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    Corporate Social Responsibility

    Social Responsibility Implementation Status

    The Company has established “Corporate Social Responsibility Best Practice Principles” to implement corporate social responsibility (CSR). The Principles are divided into “Caring for Employees”, “Caring for Customers”, “Commitment to Shareholders”, “Preserving Public Welfare”,“Fostering a Sustainable Environment”, “Corporate governance” and “Improving disclosure of CSR information”.

    The Principles would be reviewed and modified based on actual practice

    The Company has established “Corporate Social Responsibility Committee”. Human Resource & Administrative Division is the dedicated unit in charge of CSR activities and representatives from every department are Committee members. The result described in this table.

    Assessment Items Status Non-compliance and Reasons
    Yes No Description
    1. Does the Company conduct risk assessments on environmental, social and corporate governance issues related to the Company’s operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies? V   1. The Company has established “Corporate Social Responsibility Best Practice Principles” to implement corporate social responsibility (CSR). The Principles are divided into “Caring for Employees”, “Caring for Customers”, “Commitment to Shareholders”, “Preserving Public Welfare”, and “Fostering a Sustainable Environment”. Given the principle to undergo corporate development with environmental protection and prevention of occupational accidents, we are committed to operate in an eco-friendly manner and strive for pollution prevention and emission control, carry out reduction and efficient utilization of energy resources, and implement risk control and intrinsic safety mechanism. The Principles would be reviewed and modified based on actual practice. None
    2. Does the Company have an exclusively (or concurrently) dedicated CSR unit with senior management being authorized by the Board to handle relevant issues and report to the Board? V   2. The Company has established “Corporate Social Responsibility Committee”. Human Resources & Administrative Division is the dedicated unit in charge of CSR activities with representatives from every department being the Committee members. The Chairperson and President jointly supervise the committee’s operation, which covers environmental protection, workplace safety, corporate governance, employee rights, product quality and product R&D and encompasses management of issues from the three aspects of economic, environmental and social to carry out the corporate mission of taking on social responsibilities. The committee reports its performance to the Board.
    3. Environmental issues
    (1) Does the Company establish environmental management system designed to fit industry characteristics? V (1) The Company obtained ISO14001 Environmental Management Systems certification in October, 2004; ISO14001 2015 Environmental management systems in 2018; IECQ-QC080000 HSPM certification in January, 2007; and CNS15506 Taiwan Occupational Safety and Health Management System and OHSAS18001 Occupational Health and Safety Management Systems certification in October, 2008. In September, 2014, it expanded ISO14001 Environmental Management Systems and OHSAS18001 Occupational Health and Safety Management Systems certification (Kunshan factory). In addition, it received Excellent Prize for Excellence in Labor Safety and Health in 2011 and Golden Award for Co-Prosperity from supplier, Unimicron in 2014. The Company strives to provide a safe work environment to employees. None
    (2) Is the Company committed to improving the efficiency of various resources and utilizing renewable materials that have low environmental impact? V (2) To enhance the utilization efficiency of resources, promote the concept of recycling and reduce the adverse impacts on the environment, the Company takes the following actions:

    A. Waste solvent recycling rate:
    193,767 Kg was processed which generated 152,660 Kg in 2019. Recycling saves energy, diminishes adverse impacts on the environment and avoids wastage.

    B. The Company adopts the concept of 3R (Reduce, Reuse and Recycle) in recycling. Total volume processed was 64,041 Kg. This mitigates the impact of incineration on the environment.

    C. Targets of quantitative management
    Item Emission Reduction in 2019 Annual Target Unit
    Recycling of waste solvent 2L Solvent 152,660 >150,000 KG/Year
    Waste recycling and reduction 3R Waste 64,041 >60,000 KG/Year
    (3) Does the Company assess the present and future potential risks and opportunities of climate change for the entity, and takes measures to respond to climate-related issues? V (3) Taiflex is in the electronic component industry, specializing in high-end materials such as Flexible Copper Clad Laminate (FCCL) and polymer film. During our manufacturing process, electric power and natural gas are the major sources of energy consumed. Facing the inevitable increases in energy and environmental protection costs, we are devoted to various energy-saving projects to diminish the impact on costs and at the same time, committed to the recycling and renewal of waste resources to improve competitiveness and work towards the management goals of minimum energy consumption as well as cost optimization. Environmental protection work has been actively promoted at Kaohsiung in recent years and total quantity control measure is adopted to impose stricter requirements. To fulfill our social responsibilities and for sustainable developments, we employ the latest ISO14001: 2015 - Environmental management systems: Plan → Do → Check → Action for continuing improvements. Furthermore, we take into account the life cycle of raw material - extraction, manufacturing, distribution and waste in the discussion of internal and external issues, and uphold our environment, safety and health policies of legal compliance, green development, waste reduction & recycling, full participation, workplace safety, risk control, energy conservation & carbon reduction, and continuing improvements to reduce the risk of occupational disasters and impact on the environment. The Company’s improvement measures for stationary sources and industrial waste generated are as follows:

    A. Air pollution source: Waste gases from manufacturing process are well-managed. We continue to advance on the operation and management of rotors, waste gas NMP condensation system, wastewater cleaning facilities and RRTOs; and improve the processing efficiency for equipment to be at stable or optimal condition. Through reduction of volatile organic compounds (VOCs) emission and savings on natural gas and raw materials consumption, we can avoid wasting resources and cut down secondary pollutants.

    B. Industrial wastes: We engage waste management professionals certified by the Environmental Protection Administration to handle the waste. We select qualified vendors prudently, and conduct annual assessments on vendors processing hazardous industrial waste to prevent environmental pollution due to their negligence or violation of laws. With regard to the management of hazardous industrial waste, we have waste solvent recycling system in place. Recycling saves energy, avoids unnecessary losses and waste, and diminishes the adverse impacts of waste on the environment. We seek the best solutions and set zero pollution as our ultimate goal.

    Vacuum pumps are installed to the solvent recycling machine to reduce the solvents’ boiling point for distillation and minimize electricity consumed by heaters. As distillation in a vacuum state prevents waste gas emission, the waste gas is collected via enclosed, negative-pressure operation to be processed in air pollution control equipment.
    (4) Does the Company calculate its greenhouse gas (GHG) emissions, water consumption and total waste weight in the past two years, and formulate policies for energy conservation, reductions of carbon, GHG and water consumption, or other waste management? V (4) The Company was re-verified and passed the ISO14064 Greenhouse Gas Accounting and Verification in August, 2017. Strategies to reduce GHG and carbon footprints were established based on the GHG inventory outcome to mitigate the adverse environmental impact.

    A. In 2019, the Company purchased 607,054 kWh of green solar power, which reduced CO2e emission by 320.5 thousand Kg. Green power refers to electricity which has zero or close to zero CO2 emission during the production process.

    B. Rotors at Factory Two went through trial runs in 2019. Processing condensed VOCs through RRTO reduces fuel consumption. It is estimated to save natural gas of 40,000 cubic meter/year and reduce CO2 emission by 1.4 million Kg/year.

    C. Targets of quantitative management
    Item Emission Reduction in 2019 Annual Target Unit
    Reduction from green power CO2e 320,500 >300,000 Kg/Year
    Reduction in natural gas using RRTO Natural gas 1,400,000 >1,200,000 Kg/Year
    4. Social issues
    (1) Does the Company formulate appropriate management policies and procedures according to related laws and regulations and the International Bill of Human Rights? V (1) The Company has established “Code of Conduct” in accordance with related laws and regulations and the International Bill of Human Rights. The rights and obligations of employees and management are in conformity with labor regulations and internationally recognized human right principles. Equal opportunity is provided to all, regardless of gender, age, group and religion. None
    (2) Does the Company formulate and execute reasonable employee welfare measures (including compensation, leaves and other benefits), and have the operating performance or results properly reflected in employee compensation? V (2) The Company has established the Compensation Committee to perform regular reviews on operational performance and the policy, system, standard and structure of compensation. “Salary Management Rules”, “Attendance Management Rules” and “Bonus Distribution Rules” of all sorts are formulated to have the operating performance properly reflected in employee compensation. Employees are entitled to recess, holidays and regular leaves pursuant to the government’s labor regulations. There is also Employee Welfare Committee in place and funds for employee welfare are appropriated at the maximum percentage set out in the “Employee Welfare Fund Regulation”.
    (3) Does the Company provide a safe and healthy work environment and periodic safety and health training? V (3) Pursuant to “Procedures for Safety, Health and Environment Protection Training” in Taiflex’s occupational safety and health management system, employees are taught of dangerous machinery and equipment and “Regulations for Occupation Safety and Health Education and Training”. With regards to employees’ health and safety, the Company provides continuing care and management. There are above-standard health check-ups, annual special health examinations, semi-annual environment monitoring, etc. Outcome of these examinations are analyzed in order to organize relevant health promotion activities. Guidance and health education services are provided to employees with unfavorable outcomes. There are also health-related seminars available to employees.
    (4) Has the Company established effective career development training plans? V (4) The Company has introduced performance and career interview system in March 2015. In addition, the human resource unit would build training roadmaps and develop annual training plans accordingly so as to enhance employees’ professional skills and expertise.
    (5) Has the Company complied with related regulations and international standards in terms of customer health and safety, customer privacy, marketing and labeling of products and services, and formulate relevant consumer protection policies and complaint procedures? V (5) Taiflex actively obtains various international safety certifications due to market globalization to ensure the quality, safety and reliability of its products.

    Underwriter Laboratories Inc.

    UL is an U.S. non-profit organization which aims to ascertain the safety level of products by inspecting and classifying samples from raw materials, components, system, structure, process and conditions of usage and conducting follow-up tests. The ultimate goal is to ensure the safety of users’ life and property. Certification logos are issued for identification purpose.

    Japan Electrical Safety & Environment Technology Laboratories (JET)

    JET is a laboratory designated by Japanese government to inspect factories manufacturing electrical products and test the outputs. It issues certification logos to electrical products which meet the safety standards stipulated by Japanese government. According to Japanese DENTORL, safety certifications are required for 498 types of products before entering the Japan market.

    TUV Rheinland (TUV)

    German safety certification institution. It provides certification services for product safety, quality and management system. The Company places great importance on the rights of stakeholders and the service satisfaction level. Thus, we have a stakeholder section within the corporate website as a complaint channel for customers. At the same time, it allows us to receive stakeholder feedback at any time and address their concerns with care.
    (6) Has the Company formulated supplier management policies that require suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights, and the implementation results? V (6) We demand all suppliers to comply with the quality management system, the environmental safety and health management system and Authorized Economic Operator assessment. We examine every supplier criterion, including basic information of the company, relevant certifications, quality assurance records, environment, safety and health management investigations, operating conditions, product information, manufacturing procedures, financial status of (raw) material suppliers and business continuity management, contract approval associated with procurement obligations, green product management and social responsibilities of supplier, through supplier procurement procedures. In 2017, Taiflex introduced the Responsible Business Alliance as the standard for supplier management assessment. The standard serves as the social responsibility standard for the electronics industry at present and covers areas of labor, health and safety, environmental protection and business ethics. It aims to ensure that companies in the electronics industry have safe workplaces, employees are respected and companies are environmentally responsible during manufacturing processes. Contracts may be terminated if a supplier is in serious violation of the “Corporate Social Responsibility Best Practice Principles”.
    5. Has the Company referred to the internationally accepted report preparation standards or guidelines for its preparation of CSR or other reports which disclose the Company's non-financial information? Do the aforementioned reports obtain a third-party assurance or verification statement? V 5. The reporting framework of the Company’s CSR Report is based on the GRI Standards. Core options are adopted for information disclosure on relevant indicators. The Company’s official website, www.taiflex.com.tw, has CSR section where relevant and reliable information, including quality policy, environmental policy and charity activities, is disclosed. None
    6. If the Company has established its CSR principles according to “Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies”, please describe the operational status and difference:

    The Company has established “Code of Practice for Corporate Social Responsibility” providing guidance on topics of environmental protection, community participation, contribution to society, service to society, social and public interests, consumer rights and interests, human rights and safety and health, etc. Information can be downloaded from the corporate website. Please refer to Performance in Corporate Social Responsibility under III. Corporate Governance (page 46 to 54) of this Annual Report or the Company’s CSR report for details.
    7. Other important information to facilitate better understanding of the Company’s CSR practices (e.g., systems and measures that the company has adopted with respect to environmental protection, community participation, contribution to society, service to society, social and public interests, consumer rights and interests, human rights, safety and health, and other CSR activities, and the status of implementation.):

    (1) System and measures taken for environmental protection and safety and health, and the implementation status:

    Taiflex applies ISO14001: Plan-Do-Check-Act (PDCA) cycle to improve its environmental protection management policies. Resource is recycled based on the concept of 3R (Reduce, Reuse and Recycle). The total processed volume is 64,041Kg. Packaging materials are reused to reduce waste and cost. The Company aims at zero waste in terms of resource recycling. Other than compliance with national environmental protection policies and regulations, the Company also spends an enormous amount on improvement of environmental protection and green research. Optimal prevention equipment is applied to achieve process efficiency of 98% and above. In addition, the Company adopts the framework of CNS15506 Taiwan Occupational Safety and Health Management System and the risk assessment management strategies and regulation identification under OHSAS18001 Occupational Health and Safety Management System to comply with changes in regulatory requirement and reduce hazardous risks. The goal is to control risks and eliminate potential disaster. On top of persistently improving work environment for an enhanced comfort and safety level at work, Taiflex attaches great importance to employee health and continuously launches health promotion projects and health management measures to fulfill the Company’s responsibilities concerning social environment and safety.

    (2) Community participation, contribution to society, service to society, social and public interests:

    A. Taiflex establishes charity clubs, i.e. Taiflex Youth Care Association and Taiflex Volunteers, to organize fund-raising events. In addition, they provide voluntary services to the community and disadvantaged teenagers. The Company has also sponsored outstanding clubs at schools, such as the dancing club and orchestra of Siao Gang Senior High School. Children would have sufficient resources to develop their potentials and courage to realize their dreams, and could enjoy different perspectives and experience. In addition, the Company participates in blood donation and charity events held by schools or welfare organizations in Kaohsiung as ways to enhance its community participation and contributions.

    Social activities took place in 2019 are summarized as follows:
    Mar. 2019 Hosted charity basketball games with Siao Gang Senior High School
    May 2019 Invited teachers and students from Nanhua University to visit the Company
    Jun. 2019 Hosted the Taiflex Youth Care Concert
    Jun. 2019 Sponsored Siao Gang Senior High School’s orchestra
    Jun. 2019 Sponsored Siao Gang Senior High School’s pop music club
    Jul. 2019 Provided internships to students from National Kaohsiung University of Science and Technology and Chang Jung Christian University
    Jul. 2019 Co-organized the Summer Camp of Puren Youth Care Foundation in Kaohsiung
    Jul. 2019 Sponsored the adventure education camp under the scholarship and future development program of Kaohsiung United Charity Association
    Aug. 2019 Co-organized blood donation activities with Kaohsiung Export Processing Zone
    Aug. 2019 Participated in Kaohsiung United Charity Association’s scholarship and future development program
    Aug. 2019 Sponsored Siao Gang Senior High School’s orchestra for the joint orchestra concert at Kaohsiung City Dadong Arts Center
    Sep. 2019 Sponsored Siao Gang Senior High School’s karate team
    Sep. 2019 Invited students from Siao Gang Senior High School to participate in Taiflex Youth Care Moving-going Event
    Sep. 2019 Donation to Puren Youth Care Foundation for scholarship programs
    Sep. 2019 Sponsored activities organized by Kaohsiung United Charity Association to help disadvantaged families
    Sep. 2019 Sponsored the charity activity for children organized by cnYes
    Sep. 2019 Invited teachers and students from National Kaohsiung University of Science and Technology to visit the Company
    Oct. 2019 Assisted Kaohsiung United Charity Association with food bank activity
    Nov. 2019 Hosted the Kaohsiung study tours of Puren Youth Care Foundation
    Nov. 2019 Invited teachers and students from National Kaohsiung Normal University to visit the Company
    Dec. 2019 Sponsored the parent-child learning event organized by Good Shepherd Social Welfare Foundation at National Science and Technology Museum
    Dec. 2019 Sponsored Siao Gang Senior High School’s basketball team
    B. Information related to the aforementioned charitable activities is summarized as follows:
    Item Performance
    Total number of participants 50 participants
    Number of beneficiaries About 200 people
    Number of participants in industry-academia collaboration  3 people
    Amount sponsored NT$1,552 thousand
    (3) Consumer rights and interests:

    The Company performs its contractual obligations to protect the rights of the Company and consumers.

    (4) Human rights:

    The Company provides equal employment opportunities to all individuals, regardless of gender, religion and political affiliation. It also establishes a safe environment to protect employees from discrimination and harassment.

    (5) Safety and Health:

    The Company complies with the Occupational Safety and Health Act and establishes safety and health management organization and dedicated unit accordingly to draft, plan, promote and monitor the implementation of various safety and health measures.