Table of - 聯茂電子 · Energy usages reduce 4.1% for prepreg and copper foil laminate. CO2 reduces 1.6% for prepreg and copper foil laminate. Gain 4 diesel car autonomy management

Table of Content

Report Contents

Words from Management

Key Performances in 2017

SDGs Mapping

02

03

04

05

1 Company Governance

2 Stakeholder Engagement

3

Appendix

Comparison Table of GRI4.0 Index

46

1.1 About ITEQ

1.2 ITEQ Future Vision

1.3 ITEQ’s Management Structure

1.4 Management Performance

1.5 Responsilities of ITEQ

06

08

08

10

13

4 4.1 Climate Change and Energy Management

4.2 Chemicals Management

4.3 Pollution and Emission Management

4.4 Environmental Performance

25

28

30

33

5 5.1 Human Resources

5.2 Employee Care

5.3 Labor Safety and Health

5.4 Training and Promotion

5.5 Community Participation

34

35

39

42

443.1 Supply Chain Management

3.2 Customer Service and Management

18

23

2.1 Communication with Stakeholders

2.2 Critical Issues

14

15

Supply Chain Management and Customer Service

Sustainable EnvironmentManagement

Employee Care and Community Participation

02

Chapter

Report Contents

Report Contents

Report Contents

ITEQ Corporation (hereinafter known as

the Company, ITEQ Corporation or We) was

established in 1997. For many years, we have

dedicated to High-end copper clad laminate,

prepreg, mass lamination, and thermal

conductivity materials.

In 2017, ITEQ Corporation have launch first

CSR report, which will be public on the

Market Observation Post System and the

company's website. We hope that the CSR

report can act as a communication channel

and platform between ITEQ Corporation

and stakeholders, to state ITEQ's efforts

and performance in the areas of economics,

environment and social issues.

This report has been composed according

to the GRI 4.0 structure disclosed by the

GRI (Global Reporting Initiative), with the

core intent of disclosing data. All financial

statistics within this report are in NT dollars

and has be approved by Accountants. Other

relevant statistics are shown in international

index as calculation basis. If the disclosing

indexes have specific meaning, we will state

by notes.

Report Issue Time & Cycle

The enclosure of the report is from January

1st, 2017 to December 31st, 2018. Some

information is related to 2016.

The report is launched once a year and

we are welcome to download from ITEQ

website,” http://www.iteq.com.tw/”.

◆ First version：2017 October

◆ Current version：2018 November

◆ Next version：2019 October

Border & Scope

All currency units are New Taiwan Dollar

(NTD). Partial indexes emphasize long term

trend so we provide constant number of

2015 ~2017. If you have any comments to

our CSR report, we are welcome to know

your valuable opinions. Thank you.

Contact Information

Contact： Chou Rung Tsan, Senior Director of Finance Center

Address： N o . 1 7 , D a l u g e R d . , X i n p u Township, Hsinchu County 305, Taiwan (R.O.C.)

Telephone No.：+886-3-588-7888

E-mail：[email protected]

Website： www.iteq.com.tw

03

Chapter

Words from Management

Message from Chairman

【Innovation, Team work, Excellence, Quality】

Chairman：Mr. John Tsai

This is our second year to announce CSR which leads off law regulations. In these year,

ITEQ Corporation upholds honest and firm business beliefs to implement the culture

of Innovation, Team work, Excellence, and Quality. We focus on environmental friendly

laminates for PCB applications.

In order to control the impact to environment during manufacture process, we

increase many handling equipment to upgrade our capability for friendly products to

environment. Meanwhile, we also enhance safety awareness and training of employees

to achieve safety productions and no injury.

We join community activities and recruit more local employees primarily. We believe

to promote corporate social responsibility is our competitiveness and long-term

development of ITEQ group, and increase benefits for stockholders, stakeholders,

employees, and all society.

04

Chapter



Company Responsibility & Governance Supply Chain Management and Customer Service


Environment Sustainability Management

Received“A+ Industrial Innovative R&D Program”grant from Ministry of

Economic Affairs for pioneering technology, for the item forward plan for the development of innovative and difficult technologies. The grant is scheduled for 2015-2018.

The Earning per share of 2017 was 4.11, the highest record of recent 4 years.

No claims for corporate faith in 2017.

Completed the auditing and evaluation of CSR for 14 venders in 2017.

The Top 10 largest clients of all expressed their satisfaction according to satisfactory survey of 2017.

The starting salary of male and female workers adopts the same salary principle.

The average starting salary is 1.66 & 1.59 times compared to Taiwanese average salary respectively.

Continuously passed the Occupational Safety and Health Management system OHSAS 18001 verification.

The members of Occupational Safety and Health Committee are 17, with 10 representatives of labor workers, accounting for a-third more than the number required by law.

Average training time is 23.1 hours

RTO reaches 95% for new energy saving equipment of Xinpu plant.

Energy usages reduce 4.1% for prepreg and copper foil laminate.

CO2 reduces 1.6% for prepreg and copper foil laminate.

Gain 4 diesel car autonomy management service marks, 2 of them were of the A-1 band.

Industrial waste was reduced 16.78% in 2017 compared to 2016.

Environment Protection costs and investment：24,175 (thousands)

SDG

Goal 5 /

Achieving gender equality and protecting the rights of women.

The starting salary of male and female employees are based on the same rewarding principles.

5. Employee Care and Community Participation

ITEQ’s Actions in this category Corresponding Chapter

Goal 7 /

Making sure that everyone has access to affordable, reliable, sustainable and modern power source.

Goal 8 /

Promoting understanding and sustainable economic growth to achieve over-all production and provide good jobs for everyone.

The design of the plant revolves around low-carbon emissions.

Through ISO 14001 environment management system, constantly tracking and improving relevant power usage.

Continue production and R&D to enhance the products additional value.

Safety as top priority, providing a safe working environment.

Insist on green purchasing, and indulging in the development of environmentally friendly laminate. Taking into account the different impacts of the products life cycle, we chose materials that pose minimal danger and the human body and the environment from initial acquiring of materials all the way to generated production waste.

Pushed for a waste reduction project in general business operations, allowed by relevant regulations.

All employees indulging in carbon reduction, in daily business operation to reduce the impact of climate change.

Goal 12 /

Ensure sustainable consumption and production methods.

Goal 13 /

Adopt emergency measures to respond to climate change and its effects.

3. Sustainability Management

1. Company’s Operation & Management

5. Employee Care and Community Participation

3.Supply Chain Management and Customer Service

4. Sustainable environment management

4. Sustainable environment management

Image and Goals source: UN Sustainable Development Goalshttps://sustainabledevelopment.un.org/

Chapter

SDGs Mapping

05

SDGs MappingITEQ's Efforts towards SDG

In face of the worsening pollution of the global environment and social issues, the UN proposed 17 SDG's (Sustainable Development Goals) in 2015 in hopes of

uniting different governments, organizations, enterprises and individuals in achieving sustainability. As a member of the world's supply chain, we approve of the

values of SDG and shall work towards its contribution through achieving goals 5,7,8,12,13 and fulfilling the duties of a global citizen.

2017ITEQ CORPO�TION

CSR

Chapter 1

Company Governance

06

Company Governance

1.1 About ITEQ


1.3 ITEQ's Management Structure


1.5 Responsilities of ITEQ

Company Governance

Received“A+ Industrial Innovative R&D Program”grant from Ministry of Economic Affairs for pioneering technology, for the item forward plan for the development of innovative and difficult technologies. The grant is scheduled for 2015-2018.

The Earning per share of 2017 was 3.13, the highest record of recent 4 years.

No claims for corporate faith in 2017.

1.1 About ITEQ

ITEQ was established at 4F.-1, No.26, Sec. 3, Ren'ai Rd., Da'an Dist., Taipei

City 106, Taiwan (R.O.C.) in 1997 by Mr. Wan Hai Wei, Kao Ji Tzu and a

team of high-tech professionals. Hua Yang Small & Medium Enterprise

Development, Polymax Industry and other main shareholders invested

in the plant and initiated the development of the domestic market for

multi-layer printed circuit board basal materials & copper foil laminate.

As one of the supply chains for printed circuit board materials, product

property performance and cost competitiveness have always been

the driving force behind our product designs. With the advantages of

internal R&D, ITEQ has established itself as one of the world's top brands,

especially in halogen free and high TG frequency materials in production

process. ITEQ offers all-in-one complete solutions, with services for PCB,

Flexible PCB, and Rigid-Flex ones.

POINT


CSR

Chapter 1

Company Governance

07

1.1.1 ITEQ Status

• Establishment Date：1997

• Chairperson：Tsai Mao Chen

• General Manager：Tsai Shing Shue

• Paid-in Capital：3,029,572(thousands)

• Turnover of 2017：3,524,331(thousands)

（Last updated 31/12/2017）

▲ ITEQ Key Events

1997 ITEQ was established with a registered capital of 220,000 (thousand NTD). Main products include multi-layer printed circuit board basal materials.

1998

ITEQ was established with a registered capital of 220,000 (thousand NTD). Main products include multi-layer printed circuit board basal materials.

BSI ISO-9002 verification

2002 ITEQ became an over-the counter company

2005 Gained the UN's RoHS quality verification of Hitachi Chemical, Unimicron Corporation, & Tripod Corporation

2006 Mitsubishi Halogen free usage verification

2008 ITEQ became an OTC Listed company

2011

Received over 11 patents in Taiwan, China and USA on “Heat Dissipation Laminate” & “Heat Dissipation Laminate for LED Back-lighting Module” and gradually applied for 8 domestic & foreign patents regarding improvements in heat dissipation Laminate products and its materials.

2014 Xinpu plant officially started at the end of August and passed the ISO 14001, OHSAS 18001 testing and gain the ISO TS16949 verification.

▲ ITEQ Organization Chart

Deriving from the electronics industry, ITEQ participates in the industry's vital

organizations and actively observes the development of the industry's trends

and offers assistance when needed.

Bon Mou Investment Co.

ITEQ Corporation

ITEQ (Huang Jiang) Corporation (ITEQ HJ)

ITEQ (Dong Guan) Corporation (ITEQ DG)

ITEQ (Guang Zhou) Corporation (ITEQ GZ)

ITEQ (Wuxi) Electronic, Co., Ltd. (ITEQ WX)

ITEQ (XIANTAO) Electronic, Co., Ltd.

▲ List of Organizations ITEQ has joined

Name of joined organization Location Identity

Taiwan Printed Circuit Association Taiwan Vice-Director

Taiwan ITRI New Venture Association Taiwan Member

The Institute of Internal Auditors-Chinese Taiwan Taiwan Member

• Number of Employees： 433 people (Taiwan) / 2,929 people (worldwide)

• Headquarter Address： No.17, Daluge Rd., Xinpu Township, Hsinchu County, Taiwan (R.O.C.)


CSR

Chapter 1

Company Governance

08

1.3 ITEQ's Management Structure

foundation of an enterprise's sustainability. We adopt a decentralized

management structure and encourage transparent communication as our

company's governing principle.

1.3.1 A stable management structure


Our sustainability core values revolve around Innovation, Teamwork, Excellence

and Quality. As an enterprise whose policies revolve around sustainability

management, the content of following chapters will be based on the four core

values.

1.2.1 Innovation of Ideas, Service in Good Faith

Good Faith is the core of the Company's management. ITEQ has established a

“Code of Good Faith Management” as the fundamental structure in which

it bases its reputable business operations on. The code clearly defines the

behavior that contradicts good faith, different forms of benefits, company

policies and prevention methods that are core the corporation's good faith

management. It also authorizes the Chairperson to come up with a “Good Faith

Management SOP & Code of Conduct” as guideline for its implementation.

According to the behavior guidelines, the main competent authority of good

faith management is the “Management Committee”, which regularly reports

the group's good faith management actions and acts as the contact window for

internal & external good faith management issues. We have set communication

email address and encourage our employees and external people to contribute

to the establishment of good faith.

Email：[email protected]

During 2017, there were no violations to the aforementioned ITEQ Corporation

“Code of Good Faith Management” or corruption restrictions. In the future,

we shall actively promote inquiry contact window of good faith management to

enforce communication.

Auditing Office

Legal Department

Remuneration Committee

Board of Directors

Chaiman

President

OEM

Technology Center

Laboratory Analysis

Research & Development Department

Qualit y Assurance

Department

Manufacturing Engineering

Manufacturing Management

Engineering & Maintenance Department

Operation Management Department

Domesic Sales Department

Export Department

Technical Service

Department

Information Department

Production Management Department

Material Department

Procurement Department

Management Department

OccupationalSafety

Department

Finance Department

Manufacturing Division

Marketing Division

Administration Division

Technology Center Wuxi Plant Huanan

PlantTaiwanPlant

Guang Zhou Plant

Group Procurement

Financial Center

Shareholders’Meeting

Chief Technology Officer & North American Business


CSR

Chapter 1

Company Governance

09

The Company's highest governing team is the board of directors, consisting of

7 directors. To be eligible as a director candidate, the individual not only has

to meet the requirements of the law, but must have relevant experience and

expertise of the industry. Two of the directors of the board must be independent

directors. A “Board of Directors Meeting Regulations” was composed to

regulate the call-to-service and meetings of the board. In 2017, the board of

directors gathered on 6 occasions, with no violations to the “Board of Directors

Meeting Regulations”. For information on the attendance of directors, please

refer to the 2017 shareholder's meeting report.

The Company has established a “Management Committee” that is

responsible for coordinating the usage of cross-department resources as well as

building consensus. The management level utilizes mutual agreement methods

in the voting of the Company's major decisions. This includes the Company's

cash flow, business status, major expenditures and proposing improvements as

well as suggestions. The execution of relevant actions, ensure highly efficient

cross-department team that contributes to the enhancement of integration and

efficiency of the Company's operations. This mechanism assists the board in its

role in addition to complete supervision and management enhancement.

▲ Responsibilities of Departments

Department Responsibility

◆ Auditing OfficeAudit, Evaluation of the management of different departments and implementing internal controls as well as provide suggestions for improvement

◆ Financial Center Manage the corporations finance, accounting, stock & cash operations.

◆ Department of Legal Affairs Coordinate the corporation's legal and intellectual property matters.

◆ Management Coordinate the company's human resource, administration and general affair matters.

Department Responsibility

◆ Procurement The purchase, import/export of raw materials and production facilities.

◆ Materials Department

Production schedule supervision, material supply supervision, information system planning, and maintenance.

◆ MIS Department The daily functions of computerization, software design and maintenance of computers as well as develop a system for document management.

◆ Marketing Department

Marketing & Development of client sources in foreign markets. Confirm shipment date and customer management.

◆ QA Center Establishment, execution, testing and verification of the quality of prepreg & copper foil laminate.

◆ Tech Service Center

Customer service for the global market and OEM/ODM. Technology & promotion of high-end materials,

◆ Labor Safety Department The planning, establishment, execution of the plant's occupational safety.

◆ Manufacture Bureau

Manufacture & Production of prepreg, copper foil laminate; maintenance of production facilities.

◆ R&D CenterResearch & Development of Copper foil laminate (including Flexible CCL) , evaluation and SOP establishment of new raw materials. Planning, application and execution of projects.

1.3.2 Information Disclosure

We have authorized Capital Securities Corporation as the transfer agency for

issues regarding our stocks. The company has appointed spokesperson &

deputy spokesperson positions to communicate with investors, acting as direct

bridges between us and our shareholders.

• Spokesperson：Tsai Shing Shue/CEO & General Manager

• Spokesperson email：[email protected]

• Deputy Spokesperson：Chou Alex/Senior Director

• Deputy Spokesperson email：[email protected]

• Spokesman service line：+886-3-588-7888


CSR

Chapter 1

Company Governance

010

ITEQ is an OTC-Listed company and by law is required to regularly disclose and

upload “certified (annual) or verified (quarter) financial statement”, “annual

reports”, “monthly operation performances”, “Shareholder stock change

among directors, supervisors, managers and shareholders with over 10%

shares” and “shareholder's meeting information” etc on market observation

Post System. Since 2016, we shall regularly produce a CSR report to be placed

in the CSR section of the company website, as an important communication

channel and platform between us and stakeholders.

1.3.3 CSR Management

In order to implement the concept of sustainability management, the board

of directors passed the “CSR guidelines”, with the board of directors as the

highest governing team of CSR. Since the start of 2016, ITEQ has established

CSR teams dedicated to sustainability issue. A total of 4 teams exist across

different areas, composed of suitable supervisors and employees from different

departments. They engage in regular discussion meetings. The CSR teams

coordinate, manage and execute ITEQ's policies and events as well as the

edition of annual CSR reports.


1.4.1 Management Performance Policies

In order to see a growth to the company's profitability, we insist on undergoing

R&D of new products and manufacturing process in addition to actively

developing environmentally friendly 4c green products, applicable in ratio

transmission facilities, communication base stations, high-end server

computers, wireless transmitters, information storage cloud facilities, smart

phones and laptops. As well as key materials for auto-electronics, portable

personal wearable accessories, Rigid-Flex Boards and other related fields.

▲ Short & Long Term Development Plans

Highest Governing Authority

Board of Directors

Compile and Edit CSR report

Company Management/Economic

DivisionEnvironmental

Sustainability Division Green Product DivisionEmployee

Welfare/Community Charity Division

Responsible for the Company’s Management, Good Faith Management & regulation compliance and Operation management & financial related issues.

Responsible for Employee rights, education training and Labor Act compliance, community participation and appeal processing.

Planning of ITEQ’s environment management policies and events.

Product Impact, Green product R&D

Department of Legal Affairs / Auditing Office

Short Term Development Plans Long Term Development Plans

To maximize the economic efficiency avd to use the lowest cost in order to integrate group distribution.

Indulge in close distance for client services and provide clients a flexible production system. Active strategic layout to maximize economic scale .

Elastic production management and Premium production efficiency, enhanced facility efficiency, improved production rates and control the production cost.

Actively develop the market, develop the sales of green and high added value products. Actively compete for international orders, constantly adjust product composition create greater revenues and higher market shares.

Strategic cooperation with supply chain partners, and jointly develop high-end special material products and 5G markets.

Develop LCP material for high-end mobile projects.

Strive for product balance of different markets and end users.

To become the world’s top 5 CCL material and top 4 OEM’s for mass-lam service.

Utilizing internal and external capital in accordance to business scale expansion.

Enhance the recruitment and training of employees, implement successor plans, and create highly efficient and multi-function teams through the concept of sustainability.

Ultimating utilization rate of the Taiwan plant to accelerate the sales of foreign markets.


CSR

Chapter 1

Company Governance

11

▲ Management Performance of past 3 years

Unit：Thousand NTD

2015 2016 2017

Revenue 19,077,278 19,681,638 21,214,333

Gross Margin Profit 2,374,641 2,866,558 3,099,677

Operating Income 1,117,025 1,588,217 1,752,441

Non-operating income & expenditure （48,469） 25,321 138,136

Net profit before tax 1,068,556 1,613,538 1,890,577

Current Net profit 600,054 951,958 1,244,702

Earnings per share 1.92 3.13 4.11

▲ Net worth, earnings, dividends, and market price per common share

Unit：Thousand NTD

Year Items 2015 2016 2017

Market Price per

Share

Highest 27.2 36.25 75.50

Lowest 16.05 21.20 33.30

Average 22.44 30.58 50.55

Net Worth per Share

Before Distribution 22.64 22.81 24.05

After Distribution 21.07 20.31 20.95

Dividends per Share

Weighted Average Shares (Thousand Shares) 313,045 303,755 302,957

DividendPerShare

Before Adjusted 1.92 3.13 4.11

After Adjusted 1.92 3.13 4.11

Dividends per Share Cash Dividend 1.6 2.50 3.10

Return onInvestment

Price/Earnings Ratio 11.69 9.77 12.30

Price/Dividend Ratio 14.03 12.23 16.31

Cash Dividend Yield 7.13 8.18 6.13

1.4.2 Government Financial Subsidy

Technology innovation is the core of ITEQ's competitiveness. We applied for

R&D Investment Deduction according to the industries innovation regulations.

▲ Investment Tax Credit by Year

Unit： NTD

　 2015 2016 2017

Tax Credit by Year(Declared)(I) 10,907,154 11,578,783 12,816,872

Accumulated Prior Year's Tax Credit(II) 0 0 0

Scheduled Reduction tax and Actual Reduction by Year(III)

9,820,746 11,578,783 12,816,872

Unreduced Offset Against Business Tax Payable (I)-(II)-(III)

1,086,408 0 0

Except application for industry R&D laws, the Company received the “A+

Industrial Innovative R&D Program” grant from Ministry of Economic Affairs

for pioneering technology, the forward plan for the development of innovative

and high-end technologies. The grant is scheduled for 2015-2018.

▲ 2015-2018 Subsidy

Unit： NTD

The“A+ Industrial Innovative R&D Program”grant

2015 2016 2017 2018

First Phase Payment 3,938,000 9,352,000 7,554,000 6,449,000

Second Phase Payment - 9,353,000 7,554,000 -

Total 3,938,000 18,705,000 15,108,000 6,449,000


CSR

Chapter 1

Company Governance

12

1.4.3 Technology Excellence

Our aim is not only to become professionals in laminate production, but expert

manufacturers in electronic component parts. We seek excellence quality to

fulfill our customer's requirements, which is why the company's investment in

employee training and R&D development is a continuous affair. Every year, a

significant sum is poured in R&D as well as human resources, with lucrative

results. New product roadmap of ITEQ Corporation is not focusing on high-

end Low Loss materials, Automotive, or Smartphone, but also on specific

requirements of end users of each market for short and long-term products.

For example, high end Server and Switcher request 200gbps now and ITEQ have

developed 400gbps for next generation in 2017. In Automotive applications,

we also provide halogen free materials of Hi-voltage and CAF enhancement for

Hybrid and Electric Vehicles.

In 2017, ITEQ launched micro wave material for high frequency application with

ultra low insertion in order to meet 5G standards. In flexible materials, we also

put efforts for specific and high-end applications.

Meanwhile, ITEQ cooperates with customers for new materials and

subcontracting for mutual niche.

▲ R&D Performances of Recent Years

High Tg HDI halogen free laminate

Low Transmission Loss Halogen free laminate

High Tg Low transmission loss halogen free laminate

Reliable automotive laminate

Ultra-thin Coverlay & base materials

Heat Dissipation laminate

Low loss substrate and pure resin bonding sheet

Ultra low loss Coverlay

Mid Tg Low Dk Halogen free HDI material

High Tg Low Loss Halogen free Server materials

Mid Tg Mid Loss Halogen free Sever materials

High Tg Low Dk Halogen free HDI materials

High Tg Mid Loss Halogen free Server materials

Mid Tg Low Loss Halogen free Server materials

High Tg Low CTE laminate

High Tg thick copper laminate

Ultra low loss Halogen free material

High frequency material for Antenna application

High flexural strength and hi-Tg cover lay

Hi-Tg halogen free material for Super fine line

Low SKEW material

Hi Tg and reliablility for Automotive

LCP for FCCL

Super thin and flex FCCL and cover lay

Hi-Tg low loss cover lay and prepreg

Non-adhsive low loss laminate

Although the PC, NB, smart phones and tablet market has gradually saturated

but with the rising popularity of portable devices, the demand for servers, , net-

work communication facilities, storage devices from Cloud computation, IoT

has increased. The support systems of man-less automotives, automotive elec-

tronics will become the future trend. Communication and automotive products

have the potential to provide the company with renewed operation momentum

and is one of the Company's important R&D goals.


CSR

Chapter 1

Company Governance

13

1.5 Responsibilities of ITEQ

1.5.1 The risks and challenges of climate change

The effects of climate change have presented the world with a serious

challenge. As a CSR oriented enterprise, ITEQ acts in environmental protection

is our response to such challenge. For information and performance indicators

of relevant environment management policies, please refer to the “Sustainable

Environment Management” chapter of this report.

1.5.2 Legal Compliance

The Law Department is responsible for the management of legal compliance at

ITEQ. In 2017, we saw no violations in terms of products, employees and social

issues. However, in 2017, the Hsinchu Environmental Protection Bureau ran tests

on the Company's plants and implemented fines according to Water pollution

Act., waste disposal Act, , Air Pollution Prevention laws and Toxic chemicals

management Act..

▲ 2017 Environmental Law violations

Unit：NTD

Reason Fine Follow-up Actions

Copper chloride dropped in life waste

water and pollute clean water area.31,500

Educating supplier, subcontractor, and

employees for waste transportation.

Waste list is not comparable as stock

area.6,000

Enhance remarks of waste areas and keep

stock organizational. After approved

by environmental evaluation, we will

implement waste change applications.

C-0301 waste liquid <60℃ is over 10%

base on Waste Clean Plan.60,000

Enhance the awareness of people in

charge to monitor control range.

Raw materials of EMS M01 in Fixed air

pollution are not listed in approval list.100,000

A f t e r a p p r o v e d b y e n v i r o n m e n t a l

evaluation, we will apply new approval list.

Specific management person of toxic

chemicals is not changed after resigning.60,000

New person have to be updated within 15

days after changing day.


CSR

Chapter 2

Stakeholder Engagement

14



2.2 Critical Issues



ITEQ refers to stakeholders' ideas and needs when managing key

operations. Through daily interaction with our stakeholders, we identify

major stakeholders based on dependency, responsibility, influence,

multiple views, and degree of concern and classify them into investors,

competent authorities, clients, suppliers, communities, employees, and

banks. To understand our stakeholders' issues of concern and feedback,

we have a well-established communication system and provide the

contact information on our website. The following table shows the

channel, frequency and issues of communication with stakeholders.

▲ Channel, Frequency and Issues of Communication with Stakeholders

Stakeholder Channel of Communication

Frequency of Communication Issue

Investors (Shareholders)

◆ Annual shareholders' meeting

◆ Publication of quarterly financial statements/annual report in accordance with the regulations

◆ Reply to inquiries or needs by phone or email

◆ Important disclosures on ITEQ's website

◆ Once a year

◆ Four times a year

◆ From time to time, at any time


◆ Corporate governance

◆ Business strategy and sustainable development

◆ Finance and profitability

◆ Technology R&D and innovation

◆ Information disclosure and transparency

◆ Technology R&D and innovationInvestors

(Board of Directors)

◆ Board of Directors

◆ Audit report

◆ Annual Statement on Internal Control

◆ Remuneration Committee

◆ Six times in 2017

◆ On a regular basis


◆ Four times in 2017


CSR

Chapter 2


15

Stakeholder Channel of Communication Frequency of Communication Issue

Competent Authorities

◆ Official documents

◆ Reply to inquiries of the competent authority and supplementaries

◆ Important disclosures and related reports in accordance with the regulations of the competent authority

◆ From time to time



◆ Compliance ◆ GHG management ◆ Energy/resource

management

Clients

◆ Client audit

◆ Business meetings

◆ Customer satisfaction survey

◆ Technology seminars

◆ CSR audit






◆ Business integrity ◆ Environmental pollution

control ◆ Product quality ◆ Information security ◆ Customer relations

Suppliers

◆ Supplier regular meetings

◆ Regular audit, evaluation, and counseling

◆ Supplier compliant system

◆ Technology seminars

◆ Project spread out

◆ Supplier training



◆ From time to time, continuously




◆ Corporate governance ◆ Supplier chain

management ◆ Finance and profitability ◆ Information security ◆ Information disclosure and

transparency

Communities

◆ ITEQ's website

◆ Supplier gatherings

◆ Community activities




◆ Community participation and feedback

◆ Compliance ◆ Environmental pollution

control

Stakeholder Channel of Communication Frequency of Communication Issue

Employees

◆ Direct supervisors

◆ Responsible person of Human Resources Department

◆ ITEQ's website

◆ Bulletin boards

◆ Feedback mailbox

◆ Employee forums/regular labor/management forums

◆ Monthly meetings

◆ Employee complaint system

◆ Employee Welfare Committee and clubs

◆ Activities

◆ Training programs and policy promotion meetings






◆ From time to time/quarterly






◆ Labor/management relations and employee care

◆ Occupational safety and health care

◆ Compliance ◆ Human rights ◆ Corporate image ◆ Employee career

development ◆ Employee benefits

Banks

◆ Business meetings

◆ Customer satisfaction survey



◆ Business strategy and sustainable development

◆ Finance and profitability ◆ Technology R&D and

innovation ◆ Information disclosure and

transparency

2.2 Identifying Critical Issues

This year, ITEQ published the first CSR report. We evaluated critical aspects

and boundaries in line with sustainability context, materiality, completeness,

and stakeholder Inclusiveness. The procedures for evaluating materiality are as

follows：


CSR

Chapter 2


16

▲ Identification

Through internal discussion and expert opinions, CSR Task Force identified 36

issues in terms of economy, environment, and society based on characteristics

of the industry, international trends, and peer development; then a survey was

made for all colleagues to fill out based on their interaction with stakeholders.

A total of 15 valid questionnaires were retrieved and used in the analysis of

material issues of this Report.

▲ Prioritization

The retrieved questionnaires were used to compile the degree of stakeholder

concern based on the weight of each stakeholder, namely the combination

of the economic, environmental, and social impact on ITEQ and the impact of

ITEQ on stakeholders; meanwhile, internal management grade the impact of 36

issues on the economy, environment, and society. At last, the degree of concern

and the degree of impact of each issue are shown in a matrix to screen material

issues in 2017, as shown in the table below.

▲ Analysis of Material Issues

Degree of Impact on Economy, Environment, and society

Deg

ree of Stakehold

er Co

ncern

▲ 2017 ITEQ Material/Medium/ General Issues

Economic Performance

Procurement and Supplier Management

Materials Management

Energy Management and GHG Emissions

Chemicals Management

Air Pollution/Emissions

Effluents and Waste

Nontoxic Products

R&D and Patents

Environmental Compliance

Total Environmental Expenditure

Environmental Grievance Mechanisms

Product Compliance

Labor/Management Relations

Training and Education

Social Compliance

Customer Satisfaction

Marketing Communications

Minimum Wage

Water Management

Transportation

Occupational Health and Safety

Diversity and Equal Opportunity

Forced or Compulsory Labor

Anti-corruption

Public Policy

Anti-competitive Behavior

Grievance Mechanisms for Impacts on Society

Customer Privacy


Equal Remuneration for Women and Men

Labor Practices Grievance Mechanisms

Non-discrimination

Freedom of Association and Collective Bargaining

Human Rights Grievance Mechanisms

Local Communities

2017 ITEQ Material Issues

2017 ITEQ Medium Issues

2017 ITEQ General Issues

Economy

Environment

Economy

Environment

Society

Society

Customer Service

Society

Human Rights

Human Rights

Labor Practices

Labor Practices

Labor Practices

Customer Service

▲ Validation

After material issues were validated, we further identified the aspect of each issue and set up the boundary of this Report based on the impact of the inside and outside aspect; corresponding chapters were also provided to ensure that information of stakeholder concern was fully disclosed.


CSR

Chapter 2


17

▲ 2017 Material Issues and Boundaries and Corresponding Chapters

Material Issue Inside ITEQ

Outside ITEQG4 Material Aspect Corresponding

ChapterClient Supplier Community

Economic Performance ● ● ● Economic Performance

Business Performance

Procurement and Supplier Management ● ●

Procurement Practices/Supplier Assessment (Note)

Supplier Chain Management

Chemicals Management ● ● - Chemicals

Management

Air Pollution/Emissions ● ● EmissionsPollution and Emission Management

Effluents and Waste ● ● Effluents and Waste

Pollution and Emission Management

Nontoxic Products ● ● ● Customer Health and Safety

Supplier Chain Management

R & D and Patents ● ● - Business Performance

Environmental Compliance ● ● ● Environmental

Compliance

Responsible ITEQOccupational Safety and Health

Product Compliance ● ● ● Product Compliance

Responsible ITEQSupplier Chain

Labor/Management Relations ●


Employee Care

Training and Education ● Training and Education

Employee Training and Promotion

Material Issue Inside ITEQ

Outside ITEQG4 Material Aspect Corresponding

ChapterClient Supplier Community

Social Compliance ● ● ● Social ComplianceResponsible ITEQOccupational Safety and Health

Customer Satisfaction ● ● Product and Service Labeling

Customer Service and Management

Marketing Communications ● ● Marketing

CommunicationsCustomer Service and Management

Note： Supplier Environmental Assessment, Supplier Assessment for Labor Practices, Supplier Human Rights Assessment, and Supplier Assessment for Impacts on Society

▲ Review

After this Report was complied, CSR Task Force Team reviewed this Report to ensure that the disclosures were properly and faithfully presented. The identified material issues and stakeholders' feedback will serve as the reference to the next year's CSR report.


CSR

Chapter 3

Supply Chain Management andCustomer Service

18

Supply ChainManagement and Customer Service3.1 Supply Chain Management


Supply Chain Management and Customer Service

Completed the auditing and evaluation of CSR for 14 venders in 2017.

The Top 10 largest clients of all expressed their satisfaction according to satisfactory survey of 2017.

3.1 Supply Chain Management

3.1.1 Local Procurement

ITEQ's suppliers consist of well-known manufacturers at home and

abroad with a considerable degree of quality. In addition to maintaining

a constant good relationship with each supplier, we have actively

developed new sources of purchase to ensure sufficient materials. To

save costs, control delivery, and reduce carbon emissions arising from

transport, we also continuously promote local procurement and increase

domestic jobs.. In 2017, local procurement of raw materials accounted

for 96.64% which increases 18.5% compared to 2016. and all of our

engineering materials and supplies were sourced from local suppliers;

part of technology is controlled by foreign companies, so the percentage

of equipment sourced from local suppliers was relatively low and

achieved 82%. Overall, the purchase volume of our major raw materials,

namely copper foil, glass cloth, and chemicals (such as epoxy) was2,762

tons, 18,170,000 meters, and 7,099 tons in 2017, respectively.

POINT


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19

▲ Use of Major Materials

Type of Material Unit 2017 Purchase Volume

Copper Foil kg 2,762,304

Fiberglass Cloth m 18,170,503

Chemicals kg 7,098,937

▲ Major Suppliers and Local Procurement

Type of Supplier Raw Materials Engineering Materials Supplies Equipment

Number of Suppliers 97 37 250 31

Transaction Amount (%) 93.4% 2.5% 1.6% 2.5%

Local and Overseas Procurement (%)

Local 96.7% 100% 100% 93.2%

Overseas 3.3% 0 0 6.8%

3.1.2 Supplier CSR Risk Management

ITEQ is responsible for environmental and social protection and extends this

responsibility to its supplier chain. For a long time, we have set up a complete

supplier management system and request all of our suppliers to comply with

general ethics, integrity and accountability in addition to quality assurance,

while meeting the regulations with regard to environmental protection in terms

of products and operations, so as to fulfill the corporate social responsibility.

▲ Supplier Review, Evaluation and Audit

To select and manage suppliers appropriately, we have set up the procedures

for supplier management, which request major raw material suppliers to

pass review, evaluation and audit, to control risks and ensure sustainable

management. In terms of CSR risk assessment of suppliers, we have included the

existing supplier evaluation and audit system, which consists of environmental

substance management, plant environment management, occupational health

and safety, labor, and ethics and morality, in line with Electronic Industry

Citizenship Coalition (EICC).

▲ Figure Procedures for Supplier Management

New Supplier Review

◆ Understand information on a supplier’s products and plants, including：

◆ Basic information ◆ Risk and cost

assessment◆ Quality and

environmental substance survey

◆ Certificate of non-use of environmental substances

◆ ICP test certificate ◆ SDS or bill of material

◆ Determine the evaluation method; raw materials are evaluated in accordance with the Procedures for New Raw Material Evaluation, including contracted orders, design and development, procurement/out-sourcing, production, customer feedback, and CSR.

◆ Qualified suppliers are included in the qualified supplier roster.

◆ Qualified suppliers are required to participate in the quarterly audit and draft the annual evaluation plan and supplier quality system development to ensure quality and reduce CSR risks.

Evaluation Registration and Regular Audit


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20

▲ CSR Audit and Evaluation

Aspect Evaluation (Summary)

◆ Environmental Substance Management

Environmental training planning Environmental substance change management

Package material management Internal audit

Hazardous substance test Test reports

◆ Plant Environment Management

Environmental management policies and objectives Proof of discharge permits

Emergency response to chemical leakage

Requirements for environmental management of suppliers

◆ Occupational Health and Safety

Occupational health and safety policies and objectives

Training plans for occupational health and safety

Hazard monitoring and health and safety inspection

Safety training and personal protection

Statutory safety permit for special equipment

Legal identification, updating and communication

◆ LaborLabor and employee policies Working hour record system

Labor contracts Employee complaint system

◆ Ethics and Morality

Integrity and anti-bribery regulations

Protection of intellectual property rights

Measures for fair trade Whistleblower protection mechanisms

The Quality Assurance Center will call the audit team to carry out the annual

supplier evaluation every year. The audit team consists of members from quality

assurance, manufacturing engineering, manufacturing, and procurement as well

as other departments whenever necessary. Normal procurement is granted if

the audit score reaches 80 or above (Level B or above); corrective and preventive

measures are provided for suppliers for improvement if the audit score is more

than 70 but less than 80 (Level C); procurement is suspended if the audit score

is less than 70 (Level D) and such suppliers will be removed from the qualified

supplier roster and re-evaluated after improvement in accordance with the

procedures for new supplier evaluation. If suppliers are evaluated as Class D, we

might allow to buy specially in order to not losing material supplements. ITEQ

will audit Class D every year。 In 2017, ITEQ did not have any new raw material

supplier and completed the audit of existing 15 suppliers in accordance with the

annual audit plan; the result of the audit reported qualified (Level B or above);

in addition, 25 of the 14 suppliers completed the CSR evaluation, accounting for

93% of the total suppliers audited.

▲ Conflict Mineral Management

The mining industry of Democratic Republic of the Congo (DRC) is controlled

by some interest groups. The conflicts of interests result in armed conflicts and

violations of human rights in DRC and its neighboring countries. ITEQ prohibits

the use of conflict minerals, including but not limited to cassiterite, wolframite,

coltan, gold and its derivatives, particularly Au, Ta, Sn, and W, and requests

suppliers and the supply chain to fully understand this information and report

any use of conflict minerals. We have requested our raw material suppliers to

prohibit the use of conflicting minerals and provide the declaration/guarantee

of conflict-free minerals.

3.1.3 Control of Hazardous Substances

The PCB industry has recently responded to an increasing need of light, thin,

and multi-function products as well as environmental protection, leading to

the large demand for flexible printed boards and IC boards and the pursuit


CSR

Chapter 3


21

of environmental protection. With popular applications of Big Data, cloud

computing, and Internet of Things, there are huge growth and need of ultra-low

loss laminate for high frequency communication and new low-loss one. ITEQ

has insisted on green procurement for many years by investing in the research

and development of green laminates; considering various impacts of product

lifecycle on environment, we select raw materials that bring low threats to

human bodies and the environment and pay close attention to the future trends

of environmental protection as a member of the green supply chain.

▲ Hazardous Substance Management Policy and System

As electronic products change every day, clients or international regulations

become stricter with the requirements for hazardous substances. To manage

hazardous substances efficiently and systemically, ITEQ has set up the hazardous

substance management system in accordance with QC080000 (IECQ HSPM) and

the principle of Plan-Do-Check-Action (PDCA) to collect and pay attention to

the regulations of green products and document all management procedures

and the list of the controlled hazardous substances, so as to ensure effective

planning, operation, and supervision that meets customers' requirements.

▲ ITEQ's Hazardous Substances Free (HSF) Policy

◆ Abide the regulations of environmental protection.

◆ Total involvement of all members.

◆ Total customer satisfaction.

◆ Thorough implementation of the system.

◆ Optimize green environment.

▲ Figure Hazardous Substance Management

Research and Development

．Collect requirements of clients

and HSF

．Design the degree of HSF compliance

．Control design elements and impacts in accordance the list of HSF material

Procurement

Delivery

．Review a capacity for fulfilling contractual requirements

．Evaluate and audit the use of environmental substances

．Evaluate and accept HSF

materials and package materials

．Prepare for related documents based on customers’ requirements

．Handle and review customer complaints and returned purchases

．Manage manufacturing conditions and protect equipment and tools from pollution

．Distinguish and mark qualified products from unqualified ones

．Evaluate and control corrective measures for unqualified products

Manufacturing

▲ Hazardous Substance Management

Currently, our products have met international regulations of environmental

protection, such as EU RoHS, SONY SS-00259, EC Regulation concerning

Registration, Evaluation, Authorization and Restriction of Chemicals (REACH),

halogen-free and arsenic-free regulations. The Quality Assurance Department

will collect and compile international regulations and customers' requirements

on a regular basis to update the list of the controlled substances and acceptance

criteria. In 2017, ITEQ controlled hazardous substances according to different

restrictions and had 36 hazard-free substances, 11 restricted substances, and

174 substances of very high concern (SVHC) under REACH.

ITEQ reviews the HSF data in accordance with the requirements of the

environmental substance control standards. The Procurement Department


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22

requests suppliers to provide the guarantee of non-use of hazardous substances

and related test data, such as a test report issued by a third-party notary, an

ingredient table, or safety data sheet (SDS), for the review of R&D, quality

assurance and occupational safety and health departments before recognition

of parts and establishment of the list of qualified material numbers. After

production, products will be sampled for test by a third-party laboratory; the

result of the test will then be recorded in the test report to fully control product

compliance. Through the above strict control, no violation of regulations

with regard to product health and safety or the principle of voluntariness was

reported in 2017.

▲ Figure Procedures for Controlling Hazardous Substances

▲ Figure Hazardous Substance Test List

▲ Product Labeling Management

All of the substrates produced by ITEQ will pass the UL flammability certification

and be marked the fire-proof level of 94V-0. Related labels are also affixed to

the packages for identification. In addition, resin powder and glass fiber cloth

produced in the process of processing will stimulate the throat, skin and eyes

when inhaled or contacting human bodies and further harm health. We have

fully informed our clients that they shall take necessary protective measures

and precautions to protect customers. In 2017, all of our products were labeled

in accordance with customers' requirements and no violation of labeling

regulations was reported.

Product Design, New Material Recognition, Raw Material Selection

HSF Data Maintenance

Raw Materials Meeting HSF Requirements (Resin/Chemical Materials, Copper Foil/Aluminum Plate, Glass Cloth, Subsidiary Materials)

Documents Required for Procurement of Hazardous-free Materials：

Guarantee of non-use of hazardous substances and product warrantee Test dataMSDSRequest/Notice of Engineering Change in case of any change

RoHS2.0

鹵素(F)

鹵素(Cl) 鹵素(Br) 鹵素(I)

PFOS PFOA銻

(含三氧化二銻)

PVC TBBPA鈹/

氧化鈹HBCDD

(RoHS 2)

鄰苯二甲酸鹽類10項(RoHS 2)

(DIBP/DNHP/BBP/DEHP/DIDP/DINP/DNOP/DBP/D

MEP/DIPP/DNPP)

有機錫(TBT, TBTO, TPT,DBT, DOT, DBB)

富馬酸二甲酯(DMF)

砷

IT158 BS/TC

IT-180 BS/TC

IT-180A BS/TC

IT-180I BS/TC

IT-189 BS/TC

IT-168G BS/TC

IT-168G2 BS/TC

IT-170GRA1 BS/TC

IT-170GLE BS/TC

IT-258GA3 BS/TC

IT-150G BS/TC，IT-150GL1 BS/TC

IT-150GS BS/TC

IT-150G2 BS/TC

IT-200LK BS/TC

IT-150DA BS/TC，IT-150DASE BS/TC

IT-968 BS/TC，IT-968SE BS/TC

IT-800GLE BS/TC

IT-689G BS/TC

IT-180N BS

IT-859GTABS

IT-859GTA-【銅+鋁】

IT-180GN BS

2017年度有害物質委外測試調查表【檢測清單2017/07/10】

品名

2017 Hazardous Substance Test List (Test List 2017/07/10)


CSR

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Upholding the customer-oriented business philosophy, ITEQ maintains a stable

and good relationship with customers, understands customers' requirements,

and adjusts the operations based on their needs. We continuously carry out

audits and make improvements up to customers' requirements to make profits

and achieve a win-win situation. In addition to quality assurance and after-sales

service, we market and sell products in compliance with laws and regulations

with regard to environmental protection.

3.2.1 Customer Satisfaction

ITEQ's goal is to provide quality products and services for major clients and

develop high-grade special materials with our strategic partners. To achieve

this goal, we attach a great importance to customer satisfaction. Every year,

ITEQ carries out the customer satisfaction survey covering delivery, technology,

quality, improvement in customer complaints, provision of high-grade

materials, and hazardous substance compliance. After compiling and analyzing

satisfaction indexes, the responsible department submits a report to the

executive meeting for review. For unqualified items, the responsible department

helps identify the causes based on the interview with clients and information on

supplier evaluation or return of purchase provided by QA to verify the result of

the evaluation.

In 2017, the average score of our top 10 clients reached Level B or above (2.5

or above) and reported “satisfied”. For items scored Level C or below (2.5 or

below), the responsible departments were required to provide corrective and

preventive measures. As of today, all of the items have been closed.

▲ Items Scored Level C or below in 2017

Item Main Cause Countermeasure Handling Progress

Delivery ◆ To o m a n y s p e c a n d

m a k e s c r o w d e d production schedule。

◆ Review stock by Sales and production team. Closed

Quality ◆ Quality claims

are:Input claim: 48%、Appearance: 24%。

◆ We review and analyze root causes at 9am and 16pm every day.

Closed

Technical service ◆ Late reply for technical reports

◆ I n f o r m c u s t o m e r s i n advance if we can not reply immediately.

Closed

Poor supports for high end materials

◆ Long lead time for new materials

◆ C o n f i r m s t a c k- u p w i t h customer to stock. Closed

Reply improvement of claims

◆ L e a d t i m e o f n e w materials is too long.Corrective actions is over time.

◆ Customer service replies to clients within 72 hours by Email.

◆ C o r r e c t i v e a c t i o n s : replacement within 24 hours and first investigation within 48 hours.

Closed


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▲ Result of 2017 Domestic Customer Satisfaction Survey

▲ Result of 2017 Export Customer Satisfaction Survey

3.2.2 Customer Complaint Handling and Confidential Information Protection

Improvement in customer complaints is one of the keys to increasing customer satisfaction. We have set

up the customer complaint system for customers to make complaints via ITEQ's website, telephone and

email ([email protected]) at any time. We will handle and analyze customer complaints immediately

upon receipt and call a review meeting to propose specific countermeasures against similar issues; in

addition, the number of customer complaints has been included in our key performance indicators (KPI).

In the annual quality review meeting, we will calculate the number of customer complaints and conduct

an analysis based on the cause of abnormality and the type of clients for the next year's goal of quality

improvement

In terms of protection of confidential information, we have entered into confidentiality agreements with our

clients and have set up the regulations governing information security to ensure data, system, equipment

and network security. In 2017, no violation of customer privacy or loss of customer data was reported.

▲ ITEQ's Focus on Information Security Control

Delivery Service

Technical Service

Quality

Improvement in Customer Complaints

Provision of High-grade Materials

HSF Compliance

Delivery Service

Technical Service

Quality

Improvement in Customer Complaints

Provision of High-grade Materials

HSF Compliance

．Each business supervisor shall supervise the information security of employees

．The new employee training shall be organized quarterly to promote information security

．Safety assessment and evaluation of information-related duties and work shall be carried out

Employee Training

．Copy and use software in accordance with applicable laws or contracts and set up the software management system

．Publish information via Internet and Global Information Network and implement the data safety level evaluation

．Confidential data and documents shall not be sent by e-mail or in other electronic ways

Computer/Network Security

．Set up the regulations governing system access and authorization

．Establish the system user registration system and strengthen user password management

．Without approval, no data shall be downloaded and carried via discs, pen drivers, portable hard drives or other electronic equipment

System Access Control

．Set up the classifications of information assets, owners, and security levels

．Establish the standards for classification of information security levels and corresponding protective measures

．Establish the abnormality reporting mechanism and carry out investigation, analysis, and review of abnormal events as the basis for future prevention

Information Asset Security


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Chapter 4

Sustainable Environment Management

25

Sustainable Environment Management4.1 Climate Change and Energy Management

4.2 Chemicals Management




RTO reaches 95% for new energy saving equipment of

Xinpu plant.

Energy usages reduce 4.1% for prepreg and copper foil laminate.

CO2 reduces 1.6% for prepreg and copper foil laminate.

Gain 4 diesel car autonomy management service marks, 2 of them were of the A-1 band.

Industrial waste was reduced 16.78% in 2017 compared to 2016.

Environment Protection costs and investment：24,175 (thousands)

4.1 Climate Change and Energy Management

Climate change has become one of the important issues in the 21st

century, particularly extreme weather, floods, and droughts arising

from climate change in recent years, causing government agencies,

enterprises, and private organizations to take mitigation and adaptive

measures more actively. Since its establishment, ITEQ has considered the

low-carbon design and has implemented energy management in the

operation to reduce greenhouse gas (GHG) emissions.

POINT


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4.1.1 Management Policies and Objectives

ITEQ planned the Xinpu Plant in accordance with the Directions for Promoting

Green Factory Labels formulated by Industrial Development Bureau, Ministry of

Economic Affairs and promoted energy conservation and carbon reduction in

aspects of infrastructure (hardware) and operations (software)

Replacing heavy oil by natural gas, the plant recovers exhaust of the

regenerative thermal oxidizer (RTO) to reduce the GHG emissions and

maximizes energy conservation and carbon reduction using the equipment and

measures specified in the following table.

In terms of software, we introduce the environmental management system

(ISO14001) to continuously follow up and improve the use of energy and

resources, report the consumption of energy and the action plans for energy

conservation to Bureau of Energy, Ministry of Economic Affairs every year in

accordance with Energy Administration Act, and announce the Regulations

Governing Water and Electricity Conservation in the hope of achieving energy

conservation and carbon reduction from daily operations.

▲ Energy Conservation Equipment and Measures in Xinpu Plant

Energy ConservedCarbon

Reduced (CO2e ton/

year)

Electricity (1000 kWh/

year)

Fuel (l/year)

◆ Variable-frequency exhaust windmills 36.00 - 19.30

◆ Shortened exhaust ducts 7.46 - 4.00

◆ High-efficiency motors 88.00 - 47.17

◆ Indoor air-conditioning temperature at 27℃ or below 17.86 - 9.57

◆ Low-consumption LED lighting 180.00 - 96.48

◆ Natural lighting, reducing the use of lights 10.80 - 5.79

◆ Variable-frequency air-conditioning water chillers 453.00 - 242.81

◆ Controlled lighting at night and on holidays 36.00 - 19.30

Energy ConservedCarbon

Reduced (CO2e ton/

year)

Electricity (1000 kWh/

year)

Fuel (l/year)

◆ Rainwater harvest and water supply and drainage systems by way of gravity flow 7.30 - 3.91

◆ Automated production lines, reducing fuel consumption of stackers and power consumption of general lighting

4.81 875 2068.58

◆ Concentrated office space, reducing use of air conditioning and lighting 180.00 - 96.48

◆ Loop and partial pressure design of air compressor piping, reducing pressure loss 30.96 - 16.59

◆ Flexible use of cooling fans at the outdoor wet-bulb temperature in winter 39.60 - 21.23

The regenerative thermal oxidizer (RTO) takes advantage of the heat storage of

ceramic materials to repeatedly recover up to 95% of waste heat produced from

incineration. Powered by natural gas, RTO is an efficient and low-consumption

incineration facility.

▲ RTO Operation

Waste Heat Recovery：Heat Transfer Oil Boiler

RTO

Source: VOC

Burning Windmill

800℃

1 million Kcal High-temperature Damper

200℃ 250℃

Waste Heat Recovery Boiler

小於<350℃

1. Boiler under light load originally set up in the plant

Supply 250℃ heat transfer oil

STACK


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4.1.2 Energy Consumption and GHG Emissions

Electricity is the main energy used by ITEQ, followed by natural gas used by

boilers and RTOs, gasoline used by business vehicles and transport vehicles,

and diesel fuel used by stackers. In 2016, the total energy consumed was

166,117,650MJ; the direct GHG emissions (Scope 1) totaled 5,105.4 CO2e tons;

and the indirect GHG emissions (Scope 2) totaled 11,024.9 CO2e tons. Due to

the increase in output, the total energy consumed and GHG emissions in 2017

decreased compared to those in 2016.

▲ Energy Consumption and GHG Emissions over the Years

2015 2016 2017

Energy Consumed

GHG Emissions (Note 3)

Energy Consumed


Energy Consumed


Natural Gas

2,455,500 cubic meters

5,132.0 CO2e tons

2,580,800 cubic meters

5,393.9 CO2e tons

2,357,600cubic meters

4,927.4CO2e tons

Diesel Fuel -(Note 1) -(Note 1) 68,041.40 l 189.2 CO2e

tons 64,037.20 l 178.0 CO2e tons

Electricity 17,942,400 kWh 9,473.6 CO2e tons 20,432,000 kWh 10,805.5 CO2e

tons 20,841,200kWh 11,024.9 CO2e tons

Total (Note 2) 157,118,827MJ 14,605.6 CO2e

tons (Note 1) 173,195,798MJ 16,391.6 CO2e tons 166,117,650MJ 16,130.40 CO2e

tons

Note：(1) The consumption of diesel fuel is calculated since 2016, so there is no data available before 2015.

(2)The consumption of gasoline is excluded from energy consumed and GHG emissions.(3) GHG emission factors are based on the electricity emission factors announced by Hsinchu

Science Park Bureau, Ministry of Science and Technology and Bureau of Energy, Ministry of Economic Affairs.

(4)Unit：one electronic = 3.6 millions joule. 1 cube meter gas = 37.26 millions joule

ITEQ's main manufacturing processes are divided into the manufacturing

process of prepreg (PP) and that of copper clad laminate (CCL). As the unit of

output used by PP is different from that used by CCL, we calculate the monthly

density of energy based on each unit of output, which is one of the performance

indicators used to follow up the efficiency of energy. In 2017, Capacity of

preperg increased 5.1%. Although energy usage increased, concentration

degree declined 3.4~13.8%. Capacity of Copper Foil Laminate reduce 11.7%

and energy concentration increased 1.6~6.6%. The main reason is the high-

end products has higher share that increases manufacture complexity so

energy usage is higher as well compared to 2016. In the near future, we will

implement all energy saving actions like purchasing high efficiency & low

energy utilizations equipment. According to weather and demand, we adjust

air-conditioner and temperature in order to reduce energy concentration.

▲ Density of Energy over the Years

2015 2016 2017Change (%)

Compared with the Previous Year

Prepreg (PP)

Output (meter) 13,216,000 16,380,400 17,214,300 5.1%

Electricity (kWh/meter) 0.510 0.435 0.420 -3.4%

Natural Gas (cubic meter/meter) 0.109 0.087 0.075 -13.8%

Copper Clad Laminate (CCL)

Output (piece) 3,037,900 3,961,600 3,498,900 -11.7%

Electricity (kWh/piece) 1.795 1.531 1.632 6.6%

Natural Gas (cubic meter/piece) 0.332 0.266 0.270 1.6%

Note： The annual data in the above table are calculated from the average density of energy per month. The consumption of energy is allocated to the manufacturing process of PP and that of CCL by 55% and 40% respectively.


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4.1.3 Measures for Energy Conservation and Carbon Reduction

In these two years, we promote energy saving plans, including upgrading iced

water equipment and air compressed machine.

▲ Energy Conservation Projects

We comply with governmental policy that we add new iced water equipment

and air compressed one. We choose high efficiency model to improve non-

efficiency old one.

Now we do not need to start overall when being low working rate.

◆ New iced water machine

Previous iced water machine New iced water machine

Compressed head model ◆ Single roasted ◆ Twin roasted

Main equipment ◆ Reduce ice efficiency only with full working rate

◆ Reduce working rate automatically base on request operations

Annual comparison

◆ 2017 & 2018 March ◆ Before：3179 degree /single day ◆ After：2921 degree/single day ◆ Electricity saving：8.1%

◆ New air compressed machine

item Before: 100HP+50HP After: add 150HP

Operation conditions

◆ The ages of previous machine is over 15 years and can not adjust automatically

◆ Higher efficiency set that can adjust automatically with variable frequency machine

Energy saving analysis

◆ 2017 variable frequency machine：operation rate is 70%

◆ Variable frequency machine: 200HP / average degree：119.36 degree

◆ 2018 new machine：operation rate is 50%Variable frequency machine:

average degree：74.6 degree

◆ Energy saving：37.5%

In addition, ITEQ also took the following electricity conservation measures in

daily operations：

◆ Turn off lights and powers of production equipment on weekends and holidays and

in non-working hours.

◆ Reduce lighting in public areas and on corridors; air conditioning and lighting in

restaurants and training classrooms are supplied when used.

◆ In summer, use curtains to reduce daylight; set the indoor air conditioning system at

27℃ and adjust in other areas based on the operational requirements.

◆ When the outdoor temperature is lower than 25℃ , the indoor air-conditioning

system shall be switched to the air supply system.

◆ Air compressors are microcomputer-controlled and adjusted based on the size of the

air load.

◆ New facilities featuring energy conservation shall be introduced.

4.2 Chemical Management

Chemicals, including flammable, highly volatile hazardous chemicals, are used

as solvents in the manufacturing processes of Prepreg (PP) and copper clad

laminate (CCL). Leakage or improper storage of hazardous chemicals will cause

serious safety and environmental pollution issues. As a result, ITEQ attaches a

great importance to chemical management.

4.2.1 Management Policies

In addition to the source control (see Hazardous Substance Control), ITEQ

has specially formulated the Regulations Governing Chemical Management

covering the clear procedures for purchase, storage, use, and disposal of


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We request receiving employees to wear personal protective outfits properly, review the conditions and labels of containers immediately upon unloading, and send chemicals to designated storage swiftly.

Chemicals shall be stored in places clear of any source of heat and direct sunlight; chemicals shall be stored with proper ventilation and emergency devices and clearly labeled; incompatible chemicals must be kept separately; controlled access is required.

We have set up the regulations with regard to the use of gaseous, liquid, and solid chemicals with a special focus on personal protective outfits of operators and their instructions.

We seek legitimate and competent suppliers in accordance with the Regulations of Waste Management to dispose of chemicals.

Receipt

Storage

Use

Disposal

chemicals to ensure the safety of employees and the plant and reduce

environmental hazards. In 2017, no serious leakage was reported.

4.2.2 Emergency Response Plan

In addition to daily management, ITEQ has formulated the Regulations of

Emergency Response to accidents, such as fires, explosions, and chemical

leakage, to respond to emergencies properly as planned. The procedures for

emergency response consist of four phases. The plant has a clear division of

powers and responsibilities and works closely with government agencies to

minimize possible damage and losses.

▲ Emergency Response Flowchart

Accident Detection/Identification

The on-site supervisor directs disaster relief

No

Announce emergency broadcast and mobilize the emergency response team

The chief commander continuously directs and hands over command after the chief commander of the government arrives and provides assistance

If residents are at risk, implement emergency evacuation and traffic control

Yes

Yes

Evacuation

First-phase Response

Determine whether the accident can be controlled immediately

Determine whether the accident has influence outside the plant

Determine whether the accident has influence outside the plant

Second-phase Response

Third-phase Response

The emergency response drill is carried out twice every year to ensure

the effectiveness of the emergency response mechanism and improve

employees' awareness of crises. In 2017, the chemical leakage drill was

carried out in June and December respectively. The results of drills were

reviewed and documented.


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As a member of the PCB industry, ITEQ understands that people are highly

concerned about pollution arising from the industrial characteristics, such as

air pollution, waste, and wastewater. In addition to responding to stakeholders,

we must be responsible for the environment and society to achieve corporate

sustainability. Thus, we have set up management policies with regard to

pollution and emissions to be followed in the implementation and review of

pollution and emission management.

4.3.1 Management Policies and Objectives

In addition to complying with regulations with regard to environmental

protection and safety and health, our environmental safety policy aims to

reduce risks of employees and the environment caused by ITEQ or activities

with the following commitments：

1. Safety remind before urgent issues and sand table exercise

3. Wear on protection cloth and enter damage zone.

4. Finished urgent leakage and clean

2. Stuff wear on Class C protection cloth and toxic filter for training in order to protect self safety.

Compliance

Reducing Risk

Fulfilling Education

Consultation and Communication

Follow and comply with regulations with regard to environmental safety and other requirements and ensure environmental protection and occupational safety and health.

Implement environmental and hazardous risk management to control sources of pollution and reduce risks of personal safety and health.

Promote training activities with regard to environmental safety management to increase employees’ awareness of personal responsibility and participation.

Establish channels of consultation and communication to strengthen interaction with employees, suppliers, contractors, communities, and stakeholders in terms of environmental safety policies and related requirements.

Continuous Improvement

Set up corrective plans for pollution and disaster prevention and continuously enhance technology through an innovative approach to ensure the quality of the environment and safety and health.

We have set up the environmental management system (ISO14001) to

continuously and systematically improve our environmental performance

through the principle of PDCA (Plan-Do-Check-Act) and third-party certification.

We collect and identify laws and regulations and customers' requirements that

are applicable to the sources of impact on a regular basis, review aspects that


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have a possible impact on the environment, and evaluate the performance,

so as to set up the annual objectives, targets, and management plans. KPIs of

operations and activities are also established and supervised by responsible

departments and scored quarterly based on the management performance and

may be referred to in the performance evaluation and department rating.

▲ Implementation of Environmental Management System in 2017

Objective Target Progress

Comply with regulatory requirements and avoid air pollution

Improve the post-treatment discharge of RTO air pollution preventive equipment Completed

Avoid air pollution and impact on exhaust of other equipment

Complete installation of clean outlets and clear powder on a regular basis Completed

Avoid water source pollution Separate water supply piping of the etching chamber based on the type of water sources

Completed

4.3.2 Air Pollution Emissions

ITEQ has formulated the Regulations Governing Exhaust Treatment to prevent

gas emitted from the manufacturing process from being discharged without

proper treatment, leading to pollution; in addition, the third-party organization

is authorized to carry out the air pollutant emission test annually, report on

a regular basis and pay air pollution control fees in accordance with the Air

Pollution Control Act. ITEQ's main air pollutants include exhaust emitted from

manufacturing processes and from storage tanks.

▲ Air Pollution Emissions over the Years

Unit 2015 2016 2017

Sulfur Oxides Ton 10.84 24.87 55.97

Nitrogen Oxides Ton 5.88 6.22 5.77

Volatile Organic Substances Ton 36.03 53.52 162.96

Note： ITEQ never uses any substance that may destroy the ozone layer, so there was no related data in 2017.

In air pollution control of manufacture process, we use natural gas as fuel for

boiler. The process is to oxidize main pollution with high temperature to CO2

and water. The quality of waste air is much lower than governmental standards.

In the same time, we can recycle heat during the process that reduce fuel

demand and save energy. We set up 8 fixed tanks to reduce leakage issues.

In addition to fixed air pollutants, another main source of air pollution is mobile

pollutants. Although our transportation vehicles are merely used as business

vehicles and for transportation of products, we still join the diesel vehicle self-

managed fleet of the passenger and freight carriers in Hsinchu & Miaoli Air

Quality Purification Area by entering into the agreement, where we undertake

to set up a vehicle maintenance plan, carry out fuel self-management, organize

driver training, encourage public transportation or the car-pool, and participate

in regular tests to obtain self-managed labels based on the standards for

pollution, opacity and horsepower ratio. Till 2017 we gain the highest certificate,

A-1, for 2 diesel cars and A-3 and A-5 for 1 car.


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▲ Standards for Self-managed Labels

LevelStandards

Validity PeriodPollution Opacity Horsepower

Ratio

A-1 10% 0.3m-1 50%

1 year

A-2 15% 0.5m-1

45%A-3 20% 0.6m-1

A-4 25% 0.8m-1

A-5 30% 1.0m-1

A-6 Meet emission standards (available only in Hsinchu and Miaoli) 6 months

▲ Figure 5 ITEQ's Diesel Vehicle A-1 Labels

by the production department, waste is disposed of by legitimate contractors

authorized by Occupational Safety and Health Center in accordance with

applicable laws and regulations.

Subject to the provisions of the applicable laws and regulations, we implement

the reduction in general business waste through strict garbage classification,

non-use of disposable tableware, and garbage recycling (such as PE tapes)

and reuse (such as providing wooden pallets for shops nearby; ditch mud and

litter rotting naturally). In 2017, general business waste decreased by16.78%

compared with that in 2016.

▲ Waste Generation and Disposal over the Years

單位 2015 2016 2017Disposal (2017)

Incineration Burial Recovery Other (Physical Disposal)

General

Business

Waste

Ton 837.8 782.3 651.0 46.7 % 0 % 0 % 53.3 %

Hazardous

Business

Waste

Ton 638.2 747.4 820.6 10.2 % 0 % 0 % 89.8 %

Regulated

Reused

Waste

Ton 112.3 140.3 189.1 0 % 0 % 100 % 0 %

Compulsory

Universal

Waste

Ton 722.9 730.6 711.4 0 % 0 % 100 % 0 %

Total Ton 2,311.2 2,400.6 2,372.1 - - - -

Note： The increase in hazardous business waste and regulated reused waste was mainly due to the increase in output and unexpected activities, such as remake and output of R&D Laboratory. ITEQ strictly adopts standard operating procedures and repeated confirmation to reduce the generation of unexpected waste.

4.3.3 Waste Generation

Waste generated by ITEQ includes general business waste, hazardous business

waste, and compulsory universal wastes or regulated reused waste. All of the

waste is governed by the Regulations of Waste Management. To reduce waste

and promote recycling, we start from the source control. After being sorted


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4.3.4 Wastewater Emissions

As a PCB supplier, ITEQ's water is sourced from tap water. In 2017, 62,119 cubic

meters of water was used. As our main materials must be kept dry to maintain

the quality of products, there is no waste water in the pretreatment; cooling

water is treated through electrodialysis reversal (EDR) to reduce the conductivity

and then to be included in the industrial water pool for reuse. Concentrated

wastewater of high conductivity is disposed by authorized contractors, so we do

not generate wastewater.

ITEQ's main sewage is from domestic sewage of employees. After being treated

by the domestic sewage treatment system, sewage is further treated by the

membrane bio-reactor (MBR) to reach the expected recovery rate of 85%.

Recovered sewage is recycled to flush toilets and water plants. Other treated

effluents meeting the standards for irrigation are discharged to Neilikeng Creek.

We conduct the environmental monitoring of the quality of surface water and

groundwater on a quarterly basis; the test items include dissolved oxygen,

suspended solids, biochemical oxygen demand, pH, conductivity, ammonia

nitrogen, and total phosphorus. In 2017, the result of environmental monitoring

reported no significant impact on the environment. We will continue to monitor

the environment.


4.4.1 Expenditure and Investment in Environmental Protection

Our focus on environmental protection is also reflected in the expenditure and

investment in environmental protection. In 2017, we invested NT$24,175,304

mainly in pollution treatment.

▲ Investment and Expenditure on Environmental Protection over the Years

Unit： NT$

2016 2017

Pollution Preventive Equipment Maintenance 619,960 558,900

Pollution Disposal and Cleaning 19,466,512 16,340828

Inspections and Tests 736,183 1,005,226

Environmental Engineering 0 284,200

Investment in Equipment 436,760 5,986,150

Total 21,259,415 24,175,304

Note：Source: ITEQ's accounting system.

4.4.2 Communication

To fulfill the idea of environmental management at each level of ITEQ and in

suppliers and contractors, we have set up channels of communication, such as

meetings, to interact with our stakeholders with regard to our commitments to

environmental management and performance in the hopes of solving problems

quickly and reaching a consensus. Occupational Safety and Health Department

is responsible to collect complaints made by stakeholders and report them to

the supervisor. Received complaints shall be documented and handled by the

responsible unit and reported to our contact person. In 2016, no complaint

against the environment was reported.


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Employee Care andCommunity Participation

34

Employee Care and Community Participation5.1 Human Resources

5.2 Employee Care

5.3 Labor Safety and Health




The starting salary of male and female workers adopts the

same salary principle. The average starting salary is 1.66 & 1.59 times compared to Taiwanese average salary respectively.

Continuously passed the Occupational Safety and Health

Management system OHSAS 18001 verification.

The members of Occupational Safety and Health Committee

are 17, with 10 representatives of labor workers, accounting for a-third more than the number required by law.

Average training time is 23.1 hours

POINT

5.1 Employment

5.1.1 Diverse Human Structure

Considering talent development as the company's core competitiveness,

ITEQ has always strived to create a stable and friendly workplace in

the hope of growing together with employees. We enhance equal and

diverse recruitment regardless of race, sex, age, religion, nationality

and political party, emphasize employees' labor and human rights, and

strictly prohibit compulsory labor and child labor. Creating an equal and

safe workplace is our basic commitment to employees. We also set up


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a competitive compensation and welfare system and places for learning and

development to achieve employee care, harmony in the workplace, and high

work efficiency.

As of December 31, 2017, the number of employees in Taiwan was 3861,

showing an increase in 4.3% compared with that in 2016. Among all employees,

85 employees were of foreign nationalities and other employees were employed

locally. Male and female employees accounted for 67% and 33% of the total

employees respectively. About 65% of the employees were aged 40 or below.

The human structure was healthy.

1Excluding Taiwanese cadres.

▲ Number of Full-time Employees as of December 31, 2016

Type of Em-ployee

20-29 Years Old 30-39 Years Old 40-50 Years Old >50 Years Old

Male Female Male Female Male Female Male Female

President Level - - - - -　 1 2 1

Director Level - - - - 3 - 2 -

Manager Level - - 7 - 12 7 4 2

Section Head Level - - 2 2 5 3 - -

Administra-tor Level 18 8 31 26 16 13 1 3

Employee Level 41 9 76 29 31 10 8 13

Total 59 17 116 57 67 34 17 19

5.2 Employee Care

5.2.1 Benefits and Remuneration

ITEQ designs its remuneration system for the purpose of recruiting,

encouraging, developing and retaining talents and adjusts timely based on the

market level to maintain market competitiveness and internal fairness. Yearly

bonuses and raises are distributed based on the company's annual profits,

employees' performance and duties, and differentiated salary system to ensure

the competitiveness of the overall reward. As of December 31, 2017, ITEQ

adopted the principle of equal pay between man and women for equal work

with the average minimum wage 1.66 and 1.59 times the basic wage of Taiwan.

We encourage colleagues to continuously contribute and expect to recruit and

retain outstanding talents through competitive salaries.

▲ Basic Salary as of 2017/12/31

Type of Employee Male Female

Basic Salary of Grassroots Employee 36,554 35,059

Statutory Basic Salary of Grassroots Employee 22,000 22,000

Times of Statutory Minimum Wage 166% 159%


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▲ Remuneration Ratio as of 2017/12/31

Type of Employee Male Female

President Level 93% 100%

Director Level 115% 100%

Manager Level 113% 100%

Section Head Level 152% 100%

Administrator Level 116% 100%

Employee Level 104% 100%

Note： The statistics are based on 100% for female employees.

Upholding the people-oriented concept, ITEQ strives to offer a reasonable

salary system, seek welfare for employees, and care for employees' health and

life; in addition, we offer a sound safety system, pension and labor and health

insurance, complete training programs, and incentives. Related benefits are as

follows：

◆ Bonuses and year-end bonuses are distributed when annual business objectives are

achieved

◆ Monthly performance bonuses are distributed according to production and

operation

◆ Employees are encouraged to subscribe for shares to participate in business

operation

◆ Implement a retirement system in accordance with the Labor Standards Act

◆ Offer labor insurance, National Health Insurance, and group insurance (including

regular, accident, and medical insurance)

◆ Regular health examination

◆ Employee training and regular study club

◆ Free meals, uniforms, and parking

◆ Dormitories and shuttle bus

◆ Basketball courts, table tennis tables and green space

◆ Year-end party

In addition, ITEQ also set up the Employee Welfare Committee to offer diverse

benefits as follows. In 2017, NT$8,051 thousand was granted.

◆ Three Chinese festival bonuses, birthday gift, and Labor Day gift

◆ Group insurance

◆ Marriage, childbirth, emergency relief, hospitalization, and employee/dependent

death grants

◆ Recreational and sports activities

◆ Free employee travel

◆ Scholarships to employees' children

◆ Seminars on health promotion

◆ Lottery at the year-end party


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Employees' health is company's fortune. To provide a safe and healthy

environment is a fundamental request for social responsibility.

ITEQ provides health inspection every year (normal and specific ones). The

attending employees who works over one year is 254 (92.3% of all employees)

item 2017( 勞工人數 )

Normal inspection Nornal inspection 202

Special inspection

Noise 155

Lead 181

DMF 95

Dust 154

Level 1 number 357

Level 2 number 228

Level 3 number 0

Level 4 number 0

Note：Foreign employees attend specific inspections only

2017 tail teeth party

2017 employee health inspection

2017 Christmas party

Autumn travel


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To promote the family planning and female reemployment policy, ITEQ set

up an unpaid parental leave and reinstatement system in accordance with the

Act of Gender Equality in Employment and the Regulations for Implementing

Unpaid Parental Leave for Raising Children. To create a workplace that

emphasizes work and family balance, employees having worked for one year

are eligible to request an unpaid parental leave for up to two years before the

children become three years old. In 2017, two female employees requested an

unpaid parental leave.

▲ Request for and Reinstatement from Unpaid Parental Leave in 2017

2017

ItemMale Female

TotalNumber of Employees

Number of Employees

Employees eligible for an unpaid parental leave (A) 10 5 15

Employees requesting an unpaid parental leave (B) 0 2 2

Employees expecting to be reinstated from an unpaid parental leave (C) 0 0 0

Employees being reinstated from an unpaid parental leave in 2016 (D) 0 00 0

Request rate of unpaid parental leave (B/A) 0% 40% 13%

Reinstatement rate (D/C) 0% 0% 0%

ITEQ adopts the defined contribution plan in accordance with the employee

pension regulations under the Labor Pension Act. Every month, 6% of an

employee's salary is contributed to the personal pension account under

Bureau of Labor Insurance. In 2017, the pension recognized under the defined

contribution plan amounted to NT$12,540 thousand. ITEQ adopts the defined

benefit plan in accordance with the employee pension regulations under the

Labor Standards Act. An employee's pension is calculated based on the base

of the service year and the average monthly wage at the time of retirement.

According to the Labor Standards Act, ITEQ contributes 2% of the total salary

every month to the account under the Bank of Taiwan in the name of the Labor

Retirement Reserve Supervisory Committee. As of December 31, 2017, the

defined benefit plan expected to contribute NT$786 thousand in 2017.

5.2.2 Labor/Management Communication

To build a sound labor/management relation, ITEQ respects employees'

freedom of association and rights to negotiate with management and organize

the labor/management meetings on a regular basis or from time to time

in accordance with the Regulations for Implementing Labor-Management

Meeting as the channel of communication between labor and management; in

addition, an opinion mailbox and President's mailbox are set up in public areas

to collect complaints. Face-to-face forums are held with colleagues from time to

time to solve problems and maintain their rights

In response to the increase in output, Pingzhen Plant was relocated to Xinpu

Plant in 2014. ITEQ held the employee meeting at the end of 2013 to explain

the planning of Xinpu Plant. At the time of relocation, an explanation of

detailed planning and measures was given to relocation departments; in

addition, free shuttle buses and car allowances were provided to solve the

traffic problem derived from the increase in the distance; dormitories were also


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offered. Considering employees' safety and traffic conditions, we encouraged

employees to go to work by shuttle bus. To provide good accommodation for

employees living outside Xinpu, the second floor of the existing dormitory

was renovated at the cost of grand total NT$9,221 thousand. Employees filled

out the consent to transfer based on their willingness and needs before taking

office in Xinpu Plant. As of today, no labor dispute was reported.

To ensure the supply of daily meals on time and the quality of food and

nutrition, ITEQ offers lunch, dinner and a late night meal and conducts the

satisfaction survey on a regular basis. In the future, our employee cafeteria will

continuously improve by offering fresh and delicious dishes and seasonal fruits

to maintain balanced diet and good health of our employees.

5.3 Occupational Safety and Health

5.3.1 Safe Workplace

Regarding employees as the largest asset, ITEQ set up an environmental safety

and health system, which covers the code of employee safety and health

and occupational safety and health management plans, to strengthen self-

examination and environmental management and organize an annual physical

examination, fire management, and environmental monitoring for on-site

operators on a regular basis, so as to improve the environmental safety and

health performance; in addition, we develop employees' capacity for emergency

response and a right concept of the safe workplace through internal/external

training to reduce accidents caused by unsafe behavior.

【Prioritize safety and health 】

Prioritize safety and health Comply with safety and health regulations Reinforce safety and health facilitiesPerfect safety and health organizationsStrengthen safety and health educationDevelop safe and healthy habitsBuild concepts of safety and healthBe vigilant to prevent catastropheImplement safety and health self-examination Cooperate to ensure safety

Occupational Safety and Health Committee

Engineering Department

Manufacturing Department

Quality AssuranceDivision

Information Management Department

Research and Development Department

Material Division

Administration Division

Occupational Safety and Health Center

Labor Representatives

▲ Occupational Safety and Health Belief

ITEQ set up the Occupational Safety and Health Committee in accordance with

the law and calls a meeting on a quarterly basis. The Occupational Safety and

Health Committee consists of 17 members, including 10 labor representatives,

more than one-third of the quorum. The Occupational Safety and Health

Committee is responsible to review occupational safety and health management

plans, announce the results of operating environment monitoring, occupational

disaster reports, and results of occupational safety competitions, and explain


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the results of external audits as well as organize safety and health training and

review strengths and weaknesses of the quarterly environmental safety and

health, so as to make continuous improvement; in addition, the Occupational

Safety and Health Committee shall manage contracted construction and

educate contractors if any unsafe behavior is identified and include such

behavior in the checklist.

▲ Workplace and Employee Safety Policy

Item Measures

Self-examination and environmental management

◆ Implement the hazardous equipment inspection every day and

carry out the safety check on a regular basis

◆ Carry out the operating environment monitoring semiannually

◆ Examine the public safety of buildings annually

Special staffing and training

◆ Organize safety training for new employees

◆ Organize external training for supervisors and professionals of

special operations (such as organic solvents and stackers) from

time to time

Fire safety and management

◆ Install firefighting facilities in accordance with the local

firefighting regulations and carry out the firefighting knowledge

and extinguisher operation training on a regular basis

◆ Carry out the fire facility check every month

◆ Carry out the fire drill semiannually

◆ Authorize an qualified institution to carry out the fire safety

check annually

ITEQ set up the Occupational Safety and Health Center responsible to promote

occupational safety and health. Occupational safety and health employees are

designated in each plant to carry out the safety check and audit in the workplace

every day; in addition, we authorize the Industrial Safety and Health Association

of the R.O.C to carry out the environmental monitoring and identify hazards

which may be caused by potential factors (such as organic solvents and special

chemicals, dust, lead, and significant noise). An environmental monitoring,

including planning, sampling, measurement, and analysis, was carried out in

the first and the second half of 2017 respectively to ensure that exposure to

hazards was lower than standards; the results of the environmental monitoring

were announced in obvious places or otherwise disclosed. In addition, we

strengthened the control of engineering and warning and requested employees

to wear personal protective suits appropriately (such as gas masks, earplugs,

and ear caps).

To prevent disasters and increase practitioners' understanding of safety and

health operations, Occupational Safety and Health Department carries out the

monthly training for occupational safety and health employees, hazardous

equipment operators, and special operators; in addition, new and transfer

employees are given 3~6 hours of pre-service safety and health training by

Safety and Health Team and responsible supervisors within three days from the

date of service. In 2017, the number of occupational safety and health training

hours was 92 and the number of trainees was 39.


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▲ 2017 Occupational Safety and Health Training Programs

Type Course Name

Management ◆ ISO 14001

◆ OHSAS 18001

Specialty

◆ Scrubber system

◆ VOCs 24hr monitoring system

◆ CCTV monitoring system

◆ Water treatment system (wastewater and recycled water)

◆ Gas leakage detection system

◆ Firefighting System (fire alarm, broadcast, extinguishment, evacuation)

◆ Report for control (air pollution, waste, toxicizer, occupational disaster, and soil pollution)

Occupational Safety

◆ Fire drill

◆ Fire drill (extinguisher operation)

◆ Hazardous equipment safety check

ITEQ carries out the voluntary fire drill and certification with Fire Bureau,

Hsinchu County Government semiannually. In 2017, two fire drills were

carried out with 96 participants. The drill covered firefighting knowledge, fire

equipment operation, emergency evacuation and a comprehensive drill to

minimize the risks caused by the accidents.

Prioritizing safety, ITEQ's safety and health policy aims to provide a safe and

secure workplace and achieve zero occupational disaster in the business

operation. To manifest our commitment to occupational safety, we have passed

the certification of the occupational safety and health management system

(OHSAS 18001) since 2012 and continued to pass the certification in April 2016.

We identify, evaluate, and control hazardous factors to systematically reduce

risks and improve the corporate safety culture. In 2016, no major defect or

violation of regulations with regard to environmental safety and health was

found. According to the statistics in 2017, the disabling frequency rate and

severity rate were 6.71 and 31.31 respectively, which were lower than those in

2016.

▲ Work Injury

2015 2016 2017

Disabling Frequency Rate (FR) 9.23 7.06 6.71

Disabling Severity Rate (SR) 255.99 74.21 31.31

Note：The formulas are described below： ◆ FR = No. of people injured ／ Total work hours×106 (per million working hours)◆ SR = No. of days absent from work due to injuries ／ Total work hours×106 (per million working hours)

▲ Absence Rate

2016 2017

Male Female Male Female

Number of Days Absent (Note) 1,131 632 493 395

Total Number of Days Worked 63,900 28,180 66,712 31,496

Absence Rate 1.77% 2.24% 0.74% 1.25%

Note：Number of days absent = Sick leave + Menstrual leave + Work injury leave◆ Absence rate = (Number of days absent ÷ Total number of days worked) × 100%

Fire Drill


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5.4.1 Training and Education

To improve employees' competencies and the overall competitiveness of

the organization, ITEQ has planned a set of talent development systems

and an annual training plan, including pre-service training, management

training, specialty training, external training, and self-development. We

organize pre-service training for new employees to understand the company's

business philosophy, products and quality control, and policies with regard

to occupational safety and health, energy conservation, and environmental

protection; know-how and skill training are also offered to existing employees

to improve personal development and promote management and specialty

training programs and the professional certification system. In 2017, ITEQ

invested NT$350,000 in training and education to encourage all colleagues to

continuously improve their skills and seek promotion when performing existing

duties.

▲ New Employee Training System

Management

Middle Management

Human Capital

Grassroots Cadres

Management Training Program (MTP) Multi-skill Certification System In-service Training System

Reserve C

adre Train

ing

Professional Training System Functional Training System

Duty Core Competences Training

External Train

ing

System

Intern

al Trainin

g System

Marketing Technical Service

R&D Material Financial Management

Employee Competitiveness Training Program

EightCenters

Tools

SpecialtyTraining

General Education

Manufacturing Quality Assurance

▲ Hierarchical Learning System

DecisionMarker

Management

fundamental management

New Employees

【Hierarchical Learning System and Objectives】

Planning SkillLeadership

Planning Skill Organizational SkillManagement Skill Communication Skill

Understand Role and DutyBasic Management Skill Increase Work Efficiency

Understand ITEQ and Know Working EnvironmentHave Basic Knowledge


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Each department sets up the annual training plan based on its work

requirements. The training plan mainly covers professionals training, such as

introduction to seismic design and construction of piles and retaining walls,

and may include additional courses whenever necessary. In 2017, 315 training

courses were organized with 8,919 training hours; the number of average

training hours per person was 23.10.

▲ Type of Courses in 2017

Type of Course Total Hours %

Existing Employees：Management Training (for Management) 47 5.43%

Existing Employees：Professionals Training (for On-site Technology) 104 12.03%

Existing Employees：Professionals Training (for Engineering R&D) 102 11.8%

Existing Employees：Quality Awareness Training 48 5.54%

Existing Employees：Professionals Training (for Administration) 95 11%

Existing Employees：Certification Training 121 14%

New Employees：General Education 141 16.3%

Existing Employees：General Education 64 7.39%

Internal Promotion 6 0.69%

Personal Development (Study Club, Spirit, EQ Training) 13 1.5%

Other (Project Training) 32 3.69%

Occupational and Environmental Safety Training 92 10.63%

Total 865 100%

▲ 2017 Average Training Hours by Employee Type

　 Employee Level

Administrator Level

Section Head Level

Manager Level

Director Level

President Level Total

Total Number of Training Hours 3895 3779 518 571 129.2 26.8 8919

Number of Employees 217 116 12 32 5 4 386

Number of Average Training Hours 17.95 32.58 43.17 17.84 25.84 6.7 23.1

▲ 2016 Average Training Hours by Gender

　 Male Female Total

Total Number of Training Hours 6273 2646 8919

Number of Employees 259 127 386

Number of Average Training Hours 24.22 20.83 23.1

To optimize the competency and professionals of special operators

in line with the quality management system or national laws and

regulations, ITEQ implements the special operation qualification

(internal) training. Trainees have to pass the theoretical test and the

field practice (at least 90 out of 100) or be certified by an external

training institution recognized by the local government. The upper

level supervisor shall request the review of the qualification based

on the following table one year after the qualification. If the special

operators are qualified, the supervisor shall sign in the Qualification

List with the approval of the upper level supervisor, submit it to the

Administration Department for registration, and then assign the

special operators and have them obtain the certificates in accordance

with the regulations with regard to occupational safety and health

Special Column: Regulations Governing Professional Certification

Method Basis Eligibility Criteria

Field Practice Station SOP Report/Record

Theoretical Test Station SOP Score >90


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▲ Responsibility for Performance Evaluation

Operation Responsible Unit Key Points

Daily Evaluation

Responsible Supervisor

Record major daily work performance, expected achievement rate,

and actual achievement rate on a monthly basis to maintain the

objectivity and authenticity of the regular evaluation.

Regular Evaluation

Human Resources Department

Human Resources Department in each plant provides the

evaluation sheet and related data for responsible supervisors to

carry out the personal performance evaluation on a regular basis.

To recognize employees' efforts and contributions, ITEQ distributes performance

bonuses to employees in accordance with the Regulations Governing Employee

Performance Bonuses when achieving the business objectives, production

targets, and net profit after tax. In principle, the performance bonus is calculated

based on the net profit after tax and distributed based on the targets achieved.


5.5.1 Maintaining Good Neighborhood Relationship

Upholding the spirit of taking from the society and giving back to the society,

ITEQ attaches great importance to good interaction with communities.

Through donation or participation in community activities, we fulfill our care for

communities and increase employees' awareness of corporate citizenship.

5.4.2 Performance Management

In addition to guidance and assistance provided by supervisors on a regular

basis, ITEQ has set up the Regulations Governing Employee Performance

Evaluation to reasonably and effectively evaluate employees' performance and

potential capacity. The performance evaluation serves as the basis of promotion,

bonus distribution, annual raise, and transfer or training. Full-time employees at

the vice president (inclusive) level or below that pass the probation are required

to participate in the monthly evaluation, while management of the Group

are evaluated semiannually. All of our employees participated in the regular

performance evaluation.

In addition to work management, supervisors at the section head level or above

are required to discuss with the upper level supervisors about the monthly KPI

on talent training and development in the beginning of every month. Through

performance management, outstanding employees are given opportunities

for promotion, competitive remuneration and career development, while

employees with poor performance are given guidance and assistance

PreparationEmployee Self-evaluation

PerformanceReview

PreliminaryEvaluation

Re-evaluation


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▲ Community Cleaning Activity

As a member of the Earth, ITEQ has strived

to promote environmental protection. On

March 17, 2017, the Employee Welfare

Committee called employees to clear

garbage from the community. In the

future, we will continue to take action to

protect the environment and become a

guardian of the Earth.

▲ Continuous Care for Disadvantaged Groups

ITEQ keep watching disvantaged

group and donate organic vagetables

to elder people. Furthermore, ITEQ

welfare association donate 3,000 to

children fundation from 2010.

Community Cleaning Activity

2017 organic vagetable to Huashan fundation

▲ Donations to Community Activities

ITEQ was relocated to Xinpu Township, Hsinchu County in 2014. To maintain

good neighborhood with Xinpu Township, we employed the locals and made

donations to local community activities. We sponsor Xinpu environmental

association for education activities and we also sponsor community associations

for development promotion.

▲ Donation of past two years

Unit：NTD

Note 2016 2017 Total

Community religions 1,000 6,000 7,000

Community activities 15,000 7,000 22,000

Charity Funds - 137,987 137,987

School activities 60,000 - 60,000

Total 76,000 150,987 226,987


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Comparison Table ofGRI4.0 Index

46

General Standard Disclosures

GRI4.0 Description Page Corresponding Chapter & Special Note

Strategy and Analysis

G4-1Statement from the most senior decision-maker of the organization

03 Message from Management

Organizational Profile

G4-3 Name of the organization 06 1.1 About ITEQ

G4-4 Primary brands, products and/or services 06 1.1 About ITEQ

G4-5 Location of the organization's headquarters 06 1.1 About ITEQ

G4-6

Number of countries where the organization operates, and names of countries where the organization has significant operations

06 1.1 About ITEQ

G4-7 Name of ownership and legal form 06 1.1 About ITEQ

G4-8 Markets served 06 1.1 About ITEQ

G4-9 Scale of the organization 06 1.1 About ITEQ

G4-10 Workforce information 34 5.1.1 Diverse Human Structure

G4-11Percentage of total employees covered by collective bargaining agreements

- N/A, as ITEQ does not set up a union.

G4-12 Organization's supply chain 18 3.1.1Local Procurement


G4-13

Significant changes during the reporting period regarding the organization's size structure, ownership, or its supply chain

- No major changes in the reporting period

G4-14

Report whether and how the precautionary approach or principle is addressed by the organization

29 4.2.2 Emergency Response Plan

G4-15

List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

06 1.1 About ITEQ

G4-16List memberships of association and national or international advocacy organizations

06 1.1 About ITEQ

Identified Material Aspects and Boundaries

G4-17

List all entities included in the organization's consolidated financial statements or equivalent documents

02、06 Report Contents, 1.1 About ITEQ

G4-18

Explain the process for defining the report content and the Aspect Boundaries and how the organization has implemented the Reporting Principles for Defining Report Content

15 2.2 Identifying Cirtical Issues

G4-19Material Aspects identified in the process for defining report content


Comparison Table of GRI4.0 Index


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G4-20For each Cirtical Aspect, report the Aspect Boundary within the organization


G4-21For each Cirtical Aspect, report the Aspect Boundary outside the organization

15 2.2 Identifying Cirticall Issues

G4-22

Report the effect of any restatements of information provided in previous reports and the reasons for such restatements

- Report Contents

G4-23Report significant changes from previous reporting periods in Scope and Aspect Boundaries

- Report Contents


G4-24 List of stakeholder groups engaged by the organization 14 2.1 Communication with

Stakeholders

G4-25Basis for identification and selection of stakeholders with whom to engage

14 2.1 Communication with Stakeholders

G4-26 Organization's approach to stakeholder engagement 14 2.1 Communication with

Stakeholders

G4-27Key topics and concerns that have been raised through stakeholder engagement

14 2.1 Communication with Stakeholders

Report Profile

G4-28 Reporting period for information provided 02 Report Contents

G4-29 Date of most recent previous report 02 Report Contents


G4-30 Reporting cycle 02 Report Contents

G4-31Contact point for questions regarding the report or its content

02 Report Contents

G4-32

Report the 'in accordance' option the organization has chosen, GRI Content Index for the chosen option, and reference to the External Assurance Report

02 Report Contents

G4-33

Organization's policy and current practice with regard to seeking external assurance for the report

02 Report Contents

Governance

G4-34

Governance structure of the organization, including committees of the highest governance bod

08、101.3.1 A stable management

structure1.3.3 CSR Management

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

08

1.2.1 Innovation of Ideas, Service in Good Faith

1.3.1 A stable management structure

G4-58

Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity

08 1.2.1 Innovation of Ideas, Service in Good Faith


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Specific Standard Disclosures*Material Aspect

Aspect DMA and Indicator Page Corresponding Chapter & Special Note

*Economic Performance

DMA Disclosure on management approach 10 1.4.1 Management Performance Policies

G4-EC1 Direct economic value generated and distributed 10 1.4.1 Management Performance Policies

G4-EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change 13、25 1.5.1 The risks and challenges of climate change、

4.1 Climate Change and Energy Management

G4-EC4 Financial assistance received from government 11 1.4.2 Government Financial Subsidy

*Procurement PracticesDMA Disclosure on management approach 18 3.1.1 Local Procurement

G4-EC9 Proportion of spending on local suppliers at significant locations of operation 18 3.1.1 Local Procurement

Materials G4-EN1 Materials used by weight or volume 18 3.1.1 Local Procurement

Energy

G4-EN3 Energy consumption within the organization 27 4.1.2 Energy Consumption and GHG Emissions

G4-EN5 Energy intensity 27 4.1.2 Energy Consumption and GHG Emissions

Reduction of energy consumption 28 4.1.3 Measures for Energy Conservation and Carbon Reduction

WaterG4-EN8 Total withdrawal by source 33 4.3.4 Wastewater Emissions

G4-EN10 Percentage and total volume of water recycled and reused 33 4.3.4 Wastewater Emissions

**Emissions

DMA Disclosure on management approach 25、30 4.1 Climate Change and Energy Management4.3 Pollution and Emission Management

G4-EN15 Direct greenhouse gas emissions (scope 1) 27 4.1.2 Energy Consumption and GHG Emissions

G4-EN16 Energy indirect greenhouse gas emissions (scope 2) 27 4.1.2 Energy Consumption and GHG Emissions

G4-EN19 Reduction of greenhouse gas emissions 26 4.1.1 Management Policies and Objectives

G4-EN21 NOx, SOx and other significant air emissions 31 4.3.2 Air Pollution Emissions

*Effluents and Waste

DMA Disclosure on management approach 28、30 4.2 Chemical Management4.3 Pollution and Emission Management

G4-EN22 Total water discharge by quality and destination 33 4.3.4 Wastewater Emissions

G4-EN23 Total water discharge by quality and destination 32 4.3.3 Waste Generation

G4-EN24 Total number and volume of significant spills 28 4.2.1 Management Policies

G4-EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization's discharges of water and runoff 33 4.3.4 Wastewater Emissions


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Products and Services G4-EN27 Reduce of impact mitigation of environmental impacts of products and services 12、20 1.4.3 Technology Excellence; 3.1.3 Control of Hazardous Substances

*ComplianceDMA Disclosure on management approach 30 4.3 Pollution and Emission Management

G4-EN29 Significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations 13 1.5.2 Legal Compliance

Transportation G4-EN30 Significant environmental impacts of transporting products and other goods and materials for the organization's operations, and transporting members of the workforce 31 4.3.2 Air Pollution Emissions

Overall G4-EN31 Total environmental protection expenditures and investments by type 33 4.4.1 Expenditure and Investment in Environmental Protection

*Supplier Environmental Assessment

DMA Disclosure on management approach 19 3.1.2 Supplier CSR Risk Management

G4-EN32 Percentage of new suppliers that were screened by environmental criteria 19 3.1.2 Supplier CSR Risk Management

G4-EN33 Significant actual and potential negative environmental impacts in the supply chain and actions 19 3.1.2 Supplier CSR Risk Management

Environmental Grievance Mechanisms G4-EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal

grievance mechanisms 33 4.4.2 Communication

*Employment

DMA Disclosure on management approach 34 5.1.1 Diverse Human Structure

G4-LA1 34 5.1.1 Diverse Human Structure

G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation 35 5.2.1 Benefits and Remuneration

G4-LA3 Return to work and retention rates after parental leave, by gender 35 5.2.1 Benefits and Remuneration

Occupational Health and Safety

G4-LA5 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs 39 5.3.1 Safe Workplace

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days and absenteeism, and total number of work related fatalities, by region and by gender 39 5.3.1 Safe Workplace

G4-LA8 Health and safety topics covered in formal agreements with trade unions - N/A, as ITEQ does not set up a union.

*Training and Education

DMA Disclosure on management approach 42 5.4 Training and Promotion

G4-LA9 Average hours of training per year per employee by gender, and by employee category 42 5.4.1 Training and Promotion

G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender, and by employee category 44 5.4.2 Performance Management

Diversity and Equal Opportunity G4-LA12 Composition of governance bodies and breakdown of employees per employee category,

according to gender, age group, minority group membership, and other indications of diversity 34 5.1.1 Diverse Human Structure

Equal Remuneration for Women and Men G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant

locations of operation 35 5.2.1 Benefits and Remuneration


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*Supplier Assessment for Labor Practices


G4-LA14 Percentage of new suppliers that were screened by labor practices criteria 19 3.1.2 Supplier CSR Risk Management

G4-LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken 19 3.1.2 Supplier CSR Risk Management

Labor Practices Grievance Mechanisms G4-LA16 Number of grievances about labor practices filed, addressed, and resolved through formal

grievance mechanisms 38 5.2.2 Labor/Management Communication

Non-discrimination G4-HR3 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms 34 5.1.1 Diverse Human Structure

No discrimination occurred in 2017.

Child Labor G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor 34 5.1.1 Diverse Human Structure

Forced or Compulsory Labor G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory

labor, and measures to contribute to the elimination of all forms of forced or compulsory labor 34 5.1.1 Diverse Human Structure

*Supplier Human Rights Assessment


G4-HR10 Percentage of new suppliers that were screened by human rights criteria 19 3.1.2 Supplier CSR Risk Management

G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken 19 3.1.2 Supplier CSR Risk Management

Local Communities G4-SO1 Percentage of operations with implemented local community engagement, impact assessments and development programs 34 5.5.1 Maintaining Good Neighborhood

Anti-corruption

G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified 08 1.2.1 Innovation of Ideas, Service in Good Faith

G4-SO4 Communication and training on anti-corruption policies and procedures 08 1.2.1 Innovation of Ideas, Service in Good Faith

G4-SO5 Confirmed incidents of corruption and actions taken 08 1.2.1 Innovation of Ideas, Service in Good Faith

*ComplianceDMA Disclosure on management approach 13 1.5.2 Legal Compliance

G4-SO8 Significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations 13 1.5.2 Legal Compliance

Supplier Assessment for Impacts on Society


G4- SO9 Percentage of new suppliers that were screened by criteria for impacts on society 19 3.1.2 Supplier CSR Risk Management

G4- SO10 Significant actual and potential negative impacts on society in the supply chain and actions taken 19 3.1.2 Supplier CSR Risk Management

*Customer Health and Safety

DMA Disclosure on management approach 20 3.1.3 Control of Hazardous Substances

G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement 20 3.1.3 Control of Hazardous Substances

G4-PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes 20 3.1.3 Control of Hazardous Substances


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*Product and Service Labeling

DMA Disclosure on management approach 20、23 3.1.3 Control of Hazardous Substances3.2.1 Customer Satisfaction

G4-PR3Type of product and service information required by the organization's procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements

20 3.1.3 Control of Hazardous Substances

G4-PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes 20 3.1.3 Control of Hazardous Substances

G4-PR5 Results of surveys measuring consumer satisfaction 23 3.2.1 Customer Satisfaction

*Marketing Communications

DMA Disclosure on management approach 23 3.2 Customer Service and Management

G4-PR6 Sale of banned or disputed products 23 3.2 Customer Service and Management

Customer Privacy G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data 24 3.2.2 Customer Complaint Handling and

Confidential Information Protection

*Compliance G4-PR9 Significant fines for non-compliance with laws and regulations concerning the provision and use of products and services 13、20 1.5.2 Legal Compliance

3.1.3 Control of Hazardous Substances