2010 Corporate Social Responsibility Report · 2015-04-09 · 2010 Corporate Social Responsibility Report “At this historic moment, how to accomplish water resource protection,

2010 Corporate Social Responsibility Report

“At this historic moment, how to accomplish water resource protection, water value enhancement and water resource reuse while consuming more water resources is the main challenge we are facing.” (Loc FAUCHON, Chairperson of World Water Council)

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Corporate Social Responsibility

CHIMEI INNOLUX 2010

Corporate Social Responsibility Report

Publishing Organization: Chimei Innolux Corporation

Publisher: Hsing-Chien Tuan

Editorial Team: CMI CSR Work Group

Contact: Public Relations Office

Address: No.160, Kesyue Road., Jhu-nan Science Park, Miaoli County, Taiwan 35053 (R.O.C.)

Phone: +886 37 586 000

Website: www.chimei-innolux.com

Scope：This report primarily discloses the CSR perfor-mance of CMI Taiwan* in 2010, and the per-formance in environmental protection, health, safety and social contributions of both CMI Tai-wan and CMI China*. Exceptions, if any, will be footnoted. All figures in the financial reports are expressed in New Taiwan Dollars; and environmental protection, health and safety performances are expressed in international indices.

Report Verification：This report has been verified by the third-party verification unit BSI to comply with the GRI/G3.1 Level A+ and the AA1000AS (Account Ability 1000 Assurance Standard) to ensure information transparency and reli-ability. The Independent Assurance Opinion Statement issued by BSI is appended to the end of this report.

About this Report

Compilation Guidelines：With reference to the industry conventions specified in the Global Reporting Initiative Guideline 2011-G3.1 (GRI), this report fully discloses the corresponding strategies, poli-cies, actions and performance indicators of the issues of interest to CMI stakeholders through different chapters of this report, including CSR Expectations and Commitments, Company Overview and Corporate Governance, To Earth with LOVE, Employee Care and Social Contri-butions. Also, there is no significant difference in the outline, scope and most part of the cal-culation standards in this version and the 2009 version of the CSR report.

Originally called Innolux Display Corporation, Chimei Innolux Corporation (CMI) was established on 18 March,2010 through a merger of Innolux Display Corporation, Chi Mei Optoelectronics and TPO Displays Corporation. This is the second CSR report published by CMI after the merger to present to those who care about CMI’s achieve-ments and efforts to pursue sustainable operations and to realize our corporate social responsibility.

*Plant Sites in the CSR Report 2010CMI Taiwan

JNSP Site

T1 T2 T3 STN Pingjen Tongluo

STSP SiteFab A Fab B Fab C Fab D Tree Valley

Branch Fab F

Fab1Fab2Fab3Fab5

USL/LCM2

Fab4Fab7TSOCLCM

Fab6 Fab8

CMI ChinaFab

LonghuaFab

NanhaiFab

ShanghaiFab

NingboFab

Nanjing

Contents

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9

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43

63

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About this ReportMessage from the CEO1 Expectations and Commitments1.1. Expectations and Commitments1.2. Stakeholder Identification and Communication

2 Corporate Overview & Governance2.1 Company Overview2.1.1 Company Profile2.1.2 Operation Performance2.2 Corporate Governance2.2.1 Corporate Organization2.2.2 Healthy Internal Control System2.2.3 CSR Basic Practice2.2.4 Business Continuity Management 2.2.5 Supply Chain Management2.2.6 Customer-Satisfactory Service

3 To Earth with LOVE3.1 Green Living3.2 Green Operations 3.2.1 GHG Management3.2.2 Environmental Material Flow3.2.3 Energy Resource Management3.2.4 Water Resource Management3.2.5 Multifaceted Reduction of Environmental Impacts3.3 Green Value Chain3.3.1 Green Product Management Policy3.3.2 Resource Management3.3.3 Toxic Substance Management3.3.4 Energy Management3.3.5 Material Management

3.3.6 Green Product Management3.3.7 Green Product Manufacture3.3.8 Green Supply Chain 3.3.9 Future Prospects3.4 Green Environment3.4.1 Biodiversity3.4.2 Green Concept Promotion

4 Employee Care 4.1 Respect and Care for Employees4.1.1 Employee Recruitment and Appointment4.1.2 Employee Salary and Benefits4.1.3 Employee Cultivation and Development4.1.4 Employee Care4.2 Safety and Health Management4.2.1 Safety, Health and Environmental Policy4.2.2 Safety and Health Management Prizes4.2.3 Safety Culture and Risk Management4.2.4 Health Protection and Promotion4.2.5 Employee Spiritual Care

5 Social Contribution5.1 Education and Academics5.2 Culture and Art5.3 Social Participation5.4 Public Welfare

AppendicesIndependent Assurance Opinion StatementGRI Index Cross Reference Table (including index supplementary explanation)

Publishing Period：CMI continuously publishes the CSR report every year. The reports are available on the CMI official website at www.chimei-innolux.com.

Current version: Published in July 2011

Next version: To be published in July 2012

Previous version: Published in Sep.2010

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2009

2010Expectations andCommitments1.1 Expectations and Commitments

CSR Policy1. Fulfill good corporate governance by carrying out the prin-

ciple of information disclosure and transparency and imple-menting the standards of integrity and ethics.

2. Fulfill our role in the economy and implement L.O.V.E. value (green living, green operations, green environment and green value chain) to attain environmental sustainability.

3. Respect human rights and provide safe and healthy work-place for our employees.

4. Engage supplier to implement social and environmental re-sponsibility together.

5. Promote sustainable coexistence with the society by re-specting and replying community’s needs.

Vision, Value and Objectives

CSR Honors

CSR Promotion OrganizationCMI established the Sustainability Center to plan and administer the directives and objectives of CMI’s corporate social responsibility and sustainable development. The Sustainability Center holds management review meetings at planned intervals to discuss issues concerning labor, ethics, environment, health and safety, green product, community engagement and charity services and reviews the performance and effectiveness of activities promoting CSR with high-level officers of all business units, the human resource department, the environment safety and health department, and the green product management department, in order to continuously carry out CMI’s corporate social responsibility with due diligence.

CorporateGovernance

-corporate Ethics Promotion-Disclosure and Transparency

Employees Care-Fair Labor Practice-Health and Safety

-Training & Development

EnvironmentalProtection

-Climate & Energy-Water Conservation-Waste Management

CommunityEngagement

-Community Involvement-Environment Consclous

Promotion-Charity Initiative

Supply ChainSER Management

-EICC Promotion-Carbon Management

-Toxic Free

EICC

• The world’s first LCD panel and first LCD monitor to pass the “product carbon foot-print” verification.

• The first panel manufacturer to win the Environmental Enterprise Award from the ROC Enterprise Environmental Protection Award (third consecutive year).

• Rated as an outstanding business in voluntary GHG reduction by the Industrial De-velopment Bureau of the Ministry of Economic Affairs, Taiwan (for three consecutive years).

• Won the Outstanding Energy Conservation Award from the Bureau of Energy, Ministry of Economic Affairs, Taiwan.

• Received distinction (highest honor) for waste recycling and reduction from the Envi-ronmental Protection Administration of Taiwan.

• One of the first group of enterprises to receive the carbon emission label certificate.

• Tree Valley Energy Center: first large sports and recreational center to win the Dia-mond Green Building Mark.

• Won the Enterprise Green Procurement Performance Award from the Environmental Protection Administration of Taiwan, the only panel manufacturer to win this award.

• Won the Silver Award from the Taiwan Corporate Sustainability Report Awards.

• Won the Green Packaging Design Award from the Environmental Protection Adminis-tration of Taiwan.

• Won the 3rd National Industrial Safety & Health Award (Innolux Display Corporation), symbolizing the highest honor for OSH in Taiwan.

• Passed the Outstanding Healthy Workplace Accreditation by the National Health Pro-motion Bureau, Department of Health of Taiwan.

• Rated as an outstanding business in blood donation by the Ministry of the Interior of Taiwan.

2006

2007

2004

2005

• World’s first desktop LCD monitor and LCD TV product supply chain to receive the “water footprint” verification statement.

• Received the DNV PAS 2050:2008 product carbon footprint verification certificate with the 18.5” LCD panel.

• LCD modules 1.36”-4.3” passed the China RoHS voluntary product certification.

• Won the Taiwan Excellence Award with Taiwan’s first 55” ultra-slim LED TV panel.

• Won the Taiwan Excellence Award with the world’s first 27” 3D energy-saving touch panel.

• Won the Outstanding Energy Conservation Award from the Bureau of Energy, Ministry of Economic Affairs, Taiwan (third consecutive year).

• Received a distinction for waste recycling and reduction from the Environmental Protection Administration of Taiwan (third consecutive year).

• Won the Energy Saving and Carbon Reduction Action Mark from the Environ-mental Protection Administration of Taiwan (first LCD panel manufacturer in Tai-wan to win this mark).

• Rated as an outstanding business in green purchase by the Environmental Pro-tection Administration of Taiwan.

• Received a distinction in the national evaluation during the CLA Workplace Health and Safety Week.

• Rated as an outstanding business in the CLA Workplace Health Promotion Seed Personnel Training and Workplace Health Care Self Management Certification.

• Rated as an outstanding business in the CLA National Labor Safety and Health Group Cooperation Organization 2009

• Won the Health Management Award from the Health Promotion Bureau of the Department of Health of Taiwan.

• Selected in the advanced group for dust and highly toxic substance prevention project in Ningpo City.

• Won the special prize for occupational injury and safe production advanced units in Nanhai District of Foshan City.

• Selected as an advanced unit in safe production management in Ningpo City

• Won the first prize from the 4th CSR Awards in Category of Technology from Global View Magazine.

• Won the ROC Enterprise Environmental Protection Award.

• First panel manufacturer to implement the environmental ac-counting system (Version 2007).

• Received distinction (highest honor) for waste recycling and reduction from the Environmental Protection Administration of Taiwan.

• Rated as an outstanding business in voluntary GHG reduction by the Industrial Development Bureau of the Ministry of Eco-nomic Affairs, Taiwan.

• Rated as an outstanding energy saving business by the Bureau of Energy, Ministry of Economic Affairs of Taiwan.

• Rated as an outstanding water saving business by the Water Resources Administration, Ministry of Economic Affairs of Tai-wan.

• Won the third prize in the National Excellent Firefighting Manag-er and Venue Review from the National Fire Agency of Taiwan.

• Won the Outstanding Proof Award for Health Promotion from the National Health Promotion Bureau, Department of Health of Taiwan.

• Rated as an outstanding business in blood donation by the Min-istry of the Interior of Taiwan.

• Won the CRS Model Award from Global View Magazine.

• Won the ROC Enterprise Environmental Protection Award.

• One of the first group of enterprises to pass the CLA Friendly Workplace Accreditation.

• Rated as an outstanding business in voluntary GHG reduction by the Industrial Development Bureau of the Ministry of Eco-nomic Affairs, Taiwan.

• Rated as an outstanding energy saving business by the Bureau of Energy, Ministry of Economic Affairs of Taiwan.

• Rated as an outstanding water saving business by the Water Resources Administration, Ministry of Economic Affairs of Tai-wan.

• Won the CLA National Excellent Labor Safety and Health Man-agement Business Award.

• Rated as an outstanding business in the CLA National Labor Safety and Health Group Cooperation Organization 2006.

• Received 5 stars from the Excellence of CSR rating by Com-monWealth Magazine.

• Won the 6th Industrial Sustainable Excellence Award.

• Won the Outstanding Achievement Award of the Atmosphere Protection Awards from the Environmental Protection Adminis-tration of Taiwan.

• Selected as the waste disposal demo plant by the Environmen-tal Protection Administration of Taiwan.

• Won the first prize in the optoelectronics industry in the Most Ad-mired Company in Taiwan Survey conducted by CommonWealth

2008CMI Vision Great Company

Green Economy: Innovative Company

Green Harmony: Sustainable Company

Top Supplier in Customers

Innovative Team

Co-prospering Partners

Leading Enterprise

CMI Value CMI Policy Balanced Development

Transparency and IntegrityRespect for EmployeesBalanced development among customers, employees, shareholders, supply chains and communities.

2050 Green Harmony and Towards A Zero Carbon EnterpriseCMI Objective

Zero Wastewater Discharge Plant

Best Resource Recycling and Reuse Plant

Product Carbon Footprint

Product Energy Consumption

Friendly Workplace

Complete the overall water resource recycling and reusesystem for single factory site by 2020.Completion of 98% resource recycling and reuse by 2015(TFT-LCD plants)

Reduction by 35% in 2012 (based on FY2009 standards)

Reduction by at least 40% in 2012 (based on FY2009 sta-ndards)Maintaining at least 1.5% employment rate a year for theunderprivileged.

Teamwork & Innovation

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1.2 Stakeholder Identification & CommunicationStakeholder IdentificationCMI stakeholders are comprehensive and are identified by personnel from HR, Legal Affairs, Finance and Accounting, Sales, QA and ES units through the business operation, products and services. Five major groups of stakeholders are identified: shareholders and investors, customers, employees, suppliers/vendors, and the general public.

Stakeholder CommunicationWith reference to the nature of stakeholders, multiple and fluently operated communication channels are established. For example, investor relations, vendor service, business/product enquiries, and media center sites are established on the corporate official website for stakeholders to continuously feed back their needs and expectations.

Through interdepartmental cooperation, stakeholder feedback and comments collected from these chan-nels are gathered and collated for the materiality analysis conducted according to the Stakeholder Materiality Analysis Operating Instructions and Issue of Interest to Stakeholder Identification Form. Based on the multi-plication results of the two constructs, “level of concern” and “effect on operations”, these issues are classi-fied into high, moderate and low levels. Issues of high (25-16 points) or moderate (15-9 points) concerns are included in the “Major Issues of Interest to Stakeholders” in the following table. CMI will specify in different chapters of this report, including CSR Expectations and Commitments, Company Overview and Corporate Governance, To Earth with LOVE, Employee Care, and Social Contributions, the responsive policies adopted by CMI for these issues and their effectiveness.

Relationship between CMI and outside associations and organizationsCMI actively participates in events or activities organized by the relevant trade unions and industry asso-ciations and attends meetings organized by them to express the opinions and needs of the industry, share experience and exchange with others; hoping to promote the healthy development of the entire LCD panel industry.

Stakeholder Group Multiple Communication Channels Issues of Interest

to Stakeholders

Shareholders and Investors

1. Organize general shareholder’s meeting once a year.2. Publish periodic financial reports and annual report at planned intervals every year.3. Establish investor hotline and mailbox, and assign responsible staff to reply to investor

enquiries.4. Update financial and business reports and publish latest news on the CMI official website

at planned intervals.

Operation PerformanceOperation Risk ManagementCorporate GovernanceCorporate Image

Customers

1. Provide real-time response to customer demands through the sales team and customer service team.

2. Establish customer complaint and feedback system to check on real-time incident han-dling progress.

3. Comply with onsite audits and surveys requests from customers.4. Conduct customer satisfaction surveys.

Product QualityService Quality Banned/Restricted Substance ManagementCarbon Disclosure and Man-agementWater Disclosure and Manage-mentSupply Chain ManagementESH Management

Employees

1. Establish employee communication hotline.2. Organize mobilization meetings and establish Letters to the President service.3. Hold interactive meetings at plant sites (labor-management meeting, employee welfare

committee, meetings with management, and occupational safety staff meetings…)4. Conduct employee surveys (satisfaction surveys on company meals, activities, education

and training etc)5. Collect employee recommendations and comments with Employee Mailbox.

Salary and RewardsWelfare SystemEmployee Relations

Suppliers/Vendors

1. Establish interaction platform for suppliers and CMI purchasing and material control teams.

2. Form purchasing and supplier management unit.3. Hold unscheduled meetings between general units and suppliers/vendors.

Supplier/Vendor Management Supply Chain SER Manage-ment

Community1. Assign responsible unit and staff to communicate with community citizens.2. Visit borough and neighborhood heads in the vicinity, express concern for community

citizens; and promote friendship with people in the neighborhood.

Pollution and discharge statusCommunity concern and feed-backEnvironmental protection

Government Agencies

1. Aggressively participate in public hearings and seminars on laws and regulations organ-ized by the competent authorities and maintain good interactions with them.

2. Organize relevant environmental protection activities in coordination with the competent authorities.

Legal ComplianceGHG Management

NGO1. Participate in professional seminars and conferences organized by NGOs to listen to pub-

lic opinions and grasp the trend of the industry for the reference of making CSR policies.2. Co-organize projects to help the underprivileged and promote environmental awareness

with NGOs.

Social Concern and FeedbackEnvironmental Protection

Stakeholder Communication：

Association/Organization Management Project MemberTaiwan TFT-LCD Association ▲ ▲ ▲Chinese Society for Quality ▲Association of Industries in Science Parks ▲Taiwan Digital Television Industry Alliance ▲Taiwan Electrical and Electronic Manufacturer Associa-tion

▲

Taiwan Corporate Sustainability Forum ▲ ▲The Industrial Development and Promotion Committee of Miaoli County

▲

Tainan County Industrial Association ▲

Outside associations and organizations participated in by CMI

High

High Low

Effect on

Bu

siness O

pea

tion

Level of Concern of Stakeholder

Legal Compliance

GHG Management

Water Disclosure and Management

Employee Relations

Work Environment

Employee Health

Safety & Health Management

Food Satisfaction

Employee Human Rights

Operation PerformanceOperation Risk ManagementProduct QualityService QualityPollution and Discharge StatusCarbon Disclosure and Management Banned/Restricted Substance ManagementSalary and RewardsWelfare System

Corporate GovernanceCorporate ImageSupply Chain ManagementSupply Chain SER ManagementEnvironmental ProtectionConcern and Reward for Society

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Major productsVarious TFT-LCDs (Thin-film transistor liquid crystal displays)

Established January 2003

Company address

No.160, Kesyue Road., Jhunan Science Park, Miaoli County, Taiwan 35053 (R.O.C.)

Employees Globally approx. 109,364 (by December 2010)

Capital NT$73.1 billion (by December 2010)

Sales turnover NT$480.044 billion (by December 2010)

Corporate Overview &Governance2.1 Company Overview2.1.1 Company Profile

Company BriefCMI was originally called Innolux Display Corporation; the merger with Chi Mei Optoelectronics and TPO Dis-plays Corporation was resolved at the shareholder’s meeting held on 6 January 2010, and the base date of merger was 18 March 2010. Innolux Display continues to exist, with its name changed into CMI.

After the merger, CMI is equipped with production lines for producing panel of assorted sizes, for system assembly and for producing integrated devices. These include the 3.5G, 4G, 5G, 5.5G, 6G, 7.5G and 8.5G TFT-LCD plants; the 2.5G and 4.5G touch panel plants; the desktop LCD panel and LCDTV assembly lines; and the production lines for integrated devices, such as light guide plate/backlight modules, PCB assembly, mechanism stamping and coating. All production lines have complete capacity and scales, with great flexibil-ity to efficiently produce LCD panels of different sizes.

The customer grouping and base also became more complete and solid to facilitate supply chain integration and the access of key parts and components. Benefitting from the effective integration of R&D resources, technology patents and intellectual property upon existing niches, greater synergy in the operations of down-stream products, such as mobile phones, notebook PCs, monitors and TVs were achieved, thus boosting the overall capacity to CMI becoming one of the world’s top three.

With main plant sites located in Jhunan and Tainan of Taiwan, CMI has production bases across the world, including Shenzhen, Ningbo, Nanjing and Nanhai in China, and the Netherlands and the Czech Republic in Europe. The complete global deployment favors CMI to provide customers with the prompt nearby services, save material distribution and labor cost, and thereby fulfill the green vision of energy saving and carbon re-duction.

Type ApplicationInformation Technology

(IT)Desktop LCD monitors, notebook PCs and tablet PCs.

LCD TV --

Communications and Con-sumer Electronics

Mobile phones, digital cameras, camcorders, digital photo frames, car monitors, portable DVD play-ers, handheld game consoles, tablet PCs and other handheld electronic devices with high mobility.

Special application Medical display panels, aircraft dashboards, car navigators and other touch panels.

2.1.2 Operation Performance Market Analysis

Global Market ShareIn 2010, the shipping volume of CMI’s large-sized panels commanded 17.8% of the market, ranking third in the world. In terms of product range, the LCD monitor panel commanded 21.9% of the global market, ranking second in the world; the LCDTV panel commanded 20.2% of the global market, rank-ing third of the world; and the notebook PC (including tablet PC) commanded 12.1% of the global market, ranking fourth in the world. The shipping volume of CMI’s medium- and small-sized panels commanded 12% of the market, ranking first in the world. In terms of touch panel, CMI’s supply com-manded 11.5% of the global market (information by DisplaySearch).

Region 2010 Revenue PercentageDomestic sales 117,914,860 24.89%

Export Sales

America 62,173,113 13.13%

Europe 44,082,631 9.31%

Asia 246,474,946 52.03%

Other 3,050,230 0.64%

Subtotal 355,780,920 75.11%

Total 473,695,780 100%

Major Product Distribution Regions

Technology and R&D OverviewCMI continues to develop environmentally friendly technologies and products that meet market de-mands. They feature environmentally friendly materials, energy-saving and low-power consumption, high aperture rate, high-resolution, high-purity color, driver technology, lightweight and slim panels, slim frames, and broad temperature LCD. In addition, LED backlight design, touch panel technology, LCD display technology and other future TFT-LCD-related green product designs and technologies will be the foci of product designs and development of CMI.

Unit: NT$1,000

Item 2010R&D Expenditures 7,158,832

Net Operating Revenue 473,695,780

Proportion in Operating Revenue (%) 1.51%

R&D Investments

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Successfully developed technologies and products in 2010：

TV1. Develop the 46” to 65” 480Hz shutter glasses 3D TV panels using the UHF screen refreshing rate

technology and edge LED scanning BLU technology to render large-sized, high-definition and energy-saving optimal 3D image effect.

2. Develop the 46” active 3D TV panel with polarized glass to replace the conventional passive 3D optical film with a liquid crystal coating as a value solution with the function of 3D glasses. This improves the low resolution and small viewing angle problems in the passive 3D technology.

3. Develop the 31.5” WRGB panel to replace the conventional RGB design. The new technology renders a higher panel penetration rate to enhance panel brightness and thereby reduces power consumption and lower backlight cost.

4. Introduce the new VA (vertical alignment TFT-LCD) electrode design to full product series to sig-nificantly enhance VA cell penetration rate and thereby enhance product quality and reduce pro-duction cost.

5. Introduce new-typed liquid crystal to full product series to enhance liquid crystal response time by reducing Toff to 3.5ms. This significantly enhances dynamic screen quality and makes products more competitive.

6. Successfully develop the new LED light source rendering high color saturation at 100% NTSC at fixed color filter and equipping high-level products with sharper and richer colors.

Monitor1. Develop the 23.6” gate on panel technology that directly produces the gate driver on the glass

with the non-Si-based 5 PEP process to reduce material cost and make the edge slimmer.2. Develop the 27” shutter glasses 3D monitor panel using the industry-fastest TN-type 3ms liquid

crystal along with the blinking backlight plate design to significantly solve the common shadow and ghost problems in 3D monitors.

3. Develop the 18.5” to 23.6” ultrathin energy-saving panels using 0.5mm thin-film and high pene-tration rate liquid crystal glasses along with the high-efficiency LED backlight plate to significantly reduce power consumption by 70%. Consuming only 6.5W and with a thickness of only 6.6mm, these are so far the most advanced specifications in the current market.

4. Develop the 21.5” projected capacitive touch panel with low-cost and mass-productive advantag-es. The ultrathin and fashionable design has redefined the direction of large-size touch panels. The product won the Outstanding Photonic Product of Taiwan Award in 2011.

Notebook1. Develop the 13.3” ultrathin integrated notebook PC top-cover with display design that is only

2.2mm thick. At present, it is the world’s slimmest notebook PC display available for mass pro-duction. The technology also won the Taiwan Excellence Gold Award.

2. Develop the 7”-10” high-definition and ultra-wide viewing angle IPS panels to provide customers with more quality options.

3. Develop the 16.4” AG naked-eye 3D display to render 3D effect without wearing 3D glasses and improve the low-resolution problem in general naked-eye 3D panels.

4. Develop the 16.4” high saturation panel using the new LED and filter design to render 100% NTSC effect and make colors shaper and richer.

5. Develop the 17.4” 120Hz Full HD panel along with the new embedded display port (eDP) inter-face to keep pace with the emerging high definition and high bandwidth trends in the industry. It is also equipped with shutter glasses and fast-response LCD to render vivid and smooth 3D image effect without ghost problems.

Small/Medium1. 4” panel: Develop the ultrathin edge design at 0.8mm wide with excellent peripheral circuits and cell pro-

cesses to render a larger viewing area at the same screen size to present the clarity and simplicity of an ultrathin edge.

2. 2.8” panel :Develop the embedded multi-touch panel by directly integrating the touch function into the panel process without the need of an extra touch glass to effectively enhance panel penetration rate and render higher brightness on a lighter and slimmer panel.

3. Develop the small-size OLED panels using top emission WLED with the color filter process technology. These include the 3.2” HVGA TRUEOLED and 3.5” nHD TRUEOLED panels with high definition and low power consumption.

4. 2.65” and 5.3”: Develop the memory-in-display (MIDIS) technology using the LTPS process that directly produces memory in the liquid crystal glass of the panel. Memory is stored in the panel at static screen. It can display continuously without retrieving pictures from system memory thus minimize panel power consumption.

5. Develop the 15.6” one-piece add-on touch module. When compared with the conventional two-piece or multi-piece glass (film) lamination process, this technology directly produces the touch layer on the pro-tective glass to simplify process, reduces production cost and significantly reduces model thickness.

Special Applications：1. Develop the 28” Quad FullHD IPS panel equipped with 4K2K ultrahigh definition. This 28” IPS panel for

medical displays renders ultra-wide viewing angles, high brightness, high contrast and high color satura-tion.

2. Develop a full series of broad temperature liquid crystal industrial display panels with LED-backlight us-ing the broad temperature liquid crystal technology and particular electronic components to extend the ambient working temperature range of panels from -2

0C to 70C. Also, the 50,000 hours long-life LED light source is replaceable to extend the lifespan of the module.

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Unit: NT$1,000 (except for loss per share which is expressed in NT$)

Item 2010Operating revenue 473,695,780

Gross Profit (loss) 146,338

Operating income (loss) (10,492,493)Non-operating expenses and

losses(14,112,329)

Current (loss) profit (14,835,437)

EPS (Loss) (2.29)

Investor RelationsCMI has established a dedicated Investor Relations (IR) Department to communicate with investors the operation philosophy and operational achievements of CMI. CMI also enforces the spokesperson system, publishes annual reports and establishes high-efficiency communication channels to provide investors with correct and real-time information of CMI. For example, CMI publishes the operating in-come and shipping volume report every month; announces its financial performance and operational achievements every quarter; and organizes conference calls and shareholder’s meetings every year. The above information is also published on the Investor Relations site on the CMI official website and the TWSE website. Also, shareholders can express their recommendations to CMI at the general shareholder’s meeting every year according to the statutory regulations. They can also express their opinions and recommendations through our investor hotline and investor e-mail. Our special staff will review every investor opinion and recommendation before replying to investors. Detailed contact in-formation is posted on the CMI official website.

Complete CMI operational information is provided by various communication channels for sharehold-ers and investors. With the effective recommendation system, we maintain shareholder interests and confidence.

Financial PerformanceThe annual operating revenue increased from NT$163,548,260,000 in 2009 to NT$473,695,780,000 in 2010, with an increase of 189.64%. This suggests that CMI has succeeded in creating excellent operation performance by boosting sales, expanding the scale of operations and reducing operating cost through resource integration.

The deficit in 2010 was NT$14.8 billion, with a net loss per share after tax of NT$2.29. This is mainly due to the fall of panel prices caused by the declining market demand and the operational pressure from the integration cost of the merger. Although there were unfavorable factors, the unique operat-ing model and combined efforts of the management team must gradually demonstrate the synergy from the merger.

Future Prospects, Opportunities and Challenges

Steady Growth of New Application ProductsLarge-size LCD monitors have become the mainstream of the PC and TV markets. With the demand from the emerg-ing markets and the continuous launch of AIO PC and other new products, it is estimated that single-digit sales growth would be maintained in the next few years. In notebook PCs, apart from the reverse growth of notebook PCs during the economic recession, LED and CULV notebooks emphasizing energy saving and environmental protection will continue to launch. In small and medium panels, the popularization of smart-phones and gradual maturity of touch technology will increase the shipping volume of small and medium panels. Additionally, with the rise of tablet PCs in 2010, CMI immedi-ately entered the market to increase the shipping volume of CMI’s medium size panels.

Solid Customer BaseAll major CMI customers are world-leading consumer electronics and PC system manufacturers playing a decisive role in the global TFT-LCD module and LCD monitor markets. As the trend of integration of the consumer electronics and PC markets is obvious, CMI will continue to target world-leading consumer electronics and PC system manufacturers, and further expand the scale of trade with them. For CMI, trading with world-leading manufacturers not only boosts operating revenue and but also pushes market share significantly. With the 3-in-1 integration synergy, our customer base will be-come more solid. Furthermore, by continuously cultivating customers in emerging regions upon the world-leading manu-facturer base, it is estimated that operating revenues may be secured in the long run and increase rapidly, and global market share will gradually increase.

Global DeploymentPositioned as the top ICM and LCD manufacturer and supplier in the world, CMI began aggressive global deployment right at the inception. Today, CMI has LCM and LCD monitor production bases in Longhua of Shenzhen, Ningbo and Nanhai in China and hubs in major Asian, European and American cities, in order to meet the “real-time supply” target and thereby secure the long-lasting partnership with customers.

In-depth Vertical IntegrationBy integrating R&D, production and sales of LCD, LCM, mechanism and system assembly, CMI is more cost competitive than ordinary LCD monitor assembly plants and provides customers with real-time one-stop services.

Perfect Merger EffectBy merging three companies into one, besides the original advantages in monitor, CMI is now equipped with LCD TV panels specially from Chi Mei Optoelectronics, and the small and medium panels specially from TPO Display to deliver full-range production with greater flexibility to meet the panel size demands of different applications. With the emerging synergy from the merger, CMI will lead in the various LCD panel markets.

Difficulty in Balancing Supply and Demand in a Highly Competitive IndustryAs a result of capital intensive feature and long implementation term, the LCD panel industry has a more drastic business cycle than other industries, and the equilibrium in supply and demand is difficult to maintain. Competition is keener when Taiwanese, Japanese and Korean competitors continue to plan the next-generation panel plants and the entry of Chinese competitors into the market. In terms of capacity, CMI is now the third in the world, along with the complete vertical inte-

gration capacity and system assembly support, our competitive strength is superior to that of our competitors.

High Technical and Patent Dependency on Foreign CompetitorsThe TFT-LCD industry involves comprehensive technologies and patents. Overseas manufacturers entering the industry at an earlier time have applied for patents for relevant technologies. In order to prevent patent infringement in the manu-facture process, since the establishment CMI have recruited global R&D talents to aggressively develop its own patent and technology and to evaluate overseas technology licensing. Apart from the aggressive R&D and patent applications, CMI continues to grow a strong legal affairs team to protect the company’s intellectual property.

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Corporate Governance Structure

2.2 Corporate Governance

2.2.1 Company OrganizationAs the present governor of CMI, Chairperson Ching-siang Liao (廖錦祥) does not take any administrative post at

CMI. Mr. Hsing-chien Tuan (段行建), PhD is vice chairperson and CEO of CMI. They both manage the relevant

CMI business units, centers and operations.

At CMI, corporate governance aims at the smooth administration of CMI, respect for the rights and benefits

of shareholders, and disciplined and healthy operations of the board of directors. Our management team and

board of directors are formed with experienced professionals, and corporate affairs are monitored and evalu-

ated by an internal audit office. This office assists managers and board members in ensuring the efficiency

and effectiveness of operations, the reliability of financial reports, and legal compliance.

CMI has elected directors according to the law since it was incepted. Candidates are selected in terms of expertise, social experience and moral standards. The board of directors is formed by five members, includ-ing two independent members, with professional back-ground and rich technical experience in related fields. Three supervisors are also elected from candidates with at least five years of practical experience related with CMI’s operations or who are instructors or faculty members of higher ranking colleges and universities. All provide CMI with professional consultation concerning operations, technology and finance in an unimpaired and independent spirit, and are co-responsible for CMI’s strategic planning, operations and supervision.

According to the procedure for meetings of the board of directors, the board shall hold a board meeting at least every quarter. Supervisors can communicate with CMI financial, legal affairs and internal audit officers at the quarterly board meetings to understand the internal risk control, major litigation risk assessment and internal re-ports of CMI. With the internal (audit office) and external (CPA) annual audit programs and financial report certifi-cation, the status of legal compliance, including the laws and regulations and financial and accounting principles governing listed companies, and the target accomplish-ment rate of CMI are identified.

With reference to the articles of incorporation and the pay standard of competitors, directors and supervisors are remunerated according to their involvement in and contribution to CMI operations. When there are profits, after compensating the deficits and losses, appropriating

Title Name

ChairpersonChing-siang Liao (Represent-ative from Chimei)

Vice Chairper-son

Hsing-chien Tuan

DirectorTing-cheng Hsu (representa-tive of Hyield Venture Capital)

I n d e p e n d e n t Director

Chi-lin Wei

I n d e p e n d e n t Director

Ing-da Liu

statutory reserve, and distributing employee bonuses, 0.1 percent will be awarded to shareholders and super-visors with the approval of the shareholder’s meeting.

It is also specified in the procedure for meetings of the board of directors that when the directors, or their agents, have a conflict of interest with alleged harm on the CMI’s interests, they may express their opinions and answer the enquiries, but shall not participate in the dis-cussions or voting. Also, they shall abstain from the dis-cussions and voting and shall not exercise the right of voting for and on the behalf of other directors. According to Paragraph 2 of Article 206 of the Company Act, Para-graph 2 of Article 180 of the Company Act applies mu-tatis mutandis to the directors who are prevented from exercising their right of voting according to the foregoing section for resolutions made at the board meeting.

2.2.2 Healthy Internal Control SystemCMI’s Internal Audit Office directly reports to the Board of Directors. It conducts regular internal audits and special audit projects; helps the board of directors, managers and employees to examine the effectiveness of the internal control system; measures the efficiency of operations, reliability of financial reporting and adher-ence to ; and assists CMI departments to implement documented self-assessments. The internal audit also provides opportune suggestions to ensure that the internal control system is continuously and effectively im-plemented and makes recommendations for the revision of the internal control system. By assessing, improv-ing, reviewing and auditing the effectiveness of risk management, process control and corporate governance, the internal audit, independent directors and supervisors assist the board of directors and management in achieving the set targets.

List of Directors and Supervisors of CMI

Shareholders’ Meeting

Board of Directors

Chaiman

Audit Office

EHS Group Division

Finance &Accounting Center

Finance &Accounting Center

CEO

Supervisors

Quality Manage-ment & Sustain-ability Center

Strategic Procute-ment Center

TFTBusiness Unit

ModuleBusiness Unit

Mobile Device Business Unit

MNT Module Business Unit

Operation Infrastructure Management Center

Global S

ales Business U

nit

Product Technology C

enter

Production Technology C

enter

Manufacturing Manufacturing Manufacturing Manufacturing

TechnologyDevelopment

ProductDevelopment

ProductDevelopment

ProductDevelopment

Sales and Marketing

Sales and Marketing

Sales and Marketing

Material Procurement



Board of Directors and Independent Directors

17 18


BCMS

OSHMS

Total Participation in and Enforcement of Risk Management

Operation Risk

Risk Level

Hazard Risk

High

Project to promote in 2011-12

Completed

All Employees

Low

2.2.3 Basic Realization of CSRCMI’s Code of Conduct

CMI Code of Employee ConductTo improve the conduct, professional ethics and expertise of CMI employees; to optimize CMI business ac-tivities; and to ensure the sustainable operations of CMI, with reference to the Specimen of Code of Ethics and Code of Conduct for TWSE and GreTai Listed Companies established by the Taiwan Stock Exchange and the Electronic Industry Code of Conduct (EICC), the CMI Code of Employee Conduct is established to specify the conduct of CMI employees. This includes the avoidance of conflict of interest, non-disclosure obligations, prohibition of bribes and gifts, and other business-related rules. In Taiwan, the Code is the com-pulsory course for newcomers of all plant sites. In 2010, a total of 1,400 hours of courses on the CMI Code of Employee Conduct were arranged for 2,100 employees. In 2011, the corporate laws and obligations (e.g. Antitrust Act), code of ethics and code of conduct, and code of employee conduct will be arranged to deepen the professional ethics of CMI employees.

Legal ComplianceTo supply legal-compliant panel products, CMI designers have received training related to intellectual prop-erty rights. Also, CMI complies with the relevant laws and regulations and offends no regulations governing market communication in advertizing and sponsoring activities for market communication, marketing or cor-porate image improvement; and in supplying products and services. Outocmes favorable to CMI business operation were achieved in several patent litigations. CMI actively develops new technologies and patents not only to improve the products, but to protect the company. In December 2010, the EU imposed a €300 million fine against CMI in the antitrust litigation. CMI continues to appeal to the EU court. Antitrust investiga-tions in other countries are still undergoing. Please refer to the Q4 2010 Financial Report (or visit the CMI official

website at http://www.chimei-innolux.com) for details of significant litigations.

AnticorruptionAt CMI, the anticorruption policy is specified in the CMI Employee Code of Conduct to control and eliminate the risk of corruption. For example, it is specified in the code that finance, accounting and purchasing personnel shall select suppliers with honesty and impartiality and select competitive products or services in terms of quality, price and delivery time. Also, these personnel shall not ask for a kickback or other forms of benefits from suppliers. Furthermore, finance, accounting, marketing and sales personnel shall handle business affairs with customers with honesty and impartiality; market-ing and sales personnel shall decline gifts, cash or other form of property from customers.

Recognizing the impact and influence on corporate as-sets, production, operations and employee safety of natural disasters and plant site accidents and occur-rences, CMI maintains the effectiveness of risk control measures by implementing hazard identification and risk assessment, risk engineering control, safety guidelines and safety standards. CMI also keeps track on the sta-tus and effectiveness of control of the high-risk areas on plant sites through continuous monitoring and measure-ment.

In addition to aggressively control risk by means of engineering improvement and emergency response, CMI has established the short-, medium and long-term business continuity plans (BCP) as instructions and guidelines for the business backup operations; and has applied for insurance to appropriately share the potential operation damage in the worst situation.

Seeing the importance of business continuity manage-ment, CMI has immediately summarized the differences among all three companies after the merger. Service interruption contingency plans have been completed one after another to ensure business continuity for some plant sites. These include the BCP and exercise for ser-vice interruptions or catastrophic risk, such as effluent anomalies, tap water supply interruption, park sewage treatment plant interruption, gas supply interruption, power supply interruption, pure water system interrup-tion; and damage containment/limitation education, such as business continuity management and Semi S26 machine safety requirements. Based on the situation of individual plant sites, plant site damage containment/limitation onsite inspection and training were arranged

in 2010 to fully capture plant site hazards and risks. Also, risk response and controllability are reinforced through relevant training, such as external training for ERT per-sonnel and distributor and machine IR inspections.

To promote the consistency and effectiveness of business continuity management, enhance overall competitive-ness in the industry, and cope with customer needs and industrial trends, CMI began the complete planning of the BCMS in the end of 2010 in the assistance of the Safety and Health Technology Center and insurance brokers, in order to promote the implementation of the BCMS ac-cording to the BS 25999 standard. In the beginning of 2011, CMI will select specific business units or production lines to trial the BCMS, establish the BCMS risk manage-ment system framework and implementation methods, and promote BCMS to the relevant CMI units. Lastly, CMI will apply for the accreditation of relevant standards, in order to fulfill the demands of both internal and external stakeholders and to construct a corporate safety culture for sustainable operations.

Integrity is the most important core value of CMI. It consolidates CMI’s leading position in the display panel industry. CMI pursues to acquire trust and respect from its customers, shareholders, employees, suppliers and the society.

CMI respects and upholds democracy and the rule of law. It abides by the related law and the standards which are agreed by the industry. Furthermore, it pursues the higher standards of operational excellence.

It is a universal value to respect for human rights. When facing up to the employees, customers, suppliers around the world, CMI based on the Global Compact implements the principle of fairness and respect for the individual differences.

Deterioration of the living environment is human beings’ common challenges. CMI should use its capacity to reduce the environmental impact of the production process and product to attain the sustainable development of the global environment.

CMI is not satisfied with its own growth and robustness. CMI is willing to facilitate the development of nearby communities with the way of sharing its profits and public achievement.

As the panel and display manufacturing leader, CMI has a decisive influence on the client or supplier side; by clustering the supply chain strength, it has a greater impact on the improvement of the social and the global environment.

CMI concentrates on the company operation, creating profits for shareholders and employees. It then contributes to the improvement of the society and the environment.

Integrity

Compliance

Respect for human rights

Environmentally friendly

Community and social

Be the Influential

Balancing and continual improvement of financial, social and environmental

performance

Figure 1 Illustration of the CMI BCMS Promotion Plan

Personnel violating the CMI anticorruption policy will be punished according to the CMI Greater China Reward and Penalty Operating Procedure. This will include a warning, minor offense and major offense, depending on the severity of offense.

When reporting to CMI, newcomers are required to sign the Service Integrity and Anticorruption Agree-ment to ensure that all CMI employees understand and follow the CMI anticorruption policy.

2.2.4 Business Continuity ManagementBusiness Continuity Management(BCMS)

19 20


Customer Satisfaction Assessment and Survey Results in 2010

2010年2009年

0分

1分

2分

3分

4分

5分

OverallPerformance Quality Engineering

TechnologyDelivery

Punctuality Service

4.07 3.81 4.06

3.96

4.16 4.35

CSRPromotion

3.82 3.553.89

3.98

3.89

2.2.5 Supply Chain ManagementSupply Chain SER Management(SER)Realizing Social and Environmental Responsibility (SER) with the Supply Chain

CMI is committed to pursuing sustainable operations by realizing and promoting the requirements and spirit of social and environmental responsibility to its suppliers and requests them to comply with the supplier SER code of behavior, including the following five core requirements: labor, ethics, health and safety, environment, and man-agement. CMI also promotes SER in collaboration with suppliers according to the CMI Supply Chain SER Man-agement Model and Framework (Figure 1).

Permanent Customer SatisfactionTo ensure permanent customer satisfaction, CMI makes continuous improvement t and provides high quality products and professional services based on a customer-orientation, professional and well-planned quality system.

CMI establishes a well-designed global distribution and service network with customer service locations in Europe, America, Southeast Asia, Northeast Asia, Eastern China and Southern China to meet global custom-er demands with real-time, transparent and flexible services and the most valuable product solutions, in order to achieve total customer satisfaction.

Partnership with CustomersPartnership is one of CMI’s core values. Therefore, the best partner ranking in customers is the indicator of our quality and service performances, customer feedback becomes the reference for our improvement. In doing so, we can make opportune adjustments of our strategies to maintain consistency with customers. CMI arranges customer satisfaction surveys every year. In 2010, customer satisfaction survey results show that we have made significant improvement from 2009 in overall performance, quality, engineering technology and service. Also, the score in CSR Promotion, a new item added in the 2010 survey, is 4.35 (Good). We will continue to work for total customer satisfaction, in order to become the trustworthy and success-depending long-term and important partner of customers.

CMI established the supplier SER risk assessment mechanism and began onsite audit in 2010, in order to under-stand the status of compliance of CMI’s Supplier SER Code of Conduct. The onsite audit was deployed in Long-hua, Nanhai, Ningbo and Nanjing plant sites. Fifteen suppliers were audited and a total of 190 nonconformities were detected. To effectively assist suppliers in making improvements and in enhancing their performance in SER management, responsible personnel were sent to suppliers to help develop the management system and deter-mine improvement targets, so as to promote the value of the entire supply chain.

In 2011, the SER risk assessment will be conducted on the top two key parts suppliers in trading volume. Onsite audits will be arranged for suppliers identified as medium to high risk. It is aimed to review the SER management of over 90% of suppliers.

Suppler Chain Risk AssessmentCMI is committed to developing long-term cooperation with suppliers, promoting local development, reducing supply chain risk and promoting the supply chain in collaboration with suppliers through the following activities, in order to en-sure their cooperation with the CMI management system.

1. Periodic Assessment: To assess the quality and delivery punctuality of suppliers and to make improvement in col-laboration with suppliers.

2. Audit Guidance: To arrange an annual audit program to conduct onsite audit on suppliers to ensure they have en-forced the CMI regulations and to assist them in improving the defects detected, if any.

3. Continuous Improvement: To provide suppliers with the resources for making continuous improvement for critical defects requiring long-term improvement, hoping to help them meet the CMI requirements within the target period.

Most CMI production bases are located in Taiwan and China. In 2010, more than 83% of CMI suppliers are located in Taiwan and China. This suggests that CMI promotes local economic development and growth, creates local job oppor-tunities, prospers local development, saves transportation and fuel, and enhances the quality, environmental awareness and capacity of local suppliers by supporting local suppliers.

Figure 1 CMI Supply Chain SER Management Model and Framework

• Scoring: Rated by the ranking between CMI and LCD panel suppliers.

• 5: Exce l len t ; 4 : Good; 3 : Sat is fac tory ; 2 : Unsatisfactory; 1: Very Poor

• (The data in the survey results do not include the customers of the system assembly plants)

Supply C

hain SE

R M

anagement

Structure

supplierInitiation

Sourcing Qualification MassProduction

ContinuousImprovement

Risk Assessment

SAQ(Medium/high risk)

On-site Audit

AVLQualification

CorrectiveAction Report

CAR Review&Double Report

PerformanceScorecard

(Link Business)

AbnormalManagement

SupplierAgreement

(SER Undertaking)

Legal Review

CapacityEstablishment

Awards &Recognition

Systematization

*Blue Wordings are Y2010 Supplier SER Management Activities

39.8%9.8%

43.4%

Japan

Taiwan

China

0.7%2.6%

3.3%USASouthKoreaEurope

0.3%Other

0.4%China

2%

0.3%USASouthKorea

0.3%Other

10%87%JapanTaiwan

2.2.6 Customer Satisfactory Service

21 22


3.1 Green LivingRealization of the value of LOHASIn order to continuously enforce its green vision, To Earth with LOVE, CMI will promote the SMILE Program to for employees for realizing the value of LOHAS and creating a green living space for em-ployees.

Green VisionAt CMI, “To Earth with LOVE” is the core of its green vision. This includes Green Living, Green Operations, Green Value Chain and Green Environment. Starting from taking care of the green life of employees through the green operations of CMI for a green value chain to the realization of a green environment for the sustainable development of earth and the environment, this vision covers all aspects of daily life and corporate operations.

To Earth with LOVE

Natural air purifier workshop

EcoLife WorkshopIn 2010, CMI organized a series of workshops to disseminate the energy conservation and green living concepts to employees. At the four workshops, 162 employees experienced a new way of living, covering greening the environment anytime and saving energy any-where. These workshops included a natural air purifier workshop, painting technique advanced class, home decoration workshop, and lighting fixture DIY and saving water skill workshop.

Fun EcoRidingThe event theme packed with the elements of environmental pro-tection, resource recycling and energy conservation attracted 1600 employees and their families. On the event day, the concepts of en-vironmental protection and energy conservation were disseminated to employees through riding and environmental protection games, in order to do our part for earth.

Home spatial decoration workshop

Beach CleanupIn recent years, CMI has been supporting the beach cleanup campaign and adopted the Shuangchun Shore in Beimen of Tainan County. In 2010, CMI expanded the scale of the beach cleanup campaign in collaboration with the Environmental Protection Bureau of Tainan County. Although the weather was hot, the environmental protection enthusiasm of employees never melted. As a result, a total of more than 500 CMI employees and their family participated in the campaign. Volunteers shuttled around, bending down to pick up garbage on the beach. It may be a simple act, but the concern and effort for environmental protection is manifested. CMI hopes that this simple campaign can reawaken the public’s concern for marine ecology conservation and cherishment of marine resources. As the sensation from the moment of contribution is eternal, employees enthusiastically expressed their desire to come again next year!

To Earth, With

L.O.V.E

LGreeniving

OGreen

perations

VGreen

alue Chain

EGreen

nvironment

LGreeniving

OGreen

perations

VGreen

alue Chain

EGreen

nvironment

Green Living(Achieving Fulfillment)

Taking a page from the LOHAS (lifestyles of health and

sustainability) movement and its values, we are committed to creating greener living conditions for our employees and surrounding communities.

Covering product development and design, manufacturing and shipping, we will make continuous environmental performance improvements.

Green Operations(Sustainable

Resource Management)

Green Environment(Promoting

Environmental Protection)

Caring for the Earth, we will promote ecological

sustainability.

Green Value Chain(Creating Green Value)

We are committed to installing the greenest values possible

within our LCD production chain.

23 24


3.2 Green OperationsSustainable Resource ManagementIn clean production, pollution prevention and industrial waste minimization, CMI has spared no effort to aggressively engage in the R&D and promotion of various improvement measures. For its long-term and full-scale devotion to such, CMI won the Outstanding Energy Conservation Award from the Bureau of Energy, Ministry of Economic Affairs, Taiwan, and received a distinction for waste recycling and reduction from the Environmental Protection Administration of Taiwan for three consecutive years. There are more credits and awards for CMI’s long-term efforts. The following will show you these credits and citations.

Prize Winner Organizer

Energy conservation and Carbon Reduction Mark STSP Site (Tree Valley Branch) Taiwan EPA

Enterprise Green Procurement Performance Award STSP Site Taiwan EPA

Sta r o f Ta inan ( fo r w inn ing the Ta iwan EPA

E n v i r o n m e n t a l E n t e r p r i s e Aw a r d f o r t h r e e

consecutive years)

STSP Site (Fab B)Tainan County

Government

Outstanding Energy Conservation Award (for three

consecutive years)STSP Site (Tree Valley Branch) MOEA

Outstanding Energy Conservation Award STSP Site (Tree Valley Branch) MOEA

Outstanding Environmental Protection Business STSP Site (Fab A) TNSP Administration

Outstanding Management of Resource Recovery

AwardSTSP Site (Fab A) Taiwan EPA

Outstanding Energy Conservation Enterprise JNSP (Fab T1) HCSP Administration

Excellent Low Carbon Enterprise JNSP (Fab T1) HCSP Administration

Enterprise Green Procurement Performance Award JNSP (Fab T1 and T2) HCSP Administration

Green PurchasingExerting a positive influence of the enterprise, CMI aggressively participated in green purchasing plans for enterprises and groups promoted by the Taiwan EPA and formed the Green Purchasing Team with the relevant departments to prioritize the purchase of green products carrying the environmentally friendly marks and energy-saving and water-saving products. According to Taiwan EPA statistics, CMI’s total amount of green purchasing in 2010 was NT$42 million.

After the Kyoto Protocol was signed in 1997 to request 38 industrialized countries to reduce GHG emissions to 5.2% less than the standard in 1990 during the 2008 to 2012 period, the Cancun Agreement signed in 2010 resolved that a reg-istry (NAMAs Registry) will be established to re-cord and combine the reduction actions adopted by developing countries and the economic and financial aid from developed countries, and the Green Climate Fund will be established.

Looking around world, GHG is an issue that en-terprises must seriously face. In addition to volun-tarily promoting the relevant energy conservation and carbon reduction measures, designing and producing energy conservation and environmen-

Since 2005, CMI has been performing GHG in-ventory every year and third party external verifi-cation according to the ISO14064-1 International Standards. The inventory for 2010 has been scheduled in March to May 2011 for internal in-ventory and verification and June to July 2011 for third party external verification.

GHG emissions are categorized into three broad scopes: (1) Scope 1—all direct GHG emissions; (2) Scope 2—indirect GHG emissions from con-sumption of purchased electricity, heat or steam; and (3) Scope 3—other indirect emissions. Ac-cording to the GHG Protocol, GHG emissions covered in Scopes 1 and 2 must be inventoried qualitatively and quantitatively; and GHG emis-sions covered in Scope 3 only needs qualitative inventory. In 2010, the GHG cap of CMI was 3.625 million tons CO2-e. The scope of inventory cov-ered plant sites in both Taiwan and China, with GHG emissions at 2.959 million tons CO2-e and

Outstanding Energy Conservation Award from the

Bureau of Energy, Ministry of Economic Affairs (for three

consecutive years)

Distinction for waste recycling and reduction from the

Environmental Protection Administration of Taiwan (for

three consecutive years)

1.Taiwan: JNSP (Fab T1, T2 and T3; Fab Pingzhen; Fab Ton-

glo; Fab STN) and STSP Site (Fab A/B/C/D/F; TSOC; Tree

Valley Branch; Fab Rende; Tree Valley Recreation Center)

2. China: Fab Longhua; Fab Nanhai; Fab Shanghai; Fab

Ningbo; Fab Nanjing; Fab Chongqing; and Fab Kunshan

GHG Emissions (tons CO2-e)Taiwan China

Scope 1 Scope 2 Scope 1 Scope 250.3 245.6 2.8 63.8

Total 362.5

tally friendly green products, CMI has aggressive-ly participated in the legislation of the competent authorities in cooperation with the Taiwan TFT-LCD Industry Association (TTLA). These included the drafting of the Greenhouse Gas Reduction Act, Energy Tax Statute, Renewable Energy Development Statute and Energy Management Act. Furthermore, CMI signed on to the Carbon Disclosure Project (CDP) and Supply Chain lead-ership Collaboration (SCLC) to disclose to the public the information concerning CMI’s analysis and responsive actions for climate risk and op-portunities, measures and performance in carbon reduction, GHG emissions, supply chain GHG management, and product lifecycle since 2008.

0.666 million tons CO2-e respectively. Most part of GHG emissions falls into Scope 2; i.e. purchased electricity and steam, commanding at 85% of the cap, or 3.094 million tons CO2-e.

The amount of Scope 1 commands at 15% of the cap, i.e. 0.531 million tons CO2-e; including FCs at 0.458 million tons CO2-e, commanding at over 85% of GHG emissions at CMI. FCs are pro-duced primarily from the SF6 and NF3 that used in LCD panel manufacturing.

2010 CMI efforts to promote environmental friendliness

3.2.1 GHG ManagementClimate Change Risk and Opportunities

Taiwan (Scope 1)

Taiwan (Scope 2)

China (Scope 1)

China (Scope 2)

14%17%

1%

68%

GHG Inventory

25 26


1. *1 STSP Site (Fab1-Fab8) and JNSP Site (Fab T1-T3/Pingzhen /STN).

2. *2 Fab Lunghua, Fab Ningbo, Fab Nanhai, Fab Nanjing and Fab Shanghai in China.

3. *3 STSP Site (Fab1-Fab8)

4. *4 STSP Site (Fab1-Fab8, LCM), JNSP Site (Fab T1-T3/Pingzhen/STN/Tonglo); and Fab Lunghua, Fab Ningbo, Fab Nanhai, Fab Nanjing and Fab Shanghai in China.

5. Energy Conversion

6. Natural Gas Heating Value: Taiwan 8,000 Kcal/m3 (Bureau of Energy, Ministry of Economic Affairs of Taiwan. (2010). Energy Statistics Handbook); China 9,310 Kcal/m3

(Department of Energy, National Bureau of Statistics of China. (2009). China Energy Statistical Yearbook.)

7. Diesel Heating Value: Taiwan 8,400 Kcal/L (Bureau of Energy, Ministry of Economic Affairs of Taiwan. (2010). Energy Statistics Handbook); China 10,200 Kcal/kg

(Department of Energy, National Bureau of Statistics of China. (2009). China Energy Statistical Yearbook.)

8. Electricity Heating Value: 1 kwh = 3,600,000 J

9. GHG emissions refer to the cap of Scope 1 (all direct GHG emissions) and Scope 2 (indirect GHG emissions from consumption of purchased electricity, heat or steam)

10. Emissions of VOCs, sulfur oxides and nitrogen oxides are calculated by the actual panel area after converting the measured results into emission intensity (kg/m2).

11. Emission intensity (kg/m2) = Stack Emission (kg/hr) * 24hr/day/panel area (m2/day)

12. Emission (ton/yr) = Emission Intensity (kg/m2) * Panel Area (m2/yr) / 1000 kg/tons

13. COD, BOD and SS emissions are converted from the actually measured results.

14. Waste-to-Resources: It refers to the proportion of waste other than final disposal and incineration. Final disposal methods are determined according to the Directions for

General Waste Recycling, Cleanup and Disposal.

R&D and Design

Raw MaterialPurchasing

Custmer

Production

Transportationand Sales

Major Materials

Glass substrate*1 49 million m2

Liquid crystal*1 35 tons

Steel*2 27,212 tons

Plastics*2 3,5131,000 tons

Effluent

Waste Disposal*4

Waste-to-Resource Ratio*4

Panel Output

( pcs ) TFT-LCD 17,500

88.5

*The above quantity refers to the sales quantity(based on the quantity of panels cut from substrates)

Water Consumption

Input CMI Output

%

Developer*1 5,700 tons

Photoresist liquid*1 10,600 tons

Stripper*1 10,000 tons

Major Process Materials

Direct Energy Consumption

Indirect Energy Consumption

Natural Gas*1*2 336,073 MJ

Diesel*1*2 23,721 MJ

Electricity*1*2 1.58×1010 MJ

Tap Water*1*2 27.7 million m3

Material Recycling and Reuse

Stripper recycling rate*1 78.8%

NMP 79.8%System Water RecyclingVolume*1*2 51.05 million m3

Rainwater recycling

Air Pollution Emission

GHG 362.5 million tons CO2-e

VOCs*1 94 tons

SOx*1 0.1 tons

NOx*1 6.2 tons

Wastewater*1 1,795,000 tons

COD*1 1,100 tons

BOD*1 500 tons

SS*1 300 tons

Total Waste Generation 105,640 tons

Final Disposal (filling and incineration) 9,085 tons

volume*1*2 400,000 m3MAU condensate recyclingvolume*1*2 940,000 m3

Aggressive GHG ReductionIn addition to positively addressing the GHG issue, CMI is committed to voluntary GHG reduction. To LCD factories, as much as 82% of GHG comes from purchased electricity and 16% from FCs, car-bon emissions can be achieved by means of ener-gy conservation and FCs reduction. The measures and performance in energy reduction are elaborat-ed in the energy conservation section. From 2005 to 2010, although the total panel area increased by 430% due to capacity expansion, GHG emission increased by only about 65%. Also, the GHG emis-sion intensity in 2010 was 0.0590 tons CO2-e/m2, significantly reducing by about 70% compared to that of 2005.

▓ FCs Reduction Commitment: In 2004, CMI participated in TTLA and signed the voluntary reduction MOU to express its commitment

to equip all new plants built after 2003 with the local scrubber. Also, it will reduce FCs emission intensity to 0.0335 tons CO2-e/m2 in

2010.

▓ FCs Reduction Performance: By voluntarily investing in and installing high-efficiency combustion-type local scrubbers, the total

amount of GHG emissions reduced during 2005-2010 was 10.04 million tons CO2-e. In addition to the local scrubber, process tech-

nology improvement, process gas reduction and replacement assessment, and process parameter optimization were the focus of

FCs reduction. In 2010, the FCs emission intensity reduced to 0.0094 tons CO2-e/m2. When compared with 2005, the reduction is up

to 87%, and even far better the said committed FCs strength.

CMI plants passed ISO14001 and OHSAS18001 certification.

CMI makes continuous efforts to promote and implement environmental protection and maintain occupational safety and occupational safety, in order to realize sustainable development. In prac-tice, CMI promotes the environmental manage-ment and occupational safety and health man-agement systems according to the ISO14001, OHSAS18001 and TOSHMS standards to con-tinuously enhance total environmental quality and maintain occupational safety and health.

3.2.2 Environmental Material Flow

2005 2006 2007 2008 2009 2010

300

250

200

150

100

50

0

148

68 53 61 57 44 46

175 230 159 129 163

FCs Emission intensity (tons CO2-e/m2)

Source: HCSP (Plants T1/T2/T3) and TNSP (Plants A/B/C/D/F and Tree Valley Branch)

FCs Emissions (million tons CO2-e)

Site ISO14001 OHSAS18001 TOSHMS*(Taiwan only)

TNSP Plant ▲ ▲ ▲

HCSP Plant ▲ ▲ ▲

Longhua Plant ▲ ▲ NA

Ningbo Plant ▲ ▲ NA

Nanhai Plant ▲ ▲ NA

Nanjing Plant ▲ ▲ NA

Shanghai Plant ▲ ▲ NA

ESH Management System Certification

2005 2006 2007 2008 2009 2010

0.20

0.15

0.10

0.05

0.00

350

300

250

200

150

100

50

0

Scope 1 (10 thousand tons CO2-e)Scope 2 (10 thousand tons CO2-e)SGHG emission intensity (tons CO2-e/m2)

Source: JNSP (Fabs T1/T2/T3) and STSP (Fabs A/B/D/F and Tree Valley Branch)

0.08

0.07

0.06

0.05

0.04

0.03

0.02

0.01

0

FCs Emissions Intensty(tons e/m2)

2005年 2006年 2007年 2008年 2009年 2010年 2005 2006 2007 2008 2009 2010


27 28

With the support of CMI’s energy conservation policies and operations of highly-efficient organization, CMI successfully reduced the electricity consumption for LCD panel produc-tion by 10.2% from 86.3 kWh/m2 in 2009 to 77.5 kWh/m2 in 2010, which is a great performance. Power consumption at STSP Tree Valley Branch (Fab 6) even reduced to 58 kWh/m2.

3.2.4 Waster Resource Man-agementEstablishing the Dynamic Energy Conservation Synchronization Platform

CMI began promoting various energy conservation activities since inception, in order to achieve energy minimization for production. Therefore, it has established dedicated energy resource management organiza-tions and designed various energy conservation education and training programs and well-planned reward schemes to encourage employees to voluntarily propose energy conservation solutions. Also, in order to extend energy conservation performance across departments, in addition to establishing a dynamic energy conservation committee in 2009, CMI established in 2010 the Dynamic Energy Conservation Synchroniza-tion Platform in Taiwan and the Energy Conservation and Carbon Reduction Promotion and Operation Com-mittee in Longhua Site in China to enhance the promotional efficiency of various energy conservation poli-cies. Furthermore, CMI teamed up with professional consulting and technical teams to develop new energy conservation technologies, enhance equipment efficiency, and rationalize energy consumption and supply specifications. CMI also communicates with employees the importance of energy conservation over the CMI BBS and relevant energy conservation activities.

Since the beginning of construction, lighting energy conservation has been planned for the STSP Fab F (FAB 8). This included the use of high-efficiency lighting fixtures, CCFL and LED lamps. Also, the design parameters of new-type light-ing fixtures were adjusted to minimize energy consumption. Moreover, T5 and T8 fluorescent lamps at Plants E and G of Longhua Plant Site were replaced with LED lamps to save more energy.Operation Area: Lighting control was applied to areas with lower operation frequen-cies, such as the facility system data center, Sub FAB areas and truss areas.Office: Lamps were equipped with independent string switches so employees could to turn them off immediately after use and perform autonomous lighting manage-ment within their areas.

Energy Conservation Measures for Process and Facility Systems

Water Conservation PerformanceThrough con t inuous des ign op t im iza t ion and improvement efforts, CMI has successfully reduced the annual LCD panel water consumption from 0.53 tons/m2 in 2009 to 0.46 tons/m2 in 2010, or by 12.5%, which is excellent. Also, the TNSP FAB 5 has the best result at 0.19 tons/m2.

Major Water Conservation Meas-ures in 2010

High-efficiency Membrane Bioreactor Technology

Rainwater Recycling System

2008 2009 2010

107.9(kwh/m2)

86.377.5

120

100

80

60

40

20

0

For example, the CMI energy conservation team of STSP Site reviewed and tested the com-

pression dry air (CDA) water content in collaboration with FABs to minimize the CDA energy

consumption in the process.Energy use was minimized by implementing machine exhaust reduction, CDA reduction, and

clean room fan filtration unit (FFU) reduction; and through recycling, reviewing rational machine

use, easing energy use specifications, and establishing the idled equipment energy conserva-

tion policies.For example, we equipped the cold water system of the JNSP Site with fully-automatic invert-

ers and applied the pipe-end pressure difference control to regulate load balance, and replaced

the high-energy-consumption electric turbines with gas steam turbines. Also, at Block H3 on

Longhua Site, the high-voltage compressor was installed to minimize loss in the intermediate

transformer and cables, and regulators were installed on some stamping machines to enhance

energy conservation performance.

Rationalization of Supply Specification

Facility System Improvement

Minimization of Energy Use

2008 2009 2010

(ton/m2) 0.73

0.530.46

0.8

0.6

0.4

0.2

0.0

Establishing the Dynamic Water Con-servation Synchronization PlatformUpholding the spirit of sustainable water resources and the concept of continuous innovation and breakthrough, the 5R’s (reuse, reduction, regeneration, recycling and recovery) were applied to continuously minimize water consumption. In addition to using low-water-consumption process equipment and machines right at the beginning of plant construction, a water resource management team was formed to implement the source minimization projects, plant machine inventories, rationalization of idle shower time, and machine water consumption improve-ment. Also, in order to extend the energy conservation performance across departments, the Dynamic Water Conservation Synchronization Platform was established in Taiwan in 2010 to further enhance the efficiency of wa-ter conservation policies.

High TOC process wastewater recycl ing system:

Bio Polisher and MBR systems; recycles high TOC

wastewater.Low TOC process wastewater recycling system: Activated

carbon system Lengthening resin tower regeneration time, multistage

regeneration wastewater recycling, ROR wastewater

recycling MMF/ACF backwash wastewater recycling,

instruments/water seal bucket drainage water recycling.MAU condensate water recycling, housekeeping RO

concentrated water recycling, reduction of faucet use.

Rainwater recycling.

Pure water front-processing system: Excessive RO

condensate is recycled with the existing DHF and L-TOC

recycling system to the pure water system.Steam condensate recycling and conservation improvements.

BCCA process wastewater recycling improvements.

Performance of High-efficiency Membrane Bioreactor TechnologyFlexible operating mechanisms have been planned at the plant design stage. For example, dual switch-ing drainage pipes were installed on machines to facilitate subsequent water diversion for recycling. Apart from continuously using conventional recycling technologies, we have implemented the high-perfor-mance biological treatment recycling technology to enhance water efficiency at all plants. Also the high-efficiency membrane bioreactor (MBR) technology was implemented in 2007 to enhance water recycling efficiency. In 2010, the MBR system at TNSP Plant Site successfully recycled water for a total of 2.40 million tons/year, and the technology has since been extended to other plants.

TargetZero Wastewater Dis-charge Plant

To complete single plant site overall water resource recycling system by 2020

3.2.3 Energy Resource ManagementExcellent Energy Conservation Performance

Energy Conservation Measures for Lighting

Office lighting is equipped with inde-pendent string switches.


29 30

Recognizing that using large amounts of tetramethylammonium hydroxide (TMAH) in the process will bring heavy load to the wastewater treatment system and produce a large quantity of organic sludge, CMI began aggressive R&D with suppliers to invent the industry-first TMAH recycling system. With extraction and purification, liquid waste is recycled for reuse. System tests were completed during 2008 and 2009, system construction and application for use were completed in 2010, and official operations will begin in 2011.

Industry-first Evaporator Phosphoric Acid Concentration SystemIn 2010, CMI implemented the industry-first evaporator phos-phoric acid concentration system to effectively minimize environ-mental impact a step forward.System advantages:1. Produces less sludge than conventional treatment to effectively minimize

waste.2. Ensures the recycling and reuse of concentrated waste phosphoric acid.3. System water can be recycled for process use.4. Reduces total phosphoric concentration in effluent to minimize environ-

mental impact.

Phosphoric Acid Recycling System

TMAH Recycling System

3.2.5 Multifaceted Environmental Impact MinimizationHaving faith for this land, CMI has spent greater efforts and more investments on planning and implementing environmental impact minimization. As a result, the performance in pollution control is increasing.

Description of Environmental Odor Impact and Violation MinimizationIn 2010, an environmental violation incident occurred in CMI’s Taiwan plant site, and CMI was fined a sum of NT$100,000. The incident involved odor discharged from the wastewater treatment plant in excess of the regulatory standards for foul odors of the stationary sources of air pollution. As the determination basis of foul odors is different between the government and CMI, CMI filed an appeal. Unfortunately, the review committee of Taiwan EPA vetoed our appeal. For this issue, in addition to enhancing the treatment efficiency of control equipment and the diffusion performance of discharge pipelines and adding the aeration process, CMI will enhance the air-sealing performance of wastewater treatment plant units, in order to effectively minimize the environmental impact of odors in the perimeters. CMI handled the odor complaints made by local people with a positive attitude; and the plant affairs, ESH and process units reviewed the optimization of technologies, in order to minimize the upset of locals.

Average Waste-to Resource Ratio at 88.5%Through vertical management and strict classification, CMI properly

plans and manages all process stages from raw material selection to

waste disposal. For example, renewable raw materials are chosen

when chemicals are produced after use. CMI also installs renewing

facilities or renews these materials in collaboration with their suppli-

ers. In waste disposal, waste will first be recycled for reuse before

turning it into resources.

The recycling and reuse projects promoted in 2010 included: TMAH

liquid waste recycling, waste stripper and waste aluminum etchant

recycling efficiency enhancement; waste gypsum and waste calcium silicate board to resources; and clean room wiper reduction.

In 2010, the total quantity of waste was 105,640 tons, and the average waste-to-resource rate was 88.5%. The highest waste-to-

resource rate at 94% goes to Plant T3 on HCSP Plant Site. In the future, we will uphold the clean production concept and continue to

promote R&D and implementation of waste minimization at the source of process and waste-to resource at the end of process.

Continuous Investments in Environ-mental ProtectionIn order to continuously minimize the environmental impact of exhaust and wastewater produced from process operations, CMI invested about NT$220 million in the installation and improvement of air pollution control and wastewater treatment equipment in 2010. Also, based on the environmental friendly concept, CMI launched aggressive industry-academic cooperation to continuously develop optimal pollution control and waste-to-resource technologies, in order to effectively minimize pollution emissions and

Waste-to-Re-sources

Actual Achieve-ment in 2010

Target for 2011

STSP 91.1 % 92.6 %JNSP 91.6 % 91.6 %

LH 88.8 % *NB 77.0 % 78.0 %NH 79.5 % 82.0 %NJ 72.2 % 75.0 %

Waste-to-Resource Rate

*The target of Longhua Plant Site for 2011 is not set because the production line diversion is in progress.

Air Pollution Minimization Effect Wastewater Pollution Minimization EffectFrom 2008 to 2010, the VOCs emissions of LCD manufacture In g/m2

From 2008 to 2010, the COD discharge of LCDmanufacture In Kg/m2

4.00

3.00

5.00

2.00

1.00

0.00

4.06

2.20 1.94

0.061

0.038

0.023

-52%-52% -62%-62%0.07

0.06

0.05

0.04

0.03

0.02

0.01

0.002008 2009 2010 2008 2009 2010

Project Type Project Title

Air Pollution

Improvement

Stack Emission Air Pollutant Monitoring and Minimization ProjectIntegrated Stack Exhaust Contents and Odors Investigation Project

Exhaust Spread Simulation Project

Wastewater

Treatment

TFT-LCD Process Wastewater Nitrogen Pollutant Treatment Technology Development Project (year 3)Optronics Industry Wastewater Recycling Project

Waste-to-

ResourcesOrganic Sludge to Resources Research Project

Installation and Improvement of Air Pollution Control and Water Pollution Prevention SystemsInstallation and Improvement of Pollution Prevention Systems Plant Site

Air Pollution Control

Construction of the regenerative thermal oxidizer (RTO). Fab A, STSP SiteWastewater Treatment Site Sedimentation Basin and Basin Air-sealing Improvement Project

Fab B, STSP Site Fab F, STSP Site

Changed to combustion-type local scrubber replacement for CVD machines and added the CVD dust collection system. Fab T1, JNSP Site

Added the rotor concentrator VOC and THC systems Fab T2, JNSP Site

Water Pollution Prevention

ITO Process Machine Resin Tower Project Fab B, STSP Site

Installed the TMAH recycling system Tree Valley Branch, STSP Site

Installed the phosphoric acid evaporator system Tree Valley Branch, STSP Site

Installed the nitrogen stripping system Tree Valley Branch, STSP Site

Purchased the sulfides (total sulfur) analyzer XG-100V Fab F, STSP Site

AOAO Anaerobic Technology Implementation Project Fab T1, JNSP Site

Process Wastewater Recycling Improvement Project Fab Longhua, China

Wastewater Treatment Station Construction Project Fab Ningbo, China

Added new process recycling water systems Fab Ningbo, China

Added steam condensate recycling systems Fab Ningbo, China

Sewage Treatment Station Improvement Project Fab Nanhai, China

Industry-Academic Cooperation Projects

23.4%

16.1%

1%

3.3%

5.3%51.7%

Recycling and Reuse

Resource Recycling

Materialization

Solidification

Incineration

Filling

Waste Treatment Classification in 2010

TargetBest resource reuse plantresource reuse rate at 98% by 2015 (TFT-LCD Plant)

Industry-first TMAH Recycling System

maintain the environmental quality of plant site perimeters.

31 32


3.3 Green Value Chain

Restricted Use of Conflict MineralsRecently, the coverage on human rights violations in the Democratic Republic of the Congo (DRC) and envi-ronmental issues resulting from the extraction of minerals, including Au, Ta, Sn and W which are widely used in the Information and Communication Technology industry, has aroused wide public concern. CMI takes its corporate social responsibilities extremely seriously, which motivated CMI to integrate the conflict minerals into our “Restricted Substance Management Standard” (II3QM-0044) and to proactively taken measures on the sources and origins of the mentioned minerals to ensure a conflict-free supply chain.

First to initiate ProductCarbon Footprint

First Water Footprint Verifi-cation Statement in thePanel IndustryIn 2007, we committed to the greenhouse gas inven-

tory. In 2008, we issued type III environmental declara-

tion – "environmental product declaration". In 2009, we

assume a leadership role by embarking on a "product

carbon footprint" project which follows the standard

PAS 20501, the international carbon footprint standard.

In August 2009, we passed the first-ever PAS 2050

product carbon footprint verification for LCD panel,

and obtained the first carbon footprint label issued by

the Taiwan Electrical and Electronic Manufacturers As-

sociation. In 2010, apart from passing the PAS 2050

Carbon Footprint verification for its 18.5” and 42” LCD

panels, CMI completed the carbon footprint verification

for the 19” and 42” LCDTV in the collaboration with

customers.

CMI began aggressively “water footprint” inventory in July

2010 to capture the environmental impact on water re-

sources of CMI products and for the reference of product

water footprint risk management. In 2010, CMI established

the Water Footprint Reporting System according to the

Water Footprint Manual: State of the Art 2009 published by

non-profit international organization Water Footprint Net-

work. And our water footprint inventory and assessment on

the product supply chain were conducted by Det Norske

Veritas (DNV). In September, CMI passed the assessment

and obtained the first water footprint verification statement

for the product supply chain in the panel industry with its

18.5” LCD monitor panel. It is estimated that CMI will ob-

tain the product supply chain water footprint verification

statement for the world’s first desktop LCD monitor and

LCDTV (LED) in the beginning of 2011.

3.3.2 Resource ManagementCMI has adopted various strategies to enhance the resource efficiency of manufacturing process. Also, CMI inventory the overall energy, water and material usage of our value chain thrught the carbon footprint and water footprint project. And then we could understand the environmental risks in the product lifecycle and thereby seek the opportunities for improvement and innovation.

2009

2008

2007

2010Product carbon footprint verification (PAS 2050)

Environment Product Declaration

Ecology Profile (EuP Directive)

ISO14064 GHG Inventory

The world’s first LCD panel and monitor to passthe PAS 2050:2008 verification.

LCD panels and monitors passed theEPD verification.

WFP Verification The world’s first 18.5” and 42” LCD panels topass the third-party WFP verification.

Product carbon footprint verification (PAS 2050)

1Publicy Available Specification 2050: Specification for the as-sessment of the life cycle greenhouse gas emissions of goods and services

Award OrganizerBest Product Award from the Golden Panel Awards 2010 Color Imaging Industry Promotion Office, IDB,

MOEA.

Award for Best Contribution by a Manufacturer from the Gold Panel Awards 2010

Color Imaging Industry Promotion Office, IDB, MOEA.

Best Technology Award from the Golden Panel Awards 2010 Color Imaging Industry Promotion Office, IDB, MOEA.

The Best Participation of Green Procurement for Enterprises (the only panel manufacturer winning the award) Taiwan EPA

Taiwan Excellence Award: Taiwan’s first 55” ultrathin LED LCDTV panel Bureau of Foreign Trade, MOEA

Taiwan Excellence Award: World’s first 20.8” dual backlight medical LCD panel Bureau of Foreign Trade, MOEA

Taiwan Excellence Award: World’s first 27” energy-saving 3D touch panel Bureau of Foreign Trade, MOEA

42” LCD panel passed the International Green Panel Innovation Accreditation 2010 IDB, MOEA

Green Product Awards in 2010

In line with our philosophy of sustainability, we have established a green product policy in the spirit of "reduction of greenhouse gas emissions," "control of hazardous substances," and "optimization of resource use." We have taken low-carbons, mate-rial reduction, energy savings, and use of toxic-free materials as our main strategies, and adopted eco-design, a quality management system, and a hazard-ous substance management system. Our goal is to ensure the products meet the requirements of cus-tomers and environmental protection laws and regu-lations throughout the design, production, and service stages, and we have taken international standards and customer requirements as our benchmarks.

3.3.1 Green Product Management Policy

Carbon Information Management System

Green Com

ponent Database

Product Energy Conservation Management

CarbonFootprintReduction

AlternativeMaterial

Development

Hazardous Material

Minimization

EEREnhancement

Energy Consumption

Reduction

ProductLifespan

and ReliabilityExtension

3RDesign

WaterFootprintReduction

Resource

ToxicS

ubstance

Energy

Mat

eria

l

GreenProduct

Prod

uct E

colo

gica

l Des

ign

Man

agem

ent S

yste

m

33 34


3.3.3 Toxic Substance ManagementWith the globalization of markets and supply chains, CMI base on the RoHS, REACH and other worldwide regulation and integrate our customers related standard, and the opinions and recommendations of stake-holders to established our “Restricted Substances Management Standard” (II3QM-0044). And in CMI, our toxic substances management is focus on two key issues: At CMI, alternative material development and haz-ardous substance minimization.

3.3.4 Energy ManagementConcerning product energy management, CMI is interested in Energy Efficiency enhancement and energy consumption minimization. In terms of 2010 mass-product types, more than 80% of TFT-LCD monitors meet the Level 1 energy standard of the China Energy Label. Moreover, the power consumption in off mode of more than 90% of TFT-LCD monitors is lower than 0.5W, and the lowest power consumption in off mode is lower than 0.1W.

CMI is committed to pursuing the continuous development of the IT and Electronics industry, promoting the realization of RoHS, and to enhancing the standard of IT and Electronics in environmental protection. As the first group of enterprises voluntarly participating in the China RoHS cerification, CMI aggressively cooperate with the Electronic Information Product Pollution Control Technology Center and CESI certification Center, and also help supply chain to ready early, then we establish a complete hazardous substance control system and quality assurance system. CMI passed two China RoHS certifications from CESI, including the China RoHS factory production and management audit for 1.36”-10.2” LCM; and the China RoHS product voluntary certification for the 1.36”-4.3” LCM. Also, there are seven internal inspectors have passed the electronic com-ponent inspector license (XRF) issued by the PRC Ministry of Human Resources and Social Security.

In addition to continuously minimizing energy consumption, CMI seeks to make products slimmer and lighter and reduce the carbon

CMI led the panel industry in the development of packaging employing environmentally-friendly

molded pulp. Particularly, these materials are produced from waste newspaper and corrugated

paper, which is nontoxic, lead-free, degradable, and non-polluting. After thermal pressing at

very high temperatures, waste newspaper and corrugated paper pulp turns into the required

shaped packaging materials without using adhesives and available for disassembly for recy-

cling and reuse. CMI further requested suppliers to use packaging materials meeting the EU

directives and CMI standards. In 2010, CMI completely replaced all arsenic glass with arsenic-

free glass.

In 2009, CMI began promoting new halogen-free products. In 2010 CMI expanded the scope of

halogen-free products to new panel modules. In LCD monitors, CMI launched cooperation with

customers to use halogen-free products or parts and components. Also, in order to reduce the

amount of mercury in our products, we are gradually replacing with LEDs in new product design

in 2010. In the same year, CMI expanded the scope of VOC restricted in packaging materials

and the restricted scope will include the parts, components and materials in 2011.

Alternative Mate-rial Development

Hazardous Substance Minimiza-

Fully Reflective Panel DesignIn reflective panels design, we could reduce the energy consumption by removing the backlight mod-ule in transmissive panel design.

LED Backlight ModuleIn 2009 CMI began replacing CCFL with LED and minimized the quantity of LEDs with innovative technologies to reduce energy consumption. In 2010, CMI introduced the high-efficiency LED back-light module to further reduce energy consumption by 30%.

Power AdaptorCMI designs the replacement of the power adaptor with the USB port to transmit both signals and electricity with one USB cable, and could skip the bulky power adaptor and multiple cables for con-necting with the PC and NB. This design can save up to 72% of energy consumption.

Examples of Energy Saving Designs in 2010

Backlight

TFT substrateTransparent electrode

CF substrateColor resist

LC cell

TFT substrate

Sun light

Reflector layer

CF substrateColor resist

LC cell

穿透式面板全反射面板

冷陰極螢光燈 LED背光模組高效能LED背光模組

高效能LED

VGA線或DVI線電源線

原使用新設計

32W <9W>72% 電力節省

訊號及電力只要一條USB線傳輸

CMI also engages in the design of reducing the power consumption of components, such as improving driver IC architecture to reduce the internal power consumption during operation.

In 2010, apart from preparing to meet the energy saving requirements of the Energy Star of US EPA, the EU ErP and other international standards, CMI also planned to continuously launch products with power con-sumption lower than the international standards with innovative technologies in order to satisfy our custom-ers' needs.

First group of enterprises to participate in the China RoHS voluntary cerification

0

20

10.5

51.4

48.6 34.9

4.5 0.3

60.6

17.5

82.2

89.5

40

60

80

100

(%)

Level 3 Energy Standard



20082007 20102009

emission of products lifecycle through the continuous R&D and technology innovation.

Transmissive Panel Fully Reflective Panel

Cold Cathode FluorescentLamp (CCFL) LED Backlight Module

High efficiency LED

original new design

VGA cord or DVI cord power cord one USB cord serves signal and power transmission

Electricity saved

72%

35 36


Slim Backlight Model DesignIn the design, the panel glass, light guide and LED are slimmed, and employed an optical com-posite material to reduce optical film use and then the overall module become thinner for saving ma-terials.

One-piece System and Frame DesignConventionally, the BLU and CELL are wrapped up with a frame or bezel to form the LCM before locking on the support in notebooks. In the new design, the BLU and CELL are directly assem-bled in the notebook to skip the frame or bezel.

Dual Gate ArchitectureIn the TFT process, the dual gate design is used for current flow to reduce the quantity of data drivers.

Electronic Component Re-duction and PCBA Miniaturi-zationThe use of Integrated circuits (IC) (dynamic estimation and dynamic compensation + time sequence control), integrated PWM IC, and high channel driver IC can ef-fectively reduce the quantity of electronic components. With the above design, a large amount of components on the PCB and the size of PCB are reduced.

LCD Chassis Structure SimplificationThe chassis structure is simplified to significantly reduce steel con-sumption. Also, the overall design can reduce screw (bolt-free) use by 25% and omit conductive foam and aluminum foil, in order to save materials and increase capacity.

World’s Slimmest LED Local Dimming TechnologyIn connection with the foregoing green design concepts, CMI products won numerous global recognitions in 2010.The 5.5mm ultra-slim local dimming panel technology is the world’s slimmest LED local dimming technol-ogy and so far the best ultra-slim, high-contrast and energy-saving solution, thus winning the Best Technol-ogy Award in 2010.

The features of the CMI’s LED local dimming technology include:1. Module weight is only 6.6 kg, which is half of the weight conventional CCFL backlight LCM (13.2 kg).2. Average power consumption is 44W, which is only a quarter of the conventional CCFL power consumption (170W).3. Module is only 5.5mm thick, which is only a sixth of the conventional CCFL thickness (35mm).4. Dynamic contrast is more than 1:1,000,000.

Example of Material Reduction Designs in 2010

3.3.5 Material ManagementIn material saving design management, product 3R (reduction, recycling and reuse) design and product lifespan and reliability extension are the two foci.

Eyeing the great cushioning ability and light weight characteristic of molded pulp, the package design team has designed new structures to support higher loads from stacking, reduce material use and volume, and thereby increase the capacity of each carton and maximize the use the cargo container space for reducing fuel consumption and carbon dioxide emissions from transportation.

新設計

Panel

MEMC

原印刷電路板模組

MEMC

Panel

Tcon

系統背蓋

背光模組

玻璃模組

系統前框

原面板模組

取消原膠框或鐵框

原架構

R G B R G B

R G B R G B

(Data line)

(Sca

n lin

e)

D1

G1

G2

D2 D3 D4 D5 D6

Pixel 1: D1, G1 controlPixel 2: D2, G1 controlPixel 3: D3, G1 control. . . .

雙條閘極(Dual Gate)架構

G R BR

R

B

B

G

GG R B

(Data line)

(Sca

n lin

e)

G1

G2

G3

G4

D1 D2 D3

Pixel 1: D1, G1 controlPixel 2: D1, G2 controlPixel 3: D2, G1 control. . . .

Eco-friendly materials used Single material instead of composite material

New structure design

0.6LGP

0.6LED

一般機種

薄化設計

0.3Panel

0.5Panel

0.8LED

Film x 4pcs

0.7LGP

Film x 2pcs

Conventional Model

Slim Design

Remove the origi-nal plastic frame or metal frame

glass modulebacklight module

system back cover

original panel module

system front frame

original structure Dual Gate structure

original printed circuit board new design

37 38


3.3.6 Green Product ManagementIEC QC080000 HSPMCMI implemented the IEC QC080000 Hazardous Substance Process Management System (HSPM) to identify, quantify, control and re-port the hazardous contents contained in products, and to meet the hazardous substance minimization demand of customers. In 2010, there are twenty-six CMI facilities passed third-party IEC QC 080000 certification, which clearly indicates that our hazardous substances management system complies with international standards. With the Hazardous Substance Process Management System accredited by internationally credited third party organizations, CMI’s is capable of providing customers with quality green products.

3.3.7 Green Product ManufactureCMI implements a source management strategy for green product manufacturing, in order to avoid or re-duce toxic raw materials and minimize hazards contained in emissions. In addition to verifying if the parts are green parts by means of source control, CMI performs regular sampling inspections on the GP status of the entire product according to the CMI or customer requirements to ensure GP compliance by means of strict quality control at different stages.

CMI continuously improves our supply chain management to monitors the hazardous substances in the en-tire process. To prevent parts containing hazardous substances from entering the process, CMI established hazardous substance testing and monitoring system. For parts and products with high risk of containing haz-ardous substances, CMI increases the frequency of monitoring and measurement.

We are also actively helping suppliers’ to perform rigorous inspections of raw materials, process controls, and packing materials. In addition to ensuring GP compliance, we are facilitating the continued improvement of suppliers' products specifications, helping them keep pace with major international firms' requirements.

3.3.8 Green Supply ChainSupply Chain Carbon ReductionStarting in 2010, we have assessed our supply chain management on the basis of cost, service, quality, and carbon emissions. We have incorporated our carbon reduction mission in our overall supply chain manage-ment strategies, and are relying on the establishment of a low-carbon green supply chain to reduce the car-bon footprint and thereby enhance the competitive strength of low-carbon products.

In 2009, CMI began a small scale supplier GHG emission inventory. In 2010, CMI expanded the scale to more than 230 suppliers and promote product carbon footprint train-ing for suppliers. Also, it began requesting suppliers to initiate GHG inventory. In 2011, CMI will request key sup-pliers to passed the ISO14064 verification and gradually systematize supplier GHG management and product car-bon footprint inventory, in order to help suppliers to collect, calculate and assess risk and carbon reduction opportuni-ties more effectively with the said systems, and thereby develop a low-carbon supply chain in collaboration with suppliers.

Comprehensive and Real-time Green Supply Chain PlatformAn effective supplier management system, a green component database information platform, and a compre-hensive, transparent, real-time green supply chain platform are established for suppliers to obtain in real time the latest CMI requirement, international environmental laws and regulations, and the latest standards from large foreign brands. So that the suppliers’ environmental commitment will be consist with CMI. Also, the material acknowledgement procedures are established to ensure that the materials from suppliers comply with legal regulations and the requirements of CMI and its customers.

Thanks to our vertical green supply chain platform unifying up and downstream partners, CMI can estab-lish something in common regarding green production with customers and suppliers. As we have the same standards and specifications with customers and suppliers, CMI can always accomplish customer missions smoothly and provide them with totally satisfactory products with various GP requirements

Laws and regulations/custome

rs/CMI GP

Certificate of compliance/survey

form tasks

Identification and Marking/process

control

GP policy/GP implementation

process

Secondary Material Management

(Packaging Materials)

Purchasing/vendor management

Design changes in a new product

development project

Materials/parts (vendor)

Finished Product (Customer end)

Part acknowledg

ment procedures

QC testing

MFG testing

OCQ testing

GQM Finished Product Inspectio

Inspection Standards/Inspection instrument & Abnormality handling Process

CMI

Suppliers obtain related information in real-time through the GCD system.

Initiating Supplier GHG Inventory

39 40


Redu

cing

prod

uct c

arbo

n fo

otpr

int w

ith e

co-d

esig

n

Material Reduction

Minimizing value chain CO2emissions

Energy Saving

Toxic Free

Low-carbon Product Reduce carbon footprint of product lifecycle

Material

Manufacturing

Distribution

Use

Abandonment

In the next step, CMI will optimize the management of supply chain carbon information, gradually initiate the disclosure of supply chain carbon information, minimize carbon emissions in collaboration with suppliers and customers, and minimize value chain carbon emis-sions. In the meanwhile, CMI will also promote the product carbon neutral trial plan. According to our green roadmap, product carbon footprint will reduce by 35% in 2012 (based on FY2009) and prod-uct energy consumption will reduce by more than 40% (based on FY2009). In doing so, we will produce low-carbon and environmen-tal friendly products to co-exist in harmony with nature and create new missions and visions for the green value chain.

3.3.9 Future Prospects

3.4 Green Environment

CMI invested a sum of NT$340 million to build the Tree Valley Recreation Center integrating with the natu-ral ecology and environment of the Tree Valley Park. At the Recreation Center occupying an area of about 21184m2, CMI realized the following features in the ecology protection domain in EEWH (ecology protection, energy conservation, waste minimization and health promotion). These included the plantation of more than 10,000 arbors, shrubs, vegetation plants and aquatic plants, with 43% butterfly- and bird-attracting native plants; and the building of the multi-seamed vertical garden as habitats for living organisms.

3.4.2 Green Concept Promotion

Green Concept Promotional Activities in 20101 Liyutan Reservoir Ecology Record and Survey Project2 “Earth in Our Hands: Caring for Huisun” reforestation activity3 Yongheshan Reservoir Upstream Conservation Project4 “Environmental Protection Month”: Mangrove Ecology Guided Tour

5Sponsored the Taiwan tour of Thomas Friedman, the author or Hot, Flat, and Crowded: Why We Need a Green Revolution—And How It Can Renew America.6 Invited global environmental protection musician Matthew Lien to give concert in Taiwan.

7 Sponsored the “NPO Youth Republic” ecology education program of IC Broadcasting Company8 Sponsored the Tracing the River to the Source program and education DVD published by PTS.

1Innolux Education Foundation was established in the end of 2008 by CMI

CEO Hsing-Chien Tuan, Ph.D., to enforce CMI’s social commitments and

rewards. Committed to promoting “environmental protection education” and

“cultural development”, the foundation establishes well-defined work plans,

supervises the proper use of resources and aggressively participates in more

activities relating to society, environmental protection and culture.

Water is the source of life. In addition to concern-ing energy conservation and carbon minimization issues, CMI launched the Liyutan Reservoir Ecol-ogy Record and Survey Project through Innolux Education Foundation in collaboration with Liyu-tan Reservoir Administration. In 2010, a docu-mentary film was made to present to the locals the ecology in the reservoir area and the beauty of local culture and to educate them on how to protect the environment.

TargetProduct Carbon Footprint: Reduction by 35% in 2012 Product Energy Consumption: Reduction by at least 40% in 2012 (based on FY2009

CMI invested a sum of NT$340 million to build the Tree Valley Recreation Center integrating with the natu-ral ecology and environment of the Tree Valley Park. At the Recreation Center occupying an area of about 21184m2, CMI realized the following features in the ecology protection domain in EEWH (ecology protection, energy conservation, waste minimization and health promotion). These included the plantation of more than 10,000 arbors, shrubs, vegetation plants and aquatic plants, with 43% butterfly- and bird-attracting native plants; and the building of the multi-seamed vertical garden as habitats for living organisms.

3.4.1 Biodiversity

Liyutan Reservoir Ecology Record and Survey Project

41 42


Yongheshan Reservoir Upstream Conservation ProjectIn promoting upstream conservation at Yongheshan Reservoir, in addition to providing resources for main-taining the Hengpingbei Trail on the east bank of Nanzhuang Township in Miaoli County by teaming up with Innolux Education Foundation, CMI further sponsored the Society of Wilderness to promote the “protection volunteer worker” training in October 2010, hoping to develop local community awareness to protect their hometown by promoting environmental protection and volunteer worker training.

Environmental Protection Concerts by Matthew LienIn November 2010, CMI invited the global environmental protection musician Matthew Lien to give a concert in Taiwan with classic works on environmental protection. Lien specially selected the works containing local cultural elements, such as the Yi-min Mounds (from the album Traveler), Taiwan Ha-Fun Tien (from the album Traveler), and the emotional Unicorn (from the album Unicorn). With this concert, CMI hopes to make a perfect combination of its passion and concern for environmental protection, Taiwanese culture, and the social weaker groups. This way, it can spread “environmental protection, concern and love” to more people. This concert attracted more than 600 CMI employees and the family members, and locals.

“NPO Youth Republic” Ecology Education ProgramIn January 2010, Innolux Education Foundation sponsored the “NPO Youth Republic” ecology education program produced by IC Broadcasting Company to extend its contribution to citizen education. By teaming up with domestic NPO ecological groups, youth volunteers workers were recruited across Taiwan to experience real environmental protection work at the relevant ecological conservation communities or units under the supervision of the program hosts and shared their experience and how to engage in the relevant services in the program. In doing so, CMI hopes that the program let young people understand more, identify with and participate in ecology conservation and community empowerment and to find their own way to serve society.

Tracing the River to Its SourceWe need to understand more and better about the place we live, Formosa Taiwan, in order to promote environmental protection education. In May 2010, Innolux Education Foundation sponsored Taiwan Public Television Service to produce the Tracing the River to Its Source documentary series to explore the river and forest ecology of Taiwan and to record the interdependency between people and water. The series has maintained a beautiful record of Taiwan’s ecology and environment and provided students with local teaching materials for environmental protection education, so that they can understand more and better about Taiwan’s geography and cultural environment.

“Environmental Protect ion Month” : Mangrove Ecology Guided TourThe ESH, Employee Welfare and General Affairs units of CMI initiated the one-month “Environmental Protection LOHAS” event in November 2010 to organize the Environmental Pro-tection LOHAS activities in a single package. A total of 144 employees and their families participated in the Mangrove Ecology Guided Tour explore mangrove ecology and promote friendship and parent/child interactions at the same time.

Taiwan Tour of Thomas FriedmanIn January 2010, Innolux Education Foundation sponsored Global View Magazine Thomas L. Friedman, the author or Hot, Flat, and Crowded: Why We Need a Green Revolution—And How It Can Renew America, to visit Taiwan. More than 3000 businesses and young people with high awareness of environmental protection attended. In addition to increasing the international exposure of Taiwan and Taiwanese citizens and strengthening the future development of Taiwan’s green energy industries, the event has awakened the concern for environmental protection of the younger generations.

“Earth in Our Hands: Caring for Huisun” Reforestation ActivityIn 2009, CMI began participating in the ecological restoration projects launched by National Chung Hsing University in the landslide-damaged Huisun Forest in Nantou County and supported Innolux Education Foun-dation in the sponsorship of the filming of documentary of the restoration. To support the Earth Day, Innolux Education Foundation organized on 24 April 2010 the Earth in Our Hands: Caring for Huisun reforestation activity in collaboration with CMI. On that day, employees and their family, university presidents and MOE of-ficials were invited to join the event that aimed at improving the mudflow area of 2.5 hectare by growing a to-tal of 3,500 trees there. Through the activity, CMI hopes to show the public the importance of forestation and to pass down the concept of mudflow prevention.

43 44


Employee Care

4.1 Respect and Concern for EmployeesAt CMI, employees are the most important partners and assets for company operations. CMI believes that an enterprise may advance and grow continuously only with appropriate and quality employees. This also explains why CMI seeks to create a perfect work environment. In addition to competitive salaries, abundant educational opportunities, generous benefits, and a safe and healthy work environment, CMI provides em-ployees and their families with comprehensive healthcare and health promotion services. These measures help increase team spirit, enhance work quality, and allow employees to rest assured about the well-being of their families and focus on their work.

4.1.1 Employee Recruitment and AppointmentRecruitment and AppointmentCMI has production bases and sales locations distributed in more than a dozen countries across Europe, Asia and America. In addition to the TFT-LCD panel plants in JNSP and STSP in Taiwan, there are produc-tion bases and sales locations in China, the Netherlands, Czech, Japan, Korea and the USA. Therefore, in either technical exchange or as a global supplier of communication, and even expatriation assignments, CMI provides adequate opportunities and broad space for employees to display their talents and potential.

With such, employees can continuously learn and make progress, in order to grow strong in the highly com-petitive panel industry.

CMI's major operation sites locate in Taiwan and China. Adequate employment procedures are established in both places to recruit talents for the company.

By 2010, CMI had a total of 109,364 employees (including 23,974 employees in the Taiwan base). The CMI labor

force is formed with both direct and indirect labors. The former refers to production line workers, commanding at

about 70% of the total; and the latter refers to R&D, process equipment, QA, ESH and professional logistics per-

sonnel, commanding at about 30% of the total. Quality Human ResourcesCMI has a host of high quality human resources. In Taiwan, most employees (74%) hold at least one degree, including 56% holding a Bachelor’s degree and 18% holding a Master’s or higher degree.

CMI has a young and energetic workforce. In Taiwan, the mean age of employees is about 29 years old, and gender distribution is quite even. Also, in 2010 the number of female officers has reached 230, suggesting that employees at CMI, regardless of gender, enjoy equal rights and equal opportunities for development.

Employment without DiscriminationsIn employee recruitment and appointment, CMI treats candidates equally,

regardless of nationality or physical conditions. By the end of 2010, CMI

has 1,793 non-Taiwanese employees.

Upholding the belief in work equality, CMI makes decisions on employment, rewards, remunerations and pro-motions regardless of ethnic/racial origin, religion, political affiliation, age, gender and/or marital status. Em-ployment contracts are signed by mutual agreement, no labor rights are offended, and child labor is banned.

Region Taiwan China Others Total

Employees 23,974 84,964 426 109,364

CMI Global Employee Distribution

Officers

Processionals

Office Clerks

Workers

9%

60%3%

28%

OfficersProcessionals

Office Clerks

Workers

0.3%

88%

1.7%

10%

Labor Force Structure (Taiwan) by Work Type Labor Force Structure (China) by Work Type

Male

38%

62%

50 and older

78.3%

21.5%

0.2%

30 and younger

30-49

Female

Newcomers (Taiwan) by Gender Newcomers (Taiwan) by Age

27%

73%

Female

Male

Female

Male

10%

90%

Officer Structure (Taiwan) by Gender Officer Structure (China) by Gender

50 and older

51%

48%

1%

30 and younger

30-49

Employee Structure by Age

45 46

Corporate Social Responsibility TargetFriendly Workplace

To hire more than 1.5% physically handicapped employees

Physically HandicappedTo enforce the belief in “sharing”, CMI also aggressively employs the physically handicapped. In practice, we formed a taskforce and collaborated with TNESA to organize various recruitment sessions and arrange workplace visits for the physically handicapped. By the end of 2010, we have employed 205 physically handi-capped employees.

At present, we have employed an adequate percentage of physically handicapped people as specified in the People with Disabilities Rights Protection Act, and we will continue to support and comply with this Act. Moreover, we will follow the motto of CEO Tuan, “We need 101 points to surpass the traditional full score complex.” At present, in addition to care for the employment of the physically handicapped, we show our concern for the employment underprivileged groups; particularly for those who are looking for second-time employment and those who have difficulty in finding a job. We also set our target at “Friendly Workplace: To hire more than 1.5% physically handicapped employees (i.e. the total number of physically handicapped em-ployees must not be less than 1.5% of the total CMI employees)”, in order to show our “sharing” corporate philosophy.

Employee Retention Measure in the MergerCMI’s efforts to protect and respect labor rights and benefits are what benefits employee recruitment, employee retention and productivity enhancement. On 18 March 2010, CMI completed the largest merger case in the global panel industry. In order to retain employees, CMI immediately held employee retention meetings, established merger communication platforms and arranged communication helpline to provide quick and complete information for employees through multi-ple channels, so that employees could understand the new organizational structure after the merger and stay with CMI.

In 2010, the employee attrition rate in Taiwan was low, and the overall attrition rate was shown below. The overall em-ployee attrition rate was about 1.57% on average; the indirect labor attrition rate was about 1.16% on average; the direct labor attrition rate was about 1.57% on average. These figures suggest that employees have identified with CMI’s hu-manist communication and equality culture.

Parental LeaveIn 2010, 89% of employees applying for parental leave are females and 11% males. After the parental leave, 84% of female these employees and 66% of these male employees reinstated. The parental leave analysis results are show in the following table.

Han-jing: Accessibility with Love

Parental Leave Analysis

Performance Management and DevelopmentAt CMI, to promote continuous labor-management communication for objective consistency is the aim of promoting the performance management and development system. This way, management can stimulate the work enthusiasm and en-hance the work performance of employees.

Performance evaluation includes target setup and initiation in the beginning, target review and adjustment in the middle period, and performance evaluation at the end. In addition to target accomplishment rate, evaluation items include em-ployee behavior index and employee development index for adjusting development opportunities appropriate for employ-ees through continuous specialty assessment. Also, the system network is applied to achieve consistent and fair assess-ments for global employees. Appropriate rewards are given to employees with outstanding performance and performance counseling is arranged for employees with poor performance, in order to help officers to counsel employees in need of assistance and review their improvement on a regularly basis. By treating employee growth as a corporate responsibility, CMI develops a special relationship with employees to work for better performance and a brighter future for CMI together.

Touching Event: “Care for the physically retarded” Recruitment

Employee Attrition Rate by Gender in TaiwanAge Female Male

Attrition rate (population: total number of dis-charged employees) 41.94% 58.06%Attrition rate (population: total number of dis-charged employees by gender) 1.33% 1.50%

Parental Leave Analysis ：Parental Leave Status Female Male Total

a) Employees taking parental leave (*a=b+c+d) 263 33 296

b) Employees reinstated after taking parental leave 124 18 142

c) Employees applying for leave of absence after taking parental leave 98 4 102

d) Employees terminating employment after parental leave 41 11 52

On LOA 67% Termination of employment/Familyreasons 25%

Termination of employment/Inabilityto work on shift 6%

Termination of employment/Healthreasons 2%

I am hearing impaired. I went to work immediately after graduating from junior college. Later on, I was laid off during the global financial storm. Just when I was about to go bankrupt, my parents reached out their helpful hands, so that I had the courage to hang on. From then on, most jobs were short lived. So I decided to try my luck in other counties and cities, but every time my search was in vain. In May 2010, I saw a banner read “CMI Looking for Physically Retarded Employees!” at TNESA. “How can it possibly happen?” I thought, “How can a high-tech company hire the physically retarded?” With all these doubts, I applied for the vacancy.

With a nervous heart, I went to CMI, the largest high-tech company in STSP, on 8 June 2010 for an interview. To my surprise, CMI arranged a sign language interpreter to help interpret the examination process, exam questions and details for people like me at the interview. The SL interpreter even accompanied us throughout the interview. I was en-couraged and filled with confidence. Also, the examiners slowed their pace and listened to my response patiently. When I was accepted, they even informed me by text, fearing that it would be inconvenient for me to receive a phone call. For the first time, I felt and found warmth and thoughtfulness at a workplace.

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The 3rd Singing Contest “S ing Aloud for CMI: Move in the Year of Tiger”

“Meeting in the Moonlight” at Fab Ningbo

4.1.2 Employee Salary and BenefitsOverall SalaryCMI values employee treatment and benefits, and provides employees with protection superior to the legal and regulatory requirements. To recruit and retain talents, employees salary and wage are determined ac-cording to their education background and attainment, professional experience, personal performance and market pay standard. Regardless of gender, employees are salaried according to their education attainment and experience. In 2010, the salary ratio of male to female employees in both Taiwan and China plant sites is 1:1. Employees are rewarded according to their performance or target accomplishment rate. Also, CMI re-wards employees with bonuses every year according to the status of operations and employee performances when there is surplus.

Welfare and BenefitsIn addition to the mandated labor insurance, national health insurance, medical insurance and social insur-ance, CMI provides free group insurance for employees and discounted life insurance, accident insurance and group medical insurance for their family. Also, CMI arranges discounted accident and medical insurance for the parents of employees, so that employees can work at CMI without worries and repay the company and society with their best performance.

CMI also provides competitive and encouraging salaries, establishes the employee welfare department, de-velops various welfare systems, builds quality facilities and environments, organizes thoughtful activities and promotes group activities, in order to take care of the health and well-being of employees. Other benefits include festival bonuses, birthday cash presents and wedding cash gifts, funeral and burial subsidies for em-ployees and their family, and emergency aids to provide employees with emergency financial support.

Free and Comprehensive Employee GroupsCMI respects the rights of employees, and allows them to freely form employee groups and participate in trade unions according to local laws. In fact, CMI encourages employees to participate in employee groups. At present, there are 19 employee groups organizing regular activities and representing CMI in external competitions with excellent results. CMI voluntarily subsidies these employee groups and sponsors them to participate in competitions on behalf of CMI. CMI also rates these employee groups every year to encourage and guide group operations.

Colorful Employee ActivitiesIn 2010, the employee welfare committee planned the CMI Sports Meet with both group and individual competitions integrating fun events to encourage a balanced development between work, sports and leisure. The “Star Singing Contest” was organized for employees who love singing and performance to display their talents. Art workshops and book fairs were arranged to provide employees with channels for promoting metal health, parent-and-child relationship and life education, in order to cleanse their soul, enhance their spirit and increase their wisdom.

“Love on Christmas Eve” at Fab Ningbo

CMI Sports Meet at STSP.

CMI Employee Groups in 2010

RGB Club Tennis Club Cycling Club Organic LO-HAS Club

Badminton Club Diving Club Zhen Society Aerobic Dance

Club

Floral Art Club Table Tennis Club

Basketball Club InnoLove Club

Bowling Club Wilderness Club Triathlon Club Softball Club

Fishing Club Dancing Club Board Games Club

“Star Singing Conest” at STSP.

“You Can Be Different” guided reading at STSP.

“Making Lanterns with Scraped Materials” during the Lantern Festival at Fab Nanjing

“Value Life and Cherish Family” declara-

tion meeting at Fab Longhua “Love and Support” activity at Fab Longhua

Tug-of-war of CMI Sports

Meet at JNSP.

49 50


Employee Recreation Center at JNSP Plant SiteOccupying a space of more than 1,000m3, the Employ-ee Recreation Center is one of the most popular fea-tures for employees working at the HCSP Plant Site. Inside the center, there are comprehensive facilities comparable with a professional fitness center, and the gorgeous interior design is comfortable and refreshing. In addition to various fitness facilities and recreational equipment, there is a massage corner for employees to release their stress. In 2010, the employee welfare committee planned and arranged different rhythmic and fitness programs for employees to relax and exer-cise after work.

4.1.3 Employee Cultivation and DevelopmentEducation, Training and Personnel DevelopmentAt CMI, employee education, training, cultivation and development are important. In fact, CMI has invested considerable resources and designed well-organized training systems for cultivating employees, in order to improve labor quality to achieve corporate goals.

In 2010, CMI arranged a total of 248, 625 hours of training for employees. The average training hours for of-ficers, direct labor and indirect labor were 22.62 hours, 19.55 hours and 4.11 hours respectively.

Taiwan Plant Site (by December 2010)Trainee Officers Direct Labor Indirect Labor

TotalGender Female Male Female Male Female Male

(A) Employees trained 175 1,817 1,646 5,958 7,637 5,712 22,945(B) Total training hours 45068.92 148676.8 54878.92 248,625(C=B/A) Average training time/ employee 22.62 19.55 4.11 ---

Connection between Annual Training Plan and Personal Learning MapAfter reviewing the short-, medium- and long-term development of individual employees within the organization, CMI has established an “Employee Development Time-Space Concept Map” by linking up with the performance management and development system for the reference of planning annual training. Through combining with the organizational strategic needs and interviewing with high-level of-ficers, we establish an annual training plant that can cope with the organizational goals and match the personal career planning of employees.

Complete Orientation Training for NewcomersComplete orientation training for newcomers is arranged on the first day to educate them about the CMI corporate culture, CMI CSR, CMI Employee Code of Conduct, CMI employee regulations, and relevant organizational requirements. The aim of the orientation training is to allow new employees to become familiar with CMI’s work environment and better identify with CMI culture. In terms of profes-sional knowledge, fundamental courses are arranged according to the manufacturing, operational and management processes for new employees to better understand their work and build up faith as soon as possible.

Strong Internal Instructor CastCMI has established the Internal Instructor Management Standards for certifying, managing and utiliz-ing internal instructor resources; and to develop professionals in the organization to become quality instructors. In addition to cultivating key talents, we can pass down professional knowledge and skills to others.

At present, there are 655 certified internal instructors at CMI Taiwan, including 99 at HCSP and 556 registered internal instructors at TNSP ready for giving internal professional training courses at any time.

Chiemi University SystemCMI implemented the Chimei University System to manage and utilize the relevant learning resources. With this system, employees can register to CMI training courses and programs to continue their learn-ing and give feedback to these courses for course administrators to improve training quality.

The Chimei University System also provides e-learning resources in courses produced by qualified in-ternal instructors and approved by the education and training unit for use by CMI employees. With this system, employees can also enquire into their personal learning map and training records. Therefore, the Chimei University System is a perfect system for creating a quality e-learning environment within the organization.

Recreation Center at STSP Plant SiteLocated by the Tree Valley Park Site Service Center in Xinshi Township, Tainan County, the Recreation Center is a multifunctional complex built for vigor, LOHAS and happiness by integrating with the surrounding natural environment and ecology. Inside the center there is a swimming pool, sauna, multifunctional gymnasium, jogging area, fitness center, rhythmic classroom, child center and art center. Around the center there is the “Tree Valley Park Bikeway”, lake tour facilities, ecol-ogy center and historical artifact center. These facilitiesare built to provide multifaceted water activities, sports and exercise, leisure and regimen, and parent-and-child activities. To enforce environmental protection and make energy conservation a reality, the Recreation Center is a green building built with green building materials. It even won the EEWH Diamond GB Mark, making it the first large sports and recrea-tion facility in Taiwan to receive the EEWH Diamond GB Mark.

51 52


4.1.4 Employee CareRespect for EmployeesCommitted to promoting labor-management harmony, CMI complies with various labor regulatory re-quirements and follows the spirit of The UN Global Compact and the instructions in the Electronic Indus-try Code of Conduct (EICC). At CMI, discrimination in and of any form is prohibited and forced labor is forbidden. All employees work voluntarily at CMI and are free to terminate employment with reasonable notification.

In labor human right laws/regulations identification and risk assessment, freedom of occupation, no child labor, work time, wage and benefit, humanist treatment, no discrimination and freedom of association are identified and assessed. According to the assessment results of the Taiwan Plant Site in 2010, the following two items needed corrections, and corresponding management measures have been adopted as shown below.

1. Amendment of the relevant terms in the foreign worker employment contract; and appropriate management of the certification of identity of foreign workers to meet the human rights.

2. Improvement of system management process to adequately control the weekly working hours within 60 hours, including overtime.

The same tasks were initiated at the same time at the China Plant Site, in order to reduce the relevant human right risk of labor and thereby to examine CMI’s internal management mechanism.

Zero Distance CommunicationDirect and open labor-management communication is always the best and

most effective solution of workplace and compensation problems. For coordi-

nating labor-management relations, promoting labor-management coopera-

tion, and encouraging labor-management consultation, CMI spares no pain

to promote various labor-management communication activities to reach

more and better understanding between both parties.

In addition to holding quarterly labor-management meetings and employee

welfare committee meetings to discuss and consult various labor-manage-

ment affairs and labor welfare problems with labor representatives; CMI

arranges meetings with supervisors and holds enterprise monthly meetings

and department monthly meetings to ensure top-down labor-management

communication. In order to further promote organizational communication

and opinion expression after the merger, CMI aggressively integrated inter-

nal communication platforms, such as establishing the employee communi-

cation mailbox, employee consultation hotline and mailbox, aiming to provide

more channels to reflect issues relating to labor-management relations,

human rights, leadership management and sexual harassment. Statistics of

the Taiwan Plant Site show that in 2010, the Letters to the President mailbox

received 21 signed human-rights-related complaints (11 made by male em-

ployees and 10 by female employees). All complaints have been properly ad-

dressed and settled instantaneously. To solve problems related to employee

treatment, to enhance workplace friendliness, to improve management ef-

ficiency, and to increase corporate identification of employees are the efforts

to ensure labor-management harmony and cohesion.

4.2 Safety and Health Management4.2.1 Environment, Safety and Health PolicyThe business mission of Chimei Innolux Corporation is devoting to develop core display technology, to commit to products, qualities, and services as customers required, and to become a top panel vendor in the world and fulfill its corporate social responsibility as corporation vision. Chimei Innolux Corporation firmly believes to integrate the environmental management, green product design, and risk management based on the international related standards can collaborate with employees creating a safe and healthy working environment to enable employees to enjoy working, while also allowing employees, customers, shareholders, providers, suppliers and external stakeholders to create mutually beneficial relationships and work together to endeavor citizen responsibility and sustainable business development.

Chimei Innolux Corporation promises to：1. Meet all government environmental protection, safety, and health regulations and strive to comply with

international environmental protection, safety and health standards, commit to ongoing improvement of the performance of ESH management.

2. Follow the international environmental protection trends, satisfy the requirements of customers, devote to promote “Green Vision”, strengthen the green product design, and fulfill energy saving, emission reduction, green belting, and recycling in order to reduce the environmental impact from manufacturing and products.

3. Root the culture of corporate risk management, and develop and promote the integrated framework of risk management.

4. Aim at zero accident, zero pollution, and zero occupational disease to minimize operational hazards for employees, customers, vendors and suppliers.

5. Everyone shall fulfill the duty, form the culture, and implement the discipline of occupational safety. 6. Promote healthy activities to improve the well being of employees and to fulfill the duty to the community at large. 7. Provide education and training as well as communications channels to increase employees’environmental

protection, safety and health awareness, and encourage all employees to participate in the environmental, safety and health management.

8. Strive to strengthen readiness to deal with emergencies, and maintains an effective Business Continuity Plan (BCP) that enables the corporation to minimize the impacts from any internal or external discontinuities.

Chimei Innolux Corporation leads to carry out above-mentioned Environmental, Safety and Health Policy, communicate to every staff in and work for our organization, to let all employees deeply recognize and also in direction to the public.

Green Vision-"To Earth with L.O.V.E"

Taking a page from the Lohas（lifestyles of health and sustainability）movement and its values, and committing to create green living conditions for employees.

Product design, manufacture and transport overall with continuous implementing safety actions and environmental improving.

Promote LCD industry chain with the greatest green value.

Caring for the Earth and promoting ecological sustainability.

Green Living

Green Operations

Green Value Chain

Green Environment

53 54


4.2.2 Safety and Health Management Prizes 4.2.3 Safety Culture and Risk ManagementESH Organization and Operations

To ensure the effective operations of the ESH system, CMI has established the ESH Headquarters to administer Central ESH Risk Management and Integration Department and the ESH management department in individual sites.

Site ESH Management Department: Parallel communication is maintained with OHS staff of individual units at biweekly meetings to promote ESH business. Reports are presented to site top management, relevant units and labor representatives at the Site ESH Committee every quarter.

Central ESH Risk Management and Integration Department: To plan the ESH directions of CMI and integrate site ESH affairs; to collect information concerning the effect of ESH management and risk control of individual sites and report to higher management.

The said organizational framework can effectively promote the parallel and vertical communication within individual sites; promote the integrated ESH system across sites; and enforce the vertical communication of ESH management between sites and the CMI headquarters.

Analysis, Prevention and Improvement of Occupational AccidentsZero disabling frequency rate (FR) and zero disabling severity rate (SR) are the ultimate occupational safety goals of CMI. Therefore, employees are required to handle occupational-safety-related accidents, traffic accidents and false alarms by following the reporting, investigation and perceivable hazard improvement procedures. The causes of occupational accidents are analyzed and statistics on accidents are produced with IT systems to take necessary precautions. Also, the foci and methods of prevention are communicated with all plant sites by means of the parallel communication mechanisms in order to effectively prevent the FR and SR of similar occupational accidents.When a critical accident occurs at a CMI plant or neighboring plant, the relevant safety requirements of the corresponding risk management are specified and announced first. To ensure that employees pay continuous attention to occupational safety, education on different occupational accident issues is arranged every month to strengthen the concepts and awareness of occupational accident prevention in employees.Achievements of occupational safety promotion in CMI plant sites during 2010:In 2010, no occupational accidents deaths were reported; and no disabling accident was reported in the following CMI plants: Fabs T1 and T3, Fab PJ and Fab STN in JNSP in Taiwan; Fab1, Fab2, Fab3, Fab4, Fab5, Fab6, Fab7, Fab8 and LCM in STSP in Taiwan; and LCM2 and LCM7 plants in Ningbo Site in China, and Chongqing Site in China.

To ensure “safe transportation” for employees, in addition to promoting transportation safety at planned intervals, CMI voluntarily improves the dangerous spots on the plant site and requests the competent authorities to improve traffic black spots outside the plant site. For example, in July 2010, we applied for changing the flood control road by the Yenshui River into an ordinary one way road to prevent car accidents. We applied for re-planning split way linking up Xinkangshe Avenue and the National Highway No. 8 into one fast lane and one slow lane and designed a safe parking area. At the intersection of Huaxi Road and Qiye Road, we applied for the traffic control sign and the addition of a motorcycle waiting zone to prevent motorcycles from colliding with cars from the opposite direction when taking a direct left turn.

Prize Winner Presenter

Rated as distinction in the National Workplace Health and Safety Week 2010 JNSP CLA, Executive Yuan

Advanced Safety Production Management Organization for Dust and Highly Toxic Substance Prevention in Ningbo City

Fab Ningbo

Ningbo City Health Bureau, China,Ningbo City Labor

and Social Security Bureau, China,NBGH, China

Special Prize for Occupational Injury and Safe Production Advanced Units in Nanhai District of Foshan City 2009 Fab Nanhai

Nanhai District Safe Production Supervisory Administration,

Foshan City, China

Distinction for Smoking Free Workplace STSP(Fab D) Tainan County Health Bureau

Outstanding Smoking Free Workplace STSP - TSOC, Fabs 2, 5, C and E Tainan County Health Bureau

Health Management Award JNSP National Health Promotion Bureau, DOH, Executive Yuan

Health Management Award STSP National Health Promotion Bureau, DOH, Executive Yuan

TNSP Outstanding Labor Safety Promotion Business 2009 STSP(Fab D) TNSP Administration

S p e c i a l C o n t r i b u t i o n Aw a r d f o r s p o n s o r i n g t h e Occupational Safety and Environmental Protection Month 2010

STSP TNSP Administration

S p e c i a l C o n t r i b u t i o n Aw a r d f o r s p o n s o r i n g t h e Occupational Safety and Environmental Protection Month 2010

JNSP HCSP Administration

Outstanding Labor Safety and Health Business 2009 STSP(Fab D) CLA, Executive Yuan

Outstanding Labor Safety and Health Promotion Business 2009

S T S P - T r e e Va l l e y Branch CLA, Executive Yuan

Outstanding Paper, Occupational Safety and Health Promotion Category, OHS Technology and Practice 2010 STSP CLA, Executive Yuan

Outstanding Service Unit in the National Labor Safety and Health Partnership Meeting 2009 JNSP CLA, Executive Yuan

Outstanding No Accident Man-hours Record: 23 millions accumulative STSP(Fab D) CLA, Executive Yuan

Outstanding No Accident Man-hours Record: 17 millions accumulative STSP(Fab C) CLA, Executive Yuan

Outstanding Blood Donation Drive 2009 STSP(Fab B and D ) MOI

Excellent Performance in the National Workplace Safety and Health Week 2009

S T S P - Tr e e Va l l e y Branch

Southern Region Inspection Office, CLA, Executive Yuan

Outstanding Business in Workplace Health Promoter Training and Workplace Health and Care Self-Management Certification

STSP CLA, Executive Yuan

Advanced Safety Production Management Organization 2009, Bonded Zone Fab Ningbo Bonded Zone (EPZ) Administration,

Ningbo, China

Item Site Taiwan China

FR 0.14 1.19

SR 6.16 13.18

Occupational Accident Statistics 2010

55 56


Emergency Response Planning and TrainingCMI has established complete emergency response procedures for various emergencies and accidents for the reference of handling emergencies or accidents. CMI also voluntarily participates in the joint defense team and toxic accident joint defense team organized by the competent authorities, in order to provide emergency response assistance for other members on the team where necessary.

At CMI, emergency response planning and exercise are very important. With such, CMI can appropriately adjust the handling procedure, get familiar with the operations of the emergency response equipment and the emergency response procedure etc to enhance its overall emergency response ability and thereby minimize the damage of emergencies and accidents. In 2010, CMI organized 320 emergency response training courses for 14,000 employees and 742 emergency response exercises. Also, CMI sent 132 employees to participate in 7 firefighting exercises.

Safety and Health Education and Training“Employees are the most valuable assets of enterprises, and training is an investment that never depreciates,” and OSH is the foundation for the promotion, practice and operations of the ESH management system. CMI invests in human resources and material resources to plan and equip employees with work-related OSH knowledge and skills according to the characteristics of hazards of individual sites, such as courses for chemical use, dangerous machinery and equipment operations, damage containment, equipment safety and fire prevention, and plant safety management. CMI also controls training quality to ensure the effectiveness of training.

Improvement of Vendor OSH ManagementCMI began vendor management and integration in 2010. In addition to referring to the advantages of the management system of individual sites before the merger, CMI added two important items, including (1) engineering project risk grading and initiation which is documented in the operating procedures; and (2) penalty risk classification and quantification with total load control methods, in order to help vendors to make improvements in two stages.

To further improve vendor quality management, CMI has included qualified vendors in the Approval Vendor List (AVL) and conducts the periodic rating and audit on qualified vendors, in order to calculate the ESH performance of vendors. The frequency of periodic rating and vendors to be rated are determined according to the scale, nature, ESH significance and previous rating results of vendors or the special needs of individual departments. The rating is conducted according to the ESH checklist in collaboration with the procurement department and supplier management department. Also, all units should audit their vendor either periodically or non-periodically. The ESH unit should conduct the ESH point standard audit. The rating and audit results will be the reference for calculating the performance of vendor ESH management; and rewards or guidance should be arranged for vendors to make improvements, in order to enforce vendor management.

Chemical (n-Hexane) Alternatives for China SitesRecognizing the health hazards on the human body from contact with n-hexane, CMI immediately handled the situation with the horizontal improvement project. After inventorying chemicals containing similar contents in the China sites, CMI replaced those containing concentrated n-hexane with chemicals containing low toxicity. At the same time, CMI investigated the stations and workers that have used n-hexane, concurrently implemented occupational disease prevention management measures, conducted occupational health inspection on these employees, observed the safety of n-hexane operations, reviewed and improved the ventilation of the operation sites, assessed the level of protective devices and arranged education and training for these workers.

At present, CMI has successfully replaced chemicals containing 10% or more n-hexane with chemicals containing lower toxicity. Furthermore, we are continuously seeking alternatives for chemicals containing less than 10% n-hexane in order to completely eliminate the n-hexane use.

In 2010, CMI integrated a well-planned chemical management model, added chemicals to the banned chemical list, and increased the chemical analysis and testing requirements to comply with the regulatory and customer requirements on RoHS. CMI further reviewed the ventilation facilities of work sites using the relevant chemicals and applied isolation or sealing of hazard sources and personal protective equipments to provide employees with a safe and healthy workplace.

Course Type Total Sessions

Total Trainees

OSH TrainingHazard Advice 2,705 315,200

OSH License Training 95 3,200

OSH OTJ Re-training 51 2,800

OSH Training Statistics 2010

5 & 6 Toxin and chemical leakage accident exercise.7. Plant evacuation exercise.8. Commanding officer training (After Chief Chen, the instructor, explained everything, plant managers participated in the training asked many ques-tions and discussed with Chief Chen about plant safety planning).

1. 2.

3. 4.

5. 6. 7.

8.

1 & 2: Hose deployment and utilization training.

3 & 4: Real fire extinguishing training.

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4.2.4 Health Protection and PromotionCommitted to promoting the physical, mental and spiritual health of employees, CMI established the CMI OSH Management System with reference to the spirit of international OSH services. CMI also optimized the prevention of occupational diseases and thereby improved the environment of the op-eration sites, in order to achieve OSH management.

Employee Health ProtectionCMI establishes the “I-care” health management information system to control the health risk status of employees; arranges annual health examination and health promotion projects every year; and provides treatment for and follows occupational disease case management based on the annual health examination results. In 2010, a total of 150,000 different kinds of physical examinations for employees, including newcomer physical examination, annual physical examination, special physical examination, married women physical examination, physical examination etc. With the data obtained from health examinations, nursing personnel keep track on high risk groups.

Also, by combining internal and external resources, such as the National Health Promotion Bureau, Institute of Occupational Safety and Health of CLA, local competent authorities and OSH experts from different universities, CMI implemented various OSH projects and ergonomics improvement pro-jects for individual occupational safety and occupational health subjects.

Prevention of Occupational Health RiskFormation of the CMI Ergonomics Team and Counseling Program

In 2009, CMI established the CMI ergonomics team. In 2010, CMI conducted the ergonomics haz-ard risk assessment in the offices and on labor-intensive operations in the Taiwan and China sites in collaboration with the Institute of Occupational Safety and Health of CLA, international ergonomics experts and occupational medicine specialists. In this assessment, 8 ergonomics counseling projects and the risk assessment of 32 process behaviors were completed; and operational and improvement recommendations were made, including (1) research of office employee musculoskeletal disorders; (2) process ergonomics hazard risk assessment and improvement for Fab Rende in TN Site; (3) partici-pation in site worker ergonomics hazard prevention promotion plan 2010 for LCM plant improvement; and (4) process ergonomics hazard risk assessment and improvement for the Fab Ningbo.

The relevant results were presented at the International High Technology Environment, Safety and Health Conference 2010, Occupational Safety and Health Technology and Practice Conference 2010, and the 9th Pan-Pacific Conference on Ergonomics.

Health PromotionComprehensive health activities, such as energy and health exercise, quit smoking class, weight losing class, Father’s Day 88 health card, occupational disease prevention and various cancer screening tests, were initiated in different sites, with heated support from employees. In 2010, we organized a total of 197 related activities that attracted more than 32,000 employees.

In 2010, CMI voluntarily registered to the healthy workplace certification organized by the National Health Promotion Bureau. Both Jhunan and Tainan Sites passed the certification. In STSP, Fab D (Fab 5) won the Health Management Award and Tree Valley Branch (Fab 6) won the Energy and Vigor Award. Jhunan Site won the Health Management Award. We also shared our health promotion achievements at the Outstanding Healthy Workplace Exhibition 2010 held by the South Promotion Center of National Health Promotion Bureau. CMI was selected to lead the self-developed health exercise at the venue. With approval from different parts of society, CMI will continue its belief to create a happy enterprise and promote health-promoting activities.

Xiang-hong.Father’s Day

In order to join this event, I went home earlier on weekdays to ride with my little girl and take her out to the countryside on holidays. Three months later, I discovered that career and family life could be bal-anced.

With this event, I realized that I was a good mate and a Mr. Know-it-all to her. I remembered when we walked along the beach the other day, Rou-rou, my little girl, told me happily, “Why is it not so fun when playing with mom? I love playing with daddy.” I was em-barrassed but proud, “If you like it, I will make time to play with you! You are my sunshine, nothing is more important than making you happy. Daddy loves you!”

Hong-wen.My Health Center

I have been working at the Tree Valley Branch for a long time. Al-

though I know there is “Workplace Counseling Service”, and guys

there will protect your privacy, I have been around there many times,

just without the courage to walk in. One day, a nurse there saw me

depressed, so she asked, “What happened, my dear? You looked awful

and stressed. Want to try a counseling session?” I still refused her of-

fer. However, she did not give up. So I finally tried one session.

Later on, my father was severely disabled and my mother suffered

from severe liver disease and needed interferon. My mother became

irritated and bad-tempered due to the adverse effect of the treat-

ment. With family and work stress together, I went to the Health

Center again. They gave me some medical information and showed

me how to take care of patients, helping me to understand how to

help my family and overcome stress. Now, my mother has recovered. I

must say “Thank you” to the health center which is always there when

I need its help.

Touching Event: Father’s Day 88 Health Card Parent-and-Child Interaction

Touching Event: Counseling Service

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Zao - yu .Champ ion i n the Weight Losing Class

I nearly passed out just at the 10-minunute aerobic class on Day 1, and I could hardly breathe. I was also surprised to find out my poor physical strength. So I decided to make a change. In addition to the weight losing class, I drew a weight loss plan for myself. With dietary control and regular exercise, my physical strength improved and my weight reduced significantly. As my waist was getting slimmer and slimmer, I felt more energetic each day. My clothes now are too big for me. The progress encouraged me to go on. Within just two months, I kicked away 9 kg. Jesus, 9 kg! Even my friends see me more handsome and more powerful.

Touching Event: Healthy Physique Challenging Camp

Fu-xu. Quit Smoking Success-fully

I have forgotten why I tried my first cigarette. When I felt bored or stressed, I smoked. I knew that smoking is haz-ardous to my health, I just could not quit.

When the company opened a quit smoking class, I tried it, without much confidence, because I have tried before, but failed. This time, with the support from my family and friends, I followed all instructions prescribed by the physi-cian and nurses. Now, it has been 10 months since my last cigarette.

Thanks to the quit smoking class, I was able to quit this bad habit. Now, I can feel the freshness of air, and the stinking smell from smoking has gone. Quitting smoking is a good thing. It was a hard time in the beginning, for the health of myself and my family, I made it!

Touching Event: Quit Smoking Class

Activity OrganizerCardiovascular Protection Month

Site

LOHAS Stress Release Month

JNSP/STSP

Traditional Medicine Regimen Month

JNSP

Vision Health Care Month JNSP

Liver Protection Month JNSP/STSP

Women Cancer Prevention Month

JNSP

Tobacco Hazard Prevention Month

JNSP

Spiritual Stress Release Month

JNSP

Annual Physical Examination JNSP

Health and Physical Strength Promotion Month

JNSP

Healthy Vegetarian Diet Month JNSP

Occupational Disease Prevention Week

JNSP

Enjoy Breastfeeding: Breastfeeding Day

Longhua

Protect Your Eyes: True Love for Brightness: Eye Protection Day

Longhua

Away from Hypertension: Fun and Relaxing

Longhua

Heart Protection: Working Together with “Heart”

Longhua

Eye Protection Exercise Promotion

Longhua

Lower Back Pain Seed Trainer Course

Ningbo

Blood Donation Activity Ningbo

Mental Health Day Activity Ningbo

Oral Health Knowledge Promotion

Ningbo

Annual Free Medical Consultation

Ningbo

Activity Organizer

In-plant Blood Donation Activity Siteer

Free Medical Consultation STSP

Shoulder, Neck and Waist Pain Seed Trainer Course

STSP

Quit Smoking Class STSP

Women Cancer Screening STSP

Health Stage Point Collection Activities

STSP

Counseling Seed Trainer Course

STSP

Voluntary Quit Smoking: Health for Passive Smokers

STSP

Healthy Physique Challenging Camp

STSP

Oral Tissue Screening STSP

Father’s Day Health Card 88 STSP

Mental Health Education for Newcomers

STSP

Enterprise Flu A Vaccination Nanjin

TB and Viral Hepatitis Workshop Nanhai

Sleep and Health Workshop Nanhai

Should, Neck and Lower Back Pain Health Workshop

Nanhai

Counseling and Mental Health Improvement Workshop

Nanhai

Flu B Vaccination after Annual Physical Examination

Nanhai

Women Chest Nursing Care Workshop

Nanhai

“Cherish Life and Care Health” Workshop, Center for General Education, Foshan City

Nanhai

Safety Education and First Aid Training

Nanhai

Counseling Seed Team Training Nanhai

Health Promoting Activities for 2010 (outlined)

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4.2.5 Employee Spiritual Care“Love and Peace Project” in China SitesAs employees increase and are younger, when they have problems and have no way to express their emotions, depression and negative behaviors arise. When the condition persists, this will become a mental problem, and extreme incidents occur. In the care for employee mental health, CMI has implemented the Love and Peace Project to arrange psychiatrists, counselors and occupational health nurses to provide employees with counseling services and medical treatment, in order to help them overcome depression and stress.

Mental Health Service in Taiwan SitesAfter the Jiaxian Earthquake on March 4th, 2010, immediate psychological support was provided for 35 employees through group counseling and depression therapy.

Spiritual seed personnel training and counseling were arranged in Taiwan. In 2010, a total of 425 spiritual seed personnel (spirit caregivers and coaches) were trained and counseling service was pro-vided for 101 employees.

Also, as CMI hires 205 physically handicapped employees; in order to help them quickly adapt to the new work environment, mental health interviews plant resident nurses were arranged for individual new physically handicapped employees within one month from their inauguration. This continues every year.

World Mental Health Day on Ningbo SiteOn October 10th, the World Mental Health Day, CMI promoted the “Communication for Understanding with Love and Mental Harmony for Health” activity on Fab Ningbo. In the event, the “emotional outlet area”, “sharing area” were arranged for employees to freely express their moods on the “outlet wall” and “sharing wall”. In the audiovisual workshop area, employees learned about mental health with the help of psychiatrists from Ningbo Psychiatric Center. In the physical examination area, employees were examined for their mental conditions and discovered their recent mental condition through counseling to solve their problems. In the fun game area, psychological tests, throwing ball game and other emotional release events were arranged.

Lee from Guizhou felt that workload of the electronics industry was high and stressful, so he threw five balls with all his strength to the “emotional outlet wall”. Suddenly, he felt much better. “It was great, and I hope events like this can be held more often.”

Concern for Family and Care for CommunityThe health promotion umbrella of CMI also covers the family of CMI employees, such as various health examinations and vaccinations, the family of employees can enjoy a discount; and they are also welcome to join our health education activities (quit smoking class, weight losing class, Father’s Day Health Card 88).

Case StatisticsChina Site

TotalLH NH NJ KS

Counseling (people) 658 203 66 8 935Care for Employee Center: Top Priority Case* (cases) 95 37 6 0 138Care for Employee Center: Urgent Case** (cases) 382 2 0 4 388

Love and Peace Project• Counseling Office: Helps employees solve mental health problems and provides

psychological profiling service.• Care Helpline: 24-hour counseling service and real-time feedback to the patient’s

supervisor and professional counselors.• Mental Health Promotion: Organize mental health promotion activities every month;

provide mental health education for newcomers; and arrange psychological anomaly screening.

• Love Net at the dormitory area.• Train senior personnel how to detect psychological anomalies and develop a base-

level care defense line.• Reinforce counseling and provide just-in-time assistance for employees with poten-

tial mental risk.• Care for Employee Center: Allows employees to report potential danger through a

base-level staff network, in order to provide just-in-time assistance.

• Establish SOPs for handling psychological anomalies and abnormal behaviors.• Provide counseling service for relevant personnel after an incident.

Preventing abnor-mal behaviors and care employees

Discovering psycho-logical anomalies or abnormal behaviors.

Detecting psycho-logical anomalies or abnormal behaviors.

Management Counseling Seed Team Workshop

Care Services in 2010 for China SitesThe top priority and urgent cases reported through the Care for Employee Center have been properly handled.

*Top Priority Case: A top priority case must be handled and reported within two hours from acceptance. **Urgent Case: An urgent case must be handled and reported within 24 hours from acceptance.

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Social Contributions 5.1 Education and AcademicsBroadcasting, Ecology and Art Summer CampThe Embracing Truth, Perfection and Aesthetics summer camp organized by Innolux Education Foundation and implemented by the IC Broadcasting Company was designed for children in remote areas, notably for students from Penglai, Donghe, Nanzhuang, Dahu, Xinkai and Neiwan elementary schools. CMI sponsored 30 underprivileged students from these schools and 10 children of CMI employees every session. Courses in the camp were planned in four major topics, including the introduction to the natural ecology of Huisun Forest by the Society of Wilderness; visit to the “Manet to Picasso: Masterpieces from the Philadelphia Museum of Art” at the Taipei Fine Art Museum guided by Jimmy Lu (陸潔民), the chief art auctioneer and art appreciation instructor of Taiwan; appreciation of ocean documentaries under the guidance of director Li Lo (羅力); and discovering the value and fun of environmental protection and ecology. Visits to the Radio Taiwan International were arranged for children to understand the history and development of broadcast and experience the magic of sound in broadcasting. Lastly, their ideas inspired were turn into materials for weblogs, cards and ecology and art broadcasting programs for the public to experience the truth of love, sharing and happiness.

According to CMI, social contribution is one of the reasons for being an enterprise. Therefore, it makes con-tinuous planning and takes continuous actions to reward society. It also supports the activities and events organized by Innolux Education foundation and Tree Valley Foundation in order to display the power of con-certed efforts. In 2010, CMI made social contributions in different aspects. In education and academics, it ag-gressively promoted industry-university cooperation to foster optoelectronic talents and vigorously enhance the global influence of Taiwan’s monitor industry. In culture and the arts, CMI enriched the spiritual life and cultural contents. In social participation, CMI voluntarily participated in community activities to enforce the concept environmental friendly rewards. In charity service, in addition to assisting in post-disaster recovery, CMI supported the social weaker groups by helping them. In the future, CMI will continue its concern and re-ward society, in order to carry out its corporate social responsibility with due faith.

Environmental protection teaching materials productionEnvironmental education should start from early childhood, in order to realize environmental protection. Recognizing the responsibility of local enterprises to reward local society and the corporate effect on promoting environmental education in local areas, CMI and Innolux Education Foundation begin this mission from Miaoli County to cultivate the seeds of environmental protection. In November 2010, therefore, CMI commissioned Global View Magazine to plan and design the extracurricular supplementary teaching materials and syllabi on environmental protection appropriate for elementary school teachers and students. With these teaching materials, teachers and students from more than 100 elementary schools and their family could build a place for the sustainable development of ecology and harmonious living, appeal to the public the mission for protecting earth and thereby conserve the environment for the next generation.

• “Embracing Truth, Perfection and Aesthetics” Broadcasting, Ecology and Art Summer Camp

• Production of environmental protection teaching materials for Miaoli County

• Sponsored the Seeds of Hope Sprouting Plan organized by Tree Valley Foundation

• Sponsored the Seeds of Hope Little Beetle Plan organized by Tree Valley Foundation

• Provided scholarships for graduate students of related departments of National Taiwan University and National Chiao Tung University

• Chimei Award of Outstanding Master’s Thesis Selection• Organized the Taiwan Display Conference 2010• Launched industry-university cooperation projects with National Taiwan

University, National Cheng Kung University and National Chiao Tung University

• Sponsored the Children’s Actualization Program organized by Innolux Education Foundation

• Sponsored the Southern Taiwan Environmental Education Social Re-source Sharing Plan organized by Tree Valley Foundation

• Sponsored the Rudiments of Music for Children in Remote Areas Cultiva-tion Program organized by Innolux Education Foundation

• Sponsored the Dreamland: Art Carnival organized by Innolux Education Foundation

• Archeological Sites & Artifact Conservation and Maintenance Plan• Sponsored the NCKU Green Magic School Noah's Ark: Architecture,

Craft and Culture Promotion and Conservation Project

• Sponsored the Tree Valley Surrounding Community Total Empowerment Plan organized by Tree Valley Foundation

• Assisted in the community security maintenance in Zhunan• Free medical consultation at Guanshan and Houbi Township

• Organized the CMI Care Month activities• Assisted in the Love Earth Together event• Sponsored the Hope Campus Project organized by Tree Valley Founda-

tion• Sponsored the Just Play It concert series organized by Tree Valley Foun-

dation• Urged employees to participate in charity activities

Education and Academics

Culture and Arts

Social Participation

Charity Service

65 66


Seeds of Hope Sprouting Plan:

Little Rukai hunters from Maolin

planted the seeds of hope

CMI began sponsoring the Seeds of Hope Sprouting Plan organized by Tree Valley

Foundation in January 2010 to preserve the cultural heritage and support the

sustainable development of rural areas in Tainan and southern Taiwan. The Plan

provides guidance for interested NGP/NPO, schools of different levels, and cultural

studios or cultural workers to prepare picture book implementation proposals;

assists local groups in blending local culture and history with instruction; and

disseminating cultural heritage to students, hoping that a record of the history and

culture of rural traditions and culture can be maintained and the value of traditions

and culture can be preserved with picture books, in order to encourage students

to respect multicultural contents and promote the effective promotion of local

culture.

Sandimen Picture Book

Mudan Picture Book

Miaolin Picture Book

Seeds of Hope Beatle Plan: Art and cultural team to tribal communitiesCMI began sponsoring the Seeds of Hope Beatle Plan organized by Tree Valley Foundation in January 2010, hoping to provide indigenous students with professional art training and to plan official performances for children in order to develop the self-confidence and cultural identification of students by sending professional art and cultural teams to tribal communities. With “musicals” integrating music, literature, physical performance and arts, this plan aims at inspiring the rationality, emotion, socialization, imagination and creativity of children to improve their art taste and confidence and develop their ability to give chorus, ensemble, solo, narrative/song arts, operetta and dance performances on the stage.

Scholarships for NTU and NCTU graduate studentsTo encourage graduate students of related departments of the National Taiwan University and National Chiao Tung University and its Tainan Campus to engage in TFT-LCD R&D and to create related job opportunities, CMI provides a scholarship of up to NT$300,000 and NT$600,000 for every graduate student enrolling to the master’s and PhD’s programs respectively before their graduation. In return, these students will work for CMI for a term of two years and 3-4 years respectively after graduation. In 2010, CMI provided scholars to 20 students of NTU and NCTU and its Tainan Campus enrolling in the master’s program.

Chimei Award of Outstanding Master’s Thesis SelectionThe 5th Chimei Award presentation was held in October 2010. The award is established to honor the authors of outstanding master’s thesis and encourage students to engage in the research of image display technologies and industry. A total of 93 students participated in the award this year, and ten were awarded, including one grand prize, one second prize, three special jury prizes and five excellent work prizes. The jury for the final was formed by four CMI R&D officers and three non-CMI-staff experts. The overall performance of contestants this year this year is outstanding; and the performance of award-winners is brilliant in either innovativeness or applicability; thus allowing us to see the infinite possibilities of the optoelectronics industry in the future.

67 68


5.2 Culture and ArtsTaiwan Display Conference 2010CMI, National Cheng Kung University and Taipei Chapter of the Society for Information Display co-organized the Taiwan Display Conference 2010 during April 28 to April 30 in 2010. World-leading display technology manufacturers and developers were invited to this academic conference to discuss and display the future display technologies. This conference also promoted the close exchange between the industry and academics. The topics discussed at the conference included Flexible LCD, Emerging TFT/Back plane Technology, Interactive/ Touch plane Technology, AM-LCD/AM-OLED, E-paper/MEMS Display, and 3D Display.

In August 2010, CMI sponsored the Children’s Actualization Program organized by Innolux Education Foundation to provide scholarships for children with potential and special performance to actualize their dreams, hoping that they can stretch their wings to fly high in the sky without worrying about financial support. In August 2010, Innolux Education Foundation sponsored the soccer team of the Jianshan Elementary School to participate in the Haarlem Cup held in the Netherlands to exchange ideas with great global players. Although contesting countries sent their best teams to the event, the soccer team of the Jianshan Elementary School won the silver medal.

Southern Taiwan Environmental Education Social Resource Sharing PlanIn September 2010 CMI began sponsoring the Southern Taiwan Environmental Education Social Resource Sharing Plan organized by Tree Valley Foundation. With the Tree Valley Park NGO Club Operations: Southern Taiwan Environmental Education Social Resource Sharing Plan, and along with the promotion of the Environmental Education Act across Taiwan, CMI hopes to promote the legislation spirit of the Act by inviting members of the environmental education counseling groups from seven counties and cities in southern Taiwan to discuss the contents and future responsive actions. Also, CMI aggressively develops a model for sustainable environment in southern Taiwan and expands partnerships to establish a cooperation mechanism for realizing environmental education resource sharing by enterprises.

Touching Event: Rudiments of Music for

Children in Remote Areas Cultivation Program

Yu Zheng: Recorder Learning Sheet

Dreamland: the Art Carnival During September to October in 2010, CMI sponsored the Dreamland: Art Carnival organized by Innolux Education Foundation. At the event, Miaoli citizens and CMI employees were invited to appreciate art and cultural performances and join charity services. At the carnival, Poco à Poco Heavenly Sound Orchestra (樂賞天籟管弦樂團) was invited to present famous classics and excerpts from films, including The Prince of Egypt, Schindler’s List, Titanic. Also, famous domestic children’s theaters (such as Song Song Song Children’s & Puppet Theater and Just Apple Children’s Theater) were invited to give three charity perfor-mances to treat students and citizens living in the remote areas in Miaoli

Music Program for Remote Areas ChildrenIn September 2010, CMI began sponsoring the Rudiments of Music for Children in Remote Areas Cultivation Program organized by Innolux Edu-cation Foundation. In this program, in addition to free teaching materials, professional music teachers from Nanzhuang Township in Miaoli were paid to give formal the rudiments of music training and recorder playing lessons to third graders of the Tianmei Elementary School. Students were also encouraged to give off-campus performances at high-standard venues in order to broaden their visions, let them understand where their interest lies, and thereby increase their ability and confidence.

Children Actualization Program

Partnership with NTU, NCKU and NCTUIn 2010, four NTU departments participated in seven industry-university cooperation projects with CMI. Earlier in December 2004, CMI established the NCKU-Chimei Partnership Planning Committee to assess visionary collaborative research projects. This came at the same time as the donation of funds to build the Chimei Building on the NCKU campus. In 2010, seven NCKU departments participated in eleven industry-university cooperation projects with CMI. In the same year, six NCTU departments (Hsinchu and Tainan campuses) participated in sixteen industry-university cooperation projects with CMI.

CMI’s close cooperation with NTU, NCKU and NCUT has created excellent opportunities for exchange and has

served as a model for other companies and academic institutions in industry-university cooperation, providing

proof that industry-university cooperation helps produce world-class talents.

69 70


Archeological Sites & Artifact PreservationThe Tainan Science Park Special Zone has the highest density of archeological sites, the most intact archeological cultural layers, and the largest excavation area. Whether it is the 100-year-old sugar refinery, the ancient government routes and flooding ponds, the inshore trading activities between the Dutch and Han people, the Siraya Culture of indigenous people 500 years ago, the prehistoric Niaosong Culture about 1,800 years ago, the Dadhu Culture about 2,500 years ago, the Niuchoutzu Culture about 3,500 years ago and Tapenkeng Culture about 4,500 years ago, they are all found inside or near the TNSP. CMI thus sponsored the Archaeological Center of Tree Valley Foundation to well preserve the rich archaeological relics discovered in the park. CMI also teamed up with local cultural and history groups to promote fundamental archaeological knowledge and native culture and history by introducing local cultural heritage.

Noah’s Ark Relief with Moraka DriftwoodAt the NCKU Green Magic School, driftwood collected after the August 8 Flood was used to make the animals in the Noah’s Ark to remind people to reduce damage in nature in order to prevent severe natural disasters. In the green building, driftwood was the main materials for the works made by indigenous peoples, and it was exceptionally meaningful.

5.3 Social ParticipationTrust building by community empowermentIn January 2010, CMI began sponsoring the Tree Valley Surrounding Community Total Empowerment Plan organized by Tree Valley Foundation. In this project, Tree Valley Park was transformed into the Southern Taiwan Cultural NGO Platform under the framework of Tree Valley Cultural Area. Ecological and cultural NGO teams and landscaping-architecture-related departments of universities and colleges were invited to transform communities into an overall learning environment based on social education diversification, in order to let citizens think and plan a happy, learning and productive social environment, assist community citizens in re-understanding their homeland, and thereby re-discover their affection for and identification with their hometown.

1. Shenei Village Clay Furnace Activity: To make a clay furnace in collabora-tion with villagers.

2. Zhongrong Community Alcove: To slowly build an alcove with bare hands to express the hospitality of locals.

3. Fenghua Village: To sponsor the fund for one person from one household, in order to help re-presenting the his-torical site of the village Mazu Temple buried at Dajiaquan about 250 years ago.

4. Dazhou Village Leisure Platform: To build a leisure trail for elderly people in collaboration with community citi-zens.

1. 2.

3. 4.

Shui-xiang HSU. a 83-year-old grandpa joined us

More than 20 volunteers gathered at the outbound dyke to transform the disorganized place in the village into a leisure platform. Shui-xiang Hsu, 83-year-old, the eldest vil-lager, was busy painting the platform without complaining about getting tired.

Everybody worked in collaboration to grow trees for greening and beautifying the envi-ronment. Some painted the place, while others grew purslane in the bamboo holder and even watered it from time to time. Although the weather was hot, everybody worked until the end. With concerted efforts, the greening and beautification of the place

were finished within a short time.

ouching Event: Community Empowerment

Free medical consultation at Guanshan and Houbi TownshipTo reward the general public living in remote areas, in March 2010, CMI teamed up with Chimei Medical Center to provide free medical consultation services in remote areas. This 2-day and one-night event provided free medical consultation for about 50 people aged between 65 and 70.

Meihui-Free Medical Consultation Services in Remote Areas

Touching Event: Free Medical Consultation Service in Guanshan

As a CMI resident nurse, how could I be absent from the free medical consultation service in Guanshan Village is located in Nanhua Township, the remotest mountainside in Tainan County. In this 2-day and one-night free medical consultation mission, we walked across half of the mountain. The village head took our team to visit each household by car. After about 20-30 minutes ride, we saw elderly people in their seventies or eighties walking with difficulty. Then, we finally realized the inconvenience and medical inaccessibility in this place. Also, those seeking medical attention from our station at a local elementary school were grandpas and grandmas walking across the mountain for about half an hour with a walking cane. They were grateful to everyone on the team, and the relations among physicians, nurses and patients suddenly became a kind of simple caring and appreciation.

Although free medical consultation mission can help locals to relieve some incidental problems, it needs education to radically change their health concepts and medical consultation habits, in order to improve the overall community health condition.

71 72


Love Earth TogetherCMI and InnoLove Club sponsored the Love Earth Together organized by the World Peace League, in order to aggressively promote caring services for children in poverty from remote areas. On August 13, InnoLove Club recruited employees to donate funds for the 2010 Love Earth Together Children’s Charity Show, in order to sponsor the love breakfast for children and saving children from danger programs and scholarships for children in poverty.

5.4 Charity ServiceCMI Care Month activitiesIn December 2010, CMI Employee Welfare Committee and InnoLove Club organized the CMI Care Month, with activities including the Warmth for Children Fair and Christmas Wish Card Adoption. Before the Warmth for Children Fair, employees bought tickets and donated them to the Yaoan Home for the Handicapped for the children there to enjoy the fair. Employees also made biscuits for charity sale at the fair, with the income donated to local center for children and families, and disadvantaged groups. The Christmas Wish Card Adoption is a regular social concern activity. The Employee Welfare Committee posted wish cards for employees to donate the presents on the cards. In 2010, a total of 600 Christmas presents were recruited for elementary school in remote areas to share the joy of Christmas with children there.

Yi-fei: One-day Volunteer in Remote Area

I got up very early this morning because I enrolled to the Send Love to Remote

Areas activity organized by the InnoLove Club. It was 8C outside. Although

it was chilly, I did not feel cold because my enthusiasm to be a one-day

volunteer warmed me up. When I delivered the presents donated by employees

to the remote mountainside in Nanzhuang and saw children waiting for us at

the playground without fear of the freezing weather, I was touched, deeply

touched. So I told myself, I must enroll to such meaningful activities whenever I

am available, and I wish more employees would join us.

Touching Event: Send Love to Remote Areas

Hope Campus Project: Love in TaoyuanTyphoon Marokot devastated southern Taiwan on 8 August 2009. Taoyuan Elementary School, Xingzhong Elementary School, Jian-shan Elementary School, Zhangshan Elementary School and Taoy-uan Junior High School in Taoyuan Township, Kaohsiung County, were ruined, and more than 400 students were prevented from go-ing to school. CMI thus participated in the affected area restoration plan by promoting the Hope Campus Project in collaboration with Tree Valley Foundation and Outward Bound Taiwan in September 2009 and October 2010; aiming to help these schools and students to recover life and learning. At the initial stage, to accommodate teachers and students, and to accompany them get over the trauma were the basic goals. In the medium term, to promote family ties by organizing parent-and-child camps was the goal. In the long term, we hope to help children re-discover their native culture and understand the importance of respecting nature for sustainable co-existence from school.

CMI volunteers were there every time to help and accompany the partici-pants. There were many familiar faces, many children.

When the parent-and-child camp ended after the seventh session, we ar-ranged different kinds of activities for the fifth winter camp, including land activities, rope activities, positioning, raft making etc. We also borrowed the astronomic telescope from the Tainan Astronomical Education Museum and invited the No.1 instructor Jia-long Huang in the astronomy field to explain the wonder of constellations for children of the Hope Campus, so that they could become little astronomers after returning to their tribes.

Touching Event: Hope Campus Project

Look, many stars are linked together, and I was puzzled.

Triumph fear! I am the little worrier who fears nothing.

Volunteer workers accompanied children to experience the joy of farming.

Jian-xue: Making Biscuits out of Love

On December 4, I joined the team to make biscuits at the Yaoan Home. The biscuits were shipped to the NTHU for a charity sale, and the income from sale was donated to the Taiwan Fund for Children and Families and disadvantaged groups. Well, it was not easy to make biscuits! After my first try, I was wondering how the little children at Yaoan could make so many biscuits for charity sale. Also, instructors there needed to spend triple more time to show the Yaoan children how to make biscuits. So, it was a laborious task to both the instructors and the children. I am thankful that I am healthy and have the ability to help others. Whenever I have the opportunity, I will join the activities organized by InnoLove Club to help more people.

Touching Event: Making of Love Biscuits

Warmth for Children Fair

Tree Valley Foundation. Winter Camp of Hope Campus Project

73 74


The Unforgettable ConcertFrom January to April in 2010, CMI sponsored the Just Play It concert series organized by Tree Valley Foun-dation. The concert series was presented by Performance Workshop. Congenital visually impaired Taiwanese pianist Che-cheng Hsu and American pianist John Vaughan presented their own stories in a vivid and lovely manner to bring audiences to the joy of classical music. A visually impaired fried Hui-li Yeh finally enjoyed the first concert in her life. About the dialogue between the visually impaired Taiwanese pianist Che-cheng Hsu and American pianist John Vaughan, she wrote in her weblog, “An unforgettable concert…” The event invited 433 people suffering from cerebral palsy, spinal injury and visual impairment and elderly people, in or-der to provide the disadvantaged with an opportunity to feel the philosophy, art and culture of life.

Urged employees to participate in charity activities1. Supporting the “Love from STSP: Grants and Loans for Children” co-organized by STSP

Administration and World Vision, CMI provides travel and accommodation allowances for children according to individual needs. Also, by organizing after school tutoring, life and character education, career planning and parent-and-child education programs, CMI hopes to help them to maintain a balanced development in life and character, living awareness, physical fitness, parent-and-child relations and future prospects. With the concerted efforts of employees, a sum of NT$449,849 was raised to help about 180 students to successfully enroll to schools.

2. Assistance for Blind Masseurs: CMI arranges blind masseurs to provide massage services for employees in order to provide them with a customer source and employees with an opportunity to relieve stress.

3. Blood Donation: CMI organizes a blood donation drive every year. As many employees supported the activity, CMI donated a sum of 3,178 pints of blood in 2010.

4. Invoice Donation and Volunteer Service: Invoices were collected from employees and checked for the prize by volunteer workers. All prizes are donated to Tree Valley Foundation for organizing charity activities to help the underprivileged groups.

1. Innolux Education Foundation was founded in the end of 2008 by CMI CEO Hsing-chien Tuan, PhD, to enforce CMI’s social commitments and rewards. Committed to promoting “environmental protection education” and “cultural development”, the foundation establishes well-defined work plans, supervises the proper use of resources and aggressively participates in more activities relating to society, environmental protection and culture.

2. Tree Valley Foundation was established in early 2008 to realize the CMI’s commitments of solidarity and sustainable environment. Aiming at promoting environmental protection, deepening social education, promoting sustainable operations, and maintaining cultural assets, Tree Valley Foundation hails the awareness of co-existence between nature and human civilizations, creates an environment and mechanism for sustainable operations, and preserves a better living environment for the next generation, develops a production park where sustainable ecology and living aesthetics are combined, and people and the environment grow continuously through identification with the environment and understanding the value of sustainable environment.

AppendixThis section includes the Independent Assurance Opinion Statement issued by a third-party verification or-ganization and the GRI G3.1 cross reference table. This report complies with the opinion assurance level A+ in GRI G3.1 and the inclusivity, materiality and responsiveness in AA1000 (2008).

75 76


GRI G3.1 Cross Reference Table ●: Fully Disclosed ○: Partially Disclosed NA: Not

Aspect GRI Indicator Description of Indicator Disclosure Responsive Chapter Page Remark

Strategy and Analysis

1.1 Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the rel-evance of sustainability to the organization and its strategy

● 1.1 Expectations and Commitments

5

1.2 Description of key impacts, risks, and op-portunities

● 2.1.1 Company Profile 3.2.1GHG Management

9,13,24

Organizational Profile

2.1 Name of the organization ● 2.1.1 Company Profile 92.2 Primary brands, products, and/or services ● 2.1.1 Company Profile 92.3 Operational structure of the organization,

including main divisions, operating compa-nies, subsidiaries, and joint ventures

● 2.1.1 Company Profile 9

2.4 Location of organization’s headquarters ● 2.1.1 Company Profile 92.5 Number of countries where the organization

operates, and names of countries with ei-ther major operations or that are specifically relevant to the sustainability issues covered in the report


2.6 Nature of ownership and legal form ● 2.1.1 Company Profile 92.7 Markets served (including geographic

breakdown, sectors served, and types of customers/beneficiaries)


2.8 Scale of organization ● 2.1.1 Company Profile 92.9 Significant changes during the reporting pe-

riod regarding size, structure or ownership● 2.1.1 Company Profile 9

2.10 Awards received in the reporting period ● Expectations and Com-mitments3.2 Green Operations3.3 Green Value Chain4 .2 En fo rcemen t o f Safety and Health Man-agement

5,23,31,53

Report Param-eters

3.1 Reporting period (e.g., fiscal/calendar year) for information provided

● About this Report 1

3.2 Date of most recent previous report (if any) ● About this Report 13.3 Reporting cycle (annual, biennial, etc.) ● About this Report 13.4 Contact point for questions regarding the

report or its contents● About this Report 1

3.5 Profess for defining report content ● 1.1 Stakehold-er Identifi-cation and Communi-cation

7~8

3.6 Boundary of the report (e.g., countries, divi-sions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.


3.7 State any specific limitations on the scope or boundary of the report


3.8 Basis for reporting on joint ventures, subsid-iaries, leased facilities, outsourced opera-tions, and other entities that can significantly affect comparability from period to period and/or between organizations


3.9 Data measurement techniques and the bases of calculations, including assump-tions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report


3.10 Explanation of the effect of any re-state-ments of information provided in earlier re-ports, and the reasons for such re-statement (e.g., mergers/ acquisitions, change of base years/periods, nature of business, measure-ment methods)


3.11 Significant changes from previous reporting periods in the scope, boundary, or measure-ment methods applied in the report


3.12 Table identifying the location of the Stand-ard Disclosures in the report

● GRI Index Cross Refer-ence Table

1

3.13 Policy and current practice with regard to seeking external assurance for the report

● Appendices Independ-ent Assurance Opinion Statement

75


Governance, Commitments, and Engage-

ment

4.1 Governance structure of the organization, in-cluding committees under the highest govern-ance body responsible for specific tasks, such as setting strategy or organizational oversight

● 2.2.1 Corporate Organi-zation

15

4.2 Indicate whether the Chair of the highest gov-ernance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrange-ment)


15

4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive mem-bers


16

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body

● Stakeholder Identifica-tion and Communication 2.1.2 Operation Perfor-mance

7,14

4.5 Linkage between compensation for members of the highest governance body, senior man-agers, and executives (including departure arrangements), and the organization’s perfor-mance (including social and environmental performance)


15

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided

● 2.2.1 Corporate Organi-zation2.2.2 Healthy Internal Control System

15,16

4.7 Process for determining the composition, quali-fications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity


15

4.8 Statements of mission or values, codes of conduct, and principles relevant to economic, environmental and social performance and the status of their implementation

● 2.1.2 Operation Perfor-mance2.2.3 CSR Basic Prac-tice

13,17

4.9 Board procedures for overseeing the organiza-tion’s identification and management of eco-nomic, environmental and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct and princi-ples

● 2.2.1 Corporate Organi-zation2.2.2 Healthy Internal Control System

15,16

4.10 Processes for evaluating the highest govern-ance body’s own performance, particularly with respect to economic, environmental, and social performance


15

4.11 Explanation of whether and how the precau-tionary approach or principle is addressed by the organization

● 2.1.1 Company Profile 2.2.4 Bus ness Continu-ity Management

15,18

4.12 Externally developed economic, environmen-tal, and social charters, principles, or other initiatives to which the organization subscribes or endorses

● 2.1.2 Operation Perfor-mance1.2 Stakeholder Identifi-cation and Communica-tion3.2.1 GHG Management 4.2.1 Safety, Health and Environmental Policy

10,7,24,52

4.13 Memberships in associations and/or national/international advocacy organizations in which the organization has positions in governance bodies; participates in projects or committees; provides substantive funding beyond routine dues; or views membership as strategic

● 1.2 Stakeholder Identifi-cation and Communica-tion

8

4.14 List of stakeholder groups engaged by the or-ganization


8

4.15 Basis for identification and selection of stake-holders with whom to engage


7

4.16 Approaches to stakeholder engagement, in-cluding frequency of engagement by type and by stakeholder group


8

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting


8


Economic Perfor-mance Indicators

EC 1 Direct economic value generated and distributed, in-cluding revenues, operating costs, employee compen-sation, donations and other community investments, retained earnings, and payments to capital providers and governments

○ 2.1.2 Operation Performance 4.1.2 Employee Salary and Benefits 5.4 Public Welfare

10,14,47,72

EC 2 Financial implications and other risks and opportuni-ties for the organization’s activities due to climate change

● 3.2.1 GHG Management 24

EC 3 Coverage of the organization’s defined benefit plan obligations

● 4.1.2 Employee Salary and Benefits

47

EC 4 Significant financial assistance received from govern-ment

● - In 2010, CMI was enti-tled of a tax exemption a n d a n i n v e s t m e n t credit for purchasing re levant product ion equipment and invest-ing in R&D. Relevant data were disclosed in the Income Tax section of the CMI Annual Re-port 2010 (P.150-152).

EC 5 Range of ratios of standard entry level wage by gen-der compared to local minimum wage at significant locations of operation


47

EC 6 Policy, practices, and proportion of spending on local-ly-based suppliers at significant locations of operation

● 2.2.5 Supply Chain Manage-ment

19

EC 7 Procedures for local hiring and proportion of senior management hired from the local community at loca-tions of significant operation

● 4.1.1 Employee Recruitment and Appointment

14

EC 8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement.

● 5.1 Education and Academics 5.2 Culture and Art 5.4 Public Welfare

64,68,72

EC9 Understanding and describing significant indirect eco-nomic impacts, including the extent of impacts

○ 2.2.4 Business Continuity Management

18

Environmental Performance

Indicators

EN 1 Materials used by weight or volume ● 3.2.2 Environmental Material Flow Information

26

EN 2 Percentage of materials used that are recycled input materials

● 3.2.2 Environmental Material Flow Information

26

EN 3 Direct energy consumption by primary energy source ● 3.2.2 Environmental Material Flow Information

26

EN 4 Indirect energy consumption by primary source ● 3.2.2 Environmental Material Flow Information

26

EN5 Energy saved due to conservation and efficiency im-provements

● 3.2.3 Energy Resource Man-agement 3.2.5 Multifaceted Reduction of Environmental Impacts 3.3.7 Green Product Manufacture

27,29,37

EN6 Initiatives to provide energy-efficient or renewable en-ergy based products and services, and reductions in energy requirements as a result of these initiatives

● 3.3.7 Green Product Manufac-ture

37

EN7 Initiatives to reduce indirect energy consumption and reductions achieved


EN 8 Total water withdrawal by source ● 3.2.2 Environmental Material Flow Information

26

EN9 Water sources significantly affected by withdrawal of water

● 3.2.4 Water Resource Man-agement

28

EN10 Percentage and total volume of water recycled and reused

● 3.2.5 Multifaceted Reduction of Environmental Impacts

29

EN 11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

● 3.4.1 Biodiversity 39

EN 12 Description of significant impacts of activities, prod-ucts, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas


EN 13 Habitats protected or restored ● 3.4.1 Biodiversity 39EN 14 Strategies, current actions, and future plans for man-

aging impacts on biodiversity● 3.4.1 Biodiversity 39

EN 15 Number of IUCN Red List species and national con-servation list species with habitats in areas affected by operations, by level of extinction risk


EN 16 Total direct and indirect greenhouse gas emissions by weight

● 3.2.1 GHG Management 3.2.3 Energy Resource Manage-ment

24,27

EN 17 Other relevant indirect greenhouse gas emissions by weight


EN 18 Initiatives to reduce greenhouse gas emissions and reductions achieved


EN 19 Emissions of ozone-depleting substances by weight ● 3.2.3 Energy Resource Man-agement

- No coolant is used in the panel production process of CMI. Coolant is only used in the air-condition-ing system of the plants, such as the chiller. Also, a small amount of coolant is used in utility equipment, such as refrigerators and freezers. Therefore, no ODS residue is found on the panels.

EN 20 NO, SO, and other significant air emissions by type and weight

● 3.2.3 Energy Resource Man-agement

27


EN 21 Total water discharge by quality and destination ● 3.2.3 Energy Resource Man-agement3.2.5 Multifaceted Reduction of Environmental Impacts

27,29

EN 22 Total weight of waste by type and disposal method ● 3.2.5 Multifaceted Reduction of Environmental Impacts

30

EN 23 Total number and volume of significant spills ● - No critical leakage inci-dent occurred at CMI in 2010.

EN 24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Ba-sel Convention Annex I, II, III, and VIII, and percent-age of transported waste shipped internationally

○ 3.2.5 Multifaceted Reduction of Environmental Impacts

30

EN 25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly af-fected by the reporting organization’s discharges of water and runoff


29

EN 26 Initiatives to mitigate environmental impacts of prod-ucts and services, and extent of impact mitigation

● 3.3.1 Green Product Manage-ment Policy3.3.7 Green Product Manufac-ture

31,37

EN 27 Percentage of products sold and their packaging ma-terials that are reclaimed by category

● 3.3.1 Green Product Manage-ment Policy3.3.7 Green Product Manufac-ture

31,37

EN 28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with envi-ronmental laws and regulations


27

EN 29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce


37

EN 30 Total environmental protection expenditures and in-vestments by type


30

Labor Practices and Decent Work

Performance Indicators

LA 1 Total workforce by employment type, employment contract, and region, broken down by gender

○ 4.1.1 Employee Recruitment and Appointment

43

LA 2 Total number and rate of new employee hires and em-ployee turnover by age group, gender, and region


43

LA 3 Benefits provided to full-time employees that are not provided to temporary or part time employees, by sig-nificant locations of operation


47

LA 4 Percentage of employees covered by collective bar-gaining agreements

● - Employees have signed an employment contract with CMI. Their rights and ob l igat ions are specified in the contract to protect the interest o f both par t ies and promote labor-manage-ment compliance.

LA 5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements

● 4.1.4 Employee Care 51 CMI complies with the notification procedure.

LA 6 Percentage of total workforce represented in formal joint management–worker health and safety commit-tees that help monitor and advise on occupational health and safety programs

● 4.2.3 Safety and Health Man-agement Prizes

54

LA 7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatali-ties, by region and by gender

○ 4.2.3 Safety and Health Man-agement Prizes

54

LA 8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce mem-bers, their families, or community members regarding serious diseases

● 4.2.3 Safety and Health Man-agement Prizes 4.2.4 Health Protection and Promotion

54,57

LA 9 Health and safety topics covered in formal agree-ments with trade unions

● 4.2.3 Safety and Health Man-agement Prizes

54

LA 10 Average hours of training per year per employee by gender, and by employee category

○ 4.1.3 Employee Cultivation and Development 4.2.3 Safety and Heal th Management Prizes

49,56

LA 11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

● 4.1.3 Employee Cultivation and Development

49

LA 12 Percentage of employees receiving regular perfor-mance and career development reviews, by gender


49

LA 13 Composition of governance bodies and breakdown of employees per employee category according to gen-der, age group, minority group membership, and other indicators of diversity


44

LA 14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation

○ 4.1.2 Employee Salary and Benefits

43

LA 15 Return to work and retention rates after parental leave, by gender


46


Human Rights Performance

Indicators

HR 1 Percentage and total number of significant investment agreements and contracts that in-clude clauses incorporating human rights con-cerns, or that have undergone human rights screening

● - CMI engaged in no major investment projects in 2010.

HR 2 Percentage of significant suppliers, contrac-tors, and other business partners that have un-dergone human rights screening, and actions taken

● 2.2.5 Supply Chain Man-agement 4.2.3 Safety Culture and Risk Manage-ment

19,56

HR 3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

● 2.2.3 CSR Basic Practice 17

HR 4 Total number of incidents of discrimination and corrective actions taken

● - No discrimination-related incident was reported in 2010.

HR 5 Operations and significant suppliers identi-fied in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights


47

HR 6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

● 2.2.5 Supply Chain Man-agement

19

HR 7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contrib-ute to the elimination of all forms of forced or compulsory labor

● 2.2.5 Supply Chain Man-agement

19

HR 8 Percentage of security personnel trained in the organization’s policies or procedures concern-ing aspects of human rights that are relevant to operations

NA 2.2.3 CSR Basic Practice 17

HR 9 Total number of incidents of violations involving rights of indigenous people and actions taken

● 4.1.1 Employee Recruit-ment and Appointment

43

HR 10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments


HR 11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms

● 4.1.4 Employee Care 51

Society Perfor-mance Indica-

tors

SO 1 Percentage of operations with implemented local community engagement, impact assess-ments, and development programs

● 5.2 Culture and Art 5.3 Social Participation

68,70

SO 2 Percentage and total number of business units analyzed for risks related to corruption


SO 3 Percentage of employees trained in organiza-tion’s anti-corruption policies and procedures


SO 4 Actions taken in response to incidents of cor-ruption


SO 5 Public policy positions and participation in pub-lic policy development and lobbying

● -- CMI always main-tains political neu-trality and does not engage in political lobbying or political party events of any kind or in any form. CMI does not make any political contri-bution.

SO 6 Total value of financial and in-kind contribu-tions to political parties, politicians, and related institutions by country

●

SO 7 Total number of legal actions for anticompeti-tive behavior, anti-trust, and monopoly prac-tices and their outcomes


SO 8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

● 2.1.3 CSR Basic Practice 3.2.5 Multifaceted Reduc-tion of Environmental Im-pacts

17,30

SO9 Operations with significant potential or actual negative impacts on local communities

● 1.2 Stakeholder Identifica-tion and Communication 3.4.1 Biodiversity 3.2.5 Multifaceted Reduction of Environmental Impacts

7,39,29

SO10 Prevention and mitigation measures imple-mented in operations with significant potential or actual negative impacts on local communi-ties

● 1.2 Stakeholder Identifica-tion and Communication 3.4.1 Biodiversity 3.2.5 Multifaceted Reduction of Environmental Impacts

7,39,29


Product Responsibility Performance

Indicators

PR 1 Life cycle stages in which health and safety impacts of products and services are as-sessed for improvement, and percentage of significant products and services categories subject to such procedures

● 3.3.7 Green Product Manufacture

37

PR 2 Total number of incidents of non-compliance with regulations and voluntary codes con-cerning health and safety impacts of prod-ucts and services during their life cycle, by type of outcomes

● - No offence of regu-lations concerning t h e s a f e t y a n d health of product/ service was report-ed in 2010.

PR 3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements


PR 4 Total number of incidents of non-compliance with regulations and voluntary codes con-cerning product and service information and labeling, by type of outcomes


PR 5 Practices related to customer satisfaction, including results of surveys measuring cus-tomer satisfaction

● 2.2.6 Customer-Satis-factory Service

20

PR 6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, pro-motion, and sponsorship

● 2.1.2 Operation Perfor-mance

10

PR 7 Total number of incidents of non-compliance with regulations and voluntary codes con-cerning marketing communications, includ-ing advertising, promotion, and sponsorship by type of outcomes

● 2.2.3 CSR Basic Prac-tice

17

PR 8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

● - No complaint about breach of customer privacy and losses of customer data was repor ted in 2010.

PR 9 Monetary value of significant fines for non-compliance with laws and regulations con-cerning the provision and use of products and services


Chimei Innolux CorporationAddress: No.160, Kesyue Rd., Jhunan Science Park, Miaoli County 35053, Taiwan (R.O.C.)Tel: +886 37 586 000 Fax: +886 37 584 622Website: www.chimei-innolux.com

Documents

2010 Corporate Social Responsibility Report · 2015-04-09 · 2010 Corporate Social Responsibility Report “At this historic moment, how to accomplish water resource protection,