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Lingsen Precision Industries, Ltd.
2014~2015 Corporate Social
Responsibility Report
By: General Manager’s Office
Date: 2016/7/15
2
Contents
OVERVIEW ................................................................................................................................................. 4
1 MANAGEMENT’S COMMITMENT ............................................................................................... 5
1.1 A WORD FROM MANAGEMENT .......................................................................................... 5
1.2 OUR CORPORATE SOCIAL RESPONSIBILITY ................................................................ 5
2 CORPORATE PROFILE ................................................................................................................... 6
2.1 ABOUT US .................................................................................................................................. 6
2.2 PHILOSOPHY ............................................................................................................................ 7
2.3 BUSINESS PROFILE ................................................................................................................. 8
2.4 MARKET OVERVIEW ........................................................................................................... 13
3 CORPORATE GOVERNANCE ...................................................................................................... 14
3.1 PRINCIPLES............................................................................................................................. 14
3.2 PROFILE ................................................................................................................................... 14
4 INTERACTIONS WITH STAKEHOLDERS ................................................................................ 18
4.1 STAKEHOLDER IDENTIFICATION AND COMMUNICATION .................................... 18
4.2 ANALYSIS OF STAKEHOLDERS ......................................................................................... 19
5 PERSONNEL TRAINING AND HARMONY AND SAFETY IN THE WORKPLACE............ 22
5.1 SALARY AND BENEFITS ...................................................................................................... 22
5.2 EQUAL EMPLOYMENT OPPORTUNITIES, LABOR RESTRICTIONS ....................... 28
5.3 OCCUPATIONAL SAFETY AND HEALTH ......................................................................... 32
5.4 EDUCATIONAL TRAINING .................................................................................................. 35
5.5 LABOR RELATIONS .............................................................................................................. 36
6 ENVIRONMENTAL PROTECTION.............................................................................................. 38
6.1 ENVIRONMENTAL MANAGEMENT .................................................................................. 38
6.2 CARBON MANAGEMENT .................................................................................................... 41
6.3 GREEN PRODUCTS................................................................................................................ 45
6.4 THE MANAGEMENT AND PROCUREMENT OF RAW MATERIALS ......................... 47
6.5 AIR POLLUTION AND WASTE RECYCLING MANAGEMENT.................................... 47
6.6 WATER RESOURCE MANAGEMENT ................................................................................ 51
7 CUSTOMER SERVICE AND SUPPLIER MANAGEMENT ...................................................... 54
7.1 CUSTOMER SERVICE AND SATISFACTION ................................................................... 54
3
7.2 SUPPLIER MANAGEMENT .................................................................................................. 55
8 SOCIAL INVOLVEMENT ............................................................................................................... 59
8.1 COOPERATION BETWEEN INDUSTRY AND ACADEMICS ......................................... 59
8.2 CHARITY CARE ...................................................................................................................... 61
APPENDIX GLOBAL REPORTING INITIATIVE (GRI) G4 ............................................................. 64
4
Overview
◆Scope
This report addresses matters regarding sustainability that are relevant to both our operation
development and stakeholders from 1 January 2014 to 31 December 2015. The discoveries herein
pertain only to our Taichung factory, where our Taiwan headquarters is maintained (any subsidiaries
in Taiwan and China are not included).
Any financial statements herein are expressed in NT dollars. This report represents our second
corporate social responsibility report, which will be issued every two years. The next report will be
published in 2018.
The release of the information contained in this report is based on Global Reporting Initiative G4
(GRI G4). Both the content and the structure of this report have been developed through the
physical analysis of the issues concerning our stakeholders. Please refer to the GRI G4 in the
appendix for further details.
◆Contact Us Please contact us through the following approaches:
Lingsen Precision Industries, Ltd.
No. 5-1, South 2nd Rd., Taichung Export Processing Zone, Tanzi District, Taichung City
Tel： +886-4-2533-5120
Fax： +886-4-2532-7904
Email：[email protected]
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1 Management’s Commitment
1.1 A Word from Management
As of 2016, 43 years have passed since Lingsen Precision Industries, Ltd. was first established. We
emphasized economic aspects in the early stage, environment aspects in the middle stage, and now
all three aspects (economic, environment, and social aspects) in the current stage. In addition to
steadily growing within our industry and continuously pursuing innovation and R&D in order to
increase operation performance, we believe in building strong relationships through routine
operations with employees, customers, shareholders, investors, communities, and suppliers. By
cooperating with the philosophy of “Corporate Governance, Corporate Commitment, Social
Involvement, and Environmental Protection”, all of us can contribute to creating a better quality of
life and safe environment for future generations.
With global climate change, environmental pollution, and resource shortages, we are devoted to
saving energy and reducing carbon emissions to contribute to environmental protection. In 2014,
under the Industrial Technology Research Institute’s professional guidance, we launched a solar
power system and, as of 2015, have successfully reduced a total of 1,696,644 kWh (with a reduction
of 883.951 CO2 tons/annual discharge). We are also committed to developing new green products
for our assembly and testing services.
We spare no efforts in providing our care to both our employees and local community. In 2014, the
Mercy Club was established to unite all staff and village head’s efforts in providing care to local
solitary seniors, further realizing the ultimate goal of mutual assistance in the local community.
Furthermore, we have helped developing charity organizations by ordering lunch boxes from
“sheltered factory”, holding earth-oven cooking activities at “Sofa Garden”, and receiving meal
services from “Sofa Garden” to show our identification and encouragement toward mentally
disabled groups.
Based on Global Reporting Initiative G4, we have disclosed our promotional progress related to
corporate social responsibility, as well as our commitments and efforts, on our official website this
year.
1.2 Our Corporate Social Responsibility
Our corporate social responsibility refers internally to “Corporate Governance”, which means
having the integrity to keep our promises to each stakeholder in the company. Externally, it refers to
being a “Corporate Citizen”, which involves “Corporate Commitment”, “Environmental Protection”,
and “Social Involvement”.
Corporate
Governance
Corporate
Commitment
Environmental
Protection
Social
Involvement
Lifestyle Existence Life
6
◆Our Corporate Social Responsibility Policies
Regarding “Corporate Governance”, we stipulate corporate ethics and moral
standards, board member independence, instant and transparent information
disclosure, shareholder equity, and labor rights.
“Corporate Commitment” includes commitment to customers and suppliers,
educational training for employees, and devotion to new research and development.
With regard to “Environmental Protection”, we have implemented energy
conservation and carbon reduction programs, as well as developed solar power and
green products.
As for “Social Involvement”, the company and its employees regularly come together
to actively participate in charitable events and volunteer at local communities.
2 Corporate Profile
2.1 About Us
Established in 1973, our main operations include the “assembly, processing and testing of integrated
circuits and a variety of semiconductor parts”. Both our R&D and manufacturing teams are
renowned for their quality production lines and process reliability. Our sophisticated assembly
ability has been further verified by companies throughout the US, Europe, Japan, and China.
Currently, the Taichung factory has 111,240 square meters, among which, 60,357 square meters
have been used for the production building of quad flat non-leaded packaging products since 2013.
Furthermore, the Liyuan factory in Ningpo, China has an additional 19,093 square meters. Our
factories have state-of-the–art, high-technology production facilities for advanced assembly and
testing, as well as the full capacity to manufacture such assembly products as Dual Family, Quad
Family, Under Lead Family, Optics Family, Discrete Family, and MEMS products.
◆ 生產與營運據點
本公司立基於台灣，客戶服務據點包含台灣台中、美國加州。目前總公司位於台中
市潭子區，生產中心為台中廠。
◆Service Scope
In the industrial structure of semi-conductors, our company provides customers with downstream
IC assembly and testing services.
Upstream IC
Design
Midstream Wafer
Making
Downstream Assembly and
Testing
Market End
IC Assembly
IC Testing
Taiwan
TAICHUNG
Manufacturing
Customer Support
Head office
California
San Jose
Customer Support
7
◆Company Profile
Name Lingsen Precision Industries, Ltd.
Establishment Date 1973
Industry Assembly and testing of integrated circuits
Head Office Taichung Export Processing Zone, Taichung City, Taiwan
Chairman Yeh, Shu-Chuan
General Manager Yang, Shun-Ching
Total Number of Employees within This Report 2371 (2015/12/31)
Stock Symbol 2369 (listed on the Taiwan Stock Exchange)
Capital NT$ 3,801,023,440
2.2 Philosophy
By practicing the philosophies of “Innovation with a proactive attitude”, “Integrity & commitment”,
and “Excellence & sharing”, the entire company works together to take the initiative to innovate in
this industry, be honest and practical with customers, and promote excellence among our colleagues,
to thus create s win-win-win situation for the company, our customers, and our employees.
8
2.3 Business Profile
2.3.1 Management Team
◆Organization
General Manager’s Office: Plan business matters, inter-division operations, and short-, mid-,
and long-term strategies; establish regulations and promote company policies.
Occupational Safety Office: Propose, plan, supervise, and promote management happenings
related to safety and health and educate relevant departments regarding their implementation.
Management Division:
Human Resources Department: establish a safe and comfortable workplace for our
employees; provide personnel, recruitment, and training services; offer employee care;
encourage employees to partake in self-health management; prevent occupational accidents;
obey laws and regulations relevant to labor health; offer a friendly environment that is
conducive to employee health.
Facility Affairs Department: provide such precaution measures as those related to pollution
prevention, energy management, water resource management, and the environmental
management system.
Materials Control Department: develop a supplier management system, manage the
warehouse, and find and evaluate suppliers.
Finance and Information Technology Division
Finance Department: provide annual reports and any information related to the company’s
finances; assume responsibility for business matters related to environmental and charity
expenses.
Information Technology (MIS) Department: develop and utilize a resource planning
system, as well as system integration for the company’s information technology system.
R&D Engineering Division: research and develop innovative products based on eco-friendly
practices, energy conservation, and waste reduction while enhancing the product process and
quality ratio.
Manufacturing Division: manufacture a variety of integrated circuits; assemble and test
optical products; maintain and improve the defect-free rate, offer care and educational training
9
to our operators.
Business Division: increase the company’s global market; carry out market analysis; maintain
good customer and business relationships.
Quality Assurance Division: plan and implement the company’s quality policy; maintain and
improve quality levels and standards.
2.3.2 Technology and R&D Profile
In 2015, we devoted a total of NT$ 123.57 million in research and development, which accounts for
2.57% of our total revenue and is slightly higher than the amount previously invested. Although we
do not have a world-class business scale, we own a professional R&D group that seeks perfection
with regard to advanced assembly technology. In addition to the products that we have always
traditionally assembled, we also mass produce stack die, multi-chip modules, systems in packages,
and MEMS packaging. Among these additional products, the MEMS component has great potential
because it is light, thin, and compact, with a broad range of applications due to its functions of
perception, calculation, and action. Furthermore, we are currently mass producing MEMS
accelerometers, pressure devices, and microphones, all of which are main products for market
growth. In order to respond to the “Waste Electrical and Electronic Equipment Directive (WEEE
Directive)”, the “Restriction of the Use of Hazardous Substance Directive (RoHS Directive)”, and
the “Directive of Eco-design Requirement of Energy-using Products (EuP Directive)” from the
European Commission, green production has also been introduced as part of our efforts to commit
to eco-friendly assembly.
2.3.3 Product Sales Area
10
Operation Performance
◆Operation Performance over the Past Five Years
Unit: NT$
Item / Year
ROC IFRS
2011 2012 2013 2014 2015
Operating income 5,821,560 5,802,458 5,528,873 5,340,105 4,805,671
Net income or loss for current period 402,995 379,699 361,394 186,944 (79,090)
Earnings per share (Loss) (NTD) 1.09 1.01 0.97 0.50 (0.21)
Return on shareholders’ equity (%) 6.43 6.20 5.74 2.92 (1.26)
Total assets 7,334,820 7,669,628 8,187,894 9,100,572 8,891,915
Capital expenditure 959,646 836,828 1,623,443 1,761,411 860,881
Debt ratio (%) 15.03 18.93 22.27 29.40 31.75
R&D expenses 80,402 102,472 136,382 135,894 123,576
Note:
The numbers provided for 2011 were calculated according to Taiwanese accounting standards, while the figures provided for
2012 to 2015 were calculated in accordance with international financial reporting standards.
◆Operation Performance Chart for the Past Five Years
2.3.4 Future Development and Competition
Not only do MEMS components allow more new applications for sport and health management to
be developed for handheld and wearable devices, but such MEMS components as position sensors
and acoustic controls have also been applied to the field of intelligent car design, thus expanding its
application and market demand. Furthermore, we can continue to grow by accelerating the mass
production of application components for optical communications and electric vehicles. Doing so
will create more orders from outside the scope of our existing products to respond to the future
market demand. In 2014, construction on our T6 production building (located in the Chungkang
11
Export Processing Zone) in the Taichung factory will be completed, following the recovery of the
semiconductor market, to help our company to actively grow and fully satisfy the production
demand of our clients. Therefore, the future is promising regarding our overall operations and
profits.
2.3.5 Involvement with External Organizations
◆We participate as a general member in the following external organizations:
Organization Member
Taiwan Semiconductor Industry Association ◎
Taiwan Optoelectronic Semiconductor Industry Association ◎
LED Commercial Lighting Alliance ◎
Taiwan Electrical and Electronic Manufacturers’ Association ◎
Taiwan Union of Nurses Association ◎
CEPZA ◎
2.3.6 Affiliates
◆Affiliates Organization Chart
12
◆Affiliate Profiles
Name Establishment Date Address Main Operation or Production
Item
Lingsen America Inc. Mar. 1998 1914 Junction AVE. San Jose, CA 95131 Agency business
Li Xin Investment Co., Ltd. Sept. 1998
No. 5-1, South 2nd Rd., Tanzi Dist., Taichung City
General investment
Nexus Material Corporation
Mar. 2001
5F, No. 32-1, Guangfu Rd., Hsinchu
Industrial Park, Hulou Township,
Hsinchu County
Production and trade of electronic
materials
Lingsen Holding (Samoa) Inc. Aug. 2001
P.O. BOX 1225 Lotemau Centre Apia Samoa
General investment
Li Yuan Investments Co., Ltd.
May 2001
4F Harbour Centre P.O. BOX 613,
George Town, Grand Cayman, Cayman
Islands, British West Indies
General investment
Ninbo Li Yuan Technology, Ltd.
Jun. 2001
No. 30, Gang East Blvd., East Area,
Ningbo Free Trade Zone, Zhejiang
Assembly and testing of a variety of
integrated circuits and optical
products
Oxney Trading Limited Dec. 2003
3rd Floor, Omar Hodge Building Wickhams Cay I P.O. Box 362 Road
Town, Tortola British Virgin Islands
Trading
Panther Technology Co., Ltd.
May 1997
No. 32-1, Guangfu Rd., Hsinchu
Industrial Park, Hukou Township, Hsinchu County
Testing of integrated circuits
Sooner Power Semiconductor Co., Ltd.
Nov. 2007
5F, No. 32-1, Guangfu Rd., Hukou
Township, Hsinchu County
Production of electronic
components
Note: As of December 31, 2015
13
2.4 Market Overview
As global telecommunication firms continue to delve into internet businesses, the market demand
for smart handheld devices (SHD), internet of things (IoT), and analytics of things (AoT) has
stabilized. In the face of the new challenges and transitions between 4G and 5G, the domestic
semiconductor industry has developed a series of supply chains in terms of IC, panels, plug-ins, and
OEM.
By innovating localization policy, China’s semiconductor industry has expanded its market scale
through resource reorganization, international collaboration, and global mergers and acquisitions.
Semiconductor industries on both sides of the strait have maintained a collaborative and
competitive relationship, which will become the norm in the future. In response to the emerging
semiconductor industry in China, domestic semiconductor firms have also been seeking suitable
partners for consolidation. Lingsen Precision Industries, Ltd. has actively developed different kinds
of IC structures and light/thin/small assembly methods to meet new customer demands and
differentiate its products from those of second-tier manufacturers.
2.4.1 Future Supply, Demand, and Growth
MIC predicted that the operating revenue of the global semiconductor industry in 2016 will achieve
US$339.9 billion, which shows a growth rate of 2.4 % compared with that of US$336.0 billion.
Looking toward 2016, the IC assembly and testing industry in Taiwan is estimated to create a total
production value of US$12.6 billion, which accounts for 24.9% of global IC assembly and testing
production value. Based on global and domestic IC assembly & testing production value over the
past few years, we must also consider future global trends when predicting industry growth rate
after 2014.
14
3 Corporate Governance
3.1 Principles
In accordance with the Company Act, the Securities and Exchange Act, and other related
regulations of the R.O.C. regarding corporate governance, we established the Articles of
Incorporation and our organization’s structure. In addition to adhering to the above regulations and
laws, our corporate governance is based on the following principles:
1. Building an effective corporate governance framework.
2. Protecting shareholders’ rights.
3. Strengthening the functions of the board of directors.
4. Incorporating the functions of the supervisor.
5. Respecting stakeholders’ rights.
6. Improving information transparency.
3.2 Profile
3.2.1 Framework
Our corporate governance is led by shareholders’ meetings and the board of directors. To protect
shareholders’ basic rights and decision participation rights, as well as to treatment each shareholder
fairly, the shareholder can exercise his/her voting rights through shareholders’ meetings to
participate in major operation decisions. Furthermore, with the board of directors’ strategic plans
and effective supervision, we actively work toward the creation of wealth and jobs through sound
finances based on the legal rights and roles of stakeholders. Meanwhile, we ensure that the
appropriateness and transparency of our financial status, performance, ownership, and other
important information areas always disclosed.
15
3.2.2 The Board of Directors and Supervisors
◆Members of the Board of Directors and Supervisors
Position Name Gender
Date of Taking
Office
Pe
ri
od
Date of First
Taking
Office
Major Experiences and Degrees Current Adjunct Duties in the Company or in
Other Companies
Chairman Yeh,
Shu-Chuan
M 2013.06.18 3
Y
1987.4.30 Department of Psychology,
National Taiwan University
Vice President, LPI
Chairman, LPI and subsidiaries
Representative Director, Giga Solution
Tech. Co., Ltd.
Representative Director, Fengzhe
Construction Co., Ltd.
Director Yeh,
Ke-Chien
M 2013.06.18 3
Y
1989.9.27 Department of Forestry, National
Chung Hsing University
General Manager, Dahsen
Electronic, Ltd.
N/A
Director Ku,
Chu-Kuang
M 2013.06.18 3
Y
2004.5.20 Department of Electrical
Engineering, National Taipei
Institute of Technology
Vice President, LPI
Director Yang,
Shun-Ching
M 2013.06.18 3
Y
2011.6.15 Department of Optoelectronic
Physics, Chinese Culture
University
Assistant Vice President,
Siliconware Precision Industries
Co., Ltd.
General Manager, LPI
Representative Director, Li Xin Investment
Co., Ltd., Sooner Power Semiconductor Co.,
Ltd., Panther Technology Co., Ltd
Director Yeh,
Shu-Xun
M 2015.06.10 1
Y
2015.6.10 Tungnan University
General Manager, Longting
Decoration Co., Ltd.
Representative Director, Nexus Material
Corporation
Supervisor, Rechain Technology
Corporation
Supervisor Tao,
Hung-Wen
M 2013.06.18 3
Y
2010.6.4 Department of Accounting,
National Chengchi University
MBA, National Chung Cheng
University
Branch Manager, Taichung Branch, BDO Taiwan
Instructor, National Chung Hsing University
Member, Remuneration Committee, Evermore Chemical Industry Co., Ltd.
◆Responsibilities of the Board of Directors
On 18 June 2013, all of the 17 directors were reelected at the shareholders’ meeting. Acting with
loyalty, precaution, a highly attentive attitude and the best interests of the company, the Board of the
Directors shall evaluate operation strategies, risk management, the annual budget, and business
performance, as well as supervise major capital expenditures, M&A, and investment disposal.
Furthermore, they shall ensure the appropriateness of the accounting system and financial reports so
that no behavior of the members of the Board of Directors can damage the company or its interest
or cause conflicts between shareholders. The Board of Directors shall exercise prudence in selecting
and supervising the management team, making objective judgments regarding company affairs, and
selecting a capable internal audit officer to guarantee the effectiveness of the internal control
process to prevent malpractice.
A meeting of the Board of Directors is held at least once a quarter, at which the management team
will present reports about operation performance and the board will decide future operation
directions and major policies of the company.
The Audit Office and Remuneration Committee shall review the compensation of the top members
of management under the Board of Directors. Decisions made by the Board of Directors shall be
guided by the reports and suggestions of the Audit Office and Remuneration Committee.
◆Responsibilities of Supervisors
Supervisors shall perform their duties in accordance with relevant laws to supervise the company’s
business operations and shall also examine a variety of statistical reports that the Board of Directors
submits to shareholders’ meetings.
16
3.2.3 The Principle of Interests Avoidance for the Board of Directors
We established our “Rules of Procedure for Board of Directors Meetings” to comply with the
“Regulations Governing Procedure for Board of Directors Meetings of Public Companies”.
Members of the board shall avoid discussing and voting on proposals that intersect with their
personal interests.
3.2.4 Remuneration Committee
◆Members
In accordance with a resolution of the Board of Directors passed on 8 December 2011, the
Remuneration Committee and its regulations were established. A member’s professional
qualifications, performance of duties, establishment of organization regulations, and other relevant
issues shall be based on the “Regulations Governing the Appointment and Exercise of Powers by
the Remuneration Committee of a Company Whose Stock is Listed on the Stock Exchange or
Traded over the Counter”. The two members were reelected on 26 June 2013.
Position Name Date of Assuming
Office Current Primary Position
Actual Attendance
Rate in 2013 (%)
Convener Liu, Hsing-Tsung 2013.6.26 Owner, Sanhe Public Accounting Firm 100%
Member Huang, Liang-Chih
2013.6.26 Professor, I-Shou University
Professor, National Chung Cheng University
Professor, National Sun-Yat-sen University
100%
Member Li, Ming-Hsiao 2013.6.26 Accountant, Hong-Zhan land office 100%
◆Major Responsibilities
(1) Develop and regularly review policies, systems, standards, and the structure of performance
evaluation and the compensation of directors, supervisors, and managers.
(2) Periodically evaluate and determine appropriate compensation for directors, supervisors, and
managers.
3.2.5 Internal Audit
A comprehensive internal control system will be developed and effectively implemented in order to
improve company operations and aid the Board of Directors and management to properly perform
their duties. The effectiveness of our internal controls will be reviewed to ensure that our internal
audit system properly performs self–evaluations in order to aid the Board of Directors and
management to guarantee the appropriateness, reliability, and timeliness of financial, management,
and operation data. The Board of Directors and management shall also annually review the
self-evaluation of the results from each unit and the audit reports from the audit unit in order to
prepare an internal control statement that will be periodically reported to the competent authorities.
Furthermore, the internal audit unit shall periodically audit all departments to determine whether
they are following the relevant laws and regulations. Once both routine and periodic audits have
been completed, the results shall be reported to the Board of Directors, which will continue to track
any follow-up improvement measures.
The internal audit officer shall regularly and completely share audit results with supervisors so that
they properly understand the daily operations of the company.
17
3.2.6 Supervisors
Supervisors shall their exercise supervising rights in a timely manner and promote an efficient
supervisor system based on fairness, transparency, and properly defined powers and responsibilities.
A supervisor shall not only oversee financial matters, but shall also invite professional accountants
and lawyer to review relevant matters when appropriate. Supervisors shall track internal control
performances and audits through periodical reviews of internal audit reports to prevent and deter
malpractice.
3.2.7 Respect Stakeholders’ Rights
The company believes in the fair treatment of all shareholders, encourages them to actively
participate in shareholders’ meeting and the election of directors and supervisors, as well as the
revision of the Articles of Incorporation. We further give them the opportunity to make requests and
proposals in order to achieve balance. Furthermore, we actively cooperate with stakeholders’ rights
in our pursuit to create wealth and jobs and establish sound finance.
3.2.8 Improve Information Transparency
We use a spokesman system and the Market Observation Post System (MOPS) to properly inform
shareholders and stakeholders regarding our financial matters and the impact that the exercise of
corporate governance had on shareholders’ equity. Our financial information is disclosed in
accordance with Article 36 of the Securities and Exchange Act. Regarding material information that
has a major impact on shareholders’ equity, announcements are made through the MOPS in a timely
manner to prevent damaging shareholders’ interests.
18
4 Interactions with Stakeholders
4.1 Stakeholder Identification and Communication
In our pursuit of sustainable development, we have established a variety of effective communication
methods for stakeholders so that we can understand their demands and expectations as an important
reference for developing corporate social responsibility policies and other relevant programs.
Our stakeholders’ management procedures have four steps: identification of stakeholders, analysis
of stakeholders and concerning issues, programs relevant to stakeholders, and interactions and
operations of stakeholders.
◆Identification of stakeholders:
We define stakeholders as any internal or external group or individual who either impacts on the
company or is affected by the company. Accordingly, we consider the following our stakeholders:
shareholders (investors), customers, suppliers, employees, government agencies, communities,
competitors, media, non-government organizations, and research organizations. Considering the
worldwide trend toward sustainable development and current operation demands, as well as
discussions with related internal units, this report considers shareholders (investors), customers,
suppliers, employees, and communities as our main communicating stakeholders.
◆Analysis of stakeholders and concerning issues:
After confirming our list of stakeholders, in addition to communities, we added stakeholders related
to economic, social, and environmental issues. Each responsible internal unit has developed a
communication access system based on their impact on the company and issues of concern and
performs evaluation of materials and analysis of potential impact to categorize such issues as a
major issue, secondary issue, or general issue.
Analysis of Stakeholders and Concerning Issues
Identification of
Stakeholders
Programs Relevant to Stakeholders
Interactions and Operations of Stakeholders
19
4.2 Analysis of Stakeholders
◆Materiality Analysis of Issues that Concern Stakeholders
Regulatory Compliance Protection of Confidential InformationRaw Material Use and Recycled
Materials
Corporate Governance Recruiting and Maintaining Talent Energy Management
Sustainable Development Policy Salary and Employee Benefits Product Carbon Footprint
Risk Management Human Rights Related to Labor Greenhouse Gas Management
Product Quality and Technology R&DCareer Development and Educational
TrainingGreen Products
Operation Performance Occupational Safety and Health Waste Management
Supply Chain Management Water Resource ManagementEnvironmental Policy / Management
System
Community Involvement and
Charity WorkHazardous Substance Management
Customer Service and Satisfaction Air Pollution Control
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
◆Report contents in response to primary issues
Principle Issue Relevant Report Chapter Page
Regulatory Compliance
Corporate Governance /
Personnel Cultivation and Harmony and Safety in the Workplace 7/22
Environmental Protection /
Customer Service and Supplier Management 38/54
Corporate Governance Corporate Governance 7
Product Quality and Technology R&D Operation Performance / Green Products 8/46
Operation Performance Operation Performance 8
Supply Chain Management Supplier Management 54
Customer Services and Satisfaction Customer Services and Satisfaction 54
Water Resource Management Water Resource Management 51
Air Pollution Control Air Pollution and Waste Recycling Management 48
Greenhouse Gas Management Carbon Management 41
20
◆Major Aspects and Boundaries Identification
Internal Corporate Boundary
Lingshen Precision Industries, Ltd. Customer Supplier Community
Business Performance Business Performance ˇ
Corporate Governance Corporate Governance ˇ
Legal Compliance ˇCode of Conduct & Moral
Standardsˇ
Risk Management Risk Management ˇ
Waste ˇ
Effluent ˇ
Products & Services ˇ
Environmental Rules Compliance ˇ
Greenhouse Gas Emissions ˇ
Water ˇ
Employee Welfare ˇ
Educational Training ˇ
Training & Education ˇ
Gender Equality ˇEqual Remuneration for Men and
Women ˇ
Purchasing Policy and Approach ˇ ˇ
Conflict Resources ˇ ˇ
Supplier ManagementSupplier Environmental
Assessment ˇ ˇ
Community DevelopmentLocal Community Developmental
Plan ˇ ˇ
Stakeholder Communication Stakeholder Engagement ˇ ˇ ˇ ˇ
Employee Care and
Development
Social Engagement
Legal Compliance & Moral
Standards
Environmental Protection
Ecological Efficiency
Employee Care
Supply Chain Development
Environment
External Corporate Boundary
Major AspectsType Sustainable Issues
Corporate Governance
21
◆Stakeholder-relevant programs:
All of our relevant units are incorporated into our daily work or annual plan through the
aforementioned analysis results to serve as an important reference for sustainable operation
strategies.
◆Interactions and operations of stakeholders:
When interacting with stakeholders, we employ a performance indictor for different issues based on
different stakeholders in order to regularly review ongoing improvement measures.
We firmly believe that good interaction with stakeholders can help us to overcome economic, social,
and environmental challenges, as well as enhance our operational ability to establish ourselves as a
sustainable company.
◆2014~5 Summary of interactions with stakeholders and operations
Stakeholder Issue of Concern Communication Access Relevant Events and Highlights of 2014-2015
Shareholders Operation performance; Annual shareholders’ meeting; Provided 2014-2015 operation performance to investors;
(Investors) New product development and scheduling Spokesman system Provided 2014-2015 new product development status to investors
Green products; Quarterly customer satisfaction survey;
Conflict-free metal investigation Quarterly customer business review meeting;
EICC Periodic customer audit
Product quality / technology R&D; Suppliers’ meeting (monthly); Supplier Gesi-CMRT survey;
Supply chain management; Suppliers’ information investigation (yearly); 2014-2015 operation performance
Operation performance; Suppliers’ audit Supplier risk management
Hazardous material management Supplier review / Supplier audit
Corporate governance;Company announcement – immediate
announcements of new policies;
Company announcement – immediate announcements of new
policies;
Compliance with regulations;
HR representative in each factory – one HR
representative in each factory to handle
employees’ problems in a timely manner;
One HR representative in each factory to handle employees’
problems in a timely manner;
Labor relations;Regular / irregular communication meetings in
each unit;Irregular General Manager’s party;
Salary and benefits;
Diverse employee opinion portals such as the
mailbox of the General Manager in each factory
and mailbox of the HR representative;
Joined the government’s disabled career fair;
Occupational safety and health Regular labor-management conference “Labor safety and health promotion week”
Irregular community volunteering services
Provide care to communities’ low-income families and solitary
seniors on three major holidays
Donation box in each factory
Completed top 15 customer satisfaction surveys
Community engagement and charity work Establishment of the company’s charity club.
Customers
Suppliers
Employees
Communities
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5 Personnel Training and Harmony and Safety in the Workplace
5.1 Salary and Benefits
Our employees are our most important assets. In addition to providing our employees with a
humanistic and safe working environment, we also share our business profits with our employees
by providing them with compensation that is better than the industry standard, based on business
performance.
◆Performance-Oriented Compensation System
Outstanding talents deserve first-class compensation. In order to attract, encourage, and retain
superior talents, our company provides impressive and highly competitive compensation packages
that are determined by work importance and difficulty, as well as different salaries and bonuses
based on individual performance. For example, a performance bonus may be given irregularly
depending on both the company’s performance and an individual’s performance. Furthermore, 10%
of the company’s earnings will be distributed annually as employee bonuses to maintain the
competitiveness of our talent and show employees our sincerity in keeping professionals.
We not only follow the basic requirements stipulated by labor laws, but also participate in local
salary gatherings to ensure that competitive compensation is provided. An employee’s
compensation is further determined based on his/her education, experience, performance, and
market standards, without discrimination on gender, race, religion, political position, or marital
status.
◆Comprehensive Insurance System
We provide all of our employees with labor insurance, national health insurance, and group
insurance starting from their registration day. Overseas travel insurance is further provided for any
employees on business trips in order to protect their work and ensure their safety.
◆Sound retirement system
Since November 1986, we have complied with the Labor Standards Act and established a
Supervisory Committee of Labor Retirement Reserve to allocate retirement reserves to a special
account in the Central Trust of China every month. As of the end of 2013, the balance of this
pension account is $377,191,000. An employee of this company can apply for a pension once
meeting the requirements of retirement; thusly, the rights of employees are protected and they can
be free to work without worries. Thanks to the help of a professional accounting consultant, we are
able to provide our employees actuarial pensions to ensure allocation with full amounts to protect
the rights of employees who apply for their pensions in the future.
Since 1 July 2005, in accordance with the Labor Pension Act, we have offered our employees a
retirement system that complies with the Labor Standards Act, have provided an actuarial allocation
rate of the retirement reserve considering the factors of labor numbers, wage, years of service, and
turnover rate applicable to the years of service prior to the promulgation of the Labor Pension Act,
and have allocated retirement reserves with a full amount every month within five years. For those
to which the Labor Pension Act applies, we contribute 6% of their monthly employee salary
towards their pension in accordance with the Wages Classification List.
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◆Parental leave without payment
The Labor Standards Act dictates all of our leave systems and we fully support the government
policy of parental leave without payment. Since implementing this policy, 92 colleagues have
applied for parental leave, of which 6.5% were men and 93.5% were women. An HR representative
interviews the employees applying for the leave in person and then applies for an allowance
relevant to labor insurance on their behalf. Furthermore, employees can voluntarily reinstate
themselves earlier than scheduled, which will be handled on a case-by-case basis. All of the
employees who have taken advantage of this program are very grateful for this comprehensive
measure of parental leave without payment.
Statistics of applying for maternity / paternity / parental leave in 2014
Statistics of applying for maternity / paternity / parental leave in 2015 Type of Leave Maternity / Paternity Leave Parental Leave
Category Male – Paternity Leave Female – Maternity Leave Male Female
Number of Applicants 39 56 2 34
Total 95 36
Reinstatement and retention rate of parental leave in 2014
Number of employees that applied for parental leave in 2014 Total Male Female
34 4 30
Expected reinstatement numbers in 2014 (A) 27 4 23
Actual reinstatement numbers in 2014 (B) 15 0 15
Reinstatement Rate (B/A) 56% 65%
Reinstatement numbers in 2013 (C) 26 3 23
Numbers of employees reinstated in 2013 and retained for at least one year as of
2014 (D) 22 2 20
Retention Rate (D/C) 85% 67% 87%
Reinstatement and retention rate of parental leave in 2015
Number of employees that applied for parental leave in 2015 Total Male Female
36 2 34
Expected reinstatement numbers in 2015 (A) 29 2 27
Actual reinstatement numbers in 2015 (B) 16 0 16
Reinstatement rate (B/A) 55% 0% 59%
Reinstatement numbers in 2014 (C) 15 0 15
Number of employees reinstated in 2014 and retained for at least one year as of
2015 (D) 12 0 12
Retention Rate (D/C) 80% 80%
◆Employee Benefits (1). Listed Stock, Employee Bonus Plan, and Employee Ownership Plans Trust (ESOP)
(2). Moon Festival and Year-end Bonuses
(3). Gift coupons for employee’s birthday, three holidays, wedding, and for condolences.
(4). Diverse company trips.
(5). Employee check-ups.
(6). Nursery room, plant infirmary, field doctor for consultation, and contracted hospital.
(7). Labor and health insurance and labor pension fund.
Type of Leave Maternity / Paternity Leave Parental Leave
Category Male – Paternity Leave Female – Maternity Leave Male Female
Number of Applicants 33 43 4 30
Total 76 30
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◆No Forced Labor
Each labor contract between an employee and the company adheres to the required laws and
regulations. Once a recruitment relationship is established, a written labor contract has to be signed
by law and must be agreed to by both parties, with an opposition to slave labor, as well as without
forced labor or illegal human trafficking. Overtime work is voluntary and specifically prohibited in
our regulations. We have established a reminder about overtime in our attendance system, and the
HR Department further inspects and controls employee schedules every day and then reminds each
employee not to work overtime.
◆Clubs, work-related learning events, and leisure activities
We have a variety of clubs and work-related learning activities for colleagues to pursue their various
interests and relax outside of work. Family is also one of the company’s priorities so we try to
improve family relationships and encourage togetherness under the company through a variety of
family activities.
▲Mountaineering Club
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▲Softball Team
▲Cycling Club
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▲Badminton Club
▲Swimming across Sun Moon Lake
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▲Family Day Event – BBQ at Flying Cow Ranch
▲Company Trip – 3 Days at Penghu
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5.2 Equal Employment Opportunities, Labor Restrictions
◆Recruitment
Our recruitment policies absolutely do not include any discrimination based on an applicant’s race,
age, hierachy, language, beliefs, religion, politcal party, place of origin, gender, sexual orientation,
marital status, appearance, disability, or identity as a union member. Furthermore, our basic
recruitment principles adhere to the idea of open recruitment, fair selection, and hiring the best.
“Talent” is our most important asset, so we aim to actively recruit, encourage, and retain talent; this
goal guides us most in our recruitment process. Due to a variety of methods for finding new staff,
such as online, introduction by employees, recruitment events, print media, and industry-university
cooperative and internship projects promoted by the Ministry of Education, we are capable of
recruiting the best talents in the world.
Our Recruitment Access
Recruitment Access Method
Online Job bank website
Introduction by employees Introduction of relatives and friends can earn employees an introduction
bonus
Recruitment event Cooperation with all local employment service stations for single or joint
recruitment activities to recruit on campus
Print media Place employment advertisements in print media
Industry-university cooperative
project
Activey discuss industry-university cooperation and internship projects with
many universities
◆Talent retention
We aim to cultivate, cherish, and care for our employees so that they will provide us with their
greatest potential; this is what guides us most in our talent retention. With regards to outstanding
colleagues, we develop their career plans and arrange turnover to give them the space for diverse
growth and play.
For employeeswho decide to leave the company, in addition to interviewing them to comprehend
and evaluate their reasons for leaving, the HR Department subsequently works to resolve the
problems that are discovered through resignation reason analysis. A turnover list is provided weekly
to each unit officer to assist him/her to immidiately understand said unit’s turnover condition. The
HR Department also takes the initiative to contact each unit officer depending on the condition and
require each organization to improve abnormal turnover.
◆Current Status
As of the end of 2015, our company had 2,371 employees, of which 1,037 (43.74%) employees
were male, and 1,334 (56.26%) were female. Of all the employees within our company, 1,942
(81.91%) are local employees and 429 (18.09%) are foreign employees. All local employees within
our company hold full-time positions and are not contracted workers. 39% of employees are less
than 30 years old, 54% of them are between the age of 30-50, and 7% of them are more than 50
years old.
Furthermore, we respect the employment rights of disabled people, so we actively participate in
employment events for the disabled held by the government. We recruited six disabled employees in
2014 and one disabled employee in 2015.
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Employee Age Breakdown in 2013 ▼ Percentage of Employees’ Age - Below 30 ▼
Percentage of Employees’ Age – 31-50 ▼ Percentage of Employees’ Age – Above 50 ▼
Employee Statistics in 2015 – by Position ▼ Employee Statistics in 2015 – by Age ▼
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New Employee Statistics in 2014 － by Gender ▼ New Employee Statistics in 2014 – by Age ▼
New Employee Statistics in 2014 – by Position ▼ New Employee Statistics in 2015 – by Gender ▼
New Employee Statistics in 2014 – by Age ▼ New Employee Statistics in 2015 – by Position ▼
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Resigned Employee Statistics in 2014 – by Gender ▼ Resigned Employee Statistics in 2014 – by Position ▼
Resigned Employee Statistics in 2014 – by Age ▼ Resigned Employee Statistics in 2015 – by Gender▼
Resigned Employee Statistics in 2015 – by Position ▼ Resigned Employee Statistics in 2015 – by Age ▼
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◆No forced labor
Each labor contract between an employee and the company adheres to the required laws and
regulations. Once a recruitment relationship is established, a written labor contract has to be signed
by law and must be agreed to by both parties, with an opposition to slave labor, as well as without
forced labor or illegal human trafficking. Overtime work is voluntary and specifically prohibited in
our reguations. Furthermore, we have established a reminder about overtime in our attendance
system and the HR Department further inspects and controls employee schedules every day and
then remind each employee not to work overtime.
5.3 Occupational Safety and Health
A safe and healthy workplace is the only way to create better products and quality for all of our
stakeholders. In order to provide such a workplace, we comply with local related laws for the
management of a variety of daily operations and have introduced the Occupational Health and
Safety Management System (OHSAS18001, 2007) to continue improving our workplace through
documentation, planning, implementation, auditing, improvement, and prevention of the
management system to satisfy each and every customer.
People, building/machinery/equipment, raw material/waste, and operation environment were
selected as the four focuses in our promotion of the OHSAS. We endeavor to prevent occupational
accidents through the following: controlling hazard identification and risk evaluation; safe
procurement management of machinery, equipment, and materials; safe management of contractor
entrances; safety and health education of employees; providing and managing protective gear;
sampling and testing in the workplace; health promotion of employee care; emergency management;
and project management, as well as the ongoing improvement of all of the aforementioned matters
by the PDCA management cycle.
5.3.1 Organization
A special unit has been established to be responsible for target set up, implementation, and
promotion of safety and health management. Moreover, in order to strengthen communication
between employees, our General Manager acts as a chairperson to convene cadres, related technical
staff, and union representatives to create a safe and health committee; the number of union
representatives must account for 33.3% of the total members to meet legal requirements. Each
quarter, we will propose plans to address occupational safety and health issues in an effort to
continue to construct a safe and healthy workplace through employee involvement and
communication.
5.3.2 Management Procedures
●Safe management of machines and equipment: Providing safe and healthy machinery and
equipment for employees to operate and produce is one of our procurement principles. Therefore,
safety and health requirements and standards will be listed before obtaining a new machine or piece
of equipment. Identification, inspection, and acceptance will be performed when the machine
arrives to determine the nature and confirm the safety of the machinery and equipment.
●Safe management of chemicals: Any procurement of chemicals shall be previously evaluated by
the Department of Industrial Safety and Environmental Protection to ensure that we can control this
chemical’s hazardous risks with regards to the law, environment, and employee health. After
procurement, hazard communication, inventory control of public hazardous substances, routine
visits of the storage and use locations, and usage and waste treatment control shall be performed to
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reduce the hazards of chemicals into an acceptable range for both the environment and human
health.
●Safe management of contractors: Contractors are important partners in assisting us in our
successful operations. Therefore, we have invested many resources to guarantee the work safety of
contractors while in our factory. All contractors will receive any hazard notice before entering the
factory and are required to fully participate in our safety and health agreement organization. Our
personnel will confirm the risk level of this operation environment prior to their entrance and
proceed with the accident prevention agreement to avoid operational risks in an unfamiliar
environment and together prevent occupational accidents.
●High-risk operation management: To prevent major industrial accidents, we have specifically
categorized certain operations as high-risk operation items, such as hot work, hanging, overhead,
and confined spaces, all of which can cause major injuries and property damage and require the
adoption of critical and special management procedures, including preapproval, notification of the
influenced unit, inspection during operation, and confirmation after completion.
5.3.3 Educational and Emergency Training
We believe that our labor force has the right to know about safety and health in the workplace. We
will only be able to prevent accidents if our employees have a thorough understanding of the
hazards of operations. Therefore, we have adopted the “we aren’t afraid that you know, but you
don’t want to know” method to edit materials and arrange training sessions regarding occupational
safety and health education. Occupational safety training will be scheduled for the first day of work
for each employee so that they can learn all about possible hazards of operation before starting.
Furthermore, OTJ training for industrial safety will be regularly held in the workplace, with lectures
being held for new employees every three months to be provided by the educational training unit.
Past industrial accidents and OHSAS will be included in the training to better inform employees
and satisfy their basic right to know.
Emergency response is another part of OHSAS educational trainings. Only proper knowledge by
carrying out drills in advance will reduce accidents in everything from major to minor events.
Therefore, the company has established an emergency response organization and responsibility
chart for each production line with the factory director as the commander. Notification training,
accident reduction, and asylum guidance will be held annually in each factory location. Furthermore,
chemical leaks, fire extinguisher practice, and crew evacuation are listed among the annual routine
exercises.
In 2014 and 2015, the performance of OHSAS and emergency response training was as follows:
Common occupational safety training lecture before employment for new employees: 164 times
Three-month routine occupational safety training: 21 times
Emergency response notification, accident reduction, asylum guidance, and crew evacuation
exercises: 65 times
Fire extinguisher exercises: 6 times
Response to a chemical leak: 10 times
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5.3.4 Statistical Analysis of Occupational Accidents
Our occupational accident analysis includes frequency rate (the number of disabling injuries of
given types resulting from industrial accidents per million man-hours worked, FR), severity rate
(the number of lost work days experienced per million man-hours worked, SR), and the
frequency-severity indicator (FSI) as the primary basis for statistical comparison. These statistics
also exclude traffic accidents that occur outside the plant. After analyzing our company’s past
occupational safety and health risks and our competitor’s goal, a frequency-severity indicator (FSI)
below 0.05 was established. With all employees’ active participation in and commitment to disaster
prevention, the plant had only two industrial accidents with 8 days lost, 0.43 of FR, 2 of SR, and
0.03 of FSI in 2014. In 2015, the ultimate goal of zero occupational accidents was fully achieved.
5.3.5 Health Management and Promotion for Employees
Ongoing improvements and societal changes have made recruiting employees more difficult. If
existing employees have any health problems, stable manpower cannot be provided and HR costs
will increase. Therefore, we offer physical examinations, regular health checkups, and health
checkups for special operations or in cooperation with professional medical and health
organizations in order to promote active health management for such categories as field services.
Moreover, we have begun to focus on special groups such as older employees, disabled employees,
and employees with a higher fatigue risk index, abnormal health checkups, occupational sickness
leave, or abnormal sick leave. For such situations, we offer passive care management, which entails
a visit from the factory nurse and includes a reminder of considerations in daily life, coordination of
the appropriateness of work scheduling, and a field doctor consult in the hopes that all employees
can work healthy and stably here to create a win-win between the company and its work force.
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5.4 Educational Training
Since talent is the foundation of our operation, we emphasize employee educational training in the
hopes that their professional skills and quality, as well as our management structure, can be
strengthened through a variety of trainings. Therefore, the educational training committee, which
consists of executives from each department, is responsible for proposing training focuses for the
following year based on the training demand of each unit and company policy. Furthermore,
standard courses that respond to competence and position have been established to serve as a
learning map of talent cultivation with the hope that the training outcome and operation vision can
be combined.
5.4.1 Comprehensive Educational Training System
We have developed a comprehensive competence training system to determine competency
requirements for each position and provide the appropriate training courses for those with
insufficient ability. Regardless of position, from general administrative staff to engineer, any
employee can enhance his/her own ability step by step to meet the competency requirements of said
position. Meanwhile, a technical training system was also developed specifically for engineers to
assist them in achieving technical certification at each level through a variety of professional skill
training courses.
5.4.2 Diverse Educational Training System
In order to combine company training and annual target so that employees can immediately apply
what they have learned to the job, we have designed the training systems below in accordance with
employee personality, training location, and learning effectiveness to quickly teach employees
fundamental knowledge, skills, and attitudes that they need to utilize to work effectively and
achieve the company’s targets.
◆Educational training for new employees:
Pre-employment training and fundamental training are both provided to assist our new employees in
understanding our corporate culture, core values, work environment, and issues relevant to
corporate social responsibility. Furthermore, we offer a comprehensive mentoring system in which
each new employee is assigned a mentor to help him/her fit in and meet the company’s
requirements. In 2014 and 2015, 21 new employee training courses were held with 677 participants
and a total of 2369.5 training hours.
◆On the job training (OJT):
OTJ training is provided to help employees on the production line to learn the knowledge, skills,
and attitude that they need on the job, as well as to assist them in achieving certification to operate
specific machines.
◆Plant educational training:
This includes quality, process, problem analysis and solution, and management courses, all of which
aim to cultivate leadership of management and develop a common technical language in the plant.
In 2014 and 2015, 2014 training courses were held with 2756 participants and a total of 8385
training hours.
◆External educational training:
To encourage employees to pursue learning outside of the company, we send staff to participate in
36
technical seminars and lectures with special issues held by a variety of professional organizations.
In 2014 and 2015, 96 employees were trained externally with a total of 804 training hours.
Furthermore, they shared what they learned with relevant employees in each department through
their feedback reports, thus spreading their new knowledge.
5.5 Labor Relations
Respecting employees and hearing their opinions can promote their cohesiveness, as well as their
desire to work together with the company. We put a great deal of focus on the opinions and issues
brought by every employee in order to develop relevant regulations to protect their rights and create
a harmonious environment.
◆Respect human rights
We regard employees as our most important assets and partners and we are committed to giving
them hope, providing them with a bright and pleasant workplace, and achieving the following based
on our respect for human rights.
(1)Freedom of assembly and association
Employees have the legal right to organize and associate by his/her freewill to promote the
coordination of labor relations and protect employee rights. A union has been formed by our
employees with a 85% participation rate.
(2)Treatment without discrimination
We have developed a non-discrimination policy to ensure that employees do not experience any
discrimination during recruitment, registration, business execution, promotion, appointment, reward,
or resignation.
(3)Prevention of sexual harassment
We adhere to all laws with regards to specifying and actively promoting the Gender Equality Act
and have introduced a variety of policies relevant to sexual harassment prevention to promote
gender equality in the workplace.
(4)Prohibition of child workers
We comply with all regulations relevant to the Labor Standards Act and prohibit all those who are
under the age of 16 from working for our company.
(5)Work hours
We do not force employees to work beyond the maximum work time regulated by law each day;
furthermore, we follow the wage requests or necessary compensation for overtime work.
◆Diverse communication methods
We value harmonious employee relations and employees’ opinions; therefore, we provide a forum
for employees to exchange opinions and periodically hold labor relations conferences where they
can directly share their ideas in order to solve their problems in a timely manner.
Furthermore, we regularly participate in the promotion of labor relations and related seminars held
by government agencies in order to maintain good labor relations and promote good interactions
between the company and its employees.
(1)Labor relations conference
To improve labor relations, increase the understanding of both parties, promote cooperation, and
enhance work efficiency, we periodically hold labor relations conferences to share and discuss
37
issues together to solve problems based on harmony and integrity.
(2)Employee complaint handling system
We provide employee opinion mailboxes and an “employee complaint handling system” as points
of access for employees to provide suggestions to reinforce cooperation. The employee complaint
methods are as follows:
(a). Oral complaint: Oral complaints will be recorded by a responsible person in each
department to be immediately reported and handled.
(b). Written complaint: Employees may submit their complaints through the complaint form or
other written methods by the administrative system if his/her rights were damaged or
he/she has any other opinions. Each unit officer shall investigate and report immediately
and respond to the applicant with the results or handling of the issue in writing.
(c). Mailbox of the General Manager in each factory and union: An employee’s privacy is
emphasized during communication and subsequent handling processes to provide
employees with a confidential communication method to freely express their opinions.
(d). HR representative’s e-mail ([email protected]): Employees can fully express any
problem in a timely manner with management to ensure a harmonious workplace.
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6 Environmental Protection
6.1 Environmental Management
We believe that environmental protection is just as important as product quality. In October 1998,
the Environment Management System (ISO-14001) was introduced as the primary form of
environmental management. Yang, Shun-Ching, our General Manager, shortly after determined that
our environmental policy would be based on four features, “manufacturing green and eco-friendly
products; adhering to applicable laws; saving energy, reducing waste, and preventing pollution; and
continuing to improve sustainable development”, to accompany the related ISO-14001 regulations
and further encouraged all employees to manage the environment using PDCA in each factory.
Furthermore, he requested all of us to continue to frequently inspect the impact of air pollutants,
waste water, noise, and waste on the environment and continuously review the resources used in the
production in order to improve the company’s energy saving efforts in the hopes of achieving
balance and co-prosperity between product quality and our surrounding environment.
Environmental Policy
39
◆Structure of Environmental Management Committee
Our company has five production buildings and one raw material warehouse. All of the production
buildings are consistently managed by the Environmental Management Committee, which is
chaired by the General Manager and has each unit head as a member. The General Manager
annually convenes all unit heads to an environment target review conference to evaluate the
environmental incidents and the degree of completeness of the previous year’s target, discuss the
impact caused by deficiencies, determine environmental targets for the current year, request related
units and heads to manage the programs for which they are responsible, and monitor them through
the quarterly environmental management committee meeting. Furthermore, each unit head is
responsible for evaluating environmental hazards and managing the areas with environmental
hazards with special projects to reduce their impact on the environment.
Structure of Environmental Management Committee
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◆Operation of the Environmental Management System
We are committed to communicating the importance of environmental protection to all of our
employees in the hopes that everyone in our company will do their best to protect our environment.
Furthermore, in January every year, the General Manager will convene an environmental
management committee meeting with each unit head to determine environmental goals and
management programs for the current year. Such goals are generally related to waste reduction or
saving energy. Once the goals are determined, each unit head will promote them to his/her
employees and get their feedback to learn how to better improve the environment together in order
to enhance the company’s environmental protection efforts.
Environmental Policy
Orientation
Program
Number Environmental Goal Environmental Objective
Environmental Management
Program Responsible Unit
Continuous promotion of
environmental improvement 0401
Reduce power
consumption
5% reduction of annual electricity
consumption of air compressor
Install additional energy-saving
desiccant dryer at T1, T2, and T5 in the Taichung factory
Factory Affairs
Department
Continuous promotion of environmental improvement
0402 Reduce power consumption
Increase air conditioner efficiency by at least 10%
Double-effect energy saving
engineering for chillers installed at T2, T4, and T5 in
the Taichung factory
Factory Affairs Department
Overall reduction of
environmental impact 0403
Reduce consumption
of raw materials
Reduce monthly alcohol
consumption by 20%
Reduce alcohol used in the soaking process of T5 in the
Taichung factory
The 2nd Manufacturing Department, Hotline
Section
Overall reduction of
environmental impact 0404 Reduce waste
Reduce monthly cork waste by at
least 30%
Increase recycling rate of cork
at T4 in the Taichung factory
The 1st Manufacturing Department, Testing &
Engineering Section
Overall reduction of environmental impact
0405 Reduce water consumption
Reduce water consumption from molding cleaning by 15%
Reduce water consumption
from molding cleaning at T2 in
the Taichung factory
The 2nd Manufacturing
Department, The 1st
Section
Overall reduction of
environmental impact 0406 Reduce waste
Recycle 25% of discrete lead frame
Recycle 40% of IC lead frame
Increase recycling rate of lead
frame used in the
manufacturing process of T1 in
the Taichung factory.
The 2nd Manufacturing Department, Before
Works
Overall reduction of environmental impact
0407 Reduce waste
Reduce 14 buckets of potion and 13
tons of water consumption each
month
Reduce attrition rate of SS-122 at T6 in the Taichung factory
Plating Section
Integration table of our environmental goals, objectives, and management programs in 2015
We have received ISO-14001 verification every year since 1998. However, in order to prevent our
perceptions of our self-review of the company’s environmental protection measures from diverging
from the truth, we annually invite external verification agencies to assist in our audit and
re-verification process. With different points of view from senior auditors at external verification
companies, we can continue to improve our environmental quality.
Our ISO14001 Certificate
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6.2 Carbon Management
Because greenhouse gases have caused global warming, they have had a huge impact on
biodiversity and the environment. Based on the sustainable development and the fulfillment of our
corporate social responsibility, we are committed to inspecting and controlling greenhouse gas
emissions to reduce the effects of global warming. We look forward to saving energy to maintain
the sustainability of the global environment. Our current greenhouse gas emission reduction target
and schedule is that by 2020, our emissions will be the same as those of 2005. That is, with strong
economic growth, the Business As Usual (the emission level of freely growing sources without
reduction requirements from the government, BAU) in 2020 needs to be reduced by 45%. With
weak economic growth, it still needs to be reduced by 39%. Therefore, the company officially
established the Greenhouse Gas Inspection and Voluntary Reduction Promotion Organization in
2010 and the General Manager announced the following policy statement:
Lingsen Precision Industries, Ltd.’s Greenhouse Gas
Inspection and Voluntary Reduction Statement
We recognize that the climate and environment
suffer from the negative impact of greenhouse gases
and understand that the capacities of the earth’s
resources are limited. They are not endless, and
unfortunately, we are moving toward the critical
point. As a responsible corporate citizen, we are
committed to carrying out the following activities:
Regularly inspecting greenhouse gases
Controlling greenhouse gas emissions
Improving the efficiency of machinery and
equipment to reduce greenhouse gas emissions
Yang, Shun-Ching, General Manager
20 July 2010
Our Greenhouse Gas Inspection and Voluntary Reduction Statement
The Greenhouse Gas Inspection and Voluntary Reduction Promotion Organization was hereby
founded through the above statement. By combining the competence of this organization with the
Environmental Management Committee, we were able to hold the carbon reduction conference in
July 2010, where we strived to understand our greenhouse gas emissions so that we could proceed
with our plans for emission reduction. In said conference, the General Manager announced that
greenhouse gas inspections would be performed regularly starting in 2010 in accordance with
ISO14064 verification standards. External verification confirmed the emission volume and primary
source of our greenhouse gases, and we selected appropriate measures to improve our emissions.
Regarding our carbon footprint, we have gradually began implementing such measures as providing
clients with carbon emission information for all raw materials during the assembly process and
investigating our carbon footprint for individual products to help clients understand manufacturing
information.
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Our Carbon Management
◆Greenhouse gas inspection
With the help of the Export Processing Zone Administration and the Industrial Technology
Research Institute, the company had an inspection of its greenhouse gas emissions. During the
consultation process, the Industrial Technology Research Institute team utilized the coefficient
announced by the World Business Council for Sustainable Development (WBCSD) and the
Intergovernmental Panel on Climate Change (IPCC) associated with our consumption of equipment
and raw materials to develop a custom procedure and system to aid in our greenhouse gas
inspection. Our inspection scope currently covers the T1, T2, T4, and T5 production buildings and
the T3 raw material warehouse in Taichung. In 2015, the inspection will also include the T6
production building in Taichung. The internal greenhouse gas inspection and internal document
audit for the previous year must be completed before May each year, while the external verification
must be completed by July each year. Our annual greenhouse gas inspection information since 2009
can be found in the chart below:
Annual greenhouse gas emissions from 2013 to 2015
Year Scope 1 Scope 2 Total volume of greenhouse gases (ton)
2013 535.66 53864.52 54400.18
2014 1087.48 60395.14 61482.62
2015 1115.75 60731.45 61847.19
Carbon
management
Greenhouse gas
inspection
Carbon footprint
Carbon reduction
program
Carbon disclosure
Inspect the carbon footprint of certain
products according to customer demand
Inspect greenhouse gas emissions
annually
Use of low carbon
materials
Propose annual energy-saving and
carbon-reducing plans
Post the annual report regarding the
greenhouse gas inspections on the
company’s website each year
Have the Procurement Department choose
low carbon materials as the priority
material when meeting the same
requirements as other available materials
43
Scope 1 refers to the direct emission of greenhouse gases, which includes fixed combustion sources
(fuel combustion of fixed equipment), process emission sources (self-owned or controlled), mobile
combustion sources (fuel combustion of transportation equipment under control, such as cars, trucks,
trains, airplanes, and boats), and fugitive greenhouse gas emission sources (intentional and
unintentional). Scope 2 refers to indirect areas, including input of electricity, heat, steam, or other
derivative energies such as fossil fuel. Scope 3 refers to other indirect areas, which, as of now, is not
managed.
The inspection revealed that the main sources of Scope 1 are refrigerants, gas, and diesel (direct-use
energy). In 2015, the company’s consumption of refrigerants was 4.9327 tons, gas was 16.945
kiloliters, and diesel was 68.266 kiloliters. The greenhouse gas volume generated from Scope 1 in
2015 was 1,115.75 tons. The main source of Scope 2 is electricity consumption, which was
116,567,266 kWh in 2015. The greenhouse gas volume generated from Scope 2 in 2015 was around
53,864.52 tons (the 2015 greenhouse gas inspection was not yet verified when this corporate social
responsibility report was written). Once we understood that the main source of our greenhouse gas
emissions was electricity consumption, we were able to implement many energy saving
improvements, starting in 2010, to reduce electricity consumption and thus decrease greenhouse gas
emissions. From 2004 to 2016, the primary reason for the fluctuation in our greenhouse gas
emissions was that the T6 production building in Taichung was put into formal operation during this
time period. However, taken as a whole, we still exhibit better performance than our business
competitors in terms of reduced greenhouse gas emissions.
Year 2013 2014 2015
Total Electricity Consumption (kWh) 101249089.3 115931580 11656726.6
Our Annual Electricity Consumption from 2013 to 2015
Because the emission of greenhouse gases is closely related to energy consumption, we introduced
Energy Management System (ISO50001) verification in order to more efficiently manage our
energy consumption. Many employees have been sent to educational training to become energy
managers and obtain certification. Our goals are to better plan our energy consumption, determine a
consumption standard, develop a consumption policy, and promote improvement measures and thus
continuously improve under PDCA, ISO’s management core.
Our 2014 ISO14064 Verification Statement of Greenhouse Gas Assertions
44
◆Energy Saving and Emission Reduction Program
In 2010, this company began having greenhouse gas inspections (for 2009) and subsequently
implementing energy saving and emission reduction programs, as well as requested professionals of
the Industrial Technology Research Institute to serve as internal energy saving consultants.
According to them, our actual operations produce no major waste. Furthermore, prior to inspection,
we had already implemented several energy saving measures, such as LED lamp replacement and
effective adjustment of the temperature of the air-conditioning system. After discussions with the
Factory Affairs Department, we submitted a number of energy saving improvement measures,
implemented them, and annually reviewed our progress in the hope that we can provide help slow
the effects of global warming even more.
Energy Saving and Emission Reduction Programs
Three energy saving and emission reduction programs were implemented in 2014 and 2015. These
programs include improvements that are primarily aimed at high electricity consumption systems,
such as air-conditioning and air pressure so that we could reduce 2,220,000 kWh (1,056.62 CO2
tons/annual emissions) and 1,696,644 kWh (883.951 CO2 tons/annual emissions) of electricity
consumption in 2014 and 2015, respectively. In the future, we will continue to apply these already
existing programs on other equipment that needs improvement.
Starting year of the
program
Energy-saving
program Description
Average efficiency of energy-saving
measure
Electricity
consumption
saved
(kWh / year)
CO2 reduction
(ton / year)
2014
Power saving
desiccant dryers at T2
and T5 in Taichung
factory (PART-1)
Compressed air is first led through a
compressed air dryer to have 90% of its
water content removed, before being
introduced to a desiccant dryer at a low
temperature of 3~5℃ to allow efficient
desiccant performance and a longer
absorption timespan. At the same time,
heat generated from waste heat recovery is
also applied to remove water content from
the desiccant in order to reduce air
consumption of desiccant recovery and
reduce air compressor operating expenses,
further achieving the ultimate goal of
energy saving.
About 2,220,000 1056.62
2015
Power saving
desiccant dryers at T2
and T5 in Taichung
factory (PART-2)
About 840,000 437.64
Double-effect chiller
at T1 in Taichung
factory
Based on chiller specifications, water
tower specifications, system treatment
volume, and operating approach, an
electroshock device is installed at a certain
pipeline of the chiller inlet. Furthermore, a
power supply unit is applied to provide
stable power voltage, while Zeta RodTM
is applied to reduce residue accumulation
and bacteria growth in the system in order
to allow better heat exchange in the
chiller.
About 412,400 214.86
Solar Power System
at T6 in Taichung
factory
Solar panels have been installed to absorb
sunlight and provide power to public
facilities.
444,244 231.451
45
Power saving desiccant dryer of T2 and T5 in Taichung factory
Double effect chiller of T1 in Taichung factory (before & after)
Solar power system and internal control screen
6.3 Green Products
In response to global trends and the widespread demand for environmental protection, we are
committed to providing excellent solutions to protect the environment, promote safety, and
encourage health. During our manufacturing processes, we do not use hazardous materials, but only
materials that meet the RoHS and also send product samples to SGS for testing to meet the
halogen-free limits set by the RoHS.
We not only assemble traditional products, but also mass produce stack die, multi-chip modules,
systems in packages, and MEMS packaging. Of these, the MEMS components have great potential
in the market because they are light, thin, and small and have widespread applications for their
perception, calculation, and action functions. We are currently mass producing MEMS
46
accelerometers, gyroscopes, pressure devices, and MEMS microphones, all of which are main
products for market growth. Furthermore, in response to the “Waste Electrical and Electronic
Equipment Directive (WEEE Directive)”, the “Restriction of the use of Hazardous Substance
(RoHS Directive)”, and the “Directive of Eco-design Requirements of Energy-using Products (EuP
Directive)” from the European Commission, our company has also introduced green production in
an effort to commit to eco-friendly assembly. Green products have entered our standard BOM of
products (excluding custom-made products), of which the substrates and resins also use
halogen-free materials.
The most recent annual R&D topics are as follows:
(1) Power module assembly and testing, including Al wedge and thin bonding wire and
chip bonding
(2)Assembly and testing of environmental optical sensing modules for phones / mobile devices
(3)MEMS sensing module assembly(e.g.: MEMS accelerometer, gyroscope, pressure gauge,
altimeter, tire pressure monitoring system, and MEMS microphone)
(4)TO-277 assembly and testing
(5)Multifunctional MEMS Module Assembly
(6)Small ambient light sensor
(7)Multifunctional photoelectric sensor module assembly
(8)Power Module IGBT (450A/1200V)
(9)QFN 0.3 mm thin assembly
(10)Flip Chip on QFN/TSOT assembly
(11)TO-CAN assembly and testing
Recently, the increasingly serious damage on the environment has caused people around the world
to pay more attention to environmental protection. Reducing carbon emissions has become a focus
for all countries. Carbon dioxide, such as exhaust from vehicles, is the main cause for the
greenhouse effect. Moreover, the excessive exploitation of oil has caused a global energy problem
due to its limited inventory. Therefore, the development of electric vehicles has also become a key
global issue. From September 2012 to September 2014, we became involved in the industrial
technology development program (TDP) of the Ministry of Economic Affairs and the Automotive
High Current IGBT Power Module Assembly Technology Development Program and began
cooperating with the Industrial Technology Research Institute (ITRI). The high-current and
high-voltage IGBT in this program was developed for product system application that can be
applied to critical parts of electric vehicles and hybrid vehicles. In addition to being applied to
electric vehicle motor modules, IGBT can also be applied as a power module for car windows, air
conditioners, and headlights with different current requirements.
In response to 2020 carbon reduction targets, a silicon carbide power module was applied to realize
system motivation power saving. Our company passed official reviews from the Industrial
Development Bureau, Ministry of Economic Affairs at the end of 2015. Along with Shihlin Electric,
we have been devoted to high-power and high-value semiconductor silicon carbide power module
program. Digital, consumable, and industrial products can be widely applied to power-saving,
high-frequency, and high-temperature electric / electronic systems. Furthermore, silicon carbide can
be used to reduce 85% of silicon component switching loss. Through electric / electronic technology,
energy switching efficiency can be greatly improved, making it the first choice for energy shortage
and industrial equipment power saving. Since domestic module assembly and system application
technology are in short supply, it is considered a golden opportunity for domestic system companies
to develop new products and break free from foreign firms’ restrictions.
47
6.4 The Management and Procurement of Raw Materials
When our company wants to procure a qualified primary raw material (e.g., silver adhesive, gold
wire, copper wire, substrate, lead frame, resin, and covers), a Material Safety Data Sheet or
ingredient list must be attached to the application, which must be approved by our Environmental
Management Committee through a sampling recognition procedure after verifying that it meets
client demands. Upon arrival at our company, X-ray fluorescence is also used to monitor and ensure
that no environmental controlled substance is present. Furthermore, we request that a supplier’s
shipment guarantee specifies that “it meets LPI’s requirements for environmental substance control”.
Suppliers who have obtained ISO17025 certification are requested to provide an ICP test report
from a third-party certification agency to guarantee that their raw materials do not contain
environmental controlled substances. We manage the timeliness of materials through the “Supplier
Certification Information System”.
XRF test items Silver
adhesive
Gold /
copper wire Substrate
Lead
Frame Resin Ink Film forming agent
2015 batch 268 231 703 2667 659 15 42
Source: Monthly Incoming Quality Report, LPI, 2015 – All test results in 2015 met our environmental
substance control requirements.
Meanwhile, we regularly audit our system and review our management policies to ensure that we
continue to adhere to international laws, as well as clients’ non-hazardous substance requirements.
We also regularly research, follow, and identify global, national, and local non-hazardous substance
directives relevant to our products, such as RoHS and REACH SVHC and carry out a survey of our
suppliers and production units to ensure that products from our suppliers meet the relevant
requirements.
6.5 Air Pollution and Waste Recycling Management
Our manufacturing processes generally refer to semiconductor assembly and testing, in which the
raw materials primarily used are wafers, lead frames, and epoxy. To prevent pollution during
manufacturing, we installed a carbon absorption tower and scrubber to handle the air pollution
problem. For wastewater, water is continuously recycled until it can no longer be used and is then
discharged to the wastewater treatment plant. Through resource recovery, the recoverable parts will
be recycled and non-recoverable parts will be sent to legal treatment firms to be handled
appropriately in an attempt to effectively reduce pollution and best use resources.
◆Air Pollution Management
The air pollutants created by our manufacturing process are mainly volatile organic compounds and
acid gas. To effectively reduce our production of air pollutants, we have adopted the Best Available
Control Technology (BACT). Our main air pollution control equipment includes the carbon
absorption tower and the scrubber. We also were granted an Operation Permit of Stationary
Pollution Source by the local environmental protection agency to meet the requirements of relevant
environmental protection laws.
48
Inspected
Production
Building
Inspected air pollutant Standard
THC Sulfuric acid
droplet Nitrate Ammonia THC
Sulfuric acid
droplet Nitrate Ammonia
T1 0.0625 kg/h - - 1.31*10-3
g/s
0.6 kg/h 200 mg/
Nm3
7.175*10-3
0.2 g/s
T2 0.0235 kg/h - - -
T4A 0.008 kg/h - - -
T4B 0.0345 kg/h - - -
T5 0.0778 kg/h - - -
T6 0.0379 kg/h 16.9 ìg/Nm3 19.5 ìg/Nm
3
Our 2015 regulatory compliance and self-evaluation with regards to air pollution
The regular air pollutant items in 2015 included THC for the T2 production building and THC,
sulfuric acid droplets, and nitrate for the T6 production building, among other self-reinforcement
items. Compared with the emission standards of stationary pollution sources and semiconductor
volatile organics, even the highest values of our volatile organic substances were eight times lower
than those of emission standards; the pollutants from acid gas (sulfuric acid droplets and nitrate)
and alkaline gas (ammonia) were one hundred times lower than that of the legal emission standards.
Clearly, we are committed to maintaining air quality.
Our Air Pollution Control Equipment
◆Waste Recycling and Treatment
With regards to waste management, we have abandoned the traditional approach of a company
sending waste to a treatment firm since it was unable to reduce its waste volume by recycling.
Instead, we firmly believe that waste reduction must start from the beginning with the proper
management of raw materials. Therefore, at the environmental management conference, we
requested that the production unit submit an improvement proposal for site production to reduce the
volume of raw materials, thus reducing waste.
49
Year Waste Reduction Program Achievement
2014
Recycle delivery boxes of 12-inch wafer 100% of 12-inch wafer boxes were recycled
Reduce paper consumption and lower costs 62.5% of paper resources were saved.
Recycle tubes at the packing station 100% of tubes at the packing station were recycled.
Reduce IDIP CS Tape Consumption Attrition rate of IDIP CS Tape was reduced to 5%.
2015
Reduce alcohol consumption Alcohol consumption was reduced by 20% each month.
Recycle corks Cork waste was reduced by 30%.
Recycle lead frames for post manufacturing processes 25% of lead frames were recycled.
Reduce stripping agent consumption 14 buckets of stripping agent were saved each month.
Our 2014~2015 Waste Reduction Program
Since the waste that the manufacturing process generates may impact the environment, we
cooperate with recycling firms as much as possible in an attempt to at least maintain the residual
value of waste to reduce pollution. We schedule at least two audits annually of our treatment firms
by environmental protection professionals to ensure that we are reducing pollution and not
participating in inappropriate waste treatment.
241.12 tons of lead scraps
1.092 tons of silver adhesive
scraps
79.65 tons of waste containing copper
Waste Treatment
(including recovery
of resources)
463.464 tons of
recovered
resources waste
generated in 2015,
recovering 48.94%
of total waste
0.612 tons of ethanol and acetone waste
0.99 tons of lubricant waste
Recycle materials after physical treatment and
screening
Recycle valuable materials such as silver
through physical treatment
Recycle copper by treating it with heat and then burying the residual
Distill ethanol and acetone for recycling
Refine lubricants for repeated use
418.58 tons of resin scraps
Sort waste and recover the resources for re-use
53.28 tons of garbage
140 tons of resource waste
8.23 tons of organic waste
3.41 tons of sand blasting waste
Waste Treatment (legal treatment)
483.5 tons of do not recover resources waste generated in 2015 with 51.06% of total waste
Send waste to incinerator to produce heat for
electricity generation
Send waste to incinerator to produce heat for
electricity generation
Bury the residual waste after heat treatment
Bury
50
Our 2015 waste production and recycling
Our Internal Recycling Truck
In 2015, we produced 946.964 tons of waste, of which 463.464 tons, 48.94%, underwent resource
recovery, showing that we are clearly committed to resource recovery. To further strengthen our
resource recovery rate, we even have a special recycling truck in which common resource wastes,
such as paper, iron and aluminum, and plastic, are directly recycled every day in the factory.
Paper
Iron, aluminum
Plastic
Waste retort
pouches
Kitchen waste
Recycling Firm
51
6.6 Water Resource Management
Research has indicated that the average temperature of Taiwan has increased around 1.4 degrees in
the past 100 years due to the recent global climate change. Global warming has also brought heavier
and more concentrated rain and has increased the frequency of droughts in Taiwan. According to the
simulated data of Academia Sinica, every one-degree increase will result in 20 more non-raining
days in Taiwan. Although Taiwan’s annual average rainfall is around 2,500 mm, which is three
times the global average rainfall of 880 mm, the actual rainfall utilization rate is less than 20%.
Therefore, water recycling is one of the challenges that the Taiwanese government currently needs
to face. This is a sensitive issue for us so we had our overall water resource inspected and have
implemented many water saving measures in the hope of reducing our impact on Taiwan’s water
resources.
◆Wastewater Treatment
The company produces 700,000 tons of wastewater annually, which come mainly from the
manufacturing processes and are discharged into ditches in Taichung Export Processing Zone. Our
policy is to recycle as much wastewater as possible and discharge the rest to a wastewater treatment
plant. The primary pollutants in our wastewater are SS, COD, and some heavy metal substances.
Therefore, to treat our wastewater, we use chemical coagulation. The related treatment procedure
and subsequent inspection results are as follows:
Our wastewater treatment process
Inspected
Production
Building
Regular effluent inspection items
PH SS COD F Pb Cu Nitrate Ammonia TTO Ag
T1 7 <1.4 mg/L 14.2 mg/L ND ND ND 0.6 mg/L 0.39 mg/L ND -
T2 7.3 4.4 mg/L 6.1 mg/L <0.1 mg/L ND <0.05 mg/L <0.05 mg/L <0.04 mg/L ND -
T4 7.8 14.5 mg/L 3.5 mg/L 0.17 mg/L ND 0.11 mg/L 6.44 mg/L 0.24 mg/L ND <0.05 mg/L
T5 7.3 1.7 mg/L 72 mg/L <0.1 mg/L ND <0.05 mg/L ND <0.04 mg/L ND -
T6 7.1 7.7 mg/L 24.6 mg/L 1.02 mg/L ND 0.963 mg/L 1.10 mg/L 2.10 mg/L 0.0198
mg/L -
Effluent Standard
6~9 30 mg/L 100 mg/L 15 mg/L 1 mg/L 3 mg/L 50 mg/L 30 mg/L 1.37 mg/L 0.5 mg/L
Our 2015 wastewater inspection results
Coagulation PH adjustment Slow mix Sludge settling tank Wastewater
Neutralization tank
Sludge thickening tank
Supernatant
Sludge Pressure Filter
Sand filtration or
carbon tower
Sludge Drying
Effluent
Sludge
Effluent
Waste
Treatment
Supernatant
52
◆Recycling of Wastewater from the Manufacturing Process
In order to effectively use water, we need to re-use wastewater generated during the manufacturing
process. In 2015, our underground water consumption was 7,039,964 tons, which was primarily
used in the cutting, grinding, and forming of wafers. Repeated experiments and testing led us to use
a UF membrane to introduce recycled wastewater to the site process for re-use in order to reduce
the attrition of water. Currently, three UF membrane recycling systems have been set up in the T2
production building, which has the highest water consumption. In 2014, 295,752 tons of wastewater
were recycled, resulting in more than an 83% recycling efficiency. Since the UF membrane system
has so effectively recycled the wastewater, this system is expected to be introduced to the T6
production building, which was completed in 2014, to further enhance the water recycling rate here
during manufacturing processes.
Our UF Wastewater Recycling System (Figure 13)
Year 2013 2014 2015
Wastewater saved from manufacturing processes (ton) 334,835 350,546 295,752
Recycling efficiency % 83 83 83
Wastewater recycled volume and efficiency of the T2 production building from 2013 to 2015
◆Other water saving methods
Not only do we recycle wastewater, but we are also committed to reinforcing water saving
principles through other methods. The RO drainage and backwash drainage from the water
purification system do not directly run to a wastewater treatment plant; instead, they travel through
the underground storage tank and pump to the cooling tower to reduce water consumption. After
concentrated cooling occurs in the cooling tower, such water will not be discharged to a wastewater
treatment plant until it becomes unusable. By doing so, approximately 60,000 tons of water can be
saved each year.
Recycled water used in the cooling tower
For Tower
Cooling
Water Storage
Tank
53
When the T6 production building was built in 2014, a rainfall recycling system and domestic
wastewater filtration system were incorporated in the hopes that this new water recycling system
can plan and develop new water resources. Furthermore, in order to effectively and reasonably use
and control water resources, we have incorporated a water resource monitor system into the
fundamental equipment of the new plant to effectively allocate rainfall and reduce water waste with
reasonable controls.
Rainwater Tank and Sewage Recycling System
Our water resource management and control system
54
7 Customer Service and Supplier Management
7.1 Customer Service and Satisfaction
We are committed to providing our clients with the best services and truly believe that customer
service is the key to maintaining customer loyalty. Customer loyalty can help improve customer
relationships and expand business. Our goal is maintaining our status as a professional integrated
circuit assembly and testing facility, and we believe that the aforementioned goal can be achieved to
build a strong relationship between existing customers, attract potential customers, and enhance
everyone’s trust.
To enhance customer satisfaction, we issue a customer satisfaction survey every quarter to
guarantee that customers’ demands are heard and properly handled. Customer feedback is also an
important basis for improving our ongoing operation procedures. Therefore, we provide our
customers with a customer satisfaction survey so that we can understand their specific demands and
expectations, as well as receive an official and direct response with which to measure our
performance and identify our deficiencies as a basis for our improvement strategies.
Thanks to the efforts of our business units, the average grades of each item in the 2014~2015
customer satisfaction surveys were between 7.0 and 8.5. The total survey grades for each quarter
were all above 7.4 (out of 10 points).
◆Customer Privacy
We consider customers’ confidential information and privacy as their exclusive rights. Their
exclusive technology, business secrets, the personal information of employees, and other
confidential or sensitive information will be kept confidential and protected by all of our colleagues
in accordance with our internal guidelines.
As part of our management system, we sign a non-disclosure agreement with all of our clients to
inform them of our guarantee to protect their confidential information; we have also established an
internal document management center that will allow customers’ confidential information to be
used only internally according to its level of confidentiality. Moreover, we strictly control the
providing and printing of files to prevent customers’ confidential information from being divulged.
Thanks to these strict control mechanisms, we did not receive any complaints related to customer
privacy or lost information in 2014~2015.
55
7.2 Supplier Management
Our suppliers are an important part of our operations. To ensure that raw material suppliers can
satisfy our operation strategies and demands, we regularly review their quality, price, delivery, and
services, as well as their related policies. We are committed to maintaining long-term relationships
with domestic and foreign suppliers to develop a steady and sustainable supply chain together.
Moreover, we encourage our suppliers to implement environmental protection measures, regard
employees’ safety and health, fulfill their corporate social responsibility and properly manage their
risk and sustainable development plans. We also promote local production and prioritize local
suppliers’ development in order to reduce our transportation costs and thus carbon emissions and
risks, as well.
In 2015, the percentage of suppliers in Taiwan increased from 60.00% to 64.8%, and the percentage
of procurement amount increased from 46.5% to 53.8% (in 2014, the domestic procurement ratio
and foreign procurement ratio were 46.5% and 53.5%, respectively). We will continue to support
local suppliers and encourage foreign suppliers to establish factories in Taiwan in order to both
reduce production costs and risks and enhance the company’s competitiveness.
◆Percentage of Supplier Numbers:
60.00%
17.78%
8.89%
3.33%
10.00%
64.84%
5.49%3.30%
10.99%
15.38%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
2014
2015
◆Percentage of Procurement Amount:
27.47%
8.91%
30.87%
53.82%
5.07%
46.52%
3.26%
26.14%
5.32%
11.46%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2014
2015
Percentage of Supplier Numbers
Taiwan Japan China Korea Other
Percentage of Procurement Amount
Taiwan Japan China Korea Other
56
◆Supply Chain Risks
To reduce the risk of interruption to the supply chain, we request that suppliers establish an ongoing
operation program to prevent closures without warning, natural disasters, or accidents that could
impact shipment and thus endanger our operations or affect stakeholders.
For principal raw materials, such as silver adhesive, Au wire, Cu wire, substrate, lead frame, and
resin, we have constructed source locations to rapidly control the potential impact that a local
natural disaster could have on the supply of raw materials, and we maintain at least two replaceable
manufacturers or sources at any given time.
Material / Origin Taiwan Japan China Korea Malaysia Singapore
Silver adhesive ˇ ◎ ˇ
Au / cu wire ˇ ◎ ˇ
Substrate ˇ ◎ ˇ
Lead frame ◎
(stamping)
ˇ
(etching )
ˇ
(stamping)
ˇ
(etching) ◎
(stamping)
Resin ◎ ¡ ¡
◎：Primary Origin ˇ：Secondary Origin
◆Supplier Management Requirements
We request that all of our suppliers follow local laws, social norms, and environmental protection
regulations, pass our supplier review and approval operation, which includes a supplier’s basic
information, products, information regarding manufacturing and inspection equipment, major
clients, financial situation, certificate of non-use environmental managed substances, quality control
program, and procurement responsibilities and obligations, Suppliers must also fill out a survey
regarding their corporate social responsibility, safety and health, regulations for labor human rights
and conditions to fulfill environmental and societal requirements. Details are as follows:
Perspective Management Item Basis of Standard
Management Quality, price, delivery, technology, and service ISO9001 2008 and TS16949; 2009 Quality System
Environment Prohibited and controlled substances SS-00259/RoHS/REACH, ISO14001 and local laws
Society Labor safety and health, ethical norms OHSAS18000, Electronic Industry Citizenship Coalition (EICC)
To improve the overall competitiveness of the supply chain, we perform a monthly review of
suppliers in terms of their quality, delivery, price, and service and hold a review conference based
on the suppliers’ annual reviews to organize an audit program to ensure that they meet our
requirements.
According to clients’ requirements, as well as international non-hazard standards such as RoHS and
REACH SVHC, we have created the Environmental Substance Management Guidelines, request
that suppliers submit their green procurement policy based on environmental protection, request
that raw material suppliers sign a “Certification of Non-use of Environmental Managed Substances”
and provide a test report from a third-party certification agency. We further feel that it is our
responsibility to remind suppliers to provide their latest test reports through the “Supplier
Certification Information System” to achieve the goal of complete non-use of environmental
prohibited substances.
57
◆Supplier Evaluation
(1). Object: main raw material suppliers (e.g., silver adhesive, Au wire, Cu wire, substrate, lead
frame, resin, and solder products)
(2). Management unit: Procurement Section, Materials Department
(3). Implementation:
The ERP system will collect information on a monthly basis regarding the actual performance of
suppliers (quality, delivery, and price) that was evaluated by procurement employees based on
feedback from the using units and cooperation of suppliers and will then notify the supplier as a
reference for the procurement policy. Furthermore, an annual supplier audit program will be
proposed based on their annual quality evaluation results. The implementation record is as follows:
Procurement Policy 2014 2015
1st priority 39 43
2nd
priority 7 11
Decrease purchasing 0 0
Few purchases and improvement required 0 0
Stop purchasing 0 0
Source: Supplier evaluations in 2014 and 2015
◆Supplier Audit
Our annual supplier audit program and the TS16949:2009 quality system/environmental
management system are expected to be listed among our corporate social responsibility in 2016.
The annual supplier audit program in 2015 is presented below.
2015 Audit Program Lead frame Substrate Cover Packaging material
Number of suppliers 4 3 2 2
After performing a field audit, our quality and environmental management system requirements
were all met.
◆Conflict-free Metal Guarantee
In response to global control measures regarding conflict minerals, we strongly request that
suppliers of such materials as Au, Sn, Ta, and Wu do not get their supplies directly or indirectly
from areas of conflict (including the Democratic Republic of Congo (DRC), Rwanda, Uganda,
Burundi, Tanzania, and Kenya) since such countries have been identified as countries with minerals
from the DRC by the United Nations Security Council. Furthermore, we request that suppliers sign
the “Guarantee of Conflict-free Metals” and list it as one of their necessary conditions for supplier
approval in their procurement operations. A survey (GeSI_CMRT R.2.03a) showed that 22 suppliers
whose processes, packaging, or products contained Au, Sn, Ta, or Wu stated that they did not use
conflict metals directly or indirectly. We will continue to ask both our existing and new suppliers to
follow the non-use of conflict metals policy.
58
Material Sn Au Ta Wu Number of Suppliers
Substrate ˇ 7
Solder Ball ˇ 2
Solder Paste ˇ 1
Solder Wire ˇ 2
Lead Frame ˇ 5
Au Wire ˇ 3
Passive components ˇ 0
Plating chemicals ˇ 2
Our materials that contain Au, Sn, Ta, and Wu (all are conflict-free metals)
59
8 Social Involvement
8.1 Cooperation between industry and academics
In our pursuit of sustainable operations, we look forward to fulfilling our corporate social
responsibility. We encourage all of our employees to get involved in a variety of charities and
volunteer events (e.g. Mercy Association at the Export Processing Zone), as well as participate in
disaster relief and make donations, in order to help those in need. In 2014, the company’s charity
club was established to promote participation in community development and charity events and
encourage our employees to contribute to society. Furthermore, since 2006, we have been involved
in an industry-university cooperative project.
◆Origin of cooperation between industry and academics
In response to the manpower shortage in the advanced mechanical, electrical, optical, and
information fields and in order to realize our corporate social responsibility to care for children who
want to pursue higher education, but come from disadvantaged families, we have actively
participated in the industry-university cooperative project since 2006.
▲2015 Xinmin high school students and faculty members visiting our company
◆Current Status
Since the program’s beginning, we have enthusiastically promoted the industry-university
cooperative project, which has included collaboration with such institutions as Hsiuping University
of Science and Technology, Overseas Chinese University, National Chi-Yi University of Technology,
and Ta Hwa University of Science and Technology. We have maintained a close relationship with
the above schools in order to successfully share our image, effectively contribute to the local
community, develop a talent database, and cultivate superior management associates that can grow
with us as a company.
60
Due to the Ministry of Education’s Model University of Technology Development Program,
internship courses have become mandatory courses. Since 2012, we have coordinated with such
schools as Overseas Chinese University and National Chi-Yi University of Technology to accept
their students as interns. Recently, we have experienced a great demand for cadre at the basic level
due to our annually expanding operations. Through the internship program, students can learn
workplace skills and management knowledge to ensure that a manpower shortage will not arise.
Our industry-university cooperation and campus events
Item School/Object Content
Industry-university
cooperation
National Chung Hsing University Develop a special class for semiconductor testing and R&D
Hsiuping University of Science
and Technology
Develop a special class for industry-university cooperation
Overseas Chinese University Develop a special class for industry-university cooperation
National Chi-Yi University of
Technology
Develop a special class for industry-university cooperation
Ta Hwa University of Science and
Technology
Develop a course that offers credits
Feng Chia University Industry-university cooperative project
Campus events
Campus recruitment Participate in campus recruitment events at each school
Campus seminar Position internal head to share our philosophy and
semiconductor related career development opportunities in
the school
Interview with faculty and
students
Make domestic and foreign students understand the working
environment of the semiconductor field at an early age and
promote interactions between industry and academics
Offer part-time job opportunities Provide a part-time job program so that students can
experience actual work in the company and reduce the
difference between academics and practice
▲2015 Participation in Campus Recruitment of Feng Chia University
61
8.2 Charity Care
In upholding our corporate social responsibility, we have been devoted to social involvement for a
long time. In 2014, the Mercy Club was established based on the spirit of care, love, and giving
back. Combining power from the corporation, our employees, and the club, we encourage all staff
to participate in social welfare activities.
Mercy Club sets local communities as its top priority by cooperating and working with community
organizations and participating in social welfare activities. We hope to contribute to local
communities and nearby villages through limited resources. From 2014 to June of 2016, a total of
192 volunteering hours have been devoted. In the future, we will continue promoting even more
such activities and recruit even more staff members to participate in the volunteer works.
Theme Number of
Volunteers
Hours
Devoted
Number of
Beneficiaries
Details
Mooncakes for
vulnerable
groups
4 12 200 We bought mooncake gift boxes from the shelter bakery run by
Eden Social Welfare Foundation and donated them to children
from Hueiming Organization and orphanage, benefiting two
vulnerable groups at the same time.
2014 Ukulele &
Balloon
Designing Class
Performance
25 100 150 Mercy Club at Taichung Industrial Park opened a Ukulele &
Balloon Designing Class to teach vulnerable groups (e.g.: the
disabled and the elderly) some special skills. Mercy Club
volunteers helped organize the 2014 Ukulele & Balloon
Designing Class Performance.
Charitable
Oranges
- - 1 Due to abnormal climate change, oranges from Tanzi District
appeared to be less attractive and were not selling well. We
bought these oranges and gave them to company staff as gifts.
Hueiming
Charity Runs
1
6 - Hueiming School for the Blind in Daya District of Taichung
City holds charity runs. We subsidized 50% of the registration
fee for each of our employees to encourage them to participate
in the charity runs. A total of 44 employees and family
members have participated in the charity runs.
Charitable
Invoice Box
- - - “Charitable Donation Box” is placed within the company to
provide our employees with an easy and convenient way to
help those in need. All donations collected are given to the
local charity center “Taichung Private Faith Hope Love
Intellectual Development Center”.
Sofa Garden
Earth Oven
Cooking
- - - Mercy Club held a volunteer recreational activity at “Sofa
Garden”. The disabled members at “Sofa Garden” helped
everyone with food packaging, earth oven cooking, wind
chime design, succulent plant cultivation, and food sharing.
Despite being born with disadvantages, the disabled can also
provide excellent services once they receive professional
training.
2016 Dragon
Boat Festival
Low Income
Families and
Solitary
Seniors Care
2 6 11 With the Tanshow Village Head’s assistance, red envelopes
and white rice have been successfully distributed to a total of
11 low income residents and solitary seniors in the village. All
activity charges are provided by our General Manager Yang.
62
2016 Ukulele &
Balloon
Designing Class
Performance
17 68 150 Mercy Club at Taichung Industrial Park opened a Ukulele &
Balloon Designing Class to teach vulnerable groups (e.g.: the
disabled and the elderly) some special skills. Mercy Club
volunteers helped organize the 2016 Ukulele & Balloon
Designing Class Performance.
Sponsoring
Round-the-Isla
nd Charity
Cycling
- - - Taiwan Comprehensive University System, which includes
“National Chung Cheng University”, “National Cheng Kung
University”, “National Chung Hsing University”, and
“National Sun Yat-sen University”, has convened hundreds of
students and faculty members to participate in a
round-the-island charity cycle relay in the summer of 2016. By
providing care to seniors, accompanying disadvantaged
children, participating in beach cleanups, and providing
material aid to remote villages, the college students have
spread love throughout the island. We sponsored this activity.
［Mooncake Boxes to Hueiming Organization］
［Ukulele & Balloon Designing Class Performance Run by the Mercy Club］
63
［Hueiming Charity Run］
［Charitable Donation Boxes］
64
Appendix Global Reporting Initiative (GRI) G4
◆General Standard Disclosure
GRI
Guidelines Description Relevant Chapter in This Report Page
Strategy and Analysis
G4-1
Provide a statement from the most senior decision-maker of the organization
(such as CEO, chair, or equivalent senior position) about the relevance of
sustainability to the organization and the organization’s strategy for addressing sustainability.
1.1 A Word from Management 5
Organizational Profile
G4-3 Report the name of the organization. 2.1 About Us 6
G4-4 Report the primary brands, products, and services. 2.1 About Us 6
G4-5 Report the location of the organization’s headquarters. 2.1 About Us 6
G4-6
Report the number of countries where the organization operates, as well as the
names of the countries where either the organization has significant operations or
that are specifically relevant to the sustainability topics covered in the report.
2.1 About Us 6
G4-7 Report the nature of ownership and legal form. 2.1 About Us 6
G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).
2.3 Business Profile 8
G4-9 Report the scale of the organization. 2 Company Profile 6
G4-10 Report the employee analysis. 5.2 Equal Employment Opportunities, Labor
Restrictions 28
G4-11 Report the percentage of total employees covered by collective bargaining agreements.
5.5 Labor Relations 36
G4-12 Describe the organization’s supply chain. 2.3 Business Profile 8
G4-13 Report any significant changes during the reporting period regarding the
organization’s size, structure, ownership, or supply chain. No Significant Changes
G4-14 Report whether and how the precautionary approach or principle is addressed by the organization.
2.4 Market Overview 13
G4-15
List externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes or which it
endorses.
2.3 Business Profile 7
G4-16 List memberships of associations (such as industry associations) and national or
international advocacy organizations. 2.3 Business Profile 7
Identified Material Aspects and Boundaries
G4-17 List all entities included in the organization’s consolidated financial statements or
equivalent documents. Please refer to our annual business report.
G4-18
a. Explain the process for defining the report content and the Aspect Boundaries.
b. Explain how the organization has implemented the Reporting Principles for
Defining Report Content.
4.2 Stakeholder Analysis 19
G4-19 List all the material Aspects identified in the process for defining report contents. 4.1 Stakeholder Identification & Communication 18
G4-20 For each material Aspect, report the Aspect Boundary within the organization. 4.1 Stakeholder Identification & Communication 18
G4-21 For each material Aspect, report the Aspect Boundary outside the organization. 4.1 Stakeholder Identification & Communication 18
G4-22 Report the effect of any restatements of information provided in previous reports
and the reason for such statements. No Restatements
G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.
4.2 Stakeholder Analysis 19
65
GRI
Guidelines
Description Relevant Chapter in This Report Page
Stakeholder Engagement
G4-24 Provide a list of stakeholder groups engaged by the organization. 4.1 Stakeholder Identification &
Communication 18
G4-25 Report the basis for identification and selection of stakeholders with whom to
engage.
4.1 Stakeholder Identification &
Communication 18
G4-26
Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group and an indication of
whether any of the engagement was undertaken specifically as part of the report
preparation process.
4.2 Stakeholder Analysis 19
G4-27
Report 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. Report the stakeholder groups that raised each of the key topics and concerns.
4.2 Stakeholder Analysis 19
Report Profile
G4-28 Reporting period (such as fiscal or calendar year) for the information provided. Report Overview 4
G4-29 Date of most recent previous report (if any). Report Overview 4
G4-30 Reporting cycle (such as annual, biennial). Report Overview 4
G4-31 Provide the contact point for questions regarding the report or its contents. Report Overview 4
G4-32 Report the “in accordance” option the organization has chosen. Report Overview 4
G4-33 Report the organization’s policy and current practice with regard to seeking
external assurance for the report. Assurance Work under Planning
Governance
G4-34 Report the governance structure of the organization, including committees of the highest governance body.
2.3 Business Profile 7
Ethics and Integrity
G4-56 Describe the organization’s values, principles, standards, and norms of behavior,
such as codes of conduct and codes of ethics.
Please refer to our credible business operation
guidelines.
66
◆Specific Standard Disclosure
GRI
Guidelines
Description Relevant Chapter in This Report Page
CATEGORY: ECONOMIC
Aspect: Economic Performance
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 2.3 Business Profile 8
G4-EC1 DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED 2.3 Business Profile 8
G4-EC2 FINANCIAL IMPLICATIONS AND OTHER RISKS AND OPPORTUNITIES
FOR THE ORGANIZATION’S ACTIVITIES DUE TO CLIMATE CHANGE 6.2 Carbon Management 41
G4-EC3 COVERAGE OF THE ORGANIZATION’S DEFINED BENEFIT PLAN
OBLIGATION 5.1 Salary and Benefits 22
CATEGORY: ENVIRONMENTAL
Aspect: Materials
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 6 Environmental Protection 38
G4-EN1 MATERIALS USED BY WEIGHT OR VOLUME 6.4 The Management and Procurement of Raw Materials
47
G4-EN2 PERCENTAGE OF MATERIALS USED THAT ARE RECYCLED INPUT
MATERIALS We do not use recycled input materials.
Aspect: Energy
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 6.2 Carbon Management 41
G4-EN3 ENERGY CONSUMPTION WITHIN THE ORGANIZATION 6.2 Carbon Management 41
G4-EN6 REDUCTION OF ENERGY CONSUMPTION 6.2 Carbon Management 41
Aspect: Water
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 6.6 Water Resource Management 51
G4-EN8 TOTAL WATER WITHDRAWAL BY SOURCE 6.6 Water Resource Management 51
G4-EN10 PERCENTAGE AND TOTAL VOLUME OF WATER RECYCLED AND REUSED
6.6 Water Resource Management 51
Aspect: Emissions
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 6.2 Carbon Management 41
G4-EN15 DIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 1) 6.2 Carbon Management 41
G4-EN16 INDIRECT ENERGY GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 2) 6.2 Carbon Management 41
G4-EN17 INDIRECT ENERGY GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 3) 6.2 Carbon Management 41
G4-EN21 NOx, SOx, AND OTHER SIGNIFICANT AIR EMISSIONS 6.2 Carbon Management 41
Aspect: Effluents and Waste
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 6.5 Air Pollution and Waste Recycling
Management 48
G4-EN22 TOTAL WATER DISCHARGE BY QUALITY AND DESTINATION 6.5 Air Pollution and Waste Recycling Management
48
G4-EN23 TOTAL WEIGHT OF WASTE BY TYPE AND DISPOSAL METHOD 6.5 Air Pollution and Waste Recycling
Management 48
Aspect: Products and Services
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 6.3 Green Products 46
G4-EN27 EXTENT OF IMPACT MITIGATION OF ENVIRONMENTAL IMPACTS OF
PRODUCTS AND SERVICES 6.3 Green Products 46
Aspect: Compliance
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 6 Environmental Protection 38
G4-EN29 MONETARY VALUE OF SIGNIFICANT FINES AND TOTAL NUMBER OF NON-MONETARY SANCTIONS FOR NON-COMPLIANCE WITH
ENVIRONMENTAL LAWS AND REGULATIONS
6 Environmental Protection 38
67
GRI
Guidelines Description Relevant Chapter in This Report Page
CATEGORY: LABOR PRACTICES AND DECENT WORK
Aspect: Employment
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 5.5 Labor Relations 36
G4-LA2
BENEFITS PROVIDED TO FULL-TIME EMPLOYEES THAT ARE NOT
PROVIDED TO TEMPORARY OR PART-TIME EMPLOYEES, BY
SIGNIFICANT LOCATIONS OF OPERATION
5.5 Labor Relations 36
Aspect: Occupational Health and Safety
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 5.3 Occupational Safety and Health 33
G4-LA5
PERCENTAGE OF TOTAL WORKFORCE PRESENTED IN FORMAL JOINT
MANAGEMENT-WORKER HEALTH AND SAFETY COMMITTEES THAT
HELP MONITOR AND ADVISE ON OCCUPATIONAL HEALTH AND
SAFETY PROGRAMS
5.3 Occupational Safety and Health 33
G4-LA6
TYPE OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS, AND
ABSENTEEISM, AND TOTAL NUMBER OF WORK-RELATED
FATALITIES, BY REGION AND BY GENDER
5.3 Occupational Safety and Health 33
Aspect: Training and Education
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 5.4 Educational Training 35
G4-LA9 AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE BY GENDER AND BY EMPLOYEE CATEGORY
5.4 Educational Training 35
G4-LA10
PROGRAMS FOR SKILLS MANAGEMENT AND LIFELONG LEARNING
THAT SUPPORT THE CONTINUED EMPLOYABILITY OF EMPLOYEES AND ASSIST THEM IN MANAGING CAREER ENDINGS
5.4 Educational Training 35
G4-LA11
PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE
AND CAREER DEVELOPMENT REVIEWS BY GENDER AND BY
EMPLOYEE CATEGORY
5.4 Educational Training 35
Aspect: Diversity and Equal Opportunity
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 5.2 Equal Employment Opportunities, Labor Restrictions
28
G4-LA12
COMPOSITION OF GOVERNING BODIES AND BREAKDOWN OF
EMPLOYEES PER EMPLOYEE CATEGORY ACCORDING TO GENDER,
AGE GROUP, MINORITY GROUP MEMBERSHIP, AND OTHER INDICATORS OF DIVERSITY
5.2 Equal Employment Opportunities, Labor
Restrictions 28
CATEGORY: HUMAN RIGHTS
Aspect: Freedom of Association and Collective Bargaining
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 5.5 Labor Relations 36
G4-HR4
OPERATIONS AND SUPPLIERS IDENTIFIED IN WHICH THE RIGHT TO EXERCISE FREEDOM OF ASSOCIATION AND COLLECTIVE
BARGAINING MAY BE VIOLATED OR AT SIGNIFICANT RISK AND
MEASURES TAKEN TO SUPPORT THESE RIGHTS
5.5 Labor Relations 36
Aspect: Child Labor
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 5.5 Labor Relations 36
G4-HR5
OPERATIONS AND SUPPLIERS IDENTIFIED AS BEING AT
SIGNIFICANT RISK FOR INCIDENTS OF CHILD LABOR AND MEASURES TAKEN TO CONTRIBUTE TO THE EFFECTIVE ABOLITION
OF CHILD LABOR
5.5 Labor Relations 36
Aspect: Forced or Compulsory Labor
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 5.1 Salary and Benefits 22
G4-HR6
OPERATIONS AND SUPPLIERS IDENTIFIED AS BEING AT
SIGNIFICANT RISK FOR INCIDENTS OF FORCED OR COMPULSORY LABOR AND MEASURES TO CONTRIBUTE TO THE ELIMINATION OF
ALL FORMS OF FORCED OR COMPULSORY LABOR
5.1 Salary and Benefits 22
68
GRI
Guidelines
Description Relevant Chapter in This Report Page
CATEGORY: SOCIETY
Aspect: Local Community
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 8 Social Involvement 58
G4-SO1
PERCENTAGE OF OPERATIONS WITH IMPLEMENTED LOCAL COMMUNITY ENGAGEMENT, IMPACT ASSESSMENTS, AND
DEVELOPMENT PROGRAMS 8 Social Involvement 58
CATEGORY: PRODUCT RESPONSIBILITY
Aspect: Product and Service Labeling
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 7.1 Customer Service and Satisfaction 54
G4-PR5 RESULTS OF SURVEYS MEASURING CUSTOMER SATISFACTION 7.1 Customer Service and Satisfaction 54
Aspect: Customer Privacy
G4-DMA GENERAL DISCLOSURE ON MANAGEMENT APPROACH 7.1 Customer Service and Satisfaction 54
G4-PR8
TOTAL NUMBER OF SUBSTANTIATED COMPLAINTS REGARDING BREACHES OF CUSTOMER PRIVACY AND LOSSES OF CUSTOMER
DATA 7.1 Customer Service and Satisfaction 54
