification is conducted in our factories. After hazardous waste is collected by the management departments, the qualified waste processor is assigned for processing. After classification recovery of recyclable waste made by each factory, selling or reuse is made. Recyclable parts of kitchen waste are recycled by the licensed dealer. Other household waste is treated by the environmental protection unit of the local government. The goal is to promote the use efficiency of various resources and gradually reduce the impact on environmental load.

6. The factories continue to pay attention to the impact of production and operational activities on climate change and getting on project improvement project in energy conservation.
(1) Continuous replacement of energy-consuming lamps into LED-type energy-saving lamps.
(2) The equipment with high energy consumption, such as tin furnace and aging line heating chamber, is replaced with the equipment system with low energy consumption.
(3) In full use of waste heat recovery of the air compressor, the recovered heat energy is used for heating shower water in the staff dorms.
(4) Improving the energy consumption in the air compressor system and each device.
(5) Installing the frequency converter energy-saving equipment in the old injection molding machine.
(6) Using water saving faucets and toilets to achieve the purpose of saving water.
(7) Through advocacy, reducing waste of resources and promoting employees’ energy-saving awareness.

7. According to the requirements of the SBTi (Science Based Targets Initiative), the company has set a "ten-year carbon reduction target", which will take 2020 as the base year and 2030 as the target year. The greenhouse gas reduction targets are as follows:
For the emission intensity of Scope 1+2, under the circumstance that the temperature rise is controlled by 1.5°C, the target year needs to be reduced by 56.8% compared with the base year.
The emission intensity of Scope 3 needs to be reduced by 44.19% in the target year compared with the base year when the temperature rises well below 2 °C.

8. To make full use of energy and resource conservation, by autonomous management in energy-saving and carbon reduction measures, continuous investment in factory equipment, and improvements of production equipment efficiency, the main projects of the practices of reducing greenhouse gas emissions are as follows:
(1) Waste heat energy recycling of the air compressor.
(2) Replacing the device into the frequency conversion water pump or frequency conversion equipment.
(3) Installation of heat pump to replace electric water heaters in dormitory.
(4) In the basic electricity fee in the factory, the transformer total capacity is replaced with the maximum demand valuation to save electricity costs and energy savings.
(5) Air-conditioning system energy saving (addition of the small ice machine of energy-saving operation and improvement of water treatment and operating time).
In the factory sites, we continuously conduct ISO14064-1 greenhouse gas inventory and carbon footprint management on the product and join environmental sustainability forums and training organized by the government, institutions and clients at the same time for continuous improvement of emission of greenhouse gases and sustainable environment.

9. Chicony Power has obtained several international certifications, including ISO14001 Environmental Management System certification, ISO 45001 Occupational Health and Safety Management Systems certification, CNS 15506 Occupational Health and Safety Management Systems certification, and ISO 14064-1 Greenhouse Gas verification.

10. Environmental Substance Management,please refer to HPT-01-043 Restricted Substance Control Standard......Download

To maintain social welfare, we conduct the following measures.

1. We keep the labor laws and regulations to ensure the protection of employees’ lawful rights and interests on wages, welfare, health, and security. Currently we have been in accordance with the requirements of the internal code of conduct to set up the social responsibility management system for management and continuous improvement on the social responsibilities related to the company.

2. We regard employees’ health. In addition to the certification of the OHSAS18001 occupational health and safety management system, every year, we commission the qualified testing facility to detect harmful factors in the indoor working environment to meet regulatory requirements. Also, we hold more than once fire and emergency trainings every year to ensure employees' work safety.

3. We completely perform and comply with protection regulations of consumer rights and interests and set customer satisfaction as one of the important strategies in our company.

4. Supplier audits, counseling, the filling of suppliers’ social responsibility self-assessment form, and suppliers’ social responsibility performance audits are conducted in line with the EICC policy to enhance suppliers’ social responsibility. Currently, the main material manufacturers have completed the supplier social responsibility self-assessment report. Every year, with the conflict-free metal survey of clients to downstream suppliers, we strive for human rights protection. 5. The Chicony Group participates actively in community development and activities of charitable organizations.

i. In 2008, the Chicony Group made a donation of RMB$ 22,000,000 for disaster recovery of Wenchuan earthquake and approximately total NT$ 2,000,000 to National Taipei University of Technology, Tzih Hual Social Welfare Foundation, Taiwan Health Foundation, and other groups.
ii. In 2009, the Chicony Group made a donation of NT$50,000,000, for disaster recovery of the typhoon-Morakot-caused floods and approximately total NT$2,000,000 to National Taipei University of Technology, Tzih Hual Social Welfare Foundation, Taiwan Health Foundation, Liver Disease Prevention & Treatment Research Foundation, and other groups.
iii. In 2010, the Chicony Group made a donation of approximately total NT$3,000,000 to Taiwan Health Foundation, Liver Disease Prevention & Treatment Research Foundation, and other groups.
iv. In 2011, the Chicony Group made a donation of NT$10,000,000 for disaster recovery of Japan earthquake and approximately total NT$10,000,000 to National Taipei University of Technology, Tzih Hual Social Welfare Foundation, Taiwan Foundation for Geriatric Emergency and Critical Care, Hospice Foundation of Taiwan, Taiwan Health Foundation, Liver Disease Prevention & Treatment Research Foundation, New Dawn Center, Hualien City, Taiwan, and other groups.
v. In 2013, the Chicony Group made a donation of NT$100 million to build the second teaching building "Chicony Buildings" in the East Campus of National Taipei University of Technology.
vi. In 2016, the Chicony Group built a 39-floor and underground five-floor landmark office building in Sanchung Region. Also, we donated about 1,000 pings of land to build park green space as the feedback towards community residents and the environment.