II. Does the Company conduct risk assessment for environmental, social and corporate governance issues related to the Company’s operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies?
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- The disclosure covers the Company's performance in key locations for the period January 2023 to December 2023. The risk assessment boundary is limited to the Company and includes domestic 100%-owned subsidiaries based on their relevance to the core businesses and the extent of their impact of material topics.
- The Company provides internal and external communication channels for stakeholders (shareholders, employees, suppliers, and customers) to ask questions and express their opinions, and, with respect to the corporate sustainability topics, conducts questionnaire surveys to identify the issues on the sustainable development of the environment, society, and corporate governance based on the materiality principle. As for the analysis of materiality principle issues, the Company has established relevant risk management policies and strategies with reference to the GRI (Global Reporting Initiative), the considerations in the GRI Standards, the characteristics under the industry standards (Software & IT Services) of the Sustainability Accounting Standards Board (SASB), and the UN SDGs to effectively identify, measure, evaluate and control risk management policies and specific action plans to reduce the impact of relevant risks.
- Based on the assessed risks, relevant risk management policies or strategies are formulated as follows:
Environment
Environmental impact and management
1. We are an information service company with no factories or related manufacturing machinery, and our main carbon and water footprints and waste are generated from general office activities. In response to environmental impacts, the Company promulgated the Tsti Environmental Policy in 2022 and will continue to promote sustainable environmental protection among employees and suppliers.
2. Regularly review our greenhouse gas emissions plan to examine the impact of our operations. Based on the results, continue to implement carbon reduction measures to reduce the risk of carbon emissions from business vehicles in Scope I and indirect greenhouse gas emissions from electricity use in Scope II.
3. Byreferring to the results of the TCFD framework for identifying climate risks and opportunities, integrate our core competencies to drive a new business model for ESG sustainability, the ESG AIoT Carbon Management System.
Society - Occupational safety
1. All employees are insured by group insurance and free health checkups are arranged regularly; ISO 45001 certification was successfully implemented in December 2023.
2. The on-site medical doctor, occupational nurse and occupational safety and health staff regularly conduct various health management activities, health promotion seminars and public security fire inspections to ensure employee safety and strengthen safety awareness, continuously optimize internal and external occupational safety of the Company and reduce related hazards.
3. In response to the COVID-19 pandemic in 2020, to protect the health of employees and reduce the risk of infection, we implemented online digital health management, with immediate notification of temperature reports, tracking and screening.
4. Regular fire drills and industrial safety education training are held every year to develop employees' emergency response and self-safety management skills.
Society - Service quality and safety
1. We have passed the CMMI certification for software quality, ISO 27001 certification for information security management system, and ISO 20000 certification for information service management system to establish a more complete information service system and help corporate users to build a highly competitive information environment.
2. We have set up a hotline and a consultation email box for the questions that customers have on our products. We provide attentive aftersales services by setting up a 0800 customer service hotline and an online repair reporting and query website.
Corporate governance
Socio-economic and legal compliance Through the establishment of a governance organization and the implementation of internal control mechanisms, ensure that all employees and operations of the Company comply with the relevant laws and regulations.
Corporate governance - Strengthen the functions of directors
1. Plan for the relevant trainings for directors and provide them with annual updates on regulations, institutional developments and policies.
2. Provide directors with liability insurance to protect them from potential litigation and claims, and help strengthen corporate governance.
Corporate governance - Stakeholder communication
1. Analyze important issues of concern to stakeholders to avoid misunderstandings that may lead to operational or litigation risks if stakeholders have different positions from the Company.
2. Establish various communication channels and actively communicate to reduce confrontation and misunderstanding. Set up a mailbox for investors, with a spokesperson to handle and respond to them.
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III. Environmental issues
(1) Does the Company have an appropriate environmental management system established in accordance with its industrial characteristics?
(2) Is the Company dedicated to enhancing energy efficiency and using recycled materials with low impact on the environment?
(3) Does the Company assess the current and future risks and opportunities which climate change potentially brings to the Company? Does the Company take measures in response to climate-related issues?
(4) Does the Company make statistics of the greenhouse gas emissions, water consumption and total waste weight in the past two years? Does the Company have policies for energy saving and carbon reduction, reduction of greenhouse gas emissions, reduction of water consumption or other waste management policies?
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(1) The Company is located in the Group's factory and the Group has implemented the ISO 14001 environmental management system at the Group level since 1996 to improve the environmental performance on an ongoing basis. The Company is in the information service industry and has no environmental pollution from manufacturing plants. We implement internal energy saving and carbon reduction policies as well electronic documentation control and approval. The Company also assist customers in the implementation of energy saving plans, and externally promote the “ESG AIoT Carbon Management System” solution to make a contribution to the energy saving and carbon reduction with our professional information service knowledge.
Starting in 2023, we will report quarterly to the Board of Directors on the schedule and progress of greenhouse gas inventory and verification, and start internal greenhouse gas inventory operations in the first quarter of 2023 in accordance with ISO 14064-1 verification standards. To thoroughly understand the company's greenhouse gas emissions, our company sent personnel to participate in the ISO 14064-1 Greenhouse Gas Internal Verification Training Course. The aim is to cultivate personnel in various units of the company as greenhouse gas inventory auditors, in order to comprehensively promote the implementation of greenhouse gas information management systems that comply with ISO14064-1 requirements in affiliated offices and subsidiaries. Based on this, emission inventory work will be conducted. It is expected to pass the ISO 14064-1 verification in 2024, which will enhance the company's greenhouse gas inventory capabilities. Currently, the company schedules quarterly progress reports on greenhouse gas projects at board meetings. In the future, we will conduct annual greenhouse gas inventory to track the effectiveness of emission reduction and public disclosure.
(2) The Company is actively promoting various energy reduction measures and using continuous electronic document approval optimization to reduce paper costs and reduce environmental impact: The Company has implemented electronic document approval and human resources operating systems. Traditional paper is replaced with transmission of electronic files to reduce the paper at the office. Resource recovery and waste sorting facilities are available on each floor in the office building.
Information equipment supplies are recycled, effectively sorted and reused to improve energy efficiency. We implement recovery of waste computers and toner cartridges. The personal data in the media (e.g. hard disks) are deleted and the media are destroyed physical before they are scrapped to ensure compliance with the Personal Data Protection Act and the resource regeneration principle in favor of the environment.
In August 2022, we established a cross-unit green procurement team to purchase nationally certified environmental protection products and passed the Green Office certification of the Environmental Protection Administration. This actively promote green procurement in the Company. In 2023, green procurement amounted to $1,621,838.
Simultaneously, concerning the products we represent, our company includes energy-efficient electronic equipment from the original manufacturers in the sales list, encouraging manufacturers to strengthen the development of energy-saving and carbon-reducing products, thereby jointly committing to corporate social responsibility. Some of the information technology products we sell have already obtained the Taiwan Energy Label.
(3) After reviewing the risks, the company analyzed the impact of climate change on its financial condition and formulated annual adjustment and response strategies, disclosing tables on "climate-related risks and financial impacts" and "climate-related opportunities and financial impacts". Meanwhile, leveraging its core capabilities, the company is committed to promoting ESG sustainable new business models and has launched solutions to assist customers in reducing carbon emissions, including the ESG AIoT Carbon Management System, tiCare Smart Healthcare / Telehealth, AIoT Smart Restroom, and more. To cope with the risk of the climate change to the Company, we have established emergency response management regulations, conducted different emergency response activities and performed public safety and fire service inspections to ensure the safety of the employees and uninterrupted serviced in the emergency.
(4) We support the environmental protection polices of the government and are dedicated to the implementation of the energy saving and carbon reduction strategies. The air conditioners were cleaned in May and October 2023 to improve their efficiency and reduce the load to the equipment effectively. In 2023, the renovation of the second-floor office in Taipei was completed. Also, we will replace the LED tube lighting with LED flat panel lighting to save energy. We hope to create the highest benefit in energy saving and carbon reduction this way. Our overall carbon decreased by 77.79 tons of CO2 emissions in 2023 compared to 2022. The Company will continue to strive to fulfill its corporate social responsibility and sustainable management by conducting greenhouse gas inventories, identifying major CO2 emission sources, and promoting and implementing effective emission reduction measures.
tsti Carbon Emissions Statistics
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Disclosure date: 03.03.2024
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Main GHG emissions sources
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2021
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2022
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2023
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Energy saving rate in current year
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Scope 1
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Company car (gasoline/KG)
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84,562.48
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82,150.09
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73.3555
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-10.71%
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Scope 2
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Power consumption (kWh)
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694,777.54
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758,722.53
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729.9676
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-3.79%
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Scope 3
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Transport car (diesel/KG)
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194,646.24
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171,063.45
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130.8250
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-23.52%
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Total
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973,986.26
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1,011,936.07
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934.1480
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-7.69%
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(2) Water consumption: The water used for general office activities is not yet included in the inventory, and no data is available for the time being. The water sources we use are all tap water, primarily for the daily life needs of the office. Water is a precious shared resource, and we actively manage it in our daily operations. We also continuously promote water conservation, choose water-saving devices with water-saving labels, use sensor taps, regularly maintain and repair water storage facilities, to prevent wastage of water resources. Our aim is to integrate the concept of water conservation into the daily lives of our colleagues.
(3) Waste: As for the old, damaged and unusable IT equipment, we have removed usable components and resold scrapped equipment and parts to recycle service providers in the hope of achieving the greatest benefit of energy saving and carbon reduction. A qualified waste disposal company registered with the government will be hired by the Tatung Company at the factory site to handle subsequent recycling and sorting work, reducing harm to the environment. To actively prevent pollution and potential data breaches, we track and manage the flow of waste in coordination with the waste disposal company's on-board measures. In our supplier ESG visit meetings, we also exchange information on the selection, tracking management, and on-board measures of waste disposal companies, collectively promoting a more environmentally friendly approach and the reuse of packaging materials. The Company will continue taking the fulfillment of the corporate social responsibility and the sustainable operations as the goal in the future.
2. Greenhouse gas reduction, water consumption reduction or other waste management policies
In accordance with regulations and in cooperation with Tatung Company, the Company is required to complete third-party greenhouse gas inventory verification by 2025. Currently, the Company schedules quarterly greenhouse gas special progress reports to the Board of Directors and plans to complete internal greenhouse gas inventory and external verification in accordance with ISO 14064-1 by 2024.
3. The relevant greenhouse gas emissions, water consumption and waste data are based on our own inventory and we have not yet implemented the system verification. In 2023, the internal greenhouse gas inventory operations will be conducted and external verification completed in accordance with the ISO 14064-1 verification standard. Moving forward, annual greenhouse gas inventories and verifications will be conducted each year to track the effectiveness of emission reduction and public disclosure.
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IV. Social issues
(1) Does the Company have management policies and procedures in accordance with relevant regulations and international human rights conventions?
(2) Does the Company establish and implement reasonable employee benefit measures (including remuneration, leave and other benefits)? Is the operating performance or results properly reflected in the remuneration for employees?
(3) Does the Company provide employee with a safe and healthy work environment, and provide safety and health education to employees regularly?
(4) Does the Company have effective programs for development and training regarding employees’ career skills?
(5) Does the Company conform to the relevant regulations and international standards with respect to customer health and safety, customer privacy, marketing and labeling for products and services? Does your company establish the relevant consumer rights protection policies and complaint procedures?
(6) Does the Company have a supplier management policy that requires suppliers to comply with the regulations concerning environmental protection, occupational safety and health or labor rights? What’s the status of its implementation?
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(1) The Company has established and announced our human rights policy, formulated related labor management regulations in line with relevant laws and regulations, and observed the basic principles of labor rights specified in the international human rights conventions to protect the basic rights of the employees. In addition, the Company does not adopt discriminatory treatment in our employment policy and disseminates relevant labor regulations irregularly. A labor–management meeting is available to coordinate the labor–management relationship, promote labor–management cooperation, and facilitate harmony between the employees and the management. The Company has established an employee welfare committee to provide subsidies and organize events for the employees.
(2) Employee remuneration
The Company regards human resources as a source of competitiveness and differentiation, and a highly valued asset of the Company. Therefore, the Company continues to provide each talented employee with favorable wages and benefits. We uphold the idea of sharing the profits with employees to attract, cultivate, develop and encourage talents in all fields. In order to attract talented employees, we provide a year-end bonus equivalent to one month salary and a total of 0.5 month as Dragon Boat Festival and Mid-Autumn Festival bonus. Depending on the specific contribution and performance appraisal of the employees, we provide performance bonuses to employees with good performance. Employees who have been employed for 2 years or more can participate in the Company's profit-sharing remuneration for employees to encourage all employees to work together for the Company's goals. In 2023, non-managerial full-time employees experienced a salary growth of 3.89%. First-year supervisors leading technical services teams were included in the SIP performance rewards scheme. We also implemented the new Job Plan & Review system, ensuring one-on-one performance reviews with immediate supervisors and conducting employee satisfaction evaluations.
Employee welfare measures
The Company has established an Employee Welfare Committee, and each year the Company appropriates more than NT$3 million as employee welfare funds, planning and providing quality benefits for employees, such as: employee travel subsidies, subsidies for further education and training courses, birthday gift certificates, wedding allowances, childbirth allowances, and wedding and funeral subsidies.
In terms of attendance and leave system, the Company adopts the APP sign-in and sign-out system and provides one hour of flexible working hours per day. In addition to the two rest days per week, employees who have been employed for one year are given 10 days of special leave per year. In the event of childcare, material injury, illness or accident, employees can apply for leave without pay in order to address their personal and family needs. In 2023, we implemented the "Work-Life Balance Special Leave Incentive Program" for the first time. This program encourages employees to utilize their special leave by offering incentives, in addition to recognizing their hard work. It aims to enrich employees' leisure time while enhancing the company's operational resilience. Furthermore, we promoted employee participation in charitable activities and provided volunteer leave rewards.
Workplace diversity and equality
We respect the uniqueness of each employee and strive to create a diverse and inclusive workplace environment. We embrace and respect colleagues from diverse backgrounds and take women seriously to create a more friendly work environment and provide a comfortable breastfeeding room. We strive to achieve equal pay for equal work and equal opportunity for advancement for both men and women. In 2023, the average percentage of female employees was 30.8%, and the percentage of female senior leaders reached 21.5%.
The Company attaches importance to employee rights and interests and maintains a good working environment, including physical and mental care: (1) The ratio of employees with physical disabilities is in line with government regulations; (2) 100% of injured employees discuss with the occupational medical doctor, and appropriate rehabilitation care and return-to-work plans are formulated; (3) Foreign employees are treated fairly in terms of appointment/development/employment/retention, cultural integration and health and safety compared to their national counterparts; (4) Continue to implement a happy workplace, through the colleagues independent APP environment optimization notification, and jointly optimize the office environment to work at ease.
Operating performance is reflected in employee salaries
The Company participates in annual market salary surveys and adjusts salaries according to market salary levels, economic trends and individual performance in order to maintain overall salary competitiveness. In order to reflect the operating results in employee salaries, the Company allocates 5% to 15% of the annual profit as profit-sharing remuneration for employees in accordance with Article 31 of the Company's Articles of Incorporation. The Company has established employee welfare measures (including remuneration, leave and other benefits), and reflected the business performance or result appropriately in the remuneration to the employees. In addition to distributing profit-sharing remuneration for employees depending on the business performance every year and enabling them to share the operating results with the Company, we implement the Employee Stock Ownership Plan (ESOP) and provide subsidies for the employees to subscribe the shares and share the operating results. We implement the volunteer bonus leave to encourage employees to participate in volunteer services and make contributions to the society.
(3) Occupational safety and health policy
To protect the personal safety of the employees, the Company has taken out group insurance for them and arranged free health checkups on a regular basis. We implemented the ISO 45001 certification successfully in December 2020. Since then, The on-site physician, occupational health nurse, and the personnel in charge of OSH matters arrange various health management activities, health promotion lectures, and public safety and fire inspections irregularly to ensure the safety of the employees and enhance their awareness of safety. We continue optimizing internal and external occupational safety and reducing related hazards. To build a more friendly environment, a breastfeeding room is available to enable female employees to feed their babies after birth and work without concerns. To cope with COVID-19, the Company has implemented online digital health management, reporting and follow-up of body temperature, and instant reporting of testing results since 2020 to protect the health of the employees and reduce the risk of infection. The Company was selected by Common Health Magazine as a Corporate Health Responsibility (CHR) company in 2021. We are committed to implementing employee health promotion activities in the four aspects of awareness, exercise, food, and assistance. The Company was also certificated by the Sports Administration, Ministry of Education, as a Sports Enterprise in 2023 and received the Badge of Accredited Healthy Workplace from the Health Promotion Administration in the same year to demonstrate the fulfillment of the corporate social responsibility, build a health workplace together with the employees, and establish a healthy supportive environment. Continue to implement and optimize real-time reporting through the APP; complete the ISO 45001 recertification in 2023. We continuously review, improve, and enhance the workplace environment to provide employees with a safe and healthy working environment.
(4) The Company places much importance on the training of the employees and believes that the power of differentiation comes from the increase of the human capital. Each of the more than 40 professional functions has 5 to 6 professional competences. The analysis of the competences is conducted to identify the strengths and weaknesses of the employees in their competence and establish more premium talent development strategies. In addition, the Company has established a career development and talent retention plan and encouraged employees to improve their professional capability continuously and create a win-win situation for their personal competency and growth. The communication and learning competences are added to the four core competences of innovation, service, team, integrity to enhance the learning organization and culture continuously. In 2023, a total of 8,467 employees participated in the Company's 494 training courses, totaling 18,595 hours.
(5) 1. In addition to passing the software quality CMMI ML3 certification, ISO 27001 Information Security Management System certification, and ISO 20000 IT Service Management System certification, the Company is recognized by the Industrial Development Bureau, Ministry of Economic Affairs, as a technology service information organization – IT service organization, an information security service organization in the IS category, and a AI service organization in the AI category to build a more complete information service system and assist corporate clients in building an information environment of high competitive strength jointly.
2. The Company has set up a hotline and a consultation email box for the questions that customers have on our products. We provide attentive aftersales services by setting up a 0800 customer service hotline and an online repair reporting and query website.
(6) We incorporate the energy-saving electronic products sold by the suppliers in the product line and urge manufacturers to enhance their R&D in the products favorable for energy saving and carbon reduction in order to fulfill the corporate social responsibility. We take purchase of the products with the Green Mark as the first priority. The amount of green procurement in 2023 reached $1,621,838. Some of the information equipment products we sold have been attached with Taiwan Energy Label.
In addition to having our suppliers to sign relevant contracts, we also invite them to sign a "Supplier Commitment" that includes compliance with environmental protection, labor, occupational safety and health, information security, and other important issues, and plan to conduct supplier site visits in the hope of mutual learning and growth through exchanges. 704 suppliers are promoted annually, and 164 new suppliers are introduced in 2023. All of them signed the "Supplier Commitment Letter (Integrity and Integrity Management)" and responded to the "Supplier Corporate Social Responsibility Self-Assessment Form"; in 2023, the "ESG Enterprise Permanence" implemented for the first time. Continuing the investigation, we conducted written surveys (12 suppliers) and on-site visits to 3 suppliers. The implementation rate was 100%.
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VII. Other information useful for understanding of the implementation of sustainable development:
Major ESG and CSR implementation results in 2023:
1. Won 2023 Smart City Innovation Application Award
2. Won 2022 ASOCIO Asia Pacific ICT Application Award - ESG Sustainability Award
3. Won the Hack4ClimateAction Titanium Award at the Net Zero Summit and Digital Climate Action Awards
4. Won the 2023 [Customer Service Excellence Awards] Best Customer Service System Supplier
5. Won the healthy workplace certificate – Badge of Accredited Healthy Workplace (HPAA1100194) – in 2022
6. Won the Sustainability Supplier Recognition: Fubon Bank, Taishin Bank, Yuanta Bank, and China Development Financial
Corporate governance
Legal compliance and corporate rules and regulations update announcement: Appointed the Corporate Governance Officer, updated the Articles of Incorporation (2023/06/15), Rules of Procedure for Shareholders’ Meetings (2023/06/15), the Corporate Governance Best Practice Principles (2023/08/08), and Financial Business Operations Regulations Among Related Parties (2023/08/08), Succession Planning for Board Members and Key Management (2023/11/07); completed CSR audits of suppliers in the financial and telecommunications industries, such as Taiwan Mobile, Taishin Bank, Yuanta Bank, Fubon Bank, etc. Professional service quality assurance through ISO20000, ISO27001, CMMI-L3 certification, and the Ministry of Economic Affairs Industrial Development Bureau - Information Security Service Organization and Artificial Intelligence Service Organization registration certificate.
Sustainable environment
TSTI is an information service company with no factories or related manufacturing machinery, and our main carbon and water footprints and waste are generated from general office activities. For greenhouse gas emissions in areas such as company cars, the Company promulgated the Tsti Environmental Policy in 2022 to continue to promote sustainable environmental awareness among employees and suppliers, implemented the Tsti supplier sustainability questionnaire survey, conducted annual supplier sustainability promotion, and promoted electronic voting on shareholder meeting motions. We established an inter-unit green procurement team to procure nationally certified environmental products, and used Taiwan-made recycled rPET fabric for the annual procurement of short-sleeved polo shirts for employees, and passed the green office certification of the Environmental Protection Administration, Executive Yuan.
In the office, we continue to promote energy-saving practices, such as introducing smart toilets, replacing LED lighting in meeting spaces, and replacing energy-consuming air conditioning equipment; and integrating corporate core competencies to promote ESG sustainability in 2023. We actively respond to customer supplier ESG surveys and conduct on-site supplier ESG audits; adopting the Science Based Targets initiative (SBTi) principles to establish carbon reduction targets, aiming to achieve a 20% reduction in carbon emissions by 2030, demonstrating a sustainable value chain. We address greenhouse gas emission issues, with 5 colleagues completing internal verification training on greenhouse gas emissions in 2023; completing the internal greenhouse gas inventory for the year 2022 and the first greenhouse gas inventory report. We are implementing ISO14064-1, aiming to complete third-party verification for the year 2023 by 2024.
Social welfare
The human rights policy of the Company is established in accordance with laws and labor management regulations, and subject to the basic principles of labor rights specified in the international human rights conventions. We continue improving, updating and jointly building a friendly workplace, workplace violence elimination statements, sexual harassment prevention measures, regulations for application with respect to the rights specified in the Personal Data Protection Act, and relevant disseminations.
TSTI has been awarded the 2022 Healthy Workplace Accreditation - Health Promotion Label (HPAA1100194) and is a Healthy Corporate Citizenship Pledge Company, joining the CommonWealth Magazine’s Taiwan Talent Sustainability Initiative Companies. We continue to implement ISO 45001 Occupational Health and Safety Management Systems and continue improving the work environment for the employees in a systematic way, protecting their health, winning the trust of the customers to the Company, and improving our business performance.
We continue to care for the disadvantaged and donate to the schooling of disadvantaged students in rural areas of China. We promote the participation of employees in public welfare activities and reward them with volunteer leaves. In response to the promotion of sustainable schooling, we participated in the Yuanta Sapling event; in response to the promotion of supporting Taiwan athletes, we participated in the Taiwan Women's Professional Golf Association (TWM) event.
Information disclosure
There is a section on the official website for announcement of annual event records. Please visit the sustainability section on the website. (Official Website > Corporate Sustainability)
(https://www.etatung.com/Home/ShowProductionInfoIdea?ID=c466ff7b-4c8b-4b1b-a91c-5d9fd2de5ad3 )
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