Promote projects

Operational situation

1. Has the company established a governance structure to promote sustainable development, and set up a full-time (part-time) unit to promote sustainable development, with the board of directors authorizing senior management to handle it, and what is the situation of board supervision?

1. Although the company has not established a governance structure for sustainable development, the current planning powers for promoting corporate social responsibility and implementing the concept of sustainable management are as follows:

(1) Promote and strengthen corporate governance organizations and systems.

(2) Promote and implement work related to honest management.

(3) Promote and develop corporate social responsibility policies and sustainable management matters.

(4) Implement and assist with risk management-related matters.

(5) Plan and promote matters related to energy conservation, carbon reduction and carbon neutrality.

(6) Execute other related matters approved by the board of directors.

In order to implement the sustainable operation policy and improve risk management and control, the general manager's office is responsible for jointly promoting sustainable development related to human resources and production units, taking practical actions to face climate change, and regularly reporting to the board of directors for implementation. Situation and planning for the next year.

2. 2022 implementation results:

(1) Continue to take measures to reduce air pollution and stop coal-fired boilers.

(2) Improve the utilization rate of recycled water.

(3) Continue to replace energy-saving and water-saving machinery and equipment.

(4) Continue to conduct employee care activities and environmental protection-related education activities.

The above operational results are disclosed in the corporate social responsibility area of the company's website.

3. The implementation results are regularly reported to the board of directors, and the setting of goals and communication with stakeholders are reported. The board of directors regularly reviews the company's strategies and goal progress, and when necessary, urges the company to adjust its direction to meet the expectations of stakeholders and align with international standards.

2. Does the company conduct risk assessments on environmental, social and corporate governance issues related to the company's operations in accordance with the principle of materiality, and formulate relevant risk management policies or strategies?

1. Major environmental issues:

The company has identified climate change risks and assessed climate change-related response measures, such as the risks of water shortages in dry seasons and power rationing in summer caused by climate change. It has formulated risk management procedures for water and electricity consumption, including plant-wide water rationing and water supply management regulations, emergency power supply priority operation standards, etc. As of the end of 2022, the company has introduced ISO 9001 quality management system and ISO14001 environmental management system.

2. Major social issues:

The society regards improving occupational safety and health management as a key project. The company has obtained ISO 45001 occupational safety and health management system and CNS 15506TOSHMS occupational safety and health management system. Relevant management policies include: improving employees' awareness of safety and health through education, training and promotion. Mentality, cognition and ability, on-site supervisors at all levels regularly review the behavior and working environment of employees and co-factory personnel.

3. Major issues in corporate governance:

In order to avoid the risk of violations caused by internal operations not responding immediately when external regulations are updated, we plan to establish a regulatory management system to track the dynamics of various domestic regulations to effectively implement, integrate and respond to various regulatory changes.

3. Environmental issues

(1) Has the company established an appropriate environmental management system based on its industrial characteristics?

The company has established a labor safety and health committee and management unit, and formulated labor safety and health management measures for compliance. The company has established an environmental management system based on the characteristics of the textile industry and has obtained ISO14001 environmental management system certification. It uses management methods and strategies to solve environmental-related problems in an orderly, targeted and methodological manner. This includes implementing paperless office operations, reducing paper waste and comprehensively modifying energy-saving lamps to save energy to reduce the impact of the company's operations on the natural environment. In order to cooperate with the improvement of the industry's environmental protection image and ensure that its own actions do not cause harm to the environment, the company has cooperated with the Ministry of Economic Affairs The Industrial Bureau signed an industrial low-carbon technology integration and application guidance plan. The Company continues to actively participate in meetings related to the development and revision of environmental protection regulations, providing opinions on additions and revisions and understanding regulatory trends, so that the Company can develop countermeasures in advance and achieve the purpose of effectively controlling environmental risks.

(2) Is the company committed to improving the utilization efficiency of various resources and using recycled materials with low impact on the environment?

In order to reduce the load caused by operations on the environment, the company developed a heat energy recovery system with the Textile Research Center. Through the recycling and reuse of water resources, the company has zero pollution emissions as its main goal. It also regularly reviews the use of water, electricity and other resources to replace waste. energy equipment, promote energy conservation and carbon reduction projects in the factory, and improve the efficiency of resource and energy use.

(3) Has the company assessed the potential risks and opportunities that climate change poses to the company now and in the future, and has it taken measures to respond to climate-related issues?

The company takes stock of risks and opportunities related to climate change, including identifying physical risks such as water shortages in dry seasons and power cuts in summer due to extreme weather, transformation risks due to changes in regulations and policies, as well as water-saving and carbon-reducing technologies and the provision of low-carbon products. opportunities, and develop response plans based on the identification results, and evaluate the company's current and future potential risks and opportunities and other related climate issues planning and response measures, including continuing greenhouse gas reduction measures and starting to develop new low-carbon and low-consumption energy Process, etc.

Through improving technical engineering guidance and gas emission control, the company improves or replaces energy-saving and water-saving equipment on machines and equipment, reduces energy consumption and reduces carbon dioxide emissions to meet environmental protection needs and fulfill its responsibility as a global citizen.

(4) Has the company collected statistics on greenhouse gas emissions, water consumption, and total waste weight in the past two years, and formulated policies for energy conservation, carbon reduction, greenhouse gas reduction, water use reduction, or other waste management?

The company has been committed to promoting energy conservation and carbon reduction policies for many years, and has listed the sustainable development of ecological resources as the company's operating policy (detailed operating policy on page 2 of the annual report). It adopts a greenhouse gas inventory system to understand its own greenhouse gas emission status (2022 and Carbon emissions in 2021 are 25,048 tons and 27,452 tons respectively), continuous statistics of water consumption (annual water consumption in recent 2022 and 2021 are 518,000 tons and 536,000 tons respectively) and total waste weight (in recent 2022 and 2021, The total weight of waste in 2021 is 588 tons and 765 tons respectively), which are included in the management report for tracking.

The company has set various emission standards with the goal of continuously reducing gas emissions, water consumption and the total weight of waste to 5% of average unit consumption every year, with the goal of becoming a low-carbon enterprise with environmentally sustainable development.

In order to achieve the above emission reduction goals, in addition to continuing to update the production equipment of the water-saving system and improving process research and development, the company has also reduced waste by eliminating coal-fired boilers and replacing them with medium-pressure steam and adding a new sludge drying system. At the same time, due to the above improvements, greenhouse gas emissions will also be reduced. Calculating consumption per unit of production in 2021, the reduction in gas emissions, water use and waste increases and decreases are -8.8%, -1.3% and -21.6% respectively.

4. Social issues

(1) Does the company formulate relevant management policies and procedures in accordance with relevant laws and international human rights conventions?

In accordance with the relevant norms of the United Nations International Labor and other human rights organizations, the company is committed to recruiting personnel in an ethical and socially responsible manner, and is committed to implementing and executing the elimination of all forms of human trafficking and forced labor risks that may arise in operations and supply chains. It also announced the implementation of the "zero fee for foreign migrant workers" policy and revised labor recruitment procedures to eliminate the risks of human trafficking and forced labor for foreign migrant workers. Implement the expectations of international human rights organizations on migrant worker policies.

Based on the spirit of humanity and compliance with labor laws and regulations such as the Labor Standards Act, we insist on not employing child labor and ensure that minors can grow up in a healthy environment both physically and mentally. During recruitment, interviewers will vigorously promote the company's policy prohibiting child labor to job seekers, and strictly control identity verification procedures to eliminate any possibility of employing child labor with forged documents. (Details are explained under employee benefits and labor-management relations)

(2) Does the company formulate and implement reasonable employee welfare measures (including salary, vacation and other benefits, etc.), and appropriately reflect operating performance or results in employee remuneration?

The company complies with the "Labor Standards Act" and related laws and regulations to formulate various salary and welfare measures for employees, and provides market-competitive benefits to motivate employees. In addition, regular assessments are made, and a certain amount of monthly profit is allocated to pay performance bonuses, so as to communicate with colleagues in a timely manner Share surplus results.

In terms of employee benefits, the company has a diversified welfare system and comprehensive retirement measures that are in compliance with laws and regulations. The "Labor Retirement Reserve Supervisory Committee" is established in accordance with the law, and pension funds are regularly allocated and deposited with the Bank of Taiwan Co., Ltd. (formerly the Central Trust Bureau). The committee is also held regularly to review the allocation and utilization of pension funds to protect the rights and interests of colleagues. In addition, for colleagues who choose to adopt the new labor pension system, 6% of their salary will be transferred to the personal pension account of the Labor Insurance Bureau in accordance with legal regulations every month. (Details are explained under employee benefits and labor-management relations)

(3) Does the company provide a safe and healthy working environment for employees and provide regular safety and health education to employees?

The company regularly conducts employee health examinations and strengthens supervision of labor safety and health management in various departments. It also continues to develop employees' emergency response capabilities and safety concepts through labor safety and health training. The company employs factory doctors and nursing staff to regularly stay at the factory to care for employees' physical and mental health. Health actively tracks the health status of employees and provides employees with a safe and healthy working environment. No occupational accidents occurred this year. (Details are explained under employee benefits and labor-management relations)

(4) Has the company established an effective career development training program for employees?

The company investigates department and individual needs and career plans every year, examines the gap in employee capabilities, and plans and arranges external training for employees, including the Textile Research Center, Silk Weaving Association and Productivity Center to conduct various courses to help employees’ career development, so as to develop multiple talents. Functional talents are not required to hire external lecturers to the company for special education and training. (Details are explained under employee benefits and labor-management relations)

(5) Regarding issues such as customer health and safety, customer privacy, marketing and labeling of products and services, does the company follow relevant laws and international standards, and establish relevant policies and complaint procedures to protect the rights and interests of consumers or customers?

The company's marketing and labeling of products and services comply with relevant laws and regulations and international standards.

The company has established relevant internal control system procedures to ensure the rationality of procurement and production operations, and maintains communication channels with suppliers. On the basis of mutual trust and reciprocity, both parties should safeguard the reasonable rights and interests of both parties. The company is a professional dyeing and finishing agent. The factory and related owner's rights and interests are stated in the contract, and a channel is provided to handle customer complaints, making the relationship between customers and the company more harmonious.

The company attaches great importance to customer opinions. In addition to regular individual visits, the company also provides product contact windows and email addresses on the company website, and also sets up a stakeholder area to provide management of customer questions, complaints or suggestions. The company upholds the principle of integrity and handles them appropriately. Give feedback to protect customer rights.

(6) Has the company formulated a supplier management policy that requires suppliers to comply with relevant norms on issues such as environmental protection, occupational safety and health, or labor rights, and its implementation status?

The company has a supplier management policy. Before purchasing goods from suppliers, in addition to obtaining the supplier's product inspection documents and evaluating past supply records and credibility, it also has a record of complying with relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights. It is also one of the evaluation indicators.

The contract signed with the supplier stipulates that the contract may be terminated or terminated if the company violates the corporate social responsibility policy. In addition, the company will require suppliers to comply with relevant environmental laws and issue relevant guarantee letters. If the supplier violates the requirements, the company may claim to terminate or terminate the contract.

5. Does the company refer to internationally accepted reporting standards or guidelines to prepare corporate social responsibility reports and other reports that disclose the company's non-financial information? Has the previous report obtained the confidence or assurance opinion of a third-party verification unit?

Although the company has not issued a corporate social responsibility report, policies related to environmental policies, human rights norms, corporate governance, health and safety and ethics are implemented in accordance with GRI Standards, and the implementation status is evaluated by itself.

6. If a company has its own corporate social responsibility code based on the "Code of Practice on Corporate Social Responsibility for Listed Companies", please describe the differences between its operation and the prescribed code:

Although the company has not formulated a code of practice for corporate social responsibility, it has actively and continuously promoted and fulfilled corporate social responsibility in the three major areas of corporate governance, environmental protection, and social welfare. Relevant norms have also been formulated in the company's personnel, environmental protection, and safety aspects. Hygiene operation standards meet legal requirements.

7. Other important information that is helpful in understanding the operation of corporate social responsibility:

Specific plans and implementation results related to the implementation of the company's promotion of sustainable development:

1. Promotion plan:

(1) Our company has joined the "United Global Compact" to contribute corporate social responsibility to the world. The initiative is committed to ten principles in the areas of human rights, labour, environment and anti-corruption to promote sustainable corporate development.

Human rights: 1. Support and respect international human rights within the scope of corporate influence.

2. The company ensures that human rights are not violated within the company.

Labor: 1. Protect workers’ freedom of assembly and association, and effectively recognize the right to collective bargaining.

2. Eliminate all forms of forced labor.

3. Effectively abolish child labor.

4. Eliminate employment and career discrimination.

Environment: 1. Support preventive responses to environmental challenges.

2. Adopt more corporate environmental responsibility practices.

3. Encourage the research, development and diffusion of environmentally friendly technologies.

Anti-corruption: 1. Enterprises should be committed to anti-corruption activities, including extortion and bribery.

(2) The company has always been committed to fulfilling corporate social responsibilities. In addition to the above description, it also includes:

1.Environmental protection

Our company is a professional dyeing and finishing industry. In recent years, with the support of the Ministry of Economic Affairs and the Bureau of Industry, we have provided relevant guidance on clean production technology, process waste reduction and pollution prevention technology. We believe that we can gradually get rid of the labor-intensive stereotypes of the past and step into the Technology-intensive, R&D design focuses on mechanical automation, safety and environmental protection, and product diversification, presenting a new production visualization plan with new texture, comfort, and environmental protection. In addition, the company continues to add and optimize sludge drying equipment to achieve the goal of reducing sludge in half. It also implements and completes the "Long Fiber Woven Smart Manufacturing Production Optimization Plan" of the Ministry of Economic Affairs. Through the optimization results, in addition to smart energy saving , improve the yield of finished products, thereby reducing waste generation and shortening delivery time, and gradually contribute to protecting the natural environment.

In terms of international environmental certification, our company's textile products have obtained Swiss environmental standard Bluesign® certification and OEKO TEX@ standard 100 product hazardous substance inspection certification.

2. Product liability

As a citizen of the earth, our company deeply understands the importance of environmental sustainability. Through the introduction of environmental management system (ISO-14001:2015), we have minimized the risk of environmental violations, and actively promotes energy-saving and carbon-reduction battle plans in the long term to strengthen Improve employees' environmental awareness and improve the efficiency of use of various resources.

3.Labor-employer relationship

Staff appointments are based on the annual plans of each department to prepare manpower needs, and through multiple recruitment channels, we look for outstanding talents who are in line with the core values of CHYANG SHENG TEXING; we work with the campus to jointly promote internship cooperative teaching and practical training, and provide internship programs for current students through Workplace experience opportunities assist students in their functional development and enhance their future employability.

Pay attention to talent retention, objectively understand the reasons for employee resignation through interviews and collect relevant information, analyze the data and provide follow-up improvement plans, feedback to department heads for personnel management, work design, and adjustment of recruitment and vacancy conditions and other optimization measures.

4. Anti-corruption

The company has set up a dedicated unit to promote integrity management, which regularly reports to the independent directors at the beginning of each year on the implementation of integrity management in the previous year, and assists the board of directors in checking and evaluating whether the preventive measures established for the implementation of integrity management are operating effectively.

The "Integrity Management Code", "Ethical Code of Conduct", internal control system, authorization system, functional division of labor and other anti-fraud measures formulated by the Integrity Management Promotion Group, and cooperate with internal audit operations, internal control self-assessment operations and provide channels for reporting violations of professional ethics , implement anti-corruption enforcement measures.

5.Customer privacy

The company strictly abides by the confidentiality of business secrets and is not allowed to inquire or collect non-job-related business secrets, trademarks, patents, works and other intellectual property of suppliers and customers, and is not allowed to leak it to others. It has signed confidentiality agreements with customers and has activated information security. Specific risk protection measures to protect business secrets.

6. Compliance with social and economic regulations

The company complies with laws and regulations such as the Fair Trade Act, the Trade Licensing Measures of Taiwan and Mainland China, and international standards. All products comply with international safety standards, ensuring that business operations are environmentally friendly and ethical. We also hold internal training courses to promote laws and regulations.

2. Implementation results

The company added sludge drying equipment for the first time in 2019 to achieve the goal of halving sludge. In 2020, the company signed the "Joint Global Compact" to contribute corporate social responsibility to the world and is committed to ten issues in the fields of human rights, labor, environment and anti-corruption. principles to promote the sustainable development of enterprises. In 2022 and 2021, an industry-university cooperation plan will be signed with Qinyi University of Science and Technology. In these two years, an average of 12 young students will be provided to take turns to intern in the factory.