｜ESG
Management Impact & Communication for Engagement / Management of Material Topics
Stakeholder Engagement
Material Topic Analysis
Management of Material Topics
Material Issues and Impacts on Walsin Lihwa's Relation Value China.
Actual positive impacts: ● ｜Potential positive impacts : ▲ ｜ Actual negative impact: ○ ｜ Potential negative impacts: △
Material Issues Corresponding GRI Standards for Material Topics Upstream Operation Downstream
Equipment and Material Suppliers Customers Waste Recovery, Regeneration, and Processing

Governance

 Information security management General Disclosures ● △ ● △ ● △ -
Risk management General Disclosures ● ○ ● ○ ● ○ ▲ △
Sustainability strategy General Disclosures ● ○ ● △ ● ○ ▲ △
Legal compliance General Disclosures ● ○ ● ○ ● ○ ● ○
Corporate Govrnance General Disclosures ● ○ ● ○ ▲ △ -

Environmental

 Air Emissions GRI 305: Emissions ▲ △ ● ○ ▲ △ ▲ △
Waste Management GRI 303 Water and Effluents ▲ △ ● ○ - -
GRI 306 Waste ▲ △ ● ○ ● ○ ● ○
Energy Management GRI 302 Energy ▲ △ ● ○ ▲ △ -

Social

 Occupational health and safety GRI 403 Occupational Health and Safety ● ○ ● ○ - -
Material Issues Corresponding GRI Standards for Material Topics Upstream Operation Downstream
Equipment and Material Suppliers Customers Waste Recovery, Regeneration, and Processing

Governance

 Information security management General Disclosures ● △ ● △ ● △ -
Risk management General Disclosures ● ○ ● ○ ● ○ ▲ △
Sustainability strategy General Disclosures ● ○ ● △ ● ○ ▲ △
Legal compliance General Disclosures ● ○ ● ○ ● ○ ● ○
Corporate Govrnance General Disclosures ● ○ ● ○ ▲ △ -

Environmental

 Air Emissions GRI 305: Emissions ▲ △ ● ○ ▲ △ ▲ △
Waste Management GRI 303 Water and Effluents ▲ △ ● ○ - -
GRI 306 Waste ▲ △ ● ○ ● ○ ● ○
Energy Management GRI 302 Energy ▲ △ ● ○ ▲ △ -

Social

 Occupational health and safety GRI 403 Occupational Health and Safety ● ○ ● ○ - -
Note: Actual impacts are those that have already happened, and potential impacts are those that could occur but have not yet occurred.
Material Topics Table
Issues / Material Topics / Chapter Response Positive or Negative Impacts Description of Impacts on the Economy, Environment, and People Including Human Rights

Informational Security Management

Significance to Walsin:

Walsin Lihwa is committed to strengthening information security and protection throughout the company to meet customer needs in information security and fulfill the commitment to information security for customers, shareholders, and all stakeholders.

Material Topics:

General Disclosure

Chapter Response:

2.6 Information security

3.4.3 Customer Service
  • Business value and reputation creation
  • Customer satisfaction enhancement
  • Compliance with information security as well as privacy laws and regulations to avoid fines for violations.
  • Security risks and ensuing losses incurred by human errors.
  • Avoidance of the risks of illegalities and ensuing liabilities; corporate reputation and image maintenance; and brand image and credibility augmentation among customers.
  • Customer compensation claims or fine penalties incurred by business information or customer privacy leaks.
  • Maintenance of basic human rights without misusing and leaking personal information and/ or infringing personal information rights.
  • Better protection of customer rights and human rights by proper management of customer data to use such data for advertising or other legitimate purposes only.

Risk Management

Significance to Walsin:

We continue to identify and monitor risks and plan response measures to reduce and respond to the impact of internal and external risks.

Material Topics:

General Disclosure

Chapter Response:

2.5 Risk Management
  • Enhancement of business resilience and mitigation of the impacts from internal and external risks through effective risk management.
  • Financial, reputational, or other losses incurred by material risks in the absence of effective risk management
  • Avoidance of possible financial, reputational, or other impacts through effective risk management and tracking.
  • Financial impacts incurred by climate change, particularly, extreme climate events, and environmental risks and other impacts incurred by operating expenses derived from policies and laws.
  • Possible operating or reputational impacts resulting from human right and raw material risks incurred by supply chain-related risks.

Sustainability Strategy

Significance to Walsin:

The Sustainable Development Committee establishes sustainability strategies following our vision for sustainability. ESG related management activities are implemented through annual goals and plans execution.

Material Topics:

General Disclosure

Chapter Response:

Progress Towards Sustainability

2.2.3 Sustainable Governance

Chapter 2 Ethical Management and Corporate Transformation

Chapter 3 Industrial Innovation and Value Chain Integration

Chapter 4 Employee Incentives, Cultivation, and Empowerment

Chapter 5 Climate Strategy Development and Environmental Sustainability

Chapter 6 Social Engagement and Local Co-prosperity
  • Sustainability strategy implementation by the Sustainable Development Committee with various issue management plans to ensure the effectiveness of relevant policies and help achieve business sustainability.
  • Ongoing improvement of sustainability practices to strengthen business resilience from the governance, economic, environmental, and societal aspects.

Legal Compliance

Significance to Walsin:

Walsin has established policies and regulations in each area to comply with government regulations and aims to prevent violations harming the Company's business continuity and financial condition.

Material Topics:

General Disclosure

Chapter Response:

2.4.1 Regulatory Compliance

4.3.3 Compliance with Occupational Safety and Health Laws and Regulations

4.4 Employee Care and Communication

5.3.5 Legal Compliance

Appendix 1 GRI 206: Anticompetitive Behavior
  • Reputational, environmental, and human right impacts incurred by fines for violations and legal liabilities.
  • Stiff fines or company image damages for incompliance with relevant governance or economy laws and regulations.
  • Stiff fines or indelible environmental impacts for incompliance with relevant environmental protection laws and regulations.
  • Stiff fines or human right damages for incompliance with relevant societal laws and regulations

Corporate Governance

Significance to Walsin:

Guidelines and measures to safeguard shareholders' rights, reinforce the composition and operations of the Board of Directors, increase information transparency and implement CSR practices.

Material Topics:

General Disclosure

Chapter Response:

2.2 Governance Structure
  • Adherence to the Ethical Corporate Management Best Practice Principles and the Procedures for Ethical Management and Guidelines for Conduct to safeguard stakeholders'rights.
  • Company interests undermined by corruption.
  • Implementation of the value of ethical management with zero tolerance of corruption, briberies, frauds, blackmails, abuses, asset misappropriations and/or sacrificing company interests for personal gains.
  • Compliance with government regulations, and effective implementation of corporate governance to fulfill corporate social responsibilities in terms of business ethics, labor relations, environmental protection, occupational health and safety. Internal control,and community involvement.

Air Emissions

Significance to Walsin:

Mitigation of environmental impacts by effective management of greenhouse gas and pollutant emissions through equipment updating and introduction of relevant systems.

Material Topics:

GRI 305 Emissions

Chapter Response

5.1 Environmental and Energy Management Policy

5.2.2 Energy Saving and Carbon Reduction Management

5.3.1 Air Pollution Control and Amount of Pollutant Emission
  • Negative environmental impacts incurred by greenhouse gas emissions and other pollutants.
  • Possible financial impacts incurred by carbon fees or taxes for greenhouse gas emissions.
  • Net zero to be achieved sooner through effective greenhouse gas emission management to mitigate the risks associated with carbon fees or taxes as well as related expenditures.
  • Possible environment impacts incurred by exhaust emissions and other air pollutants from production.

Waste Management

Significance to Walsin:

Walsin's strategy for using raw materials and resources in operations, including consumables, improvement of recycling, pollution management, and environmental impact assessments.

Material Topics:

GRI 303 Water and Effluents GRI 306 Waste

Chapter Response:

5.1 Environmental and Energy

5.3.2 Water Resource Utilization

5.3.3 Wastewater Treatment

5.3.4 Waste and Resource Recycle
  • Mitigation of environmental impacts by factoring in product features for effective implementation of circular economy and waste output reduction.
  • Possible environmental impacts resulting from waste from production not processed by qualified environmental protection companies in accordance with relevant procedures.
  • Possible negative environmental impacts resulting from waste from production not processed by qualified environmental protection companies in accordance with relevant procedures.

Energy Management

Significance to Walsin:

Development of green circular production by ongoing energy saving and carbon reduction to decrease energy consumption and costs while strengthening energy management.

Material Topics:

GRI 302 Energy

Chapter Response:

5.1 Environmental and Energy Management Policy

5.2.2 Energy Saving and Carbon Reduction Management
  • Enhancement of energy utilization efficiency by effective energy saving and carbon reduction.
  • Risks associated with operating cost increases or business interruptions resulting from improper energy and resource consumption management.
  • Environmental management system development through planning, implementation, and examination to enable effective energy and resource utilization efficiency.
  • Solar power and energy saving equipment implementation to increase the percentage of renewable energy utilization and decrease greenhouse gas emissions.
  • Enhancement of employee awareness of environmental protection and energy saving.

Occupational Health and Safety

Significance to Walsin:

Walsin implements occupational safety and health management measures and policies to improve employees' overall health and safety.

Material Topics:

GRI 403 Occupational Health and Safety

Chapter Response:

4.3.2 Workplace Health and Safety
  • Effective occupational health and safety management to help decrease occupational safety incidents.
  • Possible safety incidents resulting from improper occupational health and safety management.
  • Employee health and workplace safety are the foundation of sustainable development for a company, creating a work environment that ensures the wellbeing of employees and ensures high operational performance.
  • Safeguarding the safety of the work environment is essential to prevent potential impacts on employee safety and health resulting from occupational accidents.
Issues / Material Topics / Chapter Response Positive or Negative Impacts Description of Impacts on the Economy, Environment, and People Including Human Rights

Informational Security Management

Significance to Walsin:

Walsin Lihwa is committed to strengthening information security and protection throughout the company to meet customer needs in information security and fulfill the commitment to information security for customers, shareholders, and all stakeholders.

Material Topics:

General Disclosure

Chapter Response:

2.6 Information security

3.4.3 Customer Service
  • Business value and reputation creation
  • Customer satisfaction enhancement
  • Compliance with information security as well as privacy laws and regulations to avoid fines for violations.
  • Security risks and ensuing losses incurred by human errors.
  • Avoidance of the risks of illegalities and ensuing liabilities; corporate reputation and image maintenance; and brand image and credibility augmentation among customers.
  • Customer compensation claims or fine penalties incurred by business information or customer privacy leaks.
  • Maintenance of basic human rights without misusing and leaking personal information and/ or infringing personal information rights.
  • Better protection of customer rights and human rights by proper management of customer data to use such data for advertising or other legitimate purposes only.

Risk Management

Significance to Walsin:

We continue to identify and monitor risks and plan response measures to reduce and respond to the impact of internal and external risks.

Material Topics:

General Disclosure

Chapter Response:

2.5 Risk Management
  • Enhancement of business resilience and mitigation of the impacts from internal and external risks through effective risk management.
  • Financial, reputational, or other losses incurred by material risks in the absence of effective risk management
  • Avoidance of possible financial, reputational, or other impacts through effective risk management and tracking.
  • Financial impacts incurred by climate change, particularly, extreme climate events, and environmental risks and other impacts incurred by operating expenses derived from policies and laws.
  • Possible operating or reputational impacts resulting from human right and raw material risks incurred by supply chain-related risks.

Sustainability Strategy

Significance to Walsin:

The Sustainable Development Committee establishes sustainability strategies following our vision for sustainability. ESG related management activities are implemented through annual goals and plans execution.

Material Topics:

General Disclosure

Chapter Response:

Progress Towards Sustainability

2.2.3 Sustainable Governance

Chapter 2 Ethical Management and Corporate Transformation

Chapter 3 Industrial Innovation and Value Chain Integration

Chapter 4 Employee Incentives, Cultivation, and Empowerment

Chapter 5 Climate Strategy Development and Environmental Sustainability

Chapter 6 Social Engagement and Local Co-prosperity
  • Sustainability strategy implementation by the Sustainable Development Committee with various issue management plans to ensure the effectiveness of relevant policies and help achieve business sustainability.
  • Ongoing improvement of sustainability practices to strengthen business resilience from the governance, economic, environmental, and societal aspects.

Legal Compliance

Significance to Walsin:

Walsin has established policies and regulations in each area to comply with government regulations and aims to prevent violations harming the Company's business continuity and financial condition.

Material Topics:

General Disclosure

Chapter Response:

2.4.1 Regulatory Compliance

4.3.3 Compliance with Occupational Safety and Health Laws and Regulations

4.4 Employee Care and Communication

5.3.5 Legal Compliance

Appendix 1 GRI 206: Anticompetitive Behavior
  • Reputational, environmental, and human right impacts incurred by fines for violations and legal liabilities.
  • Stiff fines or company image damages for incompliance with relevant governance or economy laws and regulations.
  • Stiff fines or indelible environmental impacts for incompliance with relevant environmental protection laws and regulations.
  • Stiff fines or human right damages for incompliance with relevant societal laws and regulations

Corporate Governance

Significance to Walsin:

Guidelines and measures to safeguard shareholders' rights, reinforce the composition and operations of the Board of Directors, increase information transparency and implement CSR practices.

Material Topics:

General Disclosure

Chapter Response:

2.2 Governance Structure
  • Adherence to the Ethical Corporate Management Best Practice Principles and the Procedures for Ethical Management and Guidelines for Conduct to safeguard stakeholders'rights.
  • Company interests undermined by corruption.
  • Implementation of the value of ethical management with zero tolerance of corruption, briberies, frauds, blackmails, abuses, asset misappropriations and/or sacrificing company interests for personal gains.
  • Compliance with government regulations, and effective implementation of corporate governance to fulfill corporate social responsibilities in terms of business ethics, labor relations, environmental protection, occupational health and safety. Internal control,and community involvement.

Air Emissions

Significance to Walsin:

Mitigation of environmental impacts by effective management of greenhouse gas and pollutant emissions through equipment updating and introduction of relevant systems.

Material Topics:

GRI 305 Emissions

Chapter Response

5.1 Environmental and Energy Management Policy

5.2.2 Energy Saving and Carbon Reduction Management

5.3.1 Air Pollution Control and Amount of Pollutant Emission
  • Negative environmental impacts incurred by greenhouse gas emissions and other pollutants.
  • Possible financial impacts incurred by carbon fees or taxes for greenhouse gas emissions.
  • Net zero to be achieved sooner through effective greenhouse gas emission management to mitigate the risks associated with carbon fees or taxes as well as related expenditures.
  • Possible environment impacts incurred by exhaust emissions and other air pollutants from production.

Waste Management

Significance to Walsin:

Walsin's strategy for using raw materials and resources in operations, including consumables, improvement of recycling, pollution management, and environmental impact assessments.

Material Topics:

GRI 303 Water and Effluents GRI 306 Waste

Chapter Response:

5.1 Environmental and Energy

5.3.2 Water Resource Utilization

5.3.3 Wastewater Treatment

5.3.4 Waste and Resource Recycle
  • Mitigation of environmental impacts by factoring in product features for effective implementation of circular economy and waste output reduction.
  • Possible environmental impacts resulting from waste from production not processed by qualified environmental protection companies in accordance with relevant procedures.
  • Possible negative environmental impacts resulting from waste from production not processed by qualified environmental protection companies in accordance with relevant procedures.

Energy Management

Significance to Walsin:

Development of green circular production by ongoing energy saving and carbon reduction to decrease energy consumption and costs while strengthening energy management.

Material Topics:

GRI 302 Energy

Chapter Response:

5.1 Environmental and Energy Management Policy

5.2.2 Energy Saving and Carbon Reduction Management
  • Enhancement of energy utilization efficiency by effective energy saving and carbon reduction.
  • Risks associated with operating cost increases or business interruptions resulting from improper energy and resource consumption management.
  • Environmental management system development through planning, implementation, and examination to enable effective energy and resource utilization efficiency.
  • Solar power and energy saving equipment implementation to increase the percentage of renewable energy utilization and decrease greenhouse gas emissions.
  • Enhancement of employee awareness of environmental protection and energy saving.

Occupational Health and Safety

Significance to Walsin:

Walsin implements occupational safety and health management measures and policies to improve employees' overall health and safety.

Material Topics:

GRI 403 Occupational Health and Safety

Chapter Response:

4.3.2 Workplace Health and Safety
  • Effective occupational health and safety management to help decrease occupational safety incidents.
  • Possible safety incidents resulting from improper occupational health and safety management.
  • Employee health and workplace safety are the foundation of sustainable development for a company, creating a work environment that ensures the wellbeing of employees and ensures high operational performance.
  • Safeguarding the safety of the work environment is essential to prevent potential impacts on employee safety and health resulting from occupational accidents.
Management Approach Table
Material Issues / Material Topics Management mechanisms and purpose Goals / Resources / Actions / Complaint Mechanisms

Informational Security Management

Significance to Walsin:

Information security management planning; information security management policy promotion year by year; information security system, process, and specification implementation; and ongoing and comprehensive information security protection technology development.

Material Topics:

General Disclosure
Maintenance of the confidentiality, integrity, and availability of sensitive customer data and business information to achieve information security protection together by all employees, internal and external information service users, and 3rd-party service providers. 3rd-party verification of the ISO 27001 Information Security Management System implemented in 2022; fulfillment of the commitment to information security by the PDCA cycle, with the confidentiality, integrity, and availability of all the company data secured by a comprehensive information security management system to keep strengthening information security management through effective prevention, monitoring, and responsiveness before and throughout any information security event.

Risk Management

Management mechanisms and purpose:

  • Established an internal audit system and independent directors to ensure the effective operation of internal control and reporting mechanisms.
  • Related departments carry out risk management work to lower the impact of operational risks.

Material Topics:

General Disclosure
  • Compliance with related laws and regulations.
  • Operating performance and efficiency
  • Reports are reliable, timely, transparent, and comply with relevant regulations.
The chief audit executive's reports at board meetings on a regular basis with at least a quarterly report to the Audit Committee and independent directors on the internal audit and control implementation status.

Sustainability Strategy

Management mechanisms and purpose:

The Sustainable Development Committee is responsible for the establishment of corporate sustainability strategies and vision. The Committee stays up-to-date on the implementation process through periodic meetings, and regularly reports corporate sustainability implementation results to the Board of Directors.

Material Topics:

General Disclosure
Insistence on integrity and commitment to ongoing improvement of operational effectiveness.
Ongoing improvement of corporate governance to ensure business sustainability.
Development of a friendly work environment and an innovative learning organization.
Thorough safety management to create an outstanding workspace.
Effective implementation of carbon reduction and energy to enable green production.
Ongoing corporate social responsibility and public interest initiatives.
  • Strengthen the promotion centers under the Sustainable Development Committee
  • Align the goals of the promotion centers under the Sustainable Development Committee with those of business groups
  • Questionnaire on sustainability issues to understand the level of stakeholders' concern of sustainability issues.
  • Complaint mechanisms:
    esg@walsin.com

Legal Compliance

Management mechanisms and purpose:

  • Categorized based on organizational function and the laws relevant to each function; we follow regulatory changes and make proposals where necessary to revise the Articles of Incorporation or internal regulations
  • The Business Integrity Center under the Sustainable Development Committee is responsible for the implementation of related policies, regulatory compliance training, and supervision of the audit mechanism
  • Create a corporate culture of honest business practices and facilitate sound business development and corporate sustainability.
  • Ongoing perfection of the company's intellectual property-related regulations and rules to establish the company's intellectual property management system.

Material Topics:

General Disclosure

Integrity is an important part of the company's culture that stress that all business activities must comply with local laws and regulations. We are committed to complying with laws, regulations, and procedures, and have established an emergency reporting system. The Company exerts every effort in the following areas to comply with laws and regulations to achieve sustainability:

External:

  • The Company's "Ethical Corporate Management Best Practice Principles" and "Procedures for Ethical Management and Guidelines for Conduct" are available on the Company's website.
  • The latest version of the "Intellectual Property Manual" is available on the Company's website.

Internal:

  • An honest business practice area was established on the internal platform to promote regulatory compliance; Training courses are organized in each plant to promote the importance of regulatory compliance, with business integrity lesson plans provided on the education and training platform.
  • Establish an intellectual property management system, promote compliance with intellectual property laws and regulations, organize education and training, and pass TIPS certification.

Suppliers:

  • Company's supply chain management policy, which requires suppliers to comply with international laws and customers' regulations, is specified on the Company's website. Promote honest business practices and an intellectual property rights system during supplier meetings. A sunset provision, confidentiality clause, and intellectual property rights protection clause, as well as regulations on honest transactions, anti-bribery (anti-corruption), intellectual property rights infringement and other unethical conducts are incorporated in supplier contracts.

Goals:

To create a culture of honest business practices and make it a part of the DNA of every Walsin employee. • Resources and actions:

Resources and actions:

  • Continue to improve related regulations and systems
  • Continue to provide training that promotes regulatory compliance and honest business practices
  • Continue risks assessment system development
  • Continue intellectual property management system development (employees and suppliers)
  • Identify operating practices at every factory that have high risk of violating honest business practices (sales, procurement, EHS)
  • Conduct audits on high-risk business practices

Complaint mechanisms are divided into internal and external mechanisms:

  • Internal complaints: Walsin Lihwa has an internal company mailbox and easily accessible internal complaint channels
  • External complaints (violation of honest business practices and sexual harassment)
    TEL： 886-2-8726-2211 ext.6399
    E-mail： opinion@walsin.com

Corporate Governance

Management mechanisms and purpose:

Periodic CSR and corporate governance meetings conduct follow-ups on the implementation status of annual plans to protect shareholders' rights, treat shareholders equally, strengthen the Board of Directors' structure and operations, increase information transparency, and fulfill CSR.

Material Topics:

General Disclosure
Corporate governance is a mechanism for guiding and managing companies to fulfill their responsibilities, protect shareholders' lawful rights, and give consideration to the interests of other stakeholders.

Air Emissions

Management mechanisms and purpose:

Environment, health,and safety information platform implementation for greenhouse gas inventory and product carbon calculation by gathering data on greenhouse gas emissions at individual plants for the Environment, Health, and Safety Committee to conduct quarterly reviews of how such emissions are managed.

Material Topics:

GRI 305 Emissions
Ongoing manufacturing process and air pollution prevention facility optimization for effective environmental protection; air pollution prevention planning and investment at the beginning of plant establishment by using Best Available Control Technologies (BACT); and exhaust reduction throughout production by using the best air pollution prevention equipment. Annul power saving and carbon reduction by 1.5% through dynamic adjustment of the company's 5-year energy management plan to deal with climate change challenges by reasonable and efficient energy utilization.

Waste Management

Management mechanisms and purpose:

Stabilization of environmental protection operations and energy management step by step by integration and supervision of environmental protection and energy management performances at domestic and overseas plants.

Material Topics:

GRI 303 Water and Effluents GRI 306 Waste
Our EHS and energy policy is "Green Manufacturing, Employee Happiness Enterprise and Sustainable Operations". We are also committed to regulatory compliance, risk control, pollution prevention, resources conservation, emissions reductions and improving performance. We improve management practices, integrate resources, upgrade our technologies and cultivate R&D/technology talents in the environmental field to achieve the Company's environmental safety and health management vision: "Energy Conservation, Carbon Reduction, Reutilization, and Recycling."
  • Recycling and reuse of furnace slags to decrease furnace slag processing costs and facilitate circular economy by regeneration of waste acids.
  • Resolution to clearance of reducing slags and research of waste recycling and reuse.
  • Research of reduction of reducing slags from steelmaking, and assessment of the uses of low-temperature steam pressure and controlled low-strength materials (CLSM).
  • Circular economy development by application for the reuse of regenerated acids.
  • Product registration of regenerate acids to be sold the factories that are in need of them with effective control of the whereabouts of such acids and filing of recovery and regeneration planning
  • Acid regeneration plant (ARP) implementation assessment and circular economy model development.

Energy Management

Management mechanisms and purpose:

Implementation of the ISO 14000 Environmental Management System, ISO 50001 Energy Management System, and ISO 14064 Greenhouse Gas Calculation and Verification for ongoing review and improvement to decrease energy consumption and costs and strengthen energy management.

Material Topics:

GRI 302 Energy
The EHS management policy is to "Continuously promote energy conservation and carbon reduction towards green and circular production."
The EHS management committee rolled out a five-year energy management plan in 2022, setting a target of achieving a consistent 1.5% annual energy savings and carbon reduction. This aims to encourage the rational and efficient use of energy, reduce greenhouse gas emissions, and address the challenges of climate change.
  • Completion of greenhouse gas inventory and verification at overseas plants in compliance with ISO 14064-1:2018.
  • Completion of energy management SOP implementation and verification at the plants in Mainland China
  • Solar power generation efficiency management as well as supervision of new project implementation in Taiwan.
  • Green supply chain promotion focusing on the key suppliers whose carbon emissions are the highest 20% to gather raw material carbon emission factors and require suppliers to begin environmental, health, and safety management as well as energy management year by year.

Occupational Health and Safety

Management mechanisms and purpose:

Responsible for the integration and supervision of domestic and overseas factories' occupational safety and health management performances, and gradually establish a safety culture.

Material Topics:

GRI403 Occupational Health and Safety
Our EHS and energy policy is"Green Manufacturing, Employee Happiness Enterprise and Sustainable Operations". We are also committed to regulatory compliance, risk control, healthcare promotion and the creation of a friendly and healthy environment to make continuous improvements and thus achieve a better performance.
  • Implementation of the ISO 45001 Standard for comprehensive production safety management including the 5S Workplace Methodology, Total Productive Management (TPN), and Safety Job Procedures(SJP).
  • Safety awareness developed by workers' full participation in their section and shift meetings to achieve zero work injury, with the Toyota Production System (TPS) and Kiken Yochi Training (KYT) in conjunction with simplified SJP for muscle memory enhancement to deal with high-risk jobs.
  • Effective reward and punishment system implementation to improve environmental protection and occupational safety by strengthening executors' safety awareness and executives' determinedness to help decrease occupational accidents.
Material Issues / Material Topics Management mechanisms and purpose Goals / Resources / Actions / Complaint Mechanisms

Informational Security Management

Significance to Walsin:

Information security management planning; information security management policy promotion year by year; information security system, process, and specification implementation; and ongoing and comprehensive information security protection technology development.

Material Topics:

General Disclosure
Maintenance of the confidentiality, integrity, and availability of sensitive customer data and business information to achieve information security protection together by all employees, internal and external information service users, and 3rd-party service providers. 3rd-party verification of the ISO 27001 Information Security Management System implemented in 2022; fulfillment of the commitment to information security by the PDCA cycle, with the confidentiality, integrity, and availability of all the company data secured by a comprehensive information security management system to keep strengthening information security management through effective prevention, monitoring, and responsiveness before and throughout any information security event.

Risk Management

Management mechanisms and purpose:

  • Established an internal audit system and independent directors to ensure the effective operation of internal control and reporting mechanisms.
  • Related departments carry out risk management work to lower the impact of operational risks.

Material Topics:

General Disclosure
  • Compliance with related laws and regulations.
  • Operating performance and efficiency
  • Reports are reliable, timely, transparent, and comply with relevant regulations.
The chief audit executive's reports at board meetings on a regular basis with at least a quarterly report to the Audit Committee and independent directors on the internal audit and control implementation status.

Sustainability Strategy

Management mechanisms and purpose:

The Sustainable Development Committee is responsible for the establishment of corporate sustainability strategies and vision. The Committee stays up-to-date on the implementation process through periodic meetings, and regularly reports corporate sustainability implementation results to the Board of Directors.

Material Topics:

General Disclosure
Insistence on integrity and commitment to ongoing improvement of operational effectiveness.
Ongoing improvement of corporate governance to ensure business sustainability.
Development of a friendly work environment and an innovative learning organization.
Thorough safety management to create an outstanding workspace.
Effective implementation of carbon reduction and energy to enable green production.
Ongoing corporate social responsibility and public interest initiatives.
  • Strengthen the promotion centers under the Sustainable Development Committee
  • Align the goals of the promotion centers under the Sustainable Development Committee with those of business groups
  • Questionnaire on sustainability issues to understand the level of stakeholders' concern of sustainability issues.
  • Complaint mechanisms:
    esg@walsin.com

Legal Compliance

Management mechanisms and purpose:

  • Categorized based on organizational function and the laws relevant to each function; we follow regulatory changes and make proposals where necessary to revise the Articles of Incorporation or internal regulations
  • The Business Integrity Center under the Sustainable Development Committee is responsible for the implementation of related policies, regulatory compliance training, and supervision of the audit mechanism
  • Create a corporate culture of honest business practices and facilitate sound business development and corporate sustainability.
  • Ongoing perfection of the company's intellectual property-related regulations and rules to establish the company's intellectual property management system.

Material Topics:

General Disclosure

Integrity is an important part of the company's culture that stress that all business activities must comply with local laws and regulations. We are committed to complying with laws, regulations, and procedures, and have established an emergency reporting system. The Company exerts every effort in the following areas to comply with laws and regulations to achieve sustainability:

External:

  • The Company's "Ethical Corporate Management Best Practice Principles" and "Procedures for Ethical Management and Guidelines for Conduct" are available on the Company's website.
  • The latest version of the "Intellectual Property Manual" is available on the Company's website.

Internal:

  • An honest business practice area was established on the internal platform to promote regulatory compliance; Training courses are organized in each plant to promote the importance of regulatory compliance, with business integrity lesson plans provided on the education and training platform.
  • Establish an intellectual property management system, promote compliance with intellectual property laws and regulations, organize education and training, and pass TIPS certification.

Suppliers:

  • Company's supply chain management policy, which requires suppliers to comply with international laws and customers' regulations, is specified on the Company's website. Promote honest business practices and an intellectual property rights system during supplier meetings. A sunset provision, confidentiality clause, and intellectual property rights protection clause, as well as regulations on honest transactions, anti-bribery (anti-corruption), intellectual property rights infringement and other unethical conducts are incorporated in supplier contracts.

Goals:

To create a culture of honest business practices and make it a part of the DNA of every Walsin employee.

Resources and actions:

  • Continue to improve related regulations and systems
  • Continue to provide training that promotes regulatory compliance and honest business practices
  • Continue risks assessment system development
  • Continue intellectual property management system development (employees and suppliers)
  • Identify operating practices at every factory that have high risk of violating honest business practices (sales, procurement, EHS)
  • Conduct audits on high-risk business practices

Complaint mechanisms are divided into internal and external mechanisms:

  • Internal complaints: Walsin Lihwa has an internal company mailbox and easily accessible internal complaint channels
  • External complaints (violation of honest business practices and sexual harassment)
    TEL： 886-2-8726-2211 ext.6399
    E-mail： opinion@walsin.com

Corporate Governance

Management mechanisms and purpose:

Periodic CSR and corporate governance meetings conduct follow-ups on the implementation status of annual plans to protect shareholders' rights, treat shareholders equally, strengthen the Board of Directors' structure and operations, increase information transparency, and fulfill CSR.

Material Topics:

General Disclosure
Corporate governance is a mechanism for guiding and managing companies to fulfill their responsibilities, protect shareholders' lawful rights, and give consideration to the interests of other stakeholders.

Air Emissions

Management mechanisms and purpose:

Environment, health,and safety information platform implementation for greenhouse gas inventory and product carbon calculation by gathering data on greenhouse gas emissions at individual plants for the Environment, Health, and Safety Committee to conduct quarterly reviews of how such emissions are managed.

Material Topics:

GRI 305 Emissions
Ongoing manufacturing process and air pollution prevention facility optimization for effective environmental protection; air pollution prevention planning and investment at the beginning of plant establishment by using Best Available Control Technologies (BACT); and exhaust reduction throughout production by using the best air pollution prevention equipment. Annul power saving and carbon reduction by 1.5% through dynamic adjustment of the company's 5-year energy management plan to deal with climate change challenges by reasonable and efficient energy utilization.

Waste Management

Management mechanisms and purpose:

Stabilization of environmental protection operations and energy management step by step by integration and supervision of environmental protection and energy management performances at domestic and overseas plants.

Material Topics:

GRI 303 Water and Effluents GRI 306 Waste
Our EHS and energy policy is "Green Manufacturing, Employee Happiness Enterprise and Sustainable Operations". We are also committed to regulatory compliance, risk control, pollution prevention, resources conservation, emissions reductions and improving performance. We improve management practices, integrate resources, upgrade our technologies and cultivate R&D/technology talents in the environmental field to achieve the Company's environmental safety and health management vision: "Energy Conservation, Carbon Reduction, Reutilization, and Recycling."
  • Recycling and reuse of furnace slags to decrease furnace slag processing costs and facilitate circular economy by regeneration of waste acids.
  • Resolution to clearance of reducing slags and research of waste recycling and reuse.
  • Research of reduction of reducing slags from steelmaking, and assessment of the uses of low-temperature steam pressure and controlled low-strength materials (CLSM).
  • Circular economy development by application for the reuse of regenerated acids.
  • Product registration of regenerate acids to be sold the factories that are in need of them with effective control of the whereabouts of such acids and filing of recovery and regeneration planning
  • Acid regeneration plant (ARP) implementation assessment and circular economy model development.

Energy Management

Management mechanisms and purpose:

Implementation of the ISO 14000 Environmental Management System, ISO 50001 Energy Management System, and ISO 14064 Greenhouse Gas Calculation and Verification for ongoing review and improvement to decrease energy consumption and costs and strengthen energy management.

Material Topics:

GRI 302 Energy
The EHS management policy is to "Continuously promote energy conservation and carbon reduction towards green and circular production."
The EHS management committee rolled out a five-year energy management plan in 2022, setting a target of achieving a consistent 1.5% annual energy savings and carbon reduction. This aims to encourage the rational and efficient use of energy, reduce greenhouse gas emissions, and address the challenges of climate change.
  • Completion of greenhouse gas inventory and verification at overseas plants in compliance with ISO 14064-1:2018.
  • Completion of energy management SOP implementation and verification at the plants in Mainland China
  • Solar power generation efficiency management as well as supervision of new project implementation in Taiwan.
  • Green supply chain promotion focusing on the key suppliers whose carbon emissions are the highest 20% to gather raw material carbon emission factors and require suppliers to begin environmental, health, and safety management as well as energy management year by year.

Occupational Health and Safety

Management mechanisms and purpose:

Responsible for the integration and supervision of domestic and overseas factories' occupational safety and health management performances, and gradually establish a safety culture.

Material Topics:

GRI403 Occupational Health and Safety
Our EHS and energy policy is"Green Manufacturing, Employee Happiness Enterprise and Sustainable Operations". We are also committed to regulatory compliance, risk control, healthcare promotion and the creation of a friendly and healthy environment to make continuous improvements and thus achieve a better performance.
  • Implementation of the ISO 45001 Standard for comprehensive production safety management including the 5S Workplace Methodology, Total Productive Management (TPN), and Safety Job Procedures(SJP).
  • Safety awareness developed by workers' full participation in their section and shift meetings to achieve zero work injury, with the Toyota Production System (TPS) and Kiken Yochi Training (KYT) in conjunction with simplified SJP for muscle memory enhancement to deal with high-risk jobs.
  • Effective reward and punishment system implementation to improve environmental protection and occupational safety by strengthening executors' safety awareness and executives' determinedness to help decrease occupational accidents.