Tatung
CSR Report2021

make the world better2021
TatungCSR Report

ABOUT THIS REPORT“2021 Tatung Corporate Social Responsibility Report” has been prepared in accordance with the GRI Standards:
Core option and AA1000 AS v3. We expect this report is able to present a more focused content to the needsof the stakeholders, as well as sharing the sustainable achievements done by Tatung in a systematical manner.

Scope

The scope of this report covers Tatung's operations
within the Headquarter, Tayuan Plant, Taoyuan
Wires and Cables Plant, Taoyuan 1st Plant, and SanHsia Factory. Due to Tatung Consumer Products
Co, Ltd (also known as TCPC or Tatung 3C) is mainly
in charge of the sales of Tatung’s house appliancesand consumer products, part of TCPC's information(sales, services, and consumer data management)is also disclosed in this report. The disclosure
boundary of some material topics may be beyond
the scope above and will be specifically describedin its DMA.

Reporting cycle and reporting
periodTatung Corporate Social Responsibility Report ispublished before the end of June annually. Unlessotherwise stated, the data and activities in thisreport are gathered from 2020.1.1~2020.12.31.

Restatements of information

The energy usages and GHG emissions for year 2019are restated (page 96, 98). The reasons are:
1. The factories carried out GHG emissions externalverifications for year 2019 by the end of 2020.
2. The government official issued the latest electricity
emission factor for year 2019.

CSR Report preparation procedures
1. Gather sustainable topics, reporting
standards, verification standards, etc.
2. Identify stakeholders and material topicsof the year, and submit to “Corporate
Governance Committee” for approval.
3. Prepare the report in accordance toreporting standards.
4. Submit the drafted report to “Corporate
Governance Committee” for approval.
5. Conduct third party verification for thereport.
6. Submit the report to Chairman for issuance.

Data measurement techniques

Financial data is cited from the Annual Report andpresented in New Taiwan Dollars. Social, quality andenvironmental performance figures are presented inmetric units, and the data reported to the authorities
is preferentially used. The rest of data is gatheredfrom internal statistics of the relevant divisions of thecompany.

External assuranceThis report has been verified by TÜV Asia Pacific Ltd.
Taiwan Branch (TUV NORD) based on AA1000AS v3(Type 2, High level assurance) and GRI Standards.
The assurance statement is enclosed in Annex 6.

Previous reports

This report is our 20th non-financial report since 2002.
The previous report was published in June, 2020.

Contact Point for questions
regarding to the report

This report is prepared by “CSR Reporting
Committee” and the contact information is shown
below:
Contact point: Han-sheng Chang
Tel.: +886-2-25925252, ext. 3167
E-mail: csrreport@tatung.com
CSR webpage:
http://www.tatung.com/Content-EN/csr-report.asp

Tatung has done the best to ensure the accuracyof this report. If there is any discrepancy, the latest
information from the relevant departments of thecompany shall prevail.

2021
TatungCSR Report

TOP MANAGEMENT STATEMENT ● Message from Chairman
Top Management
Statement
Contents
2020 CSR Highlights

Identificationon the stakeholders
and material topics

MAKING TATUNG

THE WORLD’S TATUNG
ChairmanProfile of
Tatung Company

Organization structure andgovernance

Responsible
supply chain,product safety,
and customer service

Happy workplace andsocial participation

Sustainable environment

Annex

Looking back on 2020, affected by the global epidemic and trade wars, Tatung continues toface challenges. We continue to uphold the spirit of "Integrity, Honesty, Industry, and Frugality"and vision of "Providing high-quality products with innovative technology to achieve energy
saving, environmental protection, healthy life, and fulfilling global citizen responsibilities” topursue operating profitability and corporate sustainable development. Our efforts in sustainable
management have been recognized by Wall Street Journal’s “The 100 Most Sustainably
Managed Companies in the World” and ranked the 75th among the top 100 companies
and ranked the 1st in the "Business Model and Innovation" sub-project; Tatung changed its
management level at the end of 2020. With the expectation of all sectors of society, we haverecruited cross-industry experts and professions, and strengthened corporate governance, as
well as, adjust the organization and operation, enhance the brand image, and create corporate
value. We promise to make Tatung not only the Taiwan’s Tatung, but also the World’s Tatung.
Looking into future, human civilization has move toward a low-carbon emissions economy, andthe internet technology has also changed the way of life. Built upon its long term foundationin power business, Tatung has turned to green energy and energy storage. As for its more than
70 years of motor business, Tatung has succeeded in the research and development of motors
for electric vehicles. In terms of the information business, Tatung also has expanded into big
data and cloud services. All businesses are expanding toward the global market, and Tatung is
actively seeking collaboration opportunities at home and abroad to speed up its growth bothvertically and horizontally. The new management team has actively planned for several businessareas, hoping to create a new outlook to improve profits. While pursuing the development of thecompany, Tatung will actively practice environmental protection, commit to social integrationand continue to deepen corporate governance in order to pursue sustainable developmentof the company, so that shareholders, enterprise, and employees will win together for anotherglorious century in the business world.

2021
TatungCSR Report

TOP MANAGEMENT STATEMENT ● Message from President
Top Management
Statement
Contents
2020 CSR Highlights

Identificationon the stakeholders
and material topics

FIGHTING CLIMATE CHANGE WITH
ENERGY CREATION, CONSERVATION,
AND STORAGE
President

Profile of
Tatung Company

Organization structure andgovernance

Responsible
supply chain,product safety,
and customer service

Happy workplace andsocial participation

Sustainable environment

In 2020, the global pandemic and extreme weather continued to present challenges to thesustainable development of enterprises. Tatung is a pioneer in Taiwan's power equipment, home
appliance and information industry, and combines it’s solid R&D, design and manufacturing
capabilities to enhance the practice of ESG issues.
In terms of fighting climate change, Tatung continues to provide products and services centeredon energy creation, energy conservation and energy storage, and works with customers andconsumers to achieve energy-saving, environmentally friendly and healthy lives. We have built
160MW of solar photovoltaic systems by the end of 2020, which is equivalent to reducing 96,000
tons of carbon dioxide emissions a year, and the goal is to reach 220MW by the end of 2021;
We have successfully developed an ultra-large capacity 9,000kVA low energy consumption
amorphous core transformer. Compared with the silicon steel sheet type of the same capacity,
the power consumption of this transformer can be reduced by 44.8%. This product has also beenrecognized by the 29th Taiwan Excellence Award; In terms of home appliances, 63 models havealso been awarded the Energy Label. In response to the needs of Taiwan's energy transition, gridconnection of renewable energy and power system deployment, the Company uses energy
storage auxiliary systems to help the nation achieve stability and quality of energy grids andpower supply and explore business opportunities in new electricity businesses. It is expected thatthe cumulative installation in 2025 will reach 300MW, which will create a highly profitable andstable operation.

Annex

Note: The board of directors approved director Chun-Sheng Ho to take over as president on 21/06/2021.

In terms of social integration, we promote the “Send Love and Light to the Tribe” project. In 2020,
we built a “Stone Slab House Smart Disaster Prevention Microgrid” in one of the Paiwan Tribe in
Majia Township, Pingtung to make the tribe more convenient. Tatung 3C upholds the feeling of
caring for the local and caring for the elderly, and launched a one-day safety inspection activity
for home appliances in “Southern Region Senior Citizens’ Home, Minister of Health and Welfare”,
and conducts comprehensive inspections on seasonal appliances such as dehumidifiers, electricheaters, etc. Through this activity to review the safety of electrical appliances in the facility and topromote the correct way of using home appliances.
In terms of corporate governance, Tatung has "Corporate Governance Committee", withindependent directors as members, responsible for reviewing the effectiveness of corporate
governance-related business implementation. We appointed the Chief of Financial Officer as thechief corporate governance officer to assist with corporate governance related matters. Tatungalso conducts internal evaluations based on the "Board and Functional Committee Performance
Evaluation Guidelines" set by the company, and reports the evaluation results to the board of
directors to continuously improve corporate governance and strengthen the implementation ofsustainable operation.
In recent years, the global transformation toward low carbon emissions has driven the green
economy and smart management of energy. Tatung will develop its capabilities on energy
creation, storage and conservation and motors for electric vehicles based on its existing
advantages and cultivate information security, cloud computing and big data services in
the information industry to make its businesses more diversified. While pursuing company
development, Tatung will continue to deepen corporate governance, improve ESG information
disclosure, and fully communicate with stakeholders and advance towards the goal ofsustainable development.

2021
TatungCSR Report

CONTENTSABOUT THIS REPORTTOP MANAGEMENT STATEMENT

2020 CSR HIGHLIGHTS(Message from Chairman / Message from President)

01

IDENTIFICATION-CH1- ON THE STAKEHOLDERS
AND MATERIAL TOPICS

1.1 Identification on the stakeholders andengagement channels
1.2 Identification on the material topics
1.3 Tatung and Sustainable Development
Goals

15

-CH2- PROFILE OFTATUNG COMPANY

2.1 Company profile

23-CH3- ORGANIZATION STRUCTURE
AND GOVERNANCE

41

RESPONSIBLE SUPPLY CHAIN,-CH4- PRODUCT SAFETY,AND CUSTOMER SERVICE

4.1 Responsible supply chain

61-CH5- HAPPY WORKPLACE AND
SOCIAL PARTICIPATION

5.1 Building a friendly working place
5.2 Good working conditions andcareer development

5.3 Health, safety, and disaster free
5.4 Participation and benefits to thesociety89-CH6- SUSTAINABLE
ENVIRONMENT

6.1 Management on theenvironment
6.2 Energy consumption and GHG
management

6.3 Resources consumption andpollutants management
6.4 Green products for a better
earth

Annex 1 Tatung Co. and Subsidiaries
notes to consolidated financial
statements
Annex 2 Products and services provided by
TatungAnnex 3 Factories and subsidiaries participated in 3P program and Accident Prevention Pays Program in 2020
Annex 4 Greenhouse gas emissions verified based on ISO 14064-1
Annex 6 Assurance statements
Annex 5 GRI Standards content index
Annex 7 Feedback survey form

111

ANNEX

2.2 Financial performances
2.3 Services and products

3.1 Corporate structure
3.2 Corporate governance

4.2 Product responsibility
4.3 Sales and customer information
management

2021
TatungCSR Report2020 CSR HIGHLIGHTSTop Management
Statement
Contents
2020 CSR Highlights

Identificationon the stakeholders
and material topics

Profile of
Tatung Company

Organization structure andgovernance

Performances

Item

Wall Street Journal’s “The 100 Most Sustainably
Managed Companies in the World” and ranked
the 75th among the top 100 companies and ranked
the 1st in the "Business Model and Innovation" subproject.

Percentage of local employees

94.25%

Average salary ratio between
female and male employees

0.85 ~ 0.92:1
72.01%The performances of the company's board of
directors and functional committees were both
"GOOD".

Percentage of employees who
are labor union members
Average education / training
hours per employee

12.12 hours

Education / training satisfaction

92.29%

Item
Responsible
supply chain,product safety,
and customer service

Sustainable
management

Corporate governanceHappy workplace andsocial participation

Sustainable environment

Annex

Social aspect

Economic-governance aspect

Environmental aspect
Performances

Ratio between staff’s
basic salary and legalsalary1.26 ~ 1.51:1

100%

Percentage of high level
managers from local

Correction percentage of“Occupational Accident
Prevention Pays” Program

100%

Supplier commitment letter

New introduced suppliers 100% signed it back.

Disclosure on nonfinancial information

Published CSR Report for 19 consecutive years.

Consumer satisfaction

Maintenance: 95.9%.

No. of complaints about
information leaking received
from the consumers

0Participation in social welfare

1. Promoted the “Send Love and Light to the Tribe”
project and built 19 “Stone Slab House Smart Disaster
Prevention Micro-grid” in the Paiwan Tribe in Fawan,
Majia Township, Pingtung.
2. Launched health inspection activity for home
appliances in “Southern Region Senior Citizens’Home, Minister of Health and Welfare” to conduct
comprehensive inspections on seasonal appliances.
3. Co-created the children's drama, "Rescuing Power
Kingdom" to deliver the concepts of energy saving,healthy, and environmental protection. The drama
was performed to more than 4,700 students in a tour
nationwide.

(7)(1)(1) Energy Conserving Award by Bureau of Energy/ Headquarter(2) 2020 Public Construction Commission Golden
Quality Award by Kaohsiung City Government/ PV roofing project for Benjhou Sewage
Treatment Plant(3) The 20th Public Construction Golden Quality
Award – Merit award/ New construction of public housing in thecentral-south section of Nangang District, Taipei
City.

(2) (3)(4)(5) (6)(4) New Taipei City Enterprise Voluntary Energy
Saving Award – “Electricity Saving Award”/ San-Hsia Factory(5) IE5 ultra-premium eff. powertrain for large e-bus/ The 29th Taiwan Excellence Award(6) High-efficiency amorphous core transformer /The 29th Taiwan Excellence Award(7) Intelligent Cooker / The 29th Taiwan ExcellenceAward

Shipping: 97.4%.

Item

Performances

Electricity
reduced1.85 Million kw-hr

GHG emissions
reduced943.30 tons CO2e

Waste recycling
percentage

63.94%

Certified green
products● Green Mark: 5 models● Energy Label: 63 models● Water Label: 12 models

Promotion
on green
consumption● 22 Tatung 3C Stores are registered as GreenStore by EPA.
● Tatung 3C Huaxia Store won EPA’S “GreenStores of the year”.

Supporting
green
procurement● Received certificate of appreciation for
promoting green procurement from EPB, Taipei
City Government.
● Received certificate of green procurementfrom EPA.

Solar powersystems
capacity on
grid

161.73MWp accumulated, approximately 96,000
tons CO2e reduction per year.

2021
TatungCSR Report

CH1

IDENTIFICATION ON THE STAKEHOLDERS
AND MATERIAL TOPICS
Top Management
Statement
Contents
2020 CSR Highlights

Identificationon the stakeholders
and material topics

Profile of
Tatung Company

Organization structure andgovernance

Listening and responding to the topics which are concerned by the stakeholders is a key
element for a company to achieve sustainable development and carry out corporatesocial responsibility. Tatung not only actively discloses information about environmental
protection, social participation, and corporate governance in Annual Report, CSR Report,
and the company’s official website, but also finds out the blind spots and gains valuable
opinions by communicating with the stakeholders via variety of channels.

1.1 Identification on the stakeholders and engagement
channels

Based on AA1000 standard and GRI Standards, Tatung identifies the stakeholders by past
operation experiences and based on the principle that any organizations or persons
impacted by the operation of the company or any organization or persons having
impacts to the company. Seven stakeholder groups such as shareholders, customers,
employees, local communities and parties, authorities, suppliers and consumers havebeen identified.
Tatung takes great concern on stakeholders' opinions. We have direct engagement
channels for all stakeholders to collect their concerned topics in order to continue improve
our CSR performances.

Table 1.1-1 List of stakeholders and engagement channels
Responsible
supply chain,product safety,
and customer service

Happy workplace andsocial participation

Stakeholder
groupsCustomers

Employees

Local communities and parties

Authorities

Suppliers

Consumers

The investors who support Tatung.

The companies having businesswith Tatung.

The most valuable assets. With
their innovated ideas andexperiences, Tatung is capable
to counter any challenges.

Tatung’s good neighborhood.
By communicating with them,
Tatung is able to find out whatmore we can do to carry out
corporate social responsibility.

Instructors of Tatung. Following
the government policies andcomplying with regulations isthe basic principle of Tatung.

Suppliers are the partners that
Tatung has grown up with. With
their high quality materials,
products, and services, Tatung
successfully expanded thebusiness year by year.

Supporters of Tatung products.
For the past 60 years, Tatung
has accompanied countless
households in their family time.

- Shareholders’ meeting / Onceper year- Irregular shareholders’meetings, direct phone line(+886-2-25925252 ext. 3258;
Agency department of Taishin
International Bank Co., Ltd.: 022504-8125), shareholder e-mail/ Irregular- Disclosure of financial
information on official website
and MOPS (market observation
post system) / Every month

Customer service, PM / Irregular- Chairman’s mailbox, HR mailbox, complaint mechanism,
scheduled education andtraining, notice board /Irregular- Biweekly HR newspaper /Once per 2 weeks- Health and Safety Committee
in the headquarter andfactories / Once per 3 months- Labor-management meeting/ Once per 3 months- Direct phone lines / Irregular- Social charity/donation
activities / Irregular- Onsite audits / Irregular- Hearings, seminars / Irregular- Supplier complaint mailbox
supplier@tatung.com /Irregular- Supplier evaluation, annually
re-evaluation / Once peryear- Supplier assessment / Onceper month- TCPC phone lines (+886800052666), Tatung 3C Stores,
official websites, etungo
online shopping website /Irregular- Satisfactory survey / Upon
shopping or repair service

Meaning to
TatungSustainable
environment
Communication
channels andfrequencies

Annex

Shareholders

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TatungCSR Report

CH1

Identification on the stakeholders
and material topics

Table 1.1-2 Topics concerned by the stakeholders and our responses
Contents
Stakeholder groups
Shareholders

Concerned topics

Tatung’s responses

Chapters

Customers

Employees

Local communities and parties

Authorities

Suppliers

Consumers

Governance and financial
performances

Product quality and customer
information management.

Labor rights, welfares

Pollutant emissions, interaction
with local communities

Compliance

The quality of parts and products,
the requirements regarding tohazardous substances

Product safety and labeling,
personal information
management

1. Tatung will develop its
capabilities on energy
creation, transmission, storage
and conservation and motors
for electric vehicles based on
its existing advantages andcultivate information security,
cloud computing and big
data services in the informationindustry to make its businesses
more diversified.
2. Enforcing corporate
governance and informationtransparency.

1. Establishing ISO 9001,
enhancing supplier quality
management, products thatpass related verifications.
2 Establishing ISO 27001
to enhance information
management.

1. Complying with labor andhealth and safety regulations.
2. Organizing education andtraining courses.
3. Providing reasonable salaryand welfares.

1. Installing air pollutant andwastewater treatment facilities.
2. Participating in community
development and charities
events through commercial
activities, non-cash property
endowments, volunteer service
and other free professional
services.

Carrying out internal control
and internal audit to ensure
conformity.

Establishing ISO 9001, enhances
supplier quality management,
products that pass related
verifications. In addition, we
also request our suppliers to fulfill
corporate social responsibility
together by:
1. Adding anti-corruption andhuman rights (human rights,
freedom of association, childlabor, and forced labor)clauses in the contracts.
2. Signing the "SupplierCommitment Letter", which
includes health and safety,
environmental protection,
human rights topics.
3. Issuing "Declaration of Minerals
Conflict-Free from Tatung
Company" and requesting the
suppliers to follow.

1. Complying with product safety
and labeling regulations, andestablishing feedback andanti-recurrence mechanisms.
2. Establishing ISO 27001
to enhance information
management.

2.2, 2.3, 3.2

4.2, 4.3

5.1, 5.2, 5.3

5.4, 6.3

3.2, 6.1

4.1, 4.2

4.2, 4.3

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CH1

Identification on the stakeholders
and material topics

Contents

1.2 Identification on the material topics

To ensure the contents of this report fully cover with economic, social and environment
dimensions, Tatung has CSR Reporting Committee with the president as the leader,
and the members are from administrative divisions and BUs. Based on material topics
identification procedure (Table 1.2-1), Tatung concludes 27 possible sustainable topics that
may have impacts to the stakeholders and to the company based on the past operation
experiences, future competitive strategies, and the latest global trends on sustainability
such as GRI Standards indicators and UN Sustainable Development Goals (SDGs). The
topics are listed on Table 1.2-2.

Table 1.2-2 Tatung’s sustainable topics

Table 1.2-1 Material topics identification procedure
Step1
Identification
on sustainable
topicsStep2
Ranking

Step3
Confirmation
Step4
ReportingTatung integrates the past operation experiences, futurecompetitive strategies, and the followings to identify the sustainable
topics that related to our operations:
1. GRI Standards’ topic-specific standards;
2 SDGs;3 Other companies’ experiences in the industries.
1. Invite stakeholder to complete surveys (including online survey) tocollect their opinions in regarding to the sustainable topics.
2. Conduct impact assessment to the company for each sustainable
topic internally.
3. Combine the results from outside and inside the company anddefine the topics with combination grading 12 and above as
material topic candidates.

Economic and governancedimension

Social dimension

Submit the prioritized topics and material topic candidates to“Corporate Governance Committee” for confirmation. The outcome
will be the material topics in CSR Report of the year.

CSR Reporting Committee discusses the contents of the report andthe boundaries of the material topics; and in accordance to GRIStandards to gather and present the information.

Environmental dimension

Economic performance

Corporate governance and ethical practiceAnti-competitive behavior

Market presence

Disclosure on non-financial information

Tax

Supplier management

Human rights, equality, and non-discriminations

Marketing and labeling

Employment

Occupational health and safety

Customer privacy management

Performance review and career development

Child, forced or compulsory labor

Comply with social and economic regulations

Labor/management relations

Social participation

Freedom of association and collective
bargaining

Training and education

Product quality and safety

Management on the environment

Management on wastes

Management on water and resources

Management on water and air pollutants

Management on energy and GHG emissions

Promotion and management onenvironmental friendly products

Comply with environmental regulations

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CH1

Identification on the stakeholders
and material topics

Contents

Tatung used surveys to collect the degree of interest of stakeholders on various sustainable topics (presented
by Grade 1 to Grade 5, Grade 5 is the most concerned, Grade 1 is the least concerned). The target groupsof the stakeholders are from those were contacted by the members of CSR Reporting Committee and those
who took online survey on the CSR Report1 downloading page of the company’s official website during2020.12.9~2021.1.7. Totally 285 surveys were received and the most concerned topics were ranked. Please see
Figure 1.2-1 for details.

LOW←

Degree of Concerns→

In addition, the CSR Reporting Committee analyzed the possibility, severity and level of impact to the company’s
economic, environment and social dimensions for the above sustainable topics and gave different ratings from
Grade 1 to 5 (Grade 5 is highest, Grade 1 is lowest). Then, the committee members comprehensively evaluatedand discussed the degree of concerns from the stakeholders. The topics with multiplied score 12 points ormore were considered as material topic candidates and reported to Corporate Governance Committee for
confirmation. The confirmed material topics are located in the blue area on Figure 1.2-2.

HIGH

3.200 3.300 3.400 3.500 3.600 3.700 3.800 3.900 4.000 4.100 4.200

Product quality and safety
Customer privacy management
Marketing and labeling
Tax
Employment
Occupational health and safety
Promotion and management on environmental friendly products
Comply with environmental regulations
Comply with social and economic regulations
Human rights, equality, and non-discriminations
Training and education
Disclosure on non-financial information

Socialdimension
Environmental
dimension

HIGH ← Level of impact to the company → LOW

Economic performance
Corporate governance and ethical practice

Economic andgovernancedimension

Economic and governance dimension

4.100

Social dimension

Environmental dimension

1
4

3.900
3.700

2

3

6

3.500
12

13

7

10

3.300

5

8

9

11
17 16

19

3.100

15

14

18

24 2322 21

2.900
26

25

27

2.700

20

Management on wastes
Market presenceManagement on the environment

2.500

3.400

3.500

LOW

Management on water and air pollutantsChild, forced or compulsory labor
Supplier management
Labor/management relations
Anti-competitive behavior
Management on energy and GHG emissions
Social participation

Freedom of association and collective bargaining▲ Figure 1.2-1 Degree of concerns on the sustainable topics by Tatung's stakeholders

1

3.700
←

3.800

3.900

4.000

Degrees of concerns to the stakeholders

→

4.100

4.200

HIGH

Material Topics
on energy and
1 ▪ Management
GHG emissions
2 ▪ Customer privacy management
governance and3 ▪ Corporate
ethical practice
4 ▪ Disclosure on non-financial
information

5 ▪ Product quality and safety
6 ▪ Occupational health and safetywith social and7 ▪ Comply
economic regulations
8 ▪ Employment

with
9 ▪ Comply
environmental regulations
10 ▪ Training and education
11 ▪ Marketing and labeling12 ▪ Market presence

review and career
13 ▪ Performancedevelopment
and management on
14 ▪ Promotion
environmental friendly products
15 ▪ Human rights, equality, andnon-discriminations

Other Sustainable Topics

Performance review and career development
Management on water and resources

3.600

on water and16 ▪ Management
air pollutants
17 ▪ Child, forced or compulsory labor18 ▪ Management on wastes

of association and19 ▪ Freedom
collective bargaining
20 ▪ Economic performance21 ▪ Management on the environment

22 ▪ Supplier management
23 ▪ Labor/management relations
24 ▪ Anti-competitive behavior

25 ▪ Tax
on water and26 ▪ Management
resources
27 ▪ Social participation▲ Figure 1.2-2 Distribution of the material topics: http://www.tatung.com.tw/Content/csr-report.asp

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Identification on the stakeholders
and material topics

Table 1.2-3 Material topics in recent 3 years
Contents

In this report, we have identified 15 material topics. In termsof economic and governance dimension, the topics are
Corporate governance and ethical practice, Disclosure
on non-financial information, and Market Presence. In
terms of social dimensions, the topics are Customer privacy
management, Product quality and safety, Occupational
health and safety, Comply with social and economic
regulations, Employment, Training and education, Marketingand labeling, Performance review and career development,
and Human rights, equality, and non-discriminations. In termsof environmental dimension, the topics are Management
on energy and GHG emissions, Comply with environmental
regulations, and Promotion and management onenvironmental friendly products. We can find from Table 1.23 that more employee management related topics havebeen identified as material topics in this report than theprevious report. The reason is probably that the company has
experienced the transfer of operating rights in 2020, which has
caused stakeholders to be more concerned about employee
management related topics. We will make detailed
responses to these 15 material topics in the following chapters.
The correlation of each material topic in the value chain isshown in Table 1.2-4.

Material topics in 2019

Material topics in 2020

Material topics in 2021 and their meanings to Tatung

Corporate governance andethical practiceCorporate governance andethical practiceCorporate governance andethical practiceGood corporate governance and ethical practice helps the company to achieve sustainable development anddemonstrate its social value.

Product quality and safety

Disclosure on non-financial
information

Disclosure on non-financial
information

Disclosing relevant and reliable ESG information can demonstrate the company's achievements towards
sustainable development, as well as communicate with stakeholders.

Comply with social andeconomic regulations

Product quality and safety

Market presence

Tatung takes great concern on the recruitment and promotion of talents. We uphold the principle of meritocracy,
selects talents according to the suitable positions, and guarantee the salaries and benefits of employees.

Customer privacy
management

Customer privacy
management

Customer privacy
management"Uninterrupted service, no loss of information, personal information not leaked, and enterprise sustainable
operation" is our policy.

Labor/management relations

Occupational health andsafetyProduct quality and safety

Products with good quality and safety in use are the foundation of the company.

Marketing and labelingMarketing and labelingOccupational health andsafetyIt is our responsibility to provide a safe working environment for employees.

Occupational health andsafetyComply with social andeconomic regulations

Comply with social andeconomic regulations

Complying with the laws and regulations and become a benchmark for excellent companies in the industry,
avoiding violations of the law and major penalties, and damaging the company's image.

Management on theenvironment

Labor/management relations

Employment

Employees are an important asset for the company's sustainable development, so Tatung actively cares about
the lives and working conditions of employees, ensuring that employees work in a safe, satisfactory and healthy
working environment.

Comply with environmental
regulations

Comply with environmental
regulations

Training and education

Talents are the foundation to a company's success. Tatung expects every employee to fully demonstrate TATUNG
DNA, give full play to their strengths, and assist the company in achieving strategic goals and vision.

Management on wastes

Management on energy and
GHG emissions

Marketing and labelingThis is our corporate social responsibility to ensure that "the marketing and labeling of products and services
should follow the relevant laws and international standards, and should not damage the rights and interests ofconsumers."

Management on water andair pollutants

Management on wastes

Performance review andcareer development

Tatung takes great concern to the overall performance of individuals, departments and organizations. We
encourage employees to continue to learn and assist them in improving and affirming the performance throughperformance management review and coaching mechanisms.

Management on energy and
GHG emissions

Management on theenvironment

Human rights, equality, andnon-discriminations

Tatung integrates labor and management, works together, coexists and co-prospering, so that all employees canfeel at ease and satisfied with each job position.

Environmental friendly
products

Promotion and management
on environmental friendly
products

Management on energy and
GHG emissions
Comply with environmental
regulations
Promotion and management
on environmental friendly
products

These two topics echo the principles of Tatung’s sustainable environmental development principal: “the economic
development should not create pollution to the environment but try to forge a marriage between corporative
development and environmental protection,” It is also one of the core values of Tatung’s CSR policy.

This topic echoes Tatung’s product design concepts: “Environmental friendly, energy saving and water saving.”

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Identification on the stakeholders
and material topics

Table 1.2-4 Boundaries of material topics
Material topics

Tatung Co.

Subsidiaries2

Suppliers

Corporate governance and ethical practice

■

△

▲

31, 32

Not Applicable

Disclosure on non-financial information

■

△

-

31, 32

Not ApplicableMarket presence

■

△

▲

69, 70

GRI 202-1, 202-2

Customer privacy management

■

△

▲

55, 56

GRI 418-1

Not Applicable

Product quality and safety

■

△

▲

47, 48

GRI 416-1, 416-2

Not Applicable

Occupational health and safety

■

△

▲

77 ~ 84

GRI 403-8, 403-9, 403-10

Comply with social and economic
regulations

■

△

▲

33, 34

GRI 419-1

Employment

■

△

-

63, 64

GRI 401-1, 402-2, 403-3

Training and education

■

△

-

71, 72

GRI 404-1

Marketing and labeling

■

△

▲

47, 48, 55, 56

GRI 417-1, 417-2, 417-3

Performance review and careerdevelopment

■

△

-

69, 70

GRI 404-2, 404-3

Human rights, equality, and nondiscriminations

■

△

▲

63, 64

GRI 405-1, 405-2, 406-1, 412-1

Management on energy and GHG emissions

■

△

-

95, 96

GRI 302-1, 302-3, 302-4, 305-1, 305-2, 305-5

Comply with environmental regulations

■

△

▲

91, 92

GRI 307-1

Promotion and management onenvironmental friendly products

■

■

-

107, 108

GRI 302-5

Dimensions

Contents

Economic and governanceSocialEnvironment

Note:

2

Page No. of DMA

GRI indicators

UN SDGS
Not Applicable

Not Applicable

Not Applicable

Not Applicable■ represents that the information is disclosed in this report;△ represents that the relevant management measures are applied to the subsidiaries but the related information in unable to retrieve and notdisclosed in this report;▲ represents that the relevant management measures are applied to the suppliers, the detailed information in disclosed in Chapter 4.1.

: Part of subsidiaries with larger scale such as Elite Groups and Forward Electronics, their CSR information is disclosed in their CSR reports
and /or on their official websites.

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Identification on the stakeholders
and material topics

Table 1.3-1 Measures taken for responding SDGs
Contents

1.3 Tatung and Sustainable
Development Goals

UN announced Sustainable Development Goals(SDGs) in 2015 to be a roadmap to sustainable
development for the next 15 years. Corporations areplaying important roles to the success of SDGs. Asa local company who has been deeply plowed fora century, Tatung supports SDGs and integrates thegoals of "Clean water and sanitation", "Affordable
and clean energy", "Decent work and economic
growth", "Reduced inequalities", "Responsible
consumption and production", and "Climate action"
into our sustainable strategies. Among the material
topics identified this year, most of these are also
correspond to SDGs’ goal 6, 7, 8, 10, 12, and 13. The
measures taken for SDGs are listed on Table 1.3-1.

SDGs

Description

Measures

Ensure access to water andsanitation for all.

▓ By 2030, improve water quality by reducing pollution, eliminating
dumping and minimizing release of hazardous chemicals and materials,
halving the proportion of untreated wastewater and substantially
increasing recycling and safe reuse globally.

▓ Maintain well function of the waste water treatment facilities in thefactories to ensure the quality of the effluents are complied with thestandards.

Ensure access to affordable,
reliable, sustainable andmodern energy for all.

▓ By 2030, increase substantially the share of renewable energy in the
global energy mix.

▓ Expanding solar power systems and having installed 161.73MWp
capacity accumulatively at the end of 2020.

▓ By 2030, double the global rate of improvement in energy efficiency.

▓ Raising energy efficiency on the products and continually applying forEnergy Label, Green Mark, and Water Label.
▓ Strengthen the ability in the field on smart energy management anddispatching by combining with energy storage, smart meters and microgrids.

Promote inclusive andsustainable economic growth,
employment and decent work
for all.

▓ By 2030, achieve full and productive employment and decent work
for all women and men, including for young people and persons withdisabilities, and equal pay for work of equal value.

▓ Ensuring the salary paid to the employees is complied with theregulations or better.

▓ Protect labor rights and promote safe and secure working environments
for all workers, including migrant workers, in particular women migrants,
and those in precarious employment.

▓ Establishing ISO 45001 Health and Safety Management System in thefactories.

Reduce inequality within andamong countries.

▓ By 2030, empower and promote the social, economic and politicalinclusion of all, irrespective of age, sex, disability, race, ethnicity, origin,religion or economic or other status.

▓ Complying with human rights regulations, supporting gender equality,and banning discrimination of any form are set in the clauses of "Tatung
Corporate Social Responsibility Best-Practice Principles".

▓ Ensure equal opportunity and reduce inequalities of outcome, including
by eliminating discriminatory laws, policies and practices and promoting
appropriate legislation, policies and action in this regard.

▓ Recruiting only on capability. The starting salary ratio for male andfemale employees is 1:1.

▓ By 2020, achieve the environmentally sound management of chemicals
and all wastes throughout their life cycle, in accordance with agreed
international frameworks, and significantly reduce their release to air,water and soil in order to minimize their adverse impacts on humanhealth and the environment.

▓ Complying with RoHS and REACH regulations to ensure a green supply
chain.

Ensure sustainableconsumption and production
patterns.

▓ By 2030, substantially reduce waste generation through prevention,
reduction, recycling and reuse.

Take urgent action to combat
climate change and its
impacts.

▓ Conducting “Working condition monitoring”.

▓ Implementing waste recycling in the factories.
▓ Paying "Recycling and Cleaning Fee" to the government agency(Recycling Fund Management Board) to carry out countrywide waste
recycling affairs.

▓ Encourage companies, especially large and transnational companies,
to adopt sustainable practices and to integrate sustainability information
into their reporting cycle.

▓ Recycling wasted large home appliances, batteries, and CDs in Tatung
3C Stores.

▓ Integrate climate change measures into national policies, strategies andplanning.

▓ Carrying out green house gases inventory every year based on ISO
14064-1.

▓ Improve education, awareness-raising and human and institutional
capacity on climate change mitigation, adaptation, impact reductionand early warning.

▓ Announcing 2nd stage energy saving target – the products' energy
intensity will be 6% lower in 2023 when comparing to 2018.

▓ Publishing Tatung CSR Report in June every year to disclose company's
sustainable information.

▓ Having environmental education courses opened to the employees,
and GHG management course to the specialties.

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PROFILE OF TATUNG COMPANY

Top Management
Statement
Contents
2020 CSR Highlights

Identificationon the stakeholders
and material topics

Profile of
Tatung Company

Organization structure andgovernance

Responsible
supply chain,product safety,
and customer service

2.1 Company profile

Established in 1918 and headquartered in Taipei, Tatung has evolved into a conglomerate fromits substantial heritage. From its inception, Tatung has abided by its founding values of "Integrity,
Honesty, Industry, and Frugality". Tatung is listed on the Taiwan Stock Exchange (TSE) under the
trading code of 2371.
Tatung is a pioneer in Taiwan's power equipment, home appliance and information industry,and has solid R&D, design and manufacturing capabilities. The business is comprised with Heavy
Electrical Equipment BU, Cable BU, Motor BU, Advanced Electronics BU, Appliance BU, Smart
Meters BU, System Integration BU, Solar Energy BU, and Smart Energy BU. In recent years, theglobal transformation toward low carbon emissions has driven the green economy and smart
management of energy, and the network technology has promoted information and data
security to be the focus of network economy. Tatung will develop its capabilities on energy
creation, transmission, storage and conservation and motors for electric vehicles based on its
existing advantages and cultivate information security, cloud computing and big data services in
the information industry to make its businesses more diversified.
Tatung is equipped with core technologies to manufacture important products in the system
integration solutions while working with strategic business partners to target the world market. For
more information about us, please visit "TATUNG Official Channel"1.
As a conglomerate, Tatung's investees involve in some major industries such as optoelectronics,
energy, system integration, industrial system, branding retail channel, and asset development.
Those that are public listed on the Taiwan Stock Exchange include Tatung System Technologies(8099), Elitegroup Computer Systems (2331), Forward Electronics (8085), and Tatung Fine
Chemicals (4738: Emerging stock market). Please refer to Annex 1 for the list of consolidated
entities.
Tatung received many awards and certifications on operations and products in 2020 (Please referto 2020 CSR Highlight). Tatung also endorses initiatives in regarding care disadvantaged groups
and employee's health (Table 2.1-3). All these acknowledgements from all sides are certainly thedrive behind the growth of Tatung.

Happy workplace andsocial participation

Capital (Billion NTD):

15.864

China
Czech

Taiwan Tatung Co.

TW

Headquarter
San-Hsia Factory
Tayuan Plant
Taoyuan Wires and Cables Plant
Taoyuan 1st Plant

CN

CZ

Singapore

ThailandIndustrial Appliance BU
Cable BU
Motor BU
Advanced Electronics BU
Appliance BU

Smart Meter BU
System Integration BU
Solar Energy BU
Smart Energy BU

SG

TH

U.S.A

USA

JP

Japan

23.395

Sales revenue(Billion NTD):

TaiwanNo. of employees:
2,815

Sustainable
environment
Operation sites:

Annex• Headquarter: No.22, Sec. 3, Zhongshan N. Rd.,
Zhongshan Dist., Taipei City
• Tayuan Plant: No.102, Minsheng Rd., Dayuan Dist.,
Taoyuan City
• Taoyuan Wires and Cables Plant: No.106, Minsheng
Rd., Dayuan Dist., Taoyuan City

• Taoyuan 1st Plant: No.38, Ln. 1119, Daguan Rd.,
Dayuan Dist., Taoyuan City
• San-Hsia Factory: No.352, Xidong Rd., Sanxia
Dist., New Taipei City

▲ Figure 2.1-1 Information of Tatung Co.

1

INVESTMENTS︱Forward Electronics, Tatung System Technologies,

Shan Chih Semiconductor, Tatung Fine Chemicals and otherinvestment company Global layout please refer to its annual report.

▲ Figure 2.1-2 Tatung Co. global network: https://www.youtube.com/user/TATUNGTW/featured

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Profile of
Tatung Company

Contents

Table 2.1-2 The main domestic subsidiaries

Table 2.1-1 Membership status in the associations or organizations
Association/organization

MemberManaging
role2

Association/organization

MemberManaging
role2

Chunghwa Picture Tubes, Ltd.

Optoelectronics

The Third Wednesday Club■

Chinese Institute of Engineers■

Chinese International Economic Cooperation
Association■

Electric-Electronic & Environmental
Technology Development Association of
R.O.C.

■■

Chinese National Association of Industry andCommerce, Taiwan■■

SINOCON Industrial Standards Foundation■■

CNS Certification Mark Association, R.O.C.

■■

Importers and Exporters Association of Taipei■

Forward Electronics Co., Ltd.*
Shan Chih Semiconductor Co.,Ltd.

Retail Channel
Business
Electronics &Information Business

Tatung Consumer Products(Taiwan) Co., Ltd.
Tatung System Technologies
Inc.*
Central Research Technology
Co., Ltd.

Tatung Forever Energy Co., Ltd.

Industrial ApplianceBusiness and System

Toes Opto-Mechatronics Co.
Ltd.

Tung Yang Energy Co., Ltd.

ChemicalEngineering
Business

Tatung Fine Chemicals Co.,Ltd.*

Shang Shin Energy Co., Ltd.

Asset
Development
Business

Shan Chih Asset Development
Co., Ltd.

Information Service Industry Association of
R.O.C.

■

Taiwan Electrical Contractors Association■

ROC-USA Business Council■

Taiwan Electric Wire & Cable Industries
Association■

Industrial Association of Taipei City■

Taiwan Association of Machinery Industry■

Taipei Electrical Commercial Association■

Taiwan Water Pipe Engineering Industries
Association■

Taiwan Telematics Industry Association■

Taiwan Metal Industry Association■

Taiwan Wind Energy Association■

BELLWETHER International Group■

Taiwan Electrical and Electronic
Manufacturers’ Association■

European Chamber of Commerce Taiwan■

Taiwan Refrigeration and Air-Conditioning
Engineering Association R.O.C.

■

The American Chamber of Commerce inTaipei■Monte Jade Science & Technology
Association of Taiwan■

Taiwan Electric Power Association■

Taiwan Motor Industry Association■

Taiwan Association of Energy Service
Companies■

Taiwan Environmental Engineering
Association■

Taiwan Association of Information andCommunication Standards■3

Industrial Safety and Health Association of
the R.O.C.

■

Taiwan Smart Grid Industry Association■■

Chinese Blood Donation Association

Corporate blood donation

Taiwan Digital Television Committee■

Taiwan Power and Energy Engineering
Association■■

Health Promotion Administration

Smoke-free/Healthy work place

2
3

■

■

■

■
Energy Solutions
Business

Yau Yang Energy Co., Ltd.

Chunghwa Electronics
Development Co., Ltd.

Ting Shin Energy Co., Ltd.

Shan Chih Investment Co., Ltd.

Zhi Shin Energy Co., Ltd.

Tatung Medical & Healthcare
Technologies Co., Ltd.

OthersTung Shin Energy Co., Ltd.

Tatung Die Casting Co., Ltd.

Tung Kuang Energy Co., Ltd.

Chih Sheng Investment Co.,Ltd.

Chuang Shih Neng Co., Ltd.
註：*As of 2020/12/31 Listed/OTC and Emerging companies.

Table 2.1-3 Initiatives endorsed by Tatung
Organization

Item: Managing role such as director and supervisor.
: Chairman of TC3. Device Networking Committee.

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Profile of
Tatung Company

Contents

2.2 Financial performances

In 2020, Tatung’s standalone revenue declined compared with that of 2019, mainly due tothat the motor and power equipment departments were affected by the overall economy
and the end to production and sales of low-margin products. The pandemic drove thedemand for consumer products, which was reflected in the revenue, and the overall
revenue shrank 11% from the last year. In terms of profitability, the gross margin for home
appliance and power equipment businesses fell due to market competition, and the oneoff loss from the elimination of low-profit products and the related equipment in the power
department resulted in losses. However, the resources have been transferred to otherprospective businesses with potential growth and profit, such as motors for electric vehicles,
energy, energy storage and smart management systems.
In terms of the important reinvestment businesses, Shan Chih Asset Development Co., Ltd.
Phase 1 of Tatung Manor has 490 units of households, and a total of 382 units has beensold as of the end of 2020, brining in N$7.3 billion in revenue, and the remaining 108 units
will be sold this year to contribute to the income. The 177 units in Phase 2 have been presold and sold out in Q3 of 2020, with a total sales of about NT$2.5 billion. As of March 2021,
20% of Phase 2 has been completed, and it is expected to contribute to the revenue andprofit of the parent company once it is completed in Q2 of 2023. Tatung has obtained
the investment right to first phase of LG07 station of the Wanda–Zhonghe–Shulin line in
the Zhonghe MRT joint development project, and signed an investment contract with
Taipei City Government. The plan is undergoing some changes to create best interests to
Tatung. As for Tatung System Technologies Inc., it has been profitable for 20 consecutive
years and has steadily distributed dividends. In recent years, it has focused on using digitaltechnology to help the government and enterprises in digital transformation to improve
operational efficiency and decision-making analysis, including smart solutions, consulting,cloud computing, communication system integration, data security and uninterrupted
services. As for Chunghwa Picture Tubes, Ltd., currently, the operation is suspended andthere is a pending court ruling of bankruptcy. However, Tatung still needs to recognize its
investment losses based on the shareholding percentage, which mainly include equipment
depreciation, loan interest and penalties. Before the court rules that it is bankrupt, Tatung
will continue to help in the disposal of assets through legal channels to reduce losses.
For 2020, the after-tax loss was NT$1.076 billion. If the investment loss of NT$2.59 billion in
Chunghwa Picture Tubes, Ltd. is excluded, and the investment gain in Tatung Manor fromthe reinvestment company Shan Chih Asset Development Co., Ltd. is included, Tatungshould be profitable. Tatung operates normally on a daily basis and accepts no financial
support from the government. For more detailed financial performances, please refer to"Tatung 2020 Annual Report" which can be downloaded at:
http://www.tatung.com/Content-EN/annual-report.asp

Table 2.2-1 Financial income and expenses of Tatung

Unit: NT$ Thousand( )represents negativevalues

Item

2016

2017

2018

2019

2020

Operating revenue

17,259,632

17,482,835

19,138,488

17,825,749

15,863,678

Realized gross profit

2,404,376

2,164,903

2,064,017

1,789,027

1,129,220

Personnel expenses

2,403,307

2,379,086

2,329,118

2,269,620

2,323,250

Income from operations(51,462)(177,326)(391,692)(863,857)(1,809,817)

Non-operating income andexpenses(2,363,313)

280,968(10,313,757)

3,466,194

792,008

Income tax benefit(70,830)(36,675)(62,543)(273,542)

58,528Net loss attribute to equity
attributable to owners of parents(2,343,945)

140,317(10,642,906)

2,875,879(1,076,337)

Earnings per share (NT$)(1.03)

0.06(4.75)

1.24(0.46)

Dividends per share (NT$)

0

0

0

0

0

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Profile of
Tatung Company

The focus of operations in 2021
Contents

Consumer business

System businessElectric power industry

Tatung rice cookers remain the No. 1 rice cooker brand in
Taiwan. Tatung at the same time actively explores overseas
markets and continues to extend into kitchen appliances. The
main sales include commercial and home air-conditioners
that are equipped with inverters to offer power-saving andsmart management. The technology of the IoT also provides
consumers with power management, remote schedulingand personalization options. The business opportunities frominstallation of air-conditioners at junior high and elementary
schools also increase sales. In terms of the design and quality,
Tatung has won numerous awards over the years, and theawards include the iF Design Award, Red Dot, Good Designof Japan and Taiwan Excellence. In recent years, Tatung has
successfully entered the markets of digital entertainment andsmart home peripheral products and incorporated advanced
technology and mart functions to provide design andmanufacturing ervices for world's well-known brands.

More than 160MW of solar photovoltaic systems have ben
built as of the end of 2020. The rooftop solar SPV company
Sheng-Yang Energy and solar fish farm from EnergyTrend in
Qigu District of Tainan have been sold to contribute profits to
Tatung. The smart meter system, the most comprehensive typein the domestic market, developed by Tatung, has gained
market share in Japan, Thailand and Malaysia, and Tatungis actively developing the ASEAN market. With its excellent
power-related experience and system integration capabilities,
Tatung has become the nation's first in winning the energy
storage project of automatic frequency control (AFC) of Taiwan
Power Company, demonstrating its long-term accumulated
technological capabilities. A 5MW large-scale energy storage
system would be completed by June 2021 to participate in
the first frequency modulation auxiliary service market in thehistory of Taiwan's electric power industry development. The
system would obtain the first UL9540 energy system safety on-site
certification in Taiwan to ensure the safety and stability of system
operation. Tatung is also actively planning for a 25MW largescale energy storage system which is expected to become
online and operational in Q1 2022.。

In response to the market demand, Tatung will continue tomodify the product line, invest in manufacturing equipment for
ultra-high voltage (UHV) products and collaborate with foreign
power distribution brands to develop smart, environmentallyfriendly and lower power consumption products. Tatung will
become the first equipment supplier in the nation to offertransformers, inductors, distribution boards, GIS and four-way
switches, enabling it to compete for the business opportunities in
the addition of power plants and construction of wind, solar andother renewable energy projects of Taiwan Power Company.
Tatung will also invest in manufacturing equipment for highend network cables to increase the production capacityand maintain its market share to meet the future demandfor 5G high volume transmission. In terms of motors, Tatung
has accumulated more than 70 years of technology andexperience and followed the industry development trends toprovide motors and the relevant services in various fields, suchas ROT motors, high-voltage maintenance motors, IE4 premium
efficiency motors, explosion-proof motors, shaft motors, EV
power systems and others.

2.3 Services and products

Tatung’s operations include power, information andconsumer businesses. To sustain strong and longterm growth, Tatung focuses particularly on thedevelopment of advanced technologies and global
network of operation. With its overseas branches,
Tatung is in a solid position to deliver products more
efficiently and render customer services more
effectively.
Climate change caused by global warming posesrisks to businesses and also creates opportunities.
With the world trending toward energy conservationand carbon emissions reduction, we will focus
on solar energy, energy storage and motors forelectric vehicles and shift toward smart, energysaving, power inverter and high efficiency design
and manufacturing, and invest in data security,
cloud computing and big data fields in terms of theinformation system. The focus of operations in 2021 is
as follows:

The sales values for the recent 5 years are shown on Figure 2.3-1 and Figure 2.3-2.
Optical department

Machinery, energy andsystem department

766,60399,4982019

5,677,949

4,108,390
792,836
978,1032018

966,800
800,850
1,172,276

2017

9,446,041

Other operating
segments

16,077,201

19,449,050

9,266,499

13,432,551

0
2020

0

2019
25,301,644

12,573,065

Optical department

0

2018

19,084,084

0

2017

2016

17,995,465
14,543,661

05,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000

Unit: NT$Thousand▲ Figure 2.3-1 Tatung’s domestic sales values (The above data are subject before consolidation)

0

Real estate development
department

Other operating
segments

767,383
1,416,591
2,908,970
4,359,505
1,109,253

23,041,902

4,374,752
4,837,812
1,757,928

3,115,095
406,978

2016

3,582,593

Consumer products
department

2,287,647
3,329,546

3,577,037
326,537

3,821,659
414,068

Machinery, energy andsystem department

Export2020

Real estate development
department

Domestic

1,524

Consumer products
department

33,567,544

9,057,769

13,660,197

32,655,577

5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000

Unit: NT$Thousand▲ Figure 2.3-2 Tatung’s export sales values (The above data are subject before consolidation)

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ORGANIZATION STRUCTURE AND GOVERNANCE
Top Management
Statement
Contents
2020 CSR Highlights

Identificationon the stakeholders
and material topics

Governance

Profile of
Tatung Company

Short-term targets--------------------------

Organization structure andgovernance

Responsible
supply chain,product safety,
and customer service

Happy workplace andsocial participation

1. A p p o i n t i n g c h i e f c o r p o r a t egovernance officer to be responsible
for corporate governance related
matters, implement corporate
governance, and improve theeffectiveness of the board of directors.
2. C o n d u c t i n g t h e p e r f o r m a n c eevaluation for the board of directors
and the functional committees.
3. Revising the relevant principles ofcorporate governance at any time inaccordance with the latest publishedversion from the authority.
4. Enhancing corporate information
disclosure in English (e.g. English official
website).
5. Achieving 6%~20% of Corporate
Governance Evaluation.

Disclosure on non-financial information
Long-term targets--------------------------

1. Continue to strengthen corporate
governance and improve informationtransparency. The company’s
managers and all employees abide by
the ethical corporate management toavoid illegal incidents and ensure thecompany’s sustainable operation andperformance, and continue to carefor the environment, consider socialand culture factors, and strengthen
corporate governance to fulfill
corporate social responsibility.
2. Achieving top 5% of Corporate
Governance Evaluation.

Targets---------------------------

1. Publish CSR report every year inaccordance to the regulation.
2. Disclosing and update CSR informationon the company’s official website
regularly.

Performances in 2020---------------------------

1. Published “2020 Tatung Corporate
Social Responsibility Report” in June. The
report has been uploaded to Tatung’s
official website and MOPS.
2. Optimized the “Responsibility” sectionof the company’s official website
to disclose ESG information morecomprehensively.

Performances in 2020--------------------------

Sustainable
environment

1. The board of directors appointed Chief
Financial Officer as Chief Corporate
Governance Officer.
2. Corporate Governance Committee
had 4 meetings to discuss corporate
governance related issues.
3. C o m p l e t e d t h e p e r f o r m a n c eevaluations for the board of directors
and the functional committees. The
results were all “Good”.

TatungCSR Report

T
CSRatung
Rep
ort▲ PV roofing
the largest

on KanhaiPark’s public
single PV
buildings
field of 1991.4kW
p in Hsinchu.

▲ PV
the

roofing
on Kan
larg
est
hai
sing
le PV Park’s
pub
field
of 199 lic buil
ding
1.4k
s
Wp
in Hsinchu
.

Annex

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Organization structureand governance

Shareholders' Meeting
Contents

3.1 Organization structureInternal Audit
Committee

Corporate GovernanceCommittee

ChairmanPresident

Smart Energy BU

Solar Energy BU▲ Figure 3.1-1 Tatung operation structure

System Integration BU

Smart Meter BU

Appliance BUAdvanced Electronics BU

Motor BU

Cable BU

Heavy Electrical Equipment BU

Product Verification andCustoms Department

Health & Safety Division

Management Information
System Division

Procurement Division

Legal Division

Human Resources &General Administration Division

Finance & Accounting Division

Central Research Institute

President's Office

The shareholders' meeting is composed of all shareholders. Tatung follows the Company Act, Securities andExchange Act and other relevant laws to hold a regular shareholders' meeting every year, and accepts the
proposals of shareholders holding more than 1% of the total issued shares of Tatung to the shareholders' meeting,and in accordance with the rules of procedure to implement the matters that must be resolved by the shareholders'meeting and fully communicate with shareholders. The director nomination system adopts the candidate
nomination system and the term of office is three years. The independence of the candidates for independent
directors also complies with the provisions of the "Regulations Governing Appointment of Independent Directors
and Compliance Matters for Public Companies”, and accepts the list of candidates proposed by shareholders who
hold more than 1% of the total issued shares of Tatung in accordance with the law.

Compensation
Committee

Board of Directors

The top management level is Shareholders' Meeting, followed by Board of Directors, Chairman, and President.
There are three functional committees under Board of Directors, such as Audit Committee, Remuneration
Committee, and Corporate Governance Committee, to assist directors. The Chairman is Ming-Kuang Lu. Apartfrom the administrative divisions, Tatung is also consisted with Heavy Electrical Equipment BU1, Cable BU2, Motor
BU3, Advanced Electronics BU, Appliance BU4, Smart Meter BU5, System Integration BU, Solar Energy BU, and Smart
Energy BU. The governance structure of Tatung is shown on Figure 3.1-1.

Shareholders’ Meeting

Audit Committee

Note: As of 2021.3.31.。

6

Tatung has appointed the stock agency department of Taishin International Bank to handle the affairs of theshareholders meeting, and set up the "Shareholder Service and Announcement Section" to receive suggestionsor questions from shareholders. Tatung also has “Investors” section7 on the company's official website to disclose
financial and corporate governance related information, and also immediately announces the information thatneed to be disclosed at "Market Observation Post System" for shareholders to acquire information at any time. On
the other hand, Tatung maintains a good relationship with investment institutions and has established a system of
spokespersons and deputy spokespersons as a window for dialogue and connection between the two parties.
In addition, Tatung participates in the domestic legal person briefing every year to provide the latest operation
information.

Board of directors
The members of the Board of directors were re-elected on the 1st extraordinary shareholders’ meeting on 21
October 2020. The total 9 seats of board directors were elected (including 3 independent directors). The Board of
directors guides company strategy, supervises management, and responsible to the company and its shareholders.
All the directors have professional qualifications in many fields and continuously to take trainings to enhance theirability to run a company. In order to take into account the company's operational and development need,
we have stipulated diversity in the composition of the board of directors in Tatung Corporate Governance Best
Practice Principles. Basic requirements and values, professional background, knowledge and skills of nominators
are taken into account. As outcome, the specialties that the board of directors range from leadership, business
management, crisis management, law, finance, and practical experience in the industry. The proportion of thedirectors who are also employees of the company is 11.1%; independent directors, 33.3%. Please refer to Table 3.11 for our directors' information. Tatung works at strengthening the independence and monitoring of the board of
directors with the aim of having the board of directors with increase female directors and independent directors
as the majority in order to elevate the quality and monitoring mechanism of the board of directors. The hope ofmonitoring the board of directors and bringing a fresh and independent perspective on the discussion in the board.

1

5

2

6

: Owns Tayuan Plant at Dayuan Industrial Park in Taoyuan City.
: Owns Taoyuan Wires and Cables Plant at Dayuan Industrial Parkin Taoyuan City.
3: Owns San-Hsia Factory in Sanxia district, New Taipei City.
4: Owns Taoyuan 1st Plant in Dayuan district, Taoyuan City.

: Owns Meter Factory in Taoyuan Wires and Cables Plant.
: The Financial Supervisory Commission ordered Tatung not to handle the administrative
sanctions of stock affairs on its own, and Tatung’s stock affairs have been entrusted to Taishin
Bank since 2020.9.15.
7: http://www.tatung.com

Table 3.1-1 The policy to diversify the membership of the Board
Basic
requirements
and values

Professional background

Professional knowledge and skills

Gender Nationality

Educational background

Ability to
Ability to
Ability to make perform
Ability to Knowledge of An international
conduct conduct
Ability to make
operational accounting management
crisismarket Ability to lead policy decisions
judgments and financial administration management the industry perspective.
analysis.

Name / Title

Ming-Kuang Lu
ChairmanMale

Doctor of Engineering of National
R.O.C. Honorary
Chiao Tung University

●

●

●

●

●

●

●

●

I-Wen Chung
Director

Male

R.O.C. BA of Economics, Iowa State University, USA

●

●

●

●

●

●

●

●

Wkang-Hsiang
Wang Director

Maleof Agricultural Economics National Taiwan
R.O.C. Master
University

●

●

●

●

●

●

●

●

Ching-Hsiang Lin
Director

Male

R.O.C.

Master of Science in Computer Engineering,
University of Southern California
Bachelor of Science in Control Engineering,
National Chiao Tung University

●

●

●

●

●

●

●

●

Chi-Yen Liang
Director

Male

Bachelor of Department of Chemical Engineering
R.O.C. of National Tsing Hua University
Master, National Chengchi University

●

●

●

●

●

●

●

●

Chun-Sheng Ho
Director

Maleof Electrical Engineering, Tatung
R.O.C. Bachelor
University

●

●

●

●

●

●

●

●

Chin-Lai Wang
Independent
Director

Male(DBA)Doctor of Business Administration, National
University Master of Accounting,
R.O.C. Chengchi
National Chengchi University Bachelor of
Accounting, National Cheng Kung University

●

●

●

●

●

●

●

●

Sheng-Tsheng
Lee Independent
DirectorMaleof Mainland China Studies, National Sun
R.O.C. MasterYat-Sen University

●

●

●

●

●

●

●

●

Chung-Zung Kung
Independent
Male
Directorof Business Administration, University of
R.O.C. Master
Massachusetts, USA

●

●

●

●

●

●

●

●

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Table 3.1-2 Status for the attendance of Audit
Committee members
Contents

The board of directors had held 14 meetings in 2020. When there is event of conflicts of interest during board of
directors' meeting, Tatung follows related regulations to resolve it. The cases of directors' withdrawing from motion
due to conflict of interest in 2020 were: The discussion on the Company’s Lending Funds to its subsidiary Shan Chih
Semiconductor Co., Ltd. (2020.02.13), in accordance with Article 206 of the Company Law, Director Wen-Yen K.
Lin, Lung-Ta Lee, and Peng-Fei Su were evaded and participated in voting; The discussion on the nomination of
the Company’s directors (including independent directors) (2020.05.20), Director Tzong-Der Liou, Wen-Yen K. Lin,
Wen-Chieh Peng, Peng-Fei Su, Shou-Huang Chen, Sheng-Wen Tsai and I-Hua Chang respectively avoided theirinterests and did not participate in the review of their nomination; The discussion on The proposal submitted by theshareholder of the Company’s 2020 Annual General Shareholder’s Meeting (2020.05.20), Director Wen-Yen K. Lin
discussed the proposal of the shareholder Xin Ta Tong Investment Consulting Co. Ltd., she withdrew in accordancewith the law and did not participate in the review; The discussion on The Company's 4th Salary and Compensation
Committee passed the draft of the company's chairman and managers' salary and compensation at the firstinterim committee meeting of this year (2020.12.01), Director Wen-Yuan Lin did not participate in the review of thechairman's salary and remuneration case in accordance with the law.

Title / Name

Attendance Attendance Attendancein person by proxyrate (%)

Table 3.1-3 Status for the attendance ofCompensation Committees
Title / Name

Notes

Chair

Sheng-Tsheng
Lee

5

0

100

Elected on October 21,
2020

Chair

MemberChin-Lai Wang

5

0

100

Elected on October 21,
2020

MemberChung-Zung
Kung

5

0

100

Chair

Peng-Fei Su

50MemberTzong-Der Liou

7

Member

Chi-Ming Wu

Internal Audit Committee

MemberTatung has Internal Audit Committee (which is responsible to Board of Directors) to assist the board of directors andmanagers to check and review the lack of internal control systems and to provide timely recommendations for
improvements to ensure the continuous and effective implementation of internal control systems.

Chair

Compensation Committee
In view of the fact that the compensation system is an important part of corporate governance and risk
management, in order to strengthen corporate governance and improve the compensation system for the
directors (including independent directors) and managerial officers of the company, Compensation Committee
is established under the board of directors according to law, which is responsible for prescribing and periodicallyreviewing the performance and the compensation policy, system, standards, and structure for directors andmanagerial officers, as well as periodically evaluating and prescribing the compensation of directors andmanagerial officers on the first quarter of each year. Table 3.1-3 shows the attendance status of Compensation
Committee in 2020.
The Board of Directors is authorized to determine the transportation allowance and remuneration to directors of
the Company based on their contribution to the Company's operation and by taking into consideration the local
and foreign standards as applied in the same industry. Presidents and vice presidents manage the Company's
business on the order of the Board of Directors. The appointment, dismissal and remuneration of presidents andvice presidents shall be subject to the Company Law. Furthermore, remuneration will also be allocated from theCompany's earnings, if any, in accordance with Article 24 of the Company Regulations.

Notes

1

0

100

Elected on Nov. 13,
2020

Member Chin-Lai
Wang

1

0

100

Elected on Nov. 13,
2020

Elected on October 21,
2020

Member ShengTsheng Lee

1

0

100

Elected on Nov. 13,
2020

100

Terminated on June 30,
2020

Chair

Tzong-Der
Liou

2

0

100

0

100

Elected on June 30, 2020
Terminated on October
21, 2020

Re-elected on Aug 13,
2020. Terminated on
October 21 2020.

Member In-Sheng
Hsieh

0

0

0

Re-elected on Aug 13,
2020. Terminated on
October 21 2020.

4

0

100

Resigned on June 19, 2020

Member Chien-Ho
Chao

0

0

0

Re-elected on Aug 13,
2020. Terminated on
October 21 2020.

In-Sheng Hsieh

2

0

100

Member Peng-Fei Su

2

0

100

Terminated on June30, 2020.

Ching-Chuan
Lo

1

1

50

Chair

2

0

100

Resigned on June 19,
2020.

Elected on June 30, 2020
Terminated on October
21, 2020
Elected on June 30, 2020
Resigned on August 12,2020

Chung-Zung
Kung

Chi-Ming Wu

Table 3.1-4 Remuneration to directors in 2020

Audit Committee
The Audit Committee assists the board in fulfilling its responsibility and duty for oversight of the Company Act, Securities
and Exchange Act, and other related laws and regulations. The focus of the work of the Audit Committee in 2020
was to review the quarterly report, semi-annual report, annual financial report and loss compensation case; revise
the internal control system and related policies and procedures; material asset or derivatives transactions; offering
or issuance of any equity- type securities; material lending founds, endorsements or guarantees; hiring or dismissalof an attesting CPA, or the compensation given thereto; significant investment evaluation and management; andcorporate risk management, etc. Table 3.1-2 shows the member attendance status.

Attendance Attendance Attendancein person by proxyrate (%)

Job title

Chairman
Director

Name

Ming-Kuang Lu
I-Wen Chung
Wkang-Hsiang
Director
Wang
Director
Ching-Hsiang Lin
Director
Hung-Hsin Lin
Director
Wen-Yen K. Lin
Independent Director Chin-Lai Wang
Independent Director Sheng-Tsheng Lee
Independent Director Chung-Zung Kung
Director
Lung-Ta Lee
DirectorShou-Huang Chen
Director
Sheng-Wen Tsai
(Independent)
Peng-Fei Su
Director
Independent Director Tzong-Der Liou
Independent Director Chi-Ming Wu
Director
I-Hua Chang
Independent Director Ching-Chuan Lo
Independent Director In-Sheng Hsieh
Director
Wen-Chieh Peng
Director
Wen-Yuan Lin
Director
Ten-Huei Guo
Director
Xia-Zhen Yeh

Unit: NTD$ Thousand

Remuneration to directors
Remuneration allocatedRemuneration (A)Retirement pension (B)Business execution expenses (D)from earnings (C)All companies
All companies
All companies
All companies
in The Company included in The Company included in The Company included in
The Company included
Financial
Financial
Financial
Financialstatements
statements
statements
statements
30
30
30
30
-

-

-

-

-

-

60

110

10
405
453
403
1,260
1,595

10
1,890
405
453
403
360
1,260
1,595

-

-

-

35
-

60
120
60
60
97

60
600
120
60
97

3,349

3,457

-

-

-

-

37

37

4,254
2,656
37
287
1,173
1,020
7
-

4,254
2,656
37
287
1,173
80
1,020
7
-

-

-

-

-

97
37
30
30
60

97
137
30
30
85

Note: This Table is cited from 2020 Tatung Annual Report. Please refer to page 21 and page 22 for more information.。

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Corporate Governance Committee
In order to have sound corporate governance, Tatung has establisheda Corporate Governance Committee with its organizational charter inaccordance with the resolutions made by the board of directors in 2018. The
board of directors elected 3 independent directors to be members of thecommittee and responsible for corporate governance related matters. In 2020,
Chief Financial Officer was appointed as Chief Corporate Governance Officer.
The Corporate Governance Committee meetings are held at least once every
quarter and the duties are:
1. To give considerations to experience, expertise and independence to formulate
selection criteria for members of Corporate Governance Committee and submit
to the board of directors for resolution.
2. Responsible for the research and analysis, implementation, planning proposals
and regulations of the corporate governance system, regulations and proceduresfor corporate governance, and submit to the resolution of the board of directors.
3. Tracking and suggesting the implementation situation of the relevant information
disclosure.
4. Review the governance relationship between the Company and its subsidiaries
and other related companies; put forward suggestions for improvement andreport to the board of directors.
5. Review the effectiveness of the implementation of the corporate governancesystem.
6. Other duties in accordance with the board resolutions.

Internal evaluation of the performance of the board and functional committees
In order to strengthen corporate governance and enhance the functions of the board of directors
and various functional committees of Tatung, the Board of Directors passed the “Board andFunctional Committee Performance Evaluation Guidelines”. The Board of Directors and functional
committees of Tatung shall perform at least one internal performance evaluation each year. The
performance evaluation of the Board of Directors shall be carried out at least once every 3 years by
an external professional independent organization, a team of external experts and scholars or otherappropriate methods. The results shall be completed before the Board of Directors held within threemonths after the start of the second year and submitted to the Board of Directors. The realm of theBoard and Functional Committee Performance Evaluation of Tatung shall include the performance
evaluation of the overall Board of Directors, individual board members and functional committees
and individual committee members. The procedures for the establishment of directors' remunerationof Tatung, in addition to the provisions of the Articles of Association, are based on the above criteria
and the relevant measures of the functional committees. The relevant performance appraisal andremuneration rationality are reviewed by the functional committees and the board of directors. At
any time, the directors' remuneration system will be reviewed in a timely manner depending on theactual operating conditions and relevant laws and regulations.
The results of internal performance evaluation of 2020 were submitted to the Board of Directors on
2021.03.25. The results were both “GOOD” for the performances of the Board of Directors and thefunctional committees.

Table 3.1-5 Evaluation content of the performance of the board and functional committees
Criteria for evaluating the performanceof the board of directors

Criteria for evaluating the performanceof the board members (on themselves)

Criteria for evaluating the performanceof functional committees

1Participation in the operation of thecompany.

1

Alignment of the goals and missionsof the company.

1

Participation in the operation of thecompany.

2

Improvement of the quality of theboard of directors’ decision making.

2

Awareness of the duties of a director.

2

Improvement of quality of decisions
made by the functional committee.

3Composition and structure of theboard of directors.

3

Participation in the operation of thecompany.

3

Composition and structure offunctional committees.

4

Election and continuing educationof the directors.

4

Management of internal relationshipand communication.

4

The committee’s election andcontinuing education.

5

Internal control.

5

The director’s professionalism andcontinuing education.

5

Internal control.

6

Participation in sustainable
operations (ESG).

6Internal control.

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3.2 Corporate Governance
DMA:
Corporate governance and ethical practice
An explanation of why
the topic is material

Purpose of the management approach

Commitments

Responsibilities

Mechanisms for evaluating the effectiveness of the
management approach

Corporate governance is amechanism to guide andmanage a company. It
is important to implement
the responsibilities ofbusiness operators, andprotect the legitimate
rights and interests ofshareholders and take into
account the interests ofother stakeholders.

Good corporate governance should be achieved by
the Board of Directors and management in a mannerthat is in the best interests of the company and allshareholders, assists in the operation of the company,
and provides an effective monitoring mechanism
to incentivize the company to make good use ofresources, improve efficiency, and thus enhancecompetitiveness and promote social welfare for thesociety.

Integrity is Tatung's basic commitment to shareholders, customers, suppliers and society. By
formulating relevant regulations to prevent dishonest behavior, building consensus througheducation and training, promoting to all employees, shaping the corporate culture of “Integrity,
Honesty, Industry, and Frugality”, and moving forward to sustainable operation.

In accordance with “Corporate Governance Best Practices
Principles for TWSE/GTSM Listed companies”, Tatung has
adopted and made public its corporate governance bestpractices principles and amended on 2021.01.20.

Tatung has “Board and Functional Committee Performance
Evaluation Guidelines” and performs internal evaluation of theperformance of the board and functional committees each year.

Goals and targets

Resources

Short-term target:
1. Appointing chief corporate governance officer to be responsible for corporate governancerelated matters, implement corporate governance, and improve the effectiveness of the boardof directors.
2. Conducting the performance evaluation for the board of directors and the functional
committees.
3. Revising the relevant principles of corporate governance at any time in accordance with thelatest published version from the authority.
4. Enhancing corporate information disclosure in English (e.g. English official website).
5. Achieving 6%~20% of Corporate Governance Evaluation.
Long-term target:
1. Continue to strengthen corporate governance and improve information transparency. The
company’s managers and all employees abide by the ethical corporate management toavoid illegal incidents and ensure the company’s sustainable operation and performance,and continue to care for the environment, consider social and culture factors, and strengthen
corporate governance to fulfill corporate social responsibility.
2. Achieving top 5% of Corporate Governance Evaluation.

The Chief Financial Officer of the company has been appointed
as chief corporate governance officer, and relevant corporate
governance education and training have been conducted.
More than 600 employees have implemented it, and theresults of corporate governance education and training havebeen disclosed in the investor section of the company's official
website.

1. The board of directors appointed Chief Financial Officer as Chief
Corporate Governance Officer.
2. Corporate Governance Committee had 4 meetings to discuss
corporate governance related issues.
3. Completed the performance evaluations for the board of
directors and the functional committees. The results were all“Good”.

Grievance mechanisms

Related adjustments to the management approach

Tatung establishes the “Regulations for Handling Whistleblowing
Illegal Cases, and Unethical or Dishonest Conduct Cases”
and a dedicated unit of processing employees’ complaints
for employees’ feedback, found violations of lawlessness, andreported unethical conducts.

Tatung follows the check items of "Corporate GovernanceEvaluation" implemented by TWSE to review and improve thepractice of each aspect of the company and fully improve thequality of corporate governance.

Boundary for thematerial topic
Tatung and its subsidiaries.

Specific limitation
regarding the topic
boundary
Performance disclosure islimited to Tatung Co.

Policies
Tatung takes “Integrity, Honesty, Industry and Frugality”
as the core value of its management. Based on thevalues, Tatung formulates relevant policies based on
integrity such as “Ethical Corporate Management
Best Practice Principles” and “Procedures for
Ethical Management and Guidelines for Conduct”,“Regulations for Handling Whistleblowing Illegal
Cases, and Unethical or Dishonest Conduct Cases”,
and “Management Procedures for the Preventionof Insider Trading in Tatung Company”, as well as
management regulations such as employee rewards
and punishments, and appeals.

Results of the evaluation of the management approach

Disclosure on non-financial information
An explanation of why the topic ismaterial

Specific limitation regarding the topic
boundary

Commitments

Resources

Specific actions

Results of the evaluation of the management
approach

The transparency of a company’s nonfinancial information is an important
tool for measuring its sustainable
development and corporate value.
Investment institutions, government
agencies and other stakeholders all
attach great importance to this topic.

Performance disclosure is limited to Tatung Co.
and certain subsidiaries.

Tatung commits that the company should fully
disclose relevant and reliable corporate social
responsibility related information to enhance
information transparency.

Tatung has organized CSR Reporting Committee
to be responsible to prepare CSR Report.

Prepare CSR report in accordance with GRI
Standards and "Taiwan Stock Exchange Corporate
Rules Governing the Preparation and Filling ofCorporate Social Responsibility Reports by TWSE
Listed Companies”.

1. “2020 Tatung Corporate Social Responsibility Report”
was published in June, 2020. The reports can be
downloaded:
http://www.tatung.com/Content-EN/csr-report.asp
2. Optimized the “Responsibility” section of the company’s
official website to disclose ESG information morecomprehensively.

Boundary for the material topic
Tatung and its subsidiaries.

Grievance mechanisms

Purpose of the management approach
By proactively disclosing the company's ESG
information and achievements, and focusing
on meeting the expectations of stakeholders
to systematically demonstrates the company's
efforts towards sustainable development.

Goals and targets
1. Publishing Tatung Corporate Social Responsibility
Report by the end of June every year.
2. Updating and disclosing ESG information on thecompany’s official website regularly.

Tatung CSR Report feedback e-mail:csrreport@tatung.com

Mechanisms for evaluating theeffectiveness of the management
approachSubmit the drafted CSR Report to “Corporate
Governance Committee” for approval and submit
the report to Chairman for issuance.

Related adjustments to the management
approach
NIL.

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DMA:
Comply with social and economic regulations
An explanation of why the topic is material

Purpose of the management approach

Commitments

Resources

Results of the evaluation of
the management approach

Complying with the policy and legal requirements of the competentauthority to ensure that the company and the employees comply withregulations and industry associations to avoid or reduce the legal risks
and illegal losses in the enterprise. Also disclosing the adjudication ofsocial and economic laws and regulations honestly.

Tatung complies with social and economic laws and regulations andbecomes a benchmark for excellent companies and industries in thesociety.

Tatung commits to pay close attention to and abide by thedomestic and foreign policies, laws, and trends that have asignificant impact on the company's business and finances. It also
formulates a code of ethical conduct for compliance.

The Board of Directors has set up the "Internal Audit Committee","Audit Committee" and "Corporate Governance Committee"
to check and review the lack of internal control systems andmeasure the effectiveness and efficiency of operations, as well as
the legal compliance operations of corporate governance, andprovide timely recommendations for improvement.

In 2020, Tatung did not haveany major violations againstsocial and economic laws andregulations.

Boundary for the material
topicSpecific limitation regarding
the topic boundary

Tatung and its subsidiaries.

Performance disclosure is limited
to Tatung Co.

Policies
Tatung's ethics and regulatory compliance system is based on "integrity”.
Through the identification and formulation, implementation, selfassessment and review of regulations, the management level will leadby example and practice from top to bottom.

Goals and targets
Short-term target:
Tatung continues to follow the latest related social and economic
laws and regulations.

Mechanisms for evaluating the effectiveness of the
management approach

Related adjustments to the
management approach
NIL.

Tatung conducts regular/unscheduled internal control, internal
audit and checked by external accountants.

Long-term target:
Tatung will continue to operate sustainably and fulfill its role as acorporate citizen.

Good corporate governance and ethical management are the keystones for a corporate to achievesustainable development and demonstrates its social value. Since 1918, we have taken "Integrity, Honesty,
Industry, Frugality" as our corporate values and stipulated "Corporate Governance Best Practice Principles","Ethical Corporate Management Best Practice Principles", "Procedures for Ethical Management andGuidelines for Conduct", "Ethical Conduct Principles", and "Corporate Social Responsibility Best PracticePrinciples". We keep abreast of global trends and adjust with the times to follow our various businesses.
On the other hand, through the implementation of the internal control system, the company's policies
and regulations are ensured. In addition to playing the role of a product and service provider, we also
combine environmental sustainability with the management of the company. It is expected to not only
achieve sustainable business, but also fulfill our responsibility for environmental sustainability and corporatesocial responsibility.

Corporate Governance Best Practice Principles

In order to establish sound corporate governance system, Tatung adopted the principles of Taiwan
Stock Exchange Corporation (TWSE) and the GreTai Securities Market (GTSM) and published "Corporate
Governance Best Practice Principles". The principles are agreed by board of directors and aiming toachieve the followings:► Protect the rights and interests of shareholders. ► Strengthen the powers of the board of directors.
► Fulfill the function of supervisors.
► Respect the rights and interests of stakeholders.
► Enhance information transparency.

Ethical Corporate Management Best Practice Principles

In order to establish an ethical and sound management of corporate culture development to build up agood business mode of operation, risk control mechanism and sustainable business environment, Tatung
published "Ethical Corporate Management Best Practice Principles". The principles prohibit directors,
supervisors, managers, employees, and mandataries or persons having substantial control shall not
conduct unethical behavior. Ethical training and education are conducted among the mentioned
personnel regularly. Persons and companies who have business with Tatung are invited to attend theeducation to fully understand the commitment made by Tatung.

Ethical Conduct Principles

In order to guide the directors and managers of ethical conduct, for example, prevent conflicts of interest,to avoid the chance of personal interests and fulfill the duty of confidentiality, fair dealing, protection
and proper use of company assets, to follow the laws and regulations, to encourage the reporting of any
violations of law or ethical behavior and conduct of disciplinary measures, Tatung has formulated "EthicalConduct Principles" and which has been approved by the Board of Directors.

Employees’ code of ethics

Tatung upholds the principles of "Integrity, Honesty, Industry, Frugality" and prohibits any improper behavior
and financial dealings. Each new employee will sign a self-regulation convention when they report to thecompany. The convention states that employees must not doing fraud or receiving gifts from others induties, and shall not disclose the company's technologies and business contents. Tatung has establishedrelevant control measures for this, such as Company Rules, "Ethical Corporate Management Best PracticePrinciples" and "Procedures for Ethical Management and Guidelines for Conduct" to prohibit every memberin the company from doing non-ethic behaviors. Tatung also established internal control measures suchas internal control system, scheduled and unscheduled audits of Internal Audit Committee. The contracts
signed with the suppliers are added the requirements such as shall not bribe or provide improper benefits
to Tatung employees. Work rotations for procurement, finance and human resources departments arealso practiced to reduce the risk of corruption. We also announce the "Corporate Ethics Statement for theGroup" on the company's internal website from time to time. In addition, we have relevant systems forreporting illegal cases, and unethical or dishonest conduct cases. If there is any corruption case, Tatung will
pursue its legal responsibility to put an end to the corruption.

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Internal control system and internal control committee

In order to promote the effective operation and ethical management of the company, Tatung established "Internal
Control System". The mission is to:1.

Ensure the enforcement of company policies and rules.

2.

Avoid the waste, lost and non-efficient use of assets.

3.

Ensure the accuracy of accounting and operating information.

4.

Evaluate the performances for each division.

Internal control system covers all operations of Tatung, including accounting, finance, planning, organization,
control and management, and information about sales, production, purchasing, materials, engineering, personnel
and research and development. In addition, internal control should prepare, distribute, report and analyze data
to the management level, so that the highest management level can keep track on the execution and control of
Tatung's various work and business. Tatung follows "Regulations Governing Establishment of Internal Control Systems
by Public Companies" proclaimed by Financial Supervisory Commission, dividing the business operations to Saleand receipt cycle, Purchase and payment cycle, Production cycle (environment, health and safety issue included),
Labor and wage cycle, Finance cycle, Fixed asset cycle, Investment cycle, and Research and development cycle,
as well as setting out the management controls for data access and other activities. Tatung monitors and controls
the system and operation procedures continuously by carrying out the internal auditing and review meetings ofInternal Control Committee8. Such practice can enhance the internal control system and optimize the efficiency ofcorporate governance. Figure 3.2-1 shows Tatung's internal control system statement.
Internal control system is not only applied in Tatung but also applied to Tatung's subsidiaries. The subsidiaries are
graded into different levels according to their scales. Different levels of subsidiaries have different internal control
frequencies to effectively optimize the corporate governance of subsidiaries.
In addition to internal control system, Tatung has introduced and maintained various of management systems in
the factories for specific topics, such as ISO14001 (environment), ISO 45001 (health and safety), ISO9001 (quality),
ISO 27001 (information safety), TTQS (training and education) and others. The factories follow the proceduresof the management systems to review and update the related laws and regulations. At the same time, thefactories conduct internal audit and management review to ensure the operations can comply with the laws andregulations. The administrative in headquarter also announce the latest and related regulations to the employees
Corporate Governanceby publishing on the internal website and/or throughe-mails. In this way, the employees will gain the knowledge of
regulations and avoid breaching them at work.

Risk management

When facing on rapid changing business environment and climate change, Tatung has assigned responsible
departments (Table 3.2-1) to process risk assessment on significant topics. Table 3.2-2 shows Tatung’s risks and countermeasures.

Table 3.2-1 Structure of risk management
Risk management

Bodies in charge

Responsibilities

Strategy and operationrisk

1. Board of Directors
2. High-level management (Chairman,
president)
3. Management of each plant anddivision (General manager, director,
and center manager)

1. Stipulation & implementation of management
policies
2. Assessment & analysis of operation performanceMarket risk

Sales unit of each plant and division

Business & sales promotion as well as market researchand evaluation

Financial and liquidity risk

Finance & Accounting Division

Final accounting of cost, funds allocation andcontrol, and hedging of interest and exchange rates

Legal risk

Legal Division

Process of litigation and non-litigation cases

Table 3.2-2 Tatung's risks and counter measures
Category

Risk typein
Governance Change
management(X) Execution of internal control system
1. Internal control statement

Tatung Company Limited by SharesInternal Control System Statement
Date: March 25, 2021
The Company states the following with regard to its internal control system during fiscal year 2020, based on the findings ofa self-assessment:
I. The Company is fully aware that establishing, operating and maintaining an internal control system are theresponsibilities of its Board of Directors and management. The Company has established such a system to provide
reasonable assurance of the effectiveness and efficiency of its operations (including profitability, performance andsafeguarding of assets security), reliabilities, timeliness, transparency of reporting, and compliance with applicable laws
and regulations.
II. An internal control system has inherent limitations. No matter how perfectly designed, an effective internal control
system can provide only reasonable assurance of accomplishing the three goals mentioned above. Furthermore, theeffectiveness of an internal control system may vary along with changes in the operating environment or circumstances.
The Company’s internal control system features a self-monitoring mechanism, however, and the Company takes
corrective actions as soon as a deficiency is identified.
III. The Company judges the design and operating effectiveness of its internal control system based on the criteria provided
in the Regulations Governing the Establishment of Internal Control Systems by Public Companies (hereinbelow, “theRegulations”). The internal control system judgment criteria adopted by the Regulations divide internal control into
five key elements based on the process of management control: 1) control environment, 2) risk assessment, 3) control
activities, 4) information and communications, and 5) monitoring activities, each of these elements in turn contains
certain audit items. Please refer to the Regulations for details.
IV. The Company has evaluated the design and operating effectiveness of its internal control system according to theaforesaid criteria.
V. Based on the aforementioned audit findings, the Company believes that on December 31, 2020, its internal control
system (including supervision of subsidiaries), as well as internal controls to monitor the attainment of its objectives
concerning operational effectiveness and efficiency, reliability, timeliness, transparency of reporting, and compliancewith applicable laws and regulations were effective in design and operation and reasonably assured the achievementof the above-stated objectives.
VI. This Statement will become a major part of the content of the Company’s Annual Report and Prospectus, and will
be publicized. Any falsehood, concealment, or other illegality in the publicized content will entail legal liability under
Articles 20, 32, 171 and 174 of the Securities and Exchange Act.
VII. This Statement has been unanimously approved by the 9 attending directors in the Board of Directors Meeting of theCompany on March 25, 2021.

Tatung Co., Ltd.
Ming-Kuang Lu
ChairmanYi-Wen Zhong
President

2. This statement is issued in accordance with the criteria for "Regulations Governing the Establishmentof Internal Control Systems of Public Companies" promulgated by the Financial Supervisory
Commission ("FSC").

▲ Figure 3.2-1 The internal control statement of Tatung in 2020
3. Where CPAs are retained to audit the internal control systems, please disclose the CPAs' audit report:

None.

53
109年度英文年報.indd 53

8Non-ethical behavior

Operation
Changes intechnologies
on the financial
positionand operation of theCompanyCounter measures
Xin Tong and Xin Ta Tong Investment Consultant Co. Ltd, the corporate shareholdersof Tatung, were jointly granted the right by the Ministry of Economic Affairs to convene
Tatung’s 2020 1st extraordinary shareholders’ meeting taking place on 21 October
2020 for the purpose of a full re-election of board directors. The total 9 seats of board
directors elected included Mr. Wkang-Hsiang Wang, the legal person representative ofGindon Investment Co., Mr. Wen-Yuan Lin, the legal person representative of Gindon
Investment Co., Mr. Hung-Hsin Lin, the legal person representative of Xin Tong Investment
Consultant Co., Ms. Xia-Zhen Yeh, the legal person representative of Gindon Investment
Co., Mr. Ten-Huei Guo, the legal person representative of Gindon Investment Co., and
Ms. Wen-Yen K. Lin, the legal person representative of Tatung High School, while Mr.
Chin-Lai Wang, Mr. Sheng-Tsheng Lee, and Mr. Chung-Zung Kung were elected as theindependent directors. The change in management rights has no negative impact orrisk on the company's operations.
● Tatung has issued "Corporate Ethics Statement for Group Employees" and formulated"Ethical Corporate Management Best Practice Principles" and "Procedures for EthicalManagement and Guidelines for Conduct" and announced to all the employees.
At the same time, through rigorous and effective accounting systems and internal
control systems to prevent bribery and illegal political donations and so on happened.
● Tatung has established effective accounting and internal control systems for ensuring
the implementation of policies, and the internal auditors formulate annual audit plans
based on the results of the risk assessment and report to the Board its audit report.
● Tatung has a mechanism of processing employees' complaints for employees'
unethical conducts. The company maintains secrecy and inspects the reported
contents as well as protects informants' rights and interest.
● Tatung has developed deep technical foundation, kept putting efforts on research& development, and expanded the business of key products as well as systemaggressively in smart grid to ensure its technology and market leading positionin domestic electricity generation, power transmission & distribution and energy
management. Tatung marches into oversea market and aims at the energy
technology industry leader.
● With the trend of energy efficiency and carbon reduction, Tatung has strived to carryon fine tradition, and reinforced to develop high-quality green home applianceswith health, environment protection, energy-saving and high efficiency concepts toincrease the sales performance and profit.

2021/5/25 下午 01:43:02: In view of the fact that the inspection deficiencies have been greatly reduced, the President verified that the operation of internal
control committee would cease to function since April 2021, and the Internal Audit Committee will continue to maintain the effectivenessof the internal control system.

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Organization structureand governanceContents

Table 3.2-2 Tatung's risks and counter measures
Category

Risk typeCounter measures

Information security● In response to personal information protection and information security needs,
Tatung established the Information Security and the Personal Information
Protection Committee as early as 2014, passed the ISO27001 information security
management system verification, and ensured the security of the company's
personnel, data, information systems, equipment and network in accordance withthe requirements of the BS10012 personal data protection standard. To ensure
the safety of the company's personnel, data, information systems, equipment andnetwork, establishing an information security policy as the highest guiding principleof the company's information security management system, achieving the goal of"uninterrupted service, no loss of information, personal information not leaked, andenterprise sustainable operation". Committee conducts risk assessments on a regularbasis or in the event of major changes in the information technology environment.
As a basis for the operation of the information security management system, theinformation security risk level related to various service operations of Tatung is defined.
The Assessment Procedures regulates risk management plans and subsequent
improvement measures to reduce the risk to an acceptable level.
● Through the discussion of the monthly meeting of the Information Security Monthly
Meeting and the emergency response, the review of the new internal and external
security issues will be carried out to the annual plan. In the activities of the planning,
the annual budget and security management review meeting hosted by President
will be held in October each year, and the results of this year's implementation andthe budget plan for the next year will be reported. The annual activities include semiannual external auditor's audits, two outsourcing consultants' external counselingevery year, and an annual internal audit of the audit committee to determine theimplementation status of the information security management system and whether
to achieve the information security objectives of confidentiality, integrity, availability
and compliance of each service.

Interest rate

FinanceLegal● Derivatives can been used as a hedge against interest rate fluctuations for Tatung’s
long-term debts.
● When considering mid to long-term bond issues, Tatung carefully sets its target interest
rate to lower its interest rate risks as much as possible. For example, Tatung’s offshore
exchangeable corporate bond issue offers a fixed interest rate, while its domestic
secured convertible bond offers a zero coupon rate.

Exchange rate

Tatung has a natural hedge against currency fluctuation as its business involves imports
and exports. It also utilizes derivatives to hedge the remainder of its foreign exchange
position that is exposed to currency exchange risks. The management of risks involving
such derivatives are set forth in Tatung’s "Operational Procedures for Derivatives
Treading." Tatung also has an internal control system to supervise the loss limit of foreign
currency transactions.

Inflation

The constant inflation rate in recent years has no significant impact on Tatung's
operations and profits. Tatung will continue to prudently evaluate the price trends of raw
materials and work out the best procurement and sales strategies in line with operational
needs.

Changes in policies
and laws● Tatung carefully monitors any changes in local and foreign policies and makes
appropriate adjustments in Tatung’s internal control system and operations whennecessary.
● Tatung’s R&D units and financial department continues to avail of and seek various
investment incentives, such as tax credit, granted by the Ministry of Economic Affairs
and other government agencies.

Table 3.2-2 Tatung's risks and counter measures
Category

Risk typeEnvironment● Continue to run environmental management system to elevate environmental
performance.
● Conduct "Pollution Prevention Pays" program and internal control system to preventthe violations of regulation.

Health and safety● Continue to run occupational health and safety management system to elevate
health and safety performance.
● Conduct "Disaster Prevention Pays" program and internal control system to preventthe violations of regulation.
● Conduct monitoring on operation site, job safety analysis and establish safety S.O.P.

Carbon emission
cap or tax● Continue to run energy management system to elevate energy performance.
● Continue to promote energy saving projects.

Carbon emission
disclosure● Conduct GHG emission inventory.
● Promote product carbon footprint.

Water resource

Promote water saving projects.

Environmental
protection,
health andsafetyClimatechangeCounter measures

In addition, with respect to the controversies between Tatung and shareholders, such as exercise of disgorgement, 2017
shareholders’ meeting resolution effectiveness, exercise of shareholders voting right, appointment of inspector, injunctive
relief, application for convening a special meeting of shareholders by minority shareholders etc., except for the case of theexercise of shareholders voting right, which is currently under trial in the Taipei District Court of Taiwan, the rest of the cases
have been withdrawn or terminated, so there is no litigation. Tatung's operations, finance and business were not affectedby the above personal cases and will continue as usual. The cases arising from the election of directors at Tatung’s regularshareholders’meeting on June 30, 2020 included: (1) The Securities and Futures Investors Protection Center dismissed WenYen Lin Kuo as a director of Tatung. On December 17, 2020, the Taipei District Court ruled that director Wen-Yen Lin Kuo
should be dismissed as a director of Tatung. Director Wen-Yen Lin Kuo has filed an appeal; (2) The Financial Supervisory
Commission ordered Tatung not to handle the administrative sanctions of stock affairs on its own, and Tatung’s stock affairs
have been entrusted to Taishin Bank to handle it.

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Corporate social responsibility

Disclosure on non-financial information

Policy and management
Established in 1918, Tatung, formerly known as Xie Chih Business Enterprise, has evolved
and grown over the decades into one of Taiwan's leading conglomerates. The foundationof Tatung is built on four fundamental values—Integrity, Honesty, Industry, and Frugality.
Developed by Tatung's founder and former chairman, Mr. Shan-chih Lin, they represent theessence of the Company's commitments to our customers, shareholders, and employees.
Mr. T. S. Lin, Chairman Emeritus of Tatung, further extended the precepts behind these corevalues to serve as the guidelines for the Company's continued success and prosperity.
These are: Industry-education cooperation, Shareholder responsibility, Employee harmony,and Customer satisfaction.
To be able to fulfill corporate social responsibility and contribute to the progress of
economy, environment and the community, Tatung stipulated "Tatung Corporate Social
Responsibility Best Practice Principles" to manage the economy, environment and social
risks and impacts in 2014 (amended on 2021.01.20). The principles act as guidance for
implementing corporate governance, sustainable development and the environment, themaintenance of social welfare, strengthening CSR disclosure. The results and performances
will be reported to Board of Directors every year (Table 3.2-3).
In 2020, Tatung has outstanding performance in terms of corporate social responsibility andsustainable development. In the Wall Street Journal’s “The 100 Most Sustainably Managed
Companies in the World”9, Tatung was ranked the 75th among the top 100 companies andranked the 1st in the "Business Model and Innovation" sub-project.

Corporatesocialresponsibility

Environmental
management

Ethicalcorporate
management

Responsible
unit
Legal
Division

Health& Safety
Division

Human
Resources& General
Administration
Division

Legal
Division

9

Duty

Integrity

Honesty

Industry

To cultivate young engineering talentand to lend efforts to research anddevelopment through cooperation
between the company and TatungHigh School as well as Tatung University.
Realizing the importance of education
in a society with a knowledge-based
economy, Tatung sponsors the schools'
major projects while also contributing
industrial experience to the teaching.
As a responsible corporate citizen,
Tatung regards its dedication toeducation as a manifestation of
long-term commitment to social wellbeing.

In order to proactively and effectively disclose Tatung’s non-financial
information and show our achievements in sustainable development, and asa tool to communicate with stakeholders, we have set up a "Corporate Social
Responsibility" section on the company’s official website in both Chinese andEnglish10 to disclose Tatung’s economic, social and environmental management
measures and performances; on the other hand, we publish annual publication"Tatung Corporate Social Responsibility Report" in accordance with GRI
Standards and introduce external verification agency to verify the format andcontent of the report to improve the reliability of disclosed information reliability.
We promise to continue to publish corporate social responsibility report in Juneevery year and disclose Tatung’s ESG information on the official website tocommunicate with stakeholders.

Shareholder responsibility
To pursue maximum returns for ourshareholders and to maintain a stabledividend policy.

Employee harmony

Table 3.2-3 Tatung CSR responsible units
Topic

Industry-education cooperation

Report to the Boardof Directors

Frugality

In charge of bringing forward and carryingout the policies, systems, management, The
and implementation programs for implementation of
corporate social
corporate social responsibility.
responsibility andIn charge of environmental management environmental
including drafting, promoting, and management
maintaining relevant environment results in year 2020
management systems and concrete were reported
action plans, and held environment to the Board
education courses for their managerial of Directors on
officers and other employees on a 2021.03.25.
periodic basis.

To encourage self-motivation andcooperation amongst employees
through the organization of profit
centers to ensure fair compensation,
incentives, welfare benefits, as well as
to provide on-the-job training.

Responsibility section on Tatung’s official website

Customer satisfaction
To re-invest profits in pursuit of better
product quality so as to create value
for our customers.

In charge of the ethical management
policy, the “Ethical Corporate
Management Best Practice Principles,” aswell as the prevention programs against
unethical conduct, the “Regulations for
Handling Whistleblowing Illegal Cases, andUnethical or Dishonest Conduct Cases.”The
implementation of
ethical corporate
management
results in year 2020
were reported
In charge of the revision, implementation, to the Board
interpretation, consulting service, and of Directors on
notification of the contents of the 2020.12.23.
“Procedures for Ethical Management andGuidelines for Conduct.”: https://www.wsj.com/articles/wsjs-most-sustainably-managed-companies-finds-tatung-and-kering-topping-innovation-list11602514813?mod=ig_sustainablymanagedcompanies2020

CSR reports issued over the years
10: http://www.tatung.com

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RESPONSIBLE SUPPLY CHAIN, PRODUCT SAFETY,AND CUSTOMER SERVICE
Top Management
Statement
Contents
2020 CSR Highlights

Identificationon the stakeholders
and material topics

Profile of
Tatung Company

Supply chain management
Target------------------------All new suppliers sign back the SupplierCommitment Letter.

Organization structure andgovernance

Performance in 2020------------------------Responsible
supply chain,product safety,
and customer service

Happy workplace andsocial participation

100% of new suppliers have signed
back the Supplier Commitment Letter.

Product responsibility
Target------- -----------------

Short-term targets:
1. All the products are complied withproduct inspection regulations andcustomer requirements.
2. Strive for product awards orcertification.
3. Continue to run ISO 9001 andTAF certified laboratories in thefactories.
4. Meet annual quality KPI.
5. No. of product inspection andlabeling related violations: 0.
Mid-long term targets:
Treat zero defects as the only
standard for management andoperation.

Sales
Target------------------------

Ensure the contents of advertisements
or promotions are complied withregulations.

Customer management
Target-------------------------

1. Continue to manage customer
information in accordance to theregulations.
2. Satisfaction for repairing service >
94%, satisfaction for shipping service> 97%.

Performance in 2020------------------------

No. of advertisements or promotions
violated related regulations: 0.

Performance in 2020-------------------------

1. No. of complaints in regarding toviolating customer privacy or losing
customer information: 0.
3. Satisfaction for repairing: 95.9%,
satisfaction for shipping: 97.4%.

Performance in 2020------------------------

Sustainable
environment

1. No. of products violated productinspection and labeling regulations:
0.
2. IE5 ultra-premium eff. powertrain
for large e-bus, Intelligent Cooker,
and High-efficiency amorphouscore transformer were won the
29th Taiwan Excellence Award.

Annex

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Responsible supply chain,product safety,
and customer service

Contents

4.1 Responsible supply chain

Tatung believes that with good relationship with decent suppliers can make sure gettinghigh quality parts/products to raise productivity to share the benefits to the customers
around the world. Hence, Tatung conducts internal control and related management
procedures to manage and introduce suppliers. Regular supplier auditing is conductedin BUs and subsidiaries.

China
3.34%

Taiwan91.13%

Hong Kong
1.28%

South Korea
0.59%
Japan
0.49%

Good quality, competitive price, on time delivery, and after sale service are the first 4
considerations when Tatung purchases raw materials, parts and products. Tatung alsoprefers purchase from local suppliers in Taiwan in order to support local business and fulfill
social responsibility. The main suppliers are from Taiwan, followed by China. The details
are list in Figure 4.1-1. Meanwhile, in order to maintain excellent product quality, Tatung
requests suppliers to use brand new materials in providing main materials, parts, andproducts. Tatung supports the concept of green consumption, within the company,
we encourage our BUs to take environmental friendly products into considerations
when purchasing materials, parts, or products. Our efforts in 2020 were recognized by
EPB, Taipei City Government (Received certificate of appreciation for promoting green
procurement) and EPA (Received certificate of green procurement).
On the other hand, Tatung requests suppliers to fulfill corporate social responsibility
together by adding confidential, anti-corruption and human rights (human rights,
freedom of association, child labor, and forced labor) clauses in the contract. Also from2015, we started to request suppliers to sign the "Supplier Commitment Letter", which
includes health and safety, environmental protection, and human rights topics. The
commitment letter is a must have document to become Tatung's supplier. In responseto the attention to conflict minerals internationally, Tatung has issued "Declaration of
Minerals Conflict-Free from Tatung Company" and passed to the suppliers to follow in
2019.

Others3.18%▲ Figure 4.1-1 Suppliers' geographic distribution in 2020 (by numbers)▲ Figure 4.1-2 Certificate of appreciation
for promoting green procurementfrom EPB, Taipei City Government

Table 4.1-1 CSR contents in the Supplier Commitment Letter
Category

Commitment

Non-corruption

Refuse to offer or accept any improper advantages.

Human rights and labor conditions

Comply with national and international regulations, policies, or guidance in regarding
to human rights.

Environmental protection

Comply with environmental protection regulations.

Anti-conflict minerals

Comply with Tatung anti-conflict mineral policy.

Corporate social responsibility

Comply with Tatung’s and the suppliers’ ethical and CSR policies.
Declaration of Minerals Conflict-Free from
Tatung Company

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Responsible supply chain,product safety,
and customer service
Table 4.1-2 Category of suppliers and introducing/management measures
Contents

Introduction and management on suppliers
Tatung groups its suppliers into four categories; eachcategory has its own introducing procedures andmanagement standards. The introduction of the new
supplier in Category I requires on site assessment by
evaluation team. The assessment content mainly includes
design, technical capabilities, quality management,
manufacturing capabilities and management capacity.
The introduction of the new supplier in Category II requires
only document review. For construction category,
the introduction of the new supplier requires on site
assessment. Starting from Feb, 2018, CSR related contents
were incorporated into on site assessment for all BUs. In
addition, Tatung also evaluates the management of
hazardous substances (RoHS and REACH), conducting
safety measures for hazardous job, and implementationof environmental management system as an extra
evaluation for introduction of a new supplier. The detailed
management measures are shown on Table 4.1-2 andFigure 4.1-2 (Category I as an example). The supplier withassessment result above B grade can then be introduced.
All suppliers are requested to sign procurement contract
and commitment letter.
For suppliers (construction category not included)
who already cooperate with Tatung are implemented
monthly assessment in aspect of quality, delivery, price,and service (Figure 4.1-4). Any non-conformities foundwill be requested to correct. An annual re-evaluationis periodically implemented for main components
suppliers, listed component suppliers, and outsourcing
suppliers (Figure 4.1-5). The annual re-evaluation is
focusing on suppliers' operation policy, CSR policy,
quality management, R&D capability, manufacturing
management, servicing ability. Tatung wishes the suppliers
who collaborate with us can grow strong together. As forthe safety of the service-providing suppliers (construction,
waste disposal, repairing) who operate in the factories andsubsidiaries, Tatung stipulated "Tatung Health and Safety
Management Method for Contract Suppliers" to make sure
all this type of suppliers can follow it to reduce the risk from
accidents.

Category

Category I

Category II

Construction

OthersClassification
criteria

1. Important materials (parts, components,
half-ready products, and products).
2. ODM/OEM
3. O u t s o u r c i n g ( i n c l u d i n g f u l l c a s e ,manufacture only, product only).
4. Significant to product quality that need
intensive management and tutoring.

1. Suppliers, who provide raw materials,
ready to sale products, imported
components, with less quality risks.
2. Suppliers who are world famous company
with top capability in product and QA/
QC.

Suppliers who build factory, apartment,
office building, system installation, or repair
project.

1. Suppliers who provide office appliances,
hard wares, software, waste disposal,
verification, etc.
2. Suppliers who provide instruments orequipment.
3. Technical maintenance service.

Introducing
procedure● On-site assessment● Sign procurement contract● Sign commitment letter● Document review● Sign procurement contract● Sign commitment letter● On-site assessment or document review
for existed cases● Sign procurement contract● Sign commitment letter● Sign procurement contract● Sign commitment letter

Management

1. Monthly assessment1
2. Annual re-evaluation2

Monthly assessment

Evaluation after the case is completed

Monthly assessment

Top
manager
in BU

Supplier

Procurement
division

Grade A

96.02%

2.65%

4.23%

Grade A

9.86%

Grade B

85.92%

Removingfromsupplier
database

Providesamples forinspectionPass

On-siteassessment

Evaluation
based ondocument review
and on-site
assessment

Pass

Input into
supplier databaseand under
management

Monthlyassessment

Yearlyre-evaluation(including
CSR topics)

Fail
Fail
Re-examing

Pass

Procurement(including CSR
topics)

QA/QC(including CSR
topics)Manufacturing▲ Figure 4.1-3 Supplier introducing and managing procedures (Category I)

2

1.33%

Grade B

R&D

1

Grade C

Grade C/D

BUs

: Increasing or decreasing procurement amount based on the result of monthly assessment.
: Maintaining business or searching for second source based on the result of re-evaluation.

Note:

Grade A and B are qualifi ed suppliers;
Grade C/D is failed from monthly
assessment and required to be improved
within limited time.

Pass▲ Figure 4.1-4 Result of suppliers'
monthly assessment in 2020

Note:

Grade A and B are qualified suppliers;
Grade C is failed from annual reevaluation. If BU managers require them
to be reexamined, the failed suppliers
have to be improved within limited time
and to be re-examined again. The
percentage for Grade C was 4.23%. The
main reason is that the quality of the
supplier was abnormal, and it had notbeen improved after the counseling, so
the supplier was delisted and frozen, andthe new source was found.

▲ Figure 4.1-5 Result of suppliers'
annual reevaluation in 2020

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Contents

4.2 Product responsibility
DMA:
Product quality and safety
An explanation of why the topic
is material

Purpose of the management approach

Policies

Goals and targets

Grievance mechanisms

Results of the evaluation of the
management approach

Product quality and safety are
the most basic responsibilities ofa company. If customer sufferedproperty losses and physical harm
due to product problems, it is not only
violating laws and regulations, butalso seriously affecting the reputationof the company and causing
customers to distrust the brand of thecompany.

Through implementing internal control system andISO 9001 in the company, we can grasp the issues
or problems generated in each factory and outside
and the requirements of stakeholders, so that
quality and safety management resources can beeffectively used, and the policies and goals can beachieved. Departments, which affect quality andsafety, well plan and operate to achieve quality
enhancement, industrial waste reduction, and goodquality and safety management benefits.

Through Customer First, Total Participation, and The Six
Fundamental Powers, as well as the implementationof the product safety management system to achieve
the goals of exellent product performance, reliable
quality, punctual delivery, rapid and satisfactory
services, close relationships with customers, andincome exceeding expenditure.

Short-term targets:
1. All the products are complied with product inspection andsafety regulations as well as customer requirements.
2. Strive for product awards or certification.
3. Maintain ISO 9001 certification and TAF certified
laboratories in the factories; establish Tatung Meter
Laboratory and pass TAF certificate.
4. Meet annual quality KPI.

1. Tatung products: Customer service section on theofficial website (http://www.tatung.com.tw/Content/
service.asp)
2. Tatung home appliances: 0800-052-666

Performances in 2020:
1. All factories’ ISO 9001 and TAF certified
laboratories pass annual audit.
2. No. of products violated productinspection and labeling regulations: 0.
3. PV roofing project for Benjhou Sewage
Treatment Plant won 2020 Public
Construction Commission Golden Quality
Award by Kaohsiung City Government.
4. IE5 ultra-premium eff. powertrain forlarge e-bus, Intelligent Cooker, and Highefficiency amorphous core transformer
were won the 29th Taiwan ExcellenceAward.

Commitments
Tatung guarantees product safety and provides
quality services.

Boundary for the material topic

Mid-long term targets:
Treat zero defects as the only standard for management andoperations.

Tatung and its subsidiaries.

Responsibilities
Specific limitation regarding the
topic boundary

1. Comply with national and international standards.
2. Products that meet customer requirements.
3. All home appliances of Tatung are covered by productliability insurance.

Performance disclosure is limited to
Tatung Co.

Mechanisms for evaluating the effectivenessof the management approach
1. The person in charge of each factory reports thequality status to the president in the monthly businessmeeting.
2. Audits the quality management status regularly ofeach factory by internal control.
3. Enhances Key Performance Indicators (KPI)
management methods to set quarterly quality goals
every year. Proposes specific methods for achieving
the goals for projects that failed to meeting thegoals.

Related adjustments to the
management approach
NIL

Marketing and labeling (labeling)
An explanation of why the topic
is material
Incorrect product labeling is amajor violation. It is not only causing
consumers to misunderstand the
product, but also violates relevantlaws and regulations.

Boundary for the material topic
Tatung and its subsidiaries.

Specific limitation regarding the topic
boundary
Performance disclosure is limited to Tatung Co.

Commitments
The content of the product is clearly labeled andnever deceives the public.

Goals and targets
Product labeling is complied with regulations.

Purpose of the management approach

Responsibilities

To ensure the consumers having accurate andsufficient amount of product information andinstructing consumers to use the products safely andcorrectly.

1. Comply with national and international standards.
2. Products that meet customer requirements.

Grievance mechanisms
1.BSMI/Bureau of Energy
2. International Safety Certification Agency.

Results of the evaluation of the
management approach
No. of products violated product labeling
regulations in 2020: 0.

Mechanisms for evaluating the effectiveness of the
management approach

Related adjustments to the
management approach

1. Relevant design and management personnel haveaccepted the training for the “Commodity Labeling Act”
and “Labeling Criteria for Electrical Appliances”.
2. All products are labeled according to relevant standards
and regulations and checked regularly.
3. Cooperate with the BSMI to conduct regular/irregular
product check on the market.

NIL

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Table4.2-1 Tatung products that acquired ISO 9001:2015

Quality management
Product quality and safety is the keystone of sustainable operation for a company.
By providing high quality and safe products can build the brand image, enhancecompetitiveness and create high-profit, low-risk business model, and achieve a win-win
situation for consumers and company. Based on this philosophy, Tatung has established
ISO 9001 and passed the certification (as shown in Table 4.2-1) in the factories andstrictly follow and implement the management mechanism of this system to ensure theproduction of stable quality products, enhance brand image, strengthen customer
confidence, expand market and achieve the goal of sustainable business.
Tatung is constantly improving product quality by using quality key performanceindicator (KPI) and setting quality targets as the target of quality achievement every
year. The factories regularly audit the quality control projects every month, andcontinuously strive for perfection in all aspects of quality according to the P-D-C-A
management cycle, in order to continuously improve product quality and achieve
quality goals at all stages. The detailed process of management and implementation isshown in Figure 4.2-2.
As to ensure the quality of the products and management of hazardous substances,
Tatung has its own Calibration Lab in headquarter to provide accurate measuring
and calibration testing services. In the factories, Tatung has Transformer Testing Lab,
Switchgear Testing Lab, Air Condition Facility Testing Lab, Motor Testing Lab, Generator
Set Testing Lab, Wire and Cable Testing Lab, and Tatung Meter Lab3 in the factories(as shown in Table 4.2-2) to provide the assurance of excellent quality. For the
management of hazardous substances, in addition to sending the samples to third
parties for testing (RoHS, REACH, etc.), Tatung has Tatung Environmental ResearchCenter in headquarter which specializes in hazardous substances testing for electrical,
electronic components, and finished products. Tatung also monitors internally to ensure
the safety and health of our customers.

P

Setting annual
quality targets

D

Quality
performance
review

C

Confirm
quality
improvement
activities▲ Figure 4.2-1 Quality KPI management flowchart

3

A

Measureannual quality
results

Factories/Bus

Registered products

Taoyuan 1st Plant

Design, development and servicing of the following products: Window Type air conditioners, separated type air conditioners, Package Type air conditioners,box Water Chiller Unit, Dehumidifier, Electric cookers and electric fans.

San-Hsia Factory

Generators (less than 10,560KVA), electrical motors.

Tayuan Plant

The design, development, production and servicing of Oil-immersed transformers (below and including 245KV), Oil-immersed reactors (below and including
345KV), Oil-immersed potential & current transformers (below and including 69KV), Dry type transformers (below and including 36KV), Dry type reactors(below and including 36KV), Cast resin dry type transformers (below and including 36KV), Cast resin dry type potential & current transformers (below andincluding 36KV), High voltage & low voltage metal-enclosed switchgear & control gear (below and including 72.5KV), Metal-clad switchgear (below andincluding 36KV), Motor control center (below and including 15KV), Metal-enclosed low voltage power circuit breaker switchgear(below and including
600V), Distribution board (panel) (below and including 600V), Rectifier (below and including 600V), Amorphous metal transformers (below and including
36KV), Gas insulated switchgear, Capacitors.

Taoyuan Wires andCables Plant

Power wires and cables (including cross-linked polyethylene insulated shielded power cable rated 161 KV and below), bus-way, electronic wires,
telecommunication wires and cables, optical fiber cables, enameled copper wire, bare copper wire, tinned single solid copper wire.

Meter Factory

Design, manufacturing and sales of Electricity Meters.

Table 4.2-2 Tatung’s TAF certified laboratories
Name and certified No.

Testing items

Register date

Calibration Lab

L0003-181129

Measuring and calibrating of products

1990.06.01

Tatung Environmental ResearchCenter

L1697-191016

Water quantities and quality, hazardous
substances of electric and electrical
products.

2007.10.24

Tatung Transformer Testing Lab

L2306-191212

Transformer testing

2010.12.27

Air Condition Facility Testing Lab

L2270-200608

Cooling Electrical Power Consumption
Rate, Capacity and EER of Package
Type Air-Conditioners and Water Chiller
Unit.

2011.01.20

Tatung Switchgear Testing Lab

L2308-200427

Switchgear testing

2011.03.23

Tatung Generator Set Testing Lab

L2442-200306

Generator testing

2011.10.12

Tatung Motor Testing Lab

L2613-190712

Motor testing

2012.07.01

Tatung Taoyuan Wire and Cable
Testing Lab

L2964-181121

Wires, cables, and busway testing.

2015.04.29

Tatung Meter Laboratory

L3773-210120

Meter Testing2021.01.20

ISO 9001 certificates

Certificates of TAF certified laboratories: Acquired certification in Jan, 2021.

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Table 4.2-3 Standards, certifications, and verifications adopted by TatungContents

Product safety
Most of the countries make the laws and regulations in regarding to
product's quality and safety in order to protect their citizens. Brand owners
must pass all the tests and acquire certifications then can put their products
into markets. In order to comply with related regulations among the world,
Tatung designs and manufactures the products (including ODM/OEM
products and accessories) to meet the requirements of the regulations. At
first, the samples must pass the tests and managed by SAP management
system. After all test results have met the requirements, bulk production
and sales then can be arranged. Table 4.2-3 lists the relevant regulation
requirements, standards and verification internationally adopted by Tatung.
In addition, for the defected products that have been sold, Tatung makes
recall on BSMI official website and TCPC website to prevent the consumers
getting harmed from further using of such products. For the problem
occurred, Tatung will strengthen overall quality control in supply chain, also
conduct Design/Process Failure Modes and Effects Analysis (DFMEA/PFMEA)
and incorporated into Design Guideline Check List measures to prevent
recurrence. Tatung will do the best for providing consumer healthy, energyefficiency, and safe products.
In response to some defected dehumidifiers, BSMI announces recall
messages every year. Some models of Tatung's dehumidifiers are on therecalled list (Models: TWD-500B, TWD-510B, TWD-511B, TWD-711B, TWD-710B,
TWD-660B, TDH-200HB, TWD-1400B, and TWD-1400BL). Consumer who hasthese particular models can make a phone call to Tatung or TCPC andthe specialist will visit your place for service free of charge. Tatung 3C also
launched the dehumidifier replacement campaign in 2020 to provide
preferential repurchase programs for the abovementioned models to
attract consumers to review the models of dehumidifiers in order to increase
the number of recalls.

Business Unit

Standards, certifications, and verifications

Cable BUCNS Standards, Underwriter Laboratories Inc, ETL Verification, Product Safety of Electrical Appliance & Material, TÜV SÜD, etc.

Motor BUCNS Standards, China Compulsory Certification, Canadian Standards, Underwriter Laboratories Inc, IECEx Certification, ATEX Certification, ETL Verification, EU
Network System Verification, Japan PSE Verification, etc.

Smart Meter BU

ANSI International Certification, IEC International Certification, Underwriter Laboratories Inc etc.

Appliance BU

CNS Standards, China Compulsory Certification, American Safety Standards, U.S. Federal Communications Commission for Telecommunication, Taiwan BSMI
certification, Japan PSE (Product Safety of Electrical Appliance & Material), Australia C-Tick, BSI Certification, Singapore PSB, Malaysia CT, Philippines ICC & etc.

Advanced Electronics BU

US FCC certification, EU CE certification, Canadian IC certification, Underwriter Laboratories Inc, Australian C-TICK certification, Japan VCCI certification, Korean
KCC certification, Russian EAC certification, China GB standard, China Compulsory Certification, Taiwan BSMI certification, etc.

Heavy Electrical Equipment BU andSmart Energy BU

Apply according to customer's product requirements.

Note: Solar System BU: Focuses on case development, system planning and construction, and maintenance. System Integration BU: Provides products or information integration services, mainly based on colleagues' personal technical certificates.

TWD-500B

TWD-510B

TWD-511B

TWD-711B

TWD-710B

光觸媒
抑菌

TWD-660B▲ Figure 4.2-3 Tatung 3Cdehumidifier replacement
campaign in 2020

TWD-200HB

TWD-1400B

TWD-1400BL▲ Figure 4.2-2 Dehumidifiers that need to be recalled

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2. 安全注意事項
Contents

Product labeling
In order to let consumers having accurate and sufficientamount of product information (e.g., energy efficiency
information) and instruct consumers using products safely
and correctly, Tatung labels the products (including ODM/
OEM products) with required information on the products or its
package in accordance to related regulations. In addition,
Tatung also includes the instruction guide, maintenanceguide and notice in the packages (as shown on Figure 4.24) to provide the consumers with sufficient information to use
the products safely and correctly. Tatung has responsible
department in each BU for the management, review, andmonitor of product labeling issue, as well as takes part in BSMI
market survey to ensure the correct labeling.

警告

!

請務必遵守
電源線、電源線插頭

為了讓可能發生對使用者或他人的傷害；及對財產的損害防止於未然，請務必遵守下述說明。

產品操作使用請勿在手潮濕的情況下拔插電源線插頭。

■ 使用下述各標記以區分、說明由於無視所示的內容而導致使用錯誤所產生的危害

和損害程度。

請勿用水浸泡或淋濕本產品。
否則可能引起短路或觸電。

有可能會觸電或受傷。

!

警告

表示「可能會導致人身死亡或造成嚴重傷害事故」的內容。

!

注意

表示「可能會產生傷害或財產損失」的內容。

使用時請確認功能旋鈕已調至燉或蒸的位置後，再按下炊煮開關。
烹煮完成不需使用時，將功能旋鈕切換至關的位置，電鍋就會完全斷電沒有電力消耗。(若炊煮開關跳起，功能旋鈕在燉或蒸的位置時，電鍋會自動進入保溫狀態，仍
會以保溫電功率消耗電力)

外鍋在使用後會因水質好壞及使用方式，而產生鍋垢或水垢的現象，請安心使用。建議可倒入1計量杯之白醋並在外鍋加水至7分滿後，將功能轉
至蒸，並按下炊煮開關。待加熱至水滾後，此時將開關以手動撥起，並關
閉電源，即可除垢。但仍會因水質或醋

使用方式，而再度產生上述現象。

!

■ 以下列圖示符號區分、說明應予遵守的各項內容。

電源線插頭如沾附灰塵、髒污
，請立即擦拭乾淨。

5. 清潔與保養可能造成火災發生。

! 嚴守
禁止

代表必須遵守的規定。
代表禁止的內容。

!

請勿在空隙間插入異物，例如別針、鐵絲等金屬物體。

警告

!

電

●使用時請將插頭完全插入插
座內。

源●若插座鬆動易造成接觸不良，請檢修後再使用。

電源線、電源線插頭

絕對不要試圖自行改裝、分解或修理。

電源線如果出現破損，禁止繼續使用。此外，不要損傷電源
線或電源插頭。

會造成火災或觸電。

（有關修理事宜，請洽詢購買時的經銷商、大同直營專業服務中心或靠近高溫部位、捆束、重壓、夾

!

入物體等可能造成火災或觸電。

如與其他器具併用，多孔插座可能

避免連接器受液體潑灑產生漏電。
本產品請使用TAC-11V-M適用電源線。

不鏽鋼內鍋在使用後會由於水中含有

大同3C門市。）

出現異常發熱現象，恐導致著火。
多孔插座不可與其他電器一起使用。

不鏽鋼材質之配件，已經過超音波清洗處理。購買後以洗碗精或中性清潔劑清洗乾淨，即可進行使用。

可能會引起火災、觸電或傷害事故

加工、拉扯、扭動、過度彎曲、請單獨使用額定15A以上的插座。

內外鍋要經常保持清潔，但不可將整
個外鍋浸入水中沖洗。外鍋內壁可以
水洗，然後用乾布擦乾。內外鍋不宜
用磨粉或金屬刷擦洗。鍋身可用濕布擦拭人身產生傷害。

可能會導致觸電、短路、冒煙
或著火。

勿使用交流110V以外的電源。

清潔電鍋前請先 拔掉電源插頭 且電鍋已冷卻。
使用完畢後，內外鍋請擦乾保持乾燥。

否則可能由於觸電或異常情況對

!

電源線屬於消耗器材，如有損
壞、故障或不正常時，請立即停止使用，送回原廠修理或換
新。電源線使用 5 年以上應購
買新品更換。

4

石灰質或雜質，而使表面發生水垢或紅斑等現象，可倒入1計量杯之白醋
並加水至最高刻劃後，予以加熱至水滾。即能回復不鏽鋼之光彩。

不鏽鋼材質可能因乾燒或過分受熱，
而呈現五彩(彩虹)顏色，此為正常現象對健康無害，可用檸檬汁或不鏽鋼專用清洗劑清潔。

5

16

17

Tatung Rice Cooker

In 2020, we did not have any violations against productlabeling related regulations. We will continue to aim to comply
with the relevant regulations on product labeling and carryout relevant control operations.

Product hazardous substances information
Tatung follows relevant regulations on hazardous substancesin products and in accordance with our "Environmental
Prohibited and Restricted Substances Management
Procedures", through effective management on the supply
chain and production control, as well as reviews the content
of hazardous substances in the products in the productdevelopment verification stage to ensure that the hazardous
substances in the products meet the standards and protect
the health and safety of consumers. In addition to fully
disclosing the contents of hazardous substances in the productmanuals (Figure 4.2-5), we also disclose such information on
Tatung's official website "Hazardous substances in products"
section4 (Figure 4.2-6), which fully protects consumers' right toknow.

Tatung Hot Water Pot▲ Figure 4.2-4 Product labeling and instruction (e.g. Tatung Rice Cooker and Hot Water Pot)

8. 限用物質含有情況標示聲明書
設備名稱：電鍋型號(型式)：

Equipment name

Type designation (Type)

TAC-11V-M
限用物質及其化學符號

單元
Unit

Restricted substances and its chemical symbols

鉛(Pb)
Lead

汞(Hg)
Mercury鎘(Cd)Cadmium

六價鉻(Cr+6) 多溴聯苯(PBB) 多溴二苯醚(PBDE)
Hexavalent Polybrominated Polybrominatedchromiumbiphenyls
diphenyl ethers

電源線組
功能選擇開關
溫度限制開關
電熱管
保溫片
溫度保險絲
內部線材
(內配線、接地線)
塑膠料(提把、鍋蓋握把、電源線固定座)
金屬外殼
鍋蓋
配件(內鍋、內鍋蓋、
蒸盤、飯匙、量杯)
備考1 :〝超出0.1 wt %〞及〝超出0.01 wt %〞係指限用物質之百分比含量超出百分比含量基準值。
Note 1：“Exceeding 0.1 wt %” and “exceeding 0.01 wt %” indicate that the percentage content of therestricted substance exceeds the reference percentage value of presence condition.
備考2 :〝○〞係指該項限用物質之百分比含量未超出百分比含量基準值。
Note 2：“○” indicates that the percentage content of the restricted substance does not exceed thepercentage of reference value of presence.
備考3 :〝－〞係指該項限用物質為排除項目。
Note 3：The “-” indicates that the restricted substance corresponds to the exemption.

▲ Figure 4.2-5 Hazardous substances containing
information (e.g. Tatung Rice Cooker)
20

4▲ Figure 4.2-6 Hazardous substances in products section on the official site

: http://www.tatung.com/Content-EN/csr-product-restrict.asp

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4.3 Sales and customer information management
DMA:
Marketing and labeling (marketing)
An explanation of why
the topic is material

Specific limitation regarding the topic
boundary

Policies

Goals and targets

Comply with regulations.

Performance disclosure is limited to Tatung
Co. and TCPC (including Tatung 3C Storesand etungo).

TCPC Marketing andAdvertising Policy.

The advertising content iscomplied with regulations.

Boundary for thematerial topic
Tatung and its subsidiaries.

Purpose of the management
approach
Ensure that the advertising content is correct,
legal and fair.

Specific actions

Results of the evaluation of the
management approach

Tatung’s advertisement and promotion are handled in compliancewith the Fair Trade Act, Personal Data Protection Act, and therequirements of the National Communications Commission andother government laws and agencies. For the content of theadvertisement, our Legal Division will review and confirm it. The
advertisements will only be released after meeting the requirements.

No. of advertisements or promotions violated related
regulations in 2020: 0.

Responsibilities
Marketing department.

Grievance mechanisms

Commitments

Tatung Customer No.: 0800-052-666.

The advertising content iscorrect, legal and fair.

Related adjustments to the management
approach
NIL.

Customer privacy management
An explanation of why the topic ismaterial

Purpose of the management approach

Goals and targets

Comply with regulations (especially
Personal Data Protection Act). Tatungtakes great concern on it.

Enhance the security of personal data
maintenance and management to prevent
personal data from being stolen, altered,damaged, lost and leaked.

Ensure the confidentiality, integrity, availability andcompliance of each service.

Boundary for the material topic
Tatung and its subsidiaries.

Specific limitation regarding the
topic boundary
Performance disclosure is limited to
Tatung Co. and TCPC (including Tatung
3C Stores and etungo).

Responsibilities
Policies
Formulated personal data protection policies,
and the collection, processing and use ofcustomer data are in compliance with the"Personal Data Protection Act" and related laws
and regulations.

Commitments
Uninterrupted service, no loss of information,
personal information not leaked, and enterprisesustainable operation.

Related business departments.

Resources
In accordance to ISO 27001:2013 / BS 10012:2017 /Personal Data Protection Act / GDPR

Grievance mechanisms
Tatung Customer No.: 0800-052-666.

Specific actions
1. New employees need to sign a confidentiality and non-competition agreement.
2. Customer service personnel who contact the customer's personal information will be
under strictly access control and forbidden to contact customers privately without theauthorization of the supervisor to avoid the loss of important personal information.
3. Strengthen the security control management of website information: Import appropriate
protection mechanisms and monitoring software, conduct regular penetration testingand source code detection to prevent improper access and protect customer personaldata.
4. Strengthen information safety awareness: Regularly hold personal information andinformation security training courses and implement tests after class to ensure theemployees fully understand the importance of personal information.
5. When customers join membership, they will be notified in accordance with Articles 8 and
9 of the "Personal Data Protection Act".
6. Set up a contact window to provide the parties with the right to exercise their personal
data or file related complaints and consultations.

Mechanisms for evaluating the effectiveness of the
management approach
1. Established Tatung Information Security and the Personal Information
Protection Committee and hold monthly meeting.
2. Conducts information security and personal information protection
education and testing regularly.
3. Conducts internal audit regularly.
4. Introduces outsourcing consultants to counsel and improve.
5. Conducts management review meeting every year.

Results of the evaluation of the management approach
1. No. of incidents in regarding to violating customer privacy in 2020: 0.
2. No. of complaints in regarding to violating customer privacy in 2020: 0.

Related adjustments to the management approach
NIL.

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Fair trade and anti-trust behavior
Mutual competition among enterprises helps to improve thequality of products and provide consumers with variety of
products, improve operational capabilities and reduce costwaste to create profits. Anti-competitive behavior will weaken
the efficiency and fairness of the market and make consumers
with less choice and fail to obtain reasonable services, andeventually hurt the core value of the company. Therefore,
Tatung manages the retailers through the control of thecontract and ensures the retailers not maliciously cut prices or
intent to damage the image of Tatung in order to achieve thegoal of fair trade. For the production, promotion and otheractivities of advertising, Tatung complies with relevant laws
and regulations. There is no violation in regarding to fair traderelated regulations in 2020.

etungo online shopping website▲ Figure 4.3-1 Product online service form

Tatung takes great concern on customer satisfaction. When acustomer makes purchase or approaches Tatung 3C Stores torepair products, Tatung will make his/her information to phoneinterview list and interview about shipping or repairing experience.
If the feedback is unsatisfied, Tatung will conduct a second service
and make improvement. We set consumer satisfaction targets forshipping service to be not lower than 97%, repairing service to be notlower than 94%. The results (Figure 4.3-4) in 2020 are 97.4% satisfied
for shipping service and 95.9% satisfied for repairing service. The set
targets were achieved. Tatung will continue to listen to the voices ofconsumers, respect and serve customers.

Wide-spread service locations and convenient
shopping experiences
Tatung upholds "customer first", "having only one phone
call, the service is to" and aims to provide fast and excellent
services to customers. Tatung lists the service channels on theofficial website for all the business, including TCPC, information(OA), commercial air conditioners, power equipment, smart
grid business, system solution business, and etungo online
shopping, etc. Tatung entrusts her subsidiary company"TCPC" to provide a comfortable shopping environment(Tatung 3C Store) as well as excellent after-sale services to
consumers. TCPC currently has 1555 3C Stores (including 4
Appliance Branding Stores) spreading from cities to countries,
providing professional recommendations on purchasing houseappliances and repairing services. In addition, TCPC launched"etungo" online shopping website6 and Tatung Fans App toprovide wide variety of product in 3C, house appliances, andliving products. Besides, Tatung runs Tatung Fans site7 andTatung Rice Cooker Fans site8 on Facebook to provide instantnews and living tips.

In order to provide a more convenient customer service, TCPC has
online service that the consumers can access to official website
making service request9 (Figure 4.3-1). The system will assign theservice request to the accordance service station and provide
rapid and high quality services. The consumers can also check the
repairing progress10 by assessing online webpage (Figure 4.3-2). At
the end of each case, customers are able to provide any positiveor negative feedbacks by filling the online survey which will be used
for future improvement. To extend the channels for listening to thecustomers, Tatung also provides a service phone-line11 and an online
feedback service12 which customers can ask questions, express theiropinions and give positive feedbacks to us (Figure 4.3-3).

FB for Tatung fans

FB for Tatung Rice Cooker fans

▲ Figure 4.3-2 Inquiry page for repairing progress▲ Figure 4.3-3 Online feedback form

97.4%

2020

95.9%

97.0%

2019

95.3%

97.6%

2018

96.2%

97.3%

2017

95.3%

97.6%

2016

94.3%

Shipping service

Repairing service▲ Figure 4.3-4 Results of consumer satisfaction

5: As of 2021/3/5.
: https://www.etungo.com.tw
7: https://www.facebook.com/tatung.tw
8: https://www.facebook.com/ricecooker50
69: http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_100.asp: http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_200.asp
11: Free service phoneline: 0800-052-666. For mobile phone, please dial: 02-2591-5068.
12: http://www.tatung.com.tw/home/suggestion
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Information security management
In response to personal information protection and information security needs,
Tatung established the Information Security and the Personal Information
Protection Committee as early as 2014, passed the ISO 27001 information
security management system verification, and ensured the security of thecompany's personnel, data, information systems, equipment and network inaccordance with the requirements of the BS 10012 personal data protection
standard. To ensure the safety of the company's personnel, data, information
systems, equipment and network, establishing an information security policy
as the highest guiding principle of the company's information security
management system, achieving the goal of "uninterrupted service, no lossof information, personal information not leaked, and enterprise sustainable
operation".
The actual implementation method is based on the pre-emptive and risk
reduction pre-existing issues. Through the discussion of the monthly meetingof the Information Security Monthly Meeting and the emergency response,
the review of the new internal and external security issues will be carried out
to the annual plan. In the activities of the planning, the security management
review meeting hosted by President will be held in October each year, andthe results of this year's implementation and the budget plan for the next year
will be reported. The annual activities include semiannual external audits,
two outsourcing consultants' external counseling every year, and an annualinternal audit of the audit committee to determine the implementation statusof the information security management system and whether to achieve
the information security objectives of confidentiality, integrity, availability andcompliance of each service.
In response to changes in the social environment, laws and regulations, andtechnological advancement, Tatung has formulated a privacy protection
statement. The collection, processing and use of customer data are incompliance with the "Personal Data Protection Law" and related laws andregulations and properly protect the personal data of customers. The summaryof key control measures is shown in Table 4.3-1. In 2020, there was no complaint
related to infringement of customer privacy or loss of customer information. In
addition, in recent years, there have been cases of fake official community
accounts for fraudulent use. When we were informed of such news, we
immediately went to the company's official website and our social group toannounce warning messages to prevent consumers from being victimized.

Convenor

PM / executor

Party’s rights
claim response
group

Training andnews groupIT support andincident reaction
group

Audit andmanagement flow
optimizing group

Operation
sustaining group

Risk evaluationgroup▲ Figure 4.3-5 Structure of Tatung Information Security and the Personal Information Protection Committee

Table 4.3-1 Key personal data protection management and control measures
Management systems

Tatung has passed ISO 27001 certification and complies with the BS 10012 personal data protection standard.

Management and control measures

1. Customer service personnel who contact the customer's personal information will be under strictly access control and forbidden to contact
customers privately without the authorization of the supervisor to avoid the loss of important personal information.
2. Strengthen information safety awareness: Regularly hold personal information and information security training courses and implement tests
after class to ensure the employees fully understand the importance of personal information.
3. Strengthen the security control management of website information: Import appropriate protection mechanisms and monitoring software,
conduct regular penetration testing and source code detection to prevent improper access and protect customer personal data.

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HAPPY WORKPLACE AND SOCIAL PARTICIPATION
Top Management
Statement
Contents
2020 CSR Highlights

Identificationon the stakeholders
and material topics

Profile of
Tatung Company

Employment
Targets------------------

Organization structure andgovernance

Responsible
supply chain,product safety,
and customer service

Happy workplace andsocial participation

Short-term targets:
More than 10% of newhired employees. No major
employment dispute.
Mid-term targets:
Actively encouraging
employees to set up morediversified activity clubs,
allowing employees to freely
assemble and participate inassociations, communicate
with each other, andpromoting the efficiencyof cross-departmental
communication.
Long-term targets:
Follow labor-related laws
and regulations, continue towork hard to create a happy
working environment, andcare all employees equally.

Targets------------------

Short-term targets:
Tatung against employment
discrimination, and provides
equal job opportunities
for all job seekers anddisadvantaged groups.
Mid-term targets:
Tatung continue to work hardto create a happy working
environment, and care all
employees equally.
Long-term targets:
Tatung regards all employees
as an important asset forthe company's sustainable
development, and follows
labor and other related laws
and regulations regarding
labor rights and human rights.

Performances in 2020
Performances in 2020------------------

Sustainable
environment

Human rights, equality, andnon-discriminations

The new-hired employee rate
was 13.14%, reaching the set
target, and there were no
major labor disputes.

------------------

1 violation against Act
of Gender Equality in
Employment and fined
NTD$10,000.

Market presence
Targets------------------

Short-term targets:Continue to ensure the basic
salary is better or equal tolegal salary.
Mid-long term targets:
Designs a reasonableorganizational structure anddeploy talents of all levels
according to the company’s
strategic development
direction.

Performances in 2020------------------The ratio of basic salaryand legal salary for migrant
workers and technicians are
1:1 and 1:1.05; for staffs is from
1.26~1.51:1 based on different
job types, specialty andqualifications.

Employee performance
management

Targets-------------------

Short-term targets:Through performance review
to ensure that employees
pay attention to correct
performance projects
and review the daily work
performance to link withcompany strategies.
Mid-term targets:
Giving rewards for outstanding
personnel; coaching personnel
with poor performance for
improvement.
Long-term targets:
Using long-term performance
review system to identify
potential talents, and link withpromotion or salary adjustment.

Performances in 2020------------------

92.3% of employees was
conducted with performance
review (employees in probation
period, leave of absence, andshort-term contract were notincluded).

Education and training
Targets--------------------

Short-term targets:
Make the employees tounderstand the company's corevalues, business philosophy andlearn all the necessary work
abilities through training courses.
We have set our targets as total
education and training time
more than 34,000 hours andtraining satisfaction higher than90%.
Mid-term targets:
Each supervisor or manager
personally implements the key
behaviors required by various
functions in the work, enhances
the inheritance of knowledge,
technology and experience inthe workplace, and continues
to strengthen courses related
to business development tocreate sustainable competitive
advantages and increase intalent assets.
Long-term targets:Through changes in employees'
behavior, abilities and attitudes,
they can give full play totheir strengths at work, driveorganizational performance
improvement, and assist thecompany's strategic goals andvision implementation.

Performances in 2020------------------

Annex

1. Total education and training
time was 34,114 hours.
2. Education and training
satisfaction was 92.29%.

Health and safety
1. Maintain occupational healthand safety management
systems in the factories.

Targets--------------------

Short-term targets: Implement
ISO 45001 in all the factories andpass the certification by the endof 2021.
Mid-long term targets: Continue
to run occupational health andsafety management systems in
the factories.

Performances in 2020--------------------

Tayuan Plant and Taoyuan Wires
and Cables Plant passed ISO
45001 certification. Taoyuan 1st
Plant has also pass ISO 45001
certification in December 2020
and received the certificate inJanuary 2021.1.

2. At least 95% correction rate
for non-conformities found in
Accident, Prevention, Pays
Program.

Performances in 2020--------------------

The correction rate for nonconformities was 100%.

3. FR and SR are reduced by
10% each year.

Performances in 2020--------------------

Compare with year 2019, SR
was reduced by more than 10%
for all the employees. FR was
increased in male employees.

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Contents

5.1 Building a friendly working place
DMA:
Employment
An explanation of why the topic ismaterial

Purpose of the management approach

Employees are an important asset for thecompany's sustainable development, so
Tatung actively cares about the lives andworking conditions of employees, ensuringthat employees work in a safe, satisfactoryand healthy working environment.

1. Tatung recruits diverse and outstanding employees,
adheres to the principle of meritocracy, injects new
blood into the organization, brings new vitality and new
thinking, and continues to pass on professional skills andexperience in various positions.
2. In order to promote the harmony between labor andmanagement, Tatung makes employees work in asafe and stable working environment and establishes
a harmonious, mutual trust, mutual love, and mutual
respect of labor-employment relations.

Boundary for the material topic

Commitments
Keep up with the latest trend and revise
Company Rules, welfares, salaries,
allowances, vacations, compensationfor occupational accidents, etc. to giveequal care among employees.

Goals and targets

Resources

Short-term targets: More than 10% of new-hired employees. No major
employment dispute.

1. Approval of Company Rules to the competentauthority in accordance with the law, anddisclose within the company.
2. Establish the personnel rules in the Company Rules
and relevant methods.

Mid-term targets: Actively encouraging employees to set up morediversified activity clubs, allowing employees to freely assemble
and participate in associations, communicate with each other, andpromoting the efficiency of cross-departmental communication.
Long-term targets: Follow labor-related laws and regulations, continue
to work hard to create a happy working environment, and care all
employees equally.

Tatung and its subsidiaries.

Policies
Specific limitation regarding the
topic boundary
Performance disclosure is limited to TatungCo.

Responsibilities

Tatung complies with the Labor Standards Act, the Act ofGender Equality in Employment, the Occupational Safety
and Health Act and other related laws and regulations toachieve harmony in labor and employment, and coexist
and prosper together.

1. Establish and implement the protection of complainants and theprevention of illegal infringements in the performance of their duties.
2. Establish a workplace environment that values human rights.

Grievance mechanisms
Tatung has set up "Regulations of Processing
Employees’ Complaints" to quickly and satisfactorily
handle disputes caused by the employees during
their work.

Specific actions
1. Broaden recruitment channels.
2. Optimize the salary and remuneration system.
3. Expand employee welfare measures.

Mechanisms for evaluating
the effectiveness of the
management approach
The number of labor inspections
and the amount of fines from thecompetent authorities.

Results of the evaluation of the
management approach
1. The new-hired employee rate was
13.14%, reaching the set target.
2. There were no major labor disputes.

Related adjustments to the
management approach
NIL

Human rights, equality, and non-discriminations
An explanation of why the topic ismaterial

Purpose of the management
approachCommitments

Responsibilities

Grievance mechanisms

Tatung pays great concern to humanrights. All employees, applicants andsuppliers should be treated fairly and with
dignity.

Ensure that all employees, applicantsand suppliers of Tatung can be treatedwith dignity and fairness regardless ofrace, ideology, religion, party affiliation,
place of birth, gender, sexual orientation,
marriage, appearance, disability, or union
membership.

Tatung commits that the company's labor management
measures must comply with labor-related laws and otherrequirements, and provide equal job opportunities to all job
seekers.

1. Establish and implement the protection of complainants
and the prevention of illegal infringements in theperformance of their duties.
2. Establish a workplace environment that values humanrights.

1. Sexual harassment prevention, control, appeals, anddisciplinary measures.
2. Regulations of Processing Employees’ Complaints.

Boundary for the material topic
Tatung and its subsidiaries.

Specific limitation regarding the
topic boundary
Performance disclosure is limited to
Tatung Co.

Goals and targets
Policies"Respect labor, protect labor rights,
and fulfill social responsibilities" is one of
Tatung's labor policies.

Short-term targets: Tatung against employment discrimination,and provides equal job opportunities for all job seekers anddisadvantaged groups.
Mid-term targets: Tatung continue to work hard to createa happy working environment, and care all employees
equally.
Long-term targets: Tatung regards all employees as animportant asset for the company's sustainable development,
and follows labor and other related laws and regulations
regarding labor rights and human rights.

Specific actions
Resources
1. Approval of Company Rules to the competent authority
in accordance with the law, and disclose within thecompany.
2. Establish the personnel rules in the Company Rules andrelevant methods.

1. Tatung publishes the message "Our company welcomespeople with disabilities and aboriginal friends to apply"
at recruitment channels to declare that our company
treats all job applicants equally and is committed to antidiscrimination in employment.
2. Tatung hires one handicapped worker per every 100
workers when recruiting new employees, and provides
equal job opportunities for disadvantaged groups.
3. Tatung promotes respect for human dignity, human rights
and other related content in various general education andmanagement functions trainings, so that all employees canunderstand and practice the true meaning of human rights.

Mechanisms for evaluating theeffectiveness of the management
approach
The number of violations of employment
discrimination and the amount of fines.

Results of the evaluation of the
management approach
1. In 2020, Tatung has over-recruitedemployees with disabilities,
accounting for 1.71% of the total
number of employees.
2. In 2020, 1 violation against Act ofGender Equality in Employment andfined NTD$10,000.

Related adjustments to the
management approach
NIL

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An equaled working environment
Tatung takes great concern on human rights. All the employees, applicants and suppliers are treatedwith dignity, fairness and respect regardless of their race, religion, party affiliation, place of birth, genders,marriage status, disables, appearance, disability, or union membership, etc. Commitment s of respectand ensure the benefits of labors, fulfill social responsibility and comply with regulation are clearly statedin our Labor Policy. Tatung hires one handicapped worker per every 100 workers and provides equal
opportunities for minority groups. Tatung also stipulated "Sexual harassment prevention, control, appeals,
and disciplinary measures" and published on the internal website. Sexual harassment in any forms isstrictly prohibited in any working places in Tatung. There was no discrimination and anti-human rightincident in 2020, however there was 1 violation against Act of Gender Equality in Employment and fined
NTD$10,000. The violation has been corrected.

5.30%

Employee diversity

Local employee

The recruitment policy of Tatung is based on the principle of meritocracy. It does not discriminate against
any age, gender or race but only take applicants' talents into account. The recruitment process follows
the relevant regulations and selects the right applicants in a fair and equitable manner. Table 5.1-1,
Figure 5.1-1, and Figure 5.1-2 demonstrate the employee compositions of Tatung. Tatung has more than
94% of local employees and 1.71% of disable employees which is more than the requirement by theregulation.

Migrant worker

Male Female Male Female

2016

226

118

1,280

497

641

183

4.61

2.21

3.98

1.20

1.11

0.09

2017

279

112

1,342

460

670

207

5.80

1.27

4.92

1.30

0.94

0.16

273

105

1,289

439

644

208

5.38

1.12

5.85

1.25

1.39

0.14

2019

240

86

1,274

436

657

217

2.58

0.62

5.12

1.65

1.48

0.34

2020

209

78

1,218

436

649

225

3.91

2.45

2.95

1.88

1.49

0.46

2017

14

5

493

106

247

Over 50 years
old

4.45

1.74

7.51

1.52

2.81

0.41

40

4.72

0.85

6.25

1.50

2.54

0.75

0.88

6.52

1.96

3.99

0.88

8

6

448

105

225

43

Percentageof employee 3.52
leaving (%)

2019

4

7

438

119

241

46

2.58

0.69

5.81

2.41

3.26

0.69

2020

4

7

438

130

242

51

3.98

2.42

4.80

2.13

3.77

0.96

2018

No. ofmanagers

Full-time

2,048

309

Part-time
Manager

823

1,534

General staff

2016

810

4|8
51

Part-time
Manager

159

338

Part-time
Manager

754

1,537

General staff

2017

Full-time759

Full-time

1,953

651

General staff

779

4|11
48

Part-time
Manager

151

1,822

384

Part-time
Manager

681

1,525

General staff

2018

Full-time731

Full-time

628

General staff

752

4|8
26

Part-time
Manager

154

1,786

385

Part-time
Manager

683

1,488

General staff

2019

Full-time726

Full-time

568

General staff

739

3|11

Full-time699

40

Part-time
Manager172

Full-time

1,717

359

Part-time
Manager

684

1,392

General staff

2020

567

General staff

739
Type ofemployment Job title

32

94.25%

No. of disabled employeesType ofemployment Job title

253

No. of migrant workers

Type ofemployment Job title

124

No. of all employeesType ofemployment Job title

555

93.23%▲ Figure 5.1-1 Percentages of local employee and migrant worker

Type ofemployment Job title

3

93.00%

2020

Type ofemployment Job title

Female15

94.82%

5.75%

2019

Type ofemployment Job title

Male

2016

6.77%

2018

Type ofemployment Job title

Male Female Male Female Male Female

Percentageof new
recruits (%)

2017

Type ofemployment Job title

30~50 years
oldNo. ofemployees

Over 50 years
old

2016
94.70%

Type ofemployment Job title

Younger than
30 years old

201830~50 years
old

7.00%

2,357 164|46 2,291 155|58 2,206 203|54 2,171 194|43 2,076 160|38

Table 5.1-1 Employee compositions (by ages)
Younger than
30 years old

5.18%

2|10

Full-time699

40

Part-time
Manager

188

551

General staff

Note: The members of senior managers (deputy plant/general manager and above) are all Taiwanese. There were 7 disabled managers in 2020 (0.80%).

▲ Figure 5.1-2 Employee compositions (by genders)

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Contents

Human rights training

Parental leave

The vision of Tatung is to fulfill the social responsibility. Tatung actively involves
in social welfare activities, respects and cares for life. In addition, Tatung helps
employees to clarify the values and concepts, as well as respect for dignity andhuman rights through common educational courses. For example, in general staff
training courses we emphasis on ethics, team work, and respect. The managerlevel training emphasizes equal rights for men and women, respects individual
differences such as race, color, gender, language, and religion, avoids prejudice
and discrimination, abides by the principles of fairness and justice, and shows
empathy and affinity, so that all employees of the company can understand andpractice human rights. As for security personnel, education in regarding to respect
the employees' emotion and wills is given before carrying out their duties. This is
not only ensuring the employees' human rights but also making security duties gosmooth.

Tatung takes great concern on employees' family life and care for next generation. Tatung not
only provides cash gifts for giving birth but also offers all employees maternity and parental leave inaccordance to regulations. The statistics on parental leave is shown in Table 5.1-2.

Freedom of association and collective bargaining
Tatung Labor Union was founded in 1959 for the purposes of taking care of labors'rights, improving labors' living standard, conducting collective bargaining, etc.
Each employee has freedom choice to be the member of the union. Currently
Tatung has totally 5 labor unions distributed in the HQ and factories. Tatung does
not interfere with the wills of the employees to join labor unions. In 2020, 72.01% of
employees are the members of labor unions (Figure 5.1-3).

Child labor and forced labor
Tatung's recruiting policy is in line with the regulations. Hiring child labor is notallowed by Tatung. In "Company Rules" we defined the working hours for a day
and for a week. If there is necessary to adjust or prolong the working hours, thepractice only can be implemented after getting the agreement from the labor
union or the employee. There was no force labor situation in 2020.

WelfareTatung Welfare Committee handles a broad range of employee welfare issues including: daily
activities, financial assistance for education, funeral assistance, and interest free installment loans.
Table 5.1-3 shows employees' welfare implemented in Tatung Company. In addition, Tatung provides
staff dormitories with convenient transportation and beautiful environment, so that employees are not
only financially trouble-free, but also enjoy Safe and convenient living environment. Besides, in orderto provide female employees a more comfortable and more convenient way to nurture the next
generation without having to sacrifice their own work, or to increase their physical or psychologicalunnecessary burden, Tatung set up a nursery room for postnatal breast-feeding employees. It is also
the company's most intimate birth gift for female employees. Although the company is affected by
the global Covid-19 pandemic in 2020, Tatung has not reduced its welfare measures for this reason,and continues to work hard to create a happy workplace and handle diversified welfare measures.

Table 5.1-2 Tatung employees parental leave statistics

Application
and return
to work fromparental
leave

Retention rate

Male

FemaleNo. of employees that took parental leave in 2020.

4

13

No. of employees that shall end parental leave in 2020.
No. of employees who returned to work after parental leave
ended in 2020.
Return to work rate

3

9

1

5

33%

56%

6

12

2

8

33%

67%

No. of employees that applied and returned to work in 2019.
No. of employees who returned to work after parental leave
ended who were still employed 12 months after their return towork in 2019.
Percentage of employees who returned to work after parental
leave ended who were still employed 12 months after their return
to work in 2019.

Note: The reason for not returning to work is they changed jobs due to personal career planning.

2020

72.01%

2019

70.65%

Table 5.1-3 Employees' welfare

77.30%

20182017

79.35%

2016

80.39%
0

20

40

60

80

▲ Figure 5.1-3 Percentage of employees who are labor union member

Employees' welfare

Implementations

Stock ownership

Tatung subsidized employees to buy corporate stocks since 1992 as part of their savings.

Subsidies
Benefits
100

Club activities
Health andsafety plan

Education subsidies for employees’ children in senior high school and college/university;
funeral subsidies for colleagues or their spouses and immediate relatives; financial gifts fordeath of colleagues; subsidies for employees’ birthday, travel, and retirement; cash gifts
for weddings of employees or their children as well as for birth of employees’ children.
Employees can purchase company products via zero-interest installments and pricediscounts on groceries in corporate stores. Free movie shows and special trains in
Chinese New Year.
Education, recreation, physical education, languages, hiking/mountain climbing andphotography.
Labor insurance, health insurance, group insurance, retirement pension, free annual
health checkup.

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Contents

5.2 Good working conditions and career development
DMA:
Market presence
An explanation of why the topic is material

Purpose of the management
approachCommitments

Responsibilities

Specific actions

Results of the evaluation of the management approach

Tatung attaches great importance to therecruitment and promotion of talents and adheresto the principle of meritocracy. Tatung does notdiscriminate against any age, gender, race, andselects talents based on performance, and provide
reasonable salary and benefits for employees.

Tatung regards employees as an important
asset for the company's sustainable
development. Due to the deterioration of
the employment environment, the startingsalary for freshmen is generally low inrecent years. Tatung, as a deep plowing
corporation for a century in Taiwan, well
protects the salaries and benefits for its
employees.

Tatung upholds the spirit of gender equality, anddoes not have different starting salaries due togender factors, and the starting salaries for all
types of jobs are superior to laws and regulations.

Building an equal workplace environment
for equal pay for genders.

1. Optimizing the salary system to provide the best
and most reasonable salary for the employees.
2. Reviewing and revising the development of
the company's business strategy, and recruiting
suitable senior executives who meet the
manpower needs.

Performances in 2020:
1. The ratio of basic salary for female and male is 1:1; the ratio of
basic salary and legal salary for migrant workers and techniciansare 1:1 and 1:1.05; for staffs is from 1.26~1.51:1 based on different
job types, specialty and qualifications.
2. There are 76 senior managers (deputy plant/general manager andabove) of the company are 100% Taiwanese.

Boundary for the material topic
Tatung Co. and its subsidiaries.

Policies

Specific limitation regarding the topic
boundary
Performance disclosure is limited to Tatung Co.

1. Respect labor, protect labor rights, andfulfill social responsibilities.
2. Tatung’s labor management system
must comply with labor-related laws andregulations and other requirements.

Resources
Goals and targets
Short-term targets: Continue to ensure that thebasic salary meets or exceeds the regulations.
Mid-long term targets: According to the strategic
development direction, design a reasonableorganizational structure and deploy talents of alllevels.

Tatung announces the appointment
method of technicians and staffs withclearly statement of the initial salarystandard internally.

Grievance mechanisms
Tatung has set up "Regulations ofProcessing Employees’ Complaints" toquickly and satisfactorily handle disputes
caused by the employees during theirwork.

Mechanisms for evaluating theeffectiveness of the management
approach

Related adjustments to the management approach

1. The basic salary ratio of female employees tomale employees.
2. The ratio of each position to the legal salary.
3. The proportion of senior managers who are
hired from local.

NIL

Performance review and career development
An explanation of why the topic ismaterial

Purpose of the management approach

Commitments

Responsibilities

Specific actions

Tatung takes great concern to the overall
performance of individuals, departments
and organizations, and encourages
employees to perform better. Throughthe performance review counselingmechanism and career development,
it helps to enhance and affirm theperformance of employees.

Identify talents with high performance potential
and poor performance who need to becoached, so that employees can get substantial
feedback for their efforts, and at the same time,
work performance can also be used as animportant basis for employee promotion andcareer development.

Cooperate with the company's business strategy to
break through the transformation. Create valueadded talent assets. Improve business performanceand move towards sustainable operation.

Formulate a performance evaluation system and set up
the annual performance indicator structure of the businessdepartment to ensure the rationality and effectiveness of
performance management and career development.

Goals and targets

Resources

Shor-term targets: Complete the annual
performance review and review daily work
performance to link departments, organizations andcompany strategies.

Formulate "Performance Management Measures" as the basis
for performance review. Establish the "Operational Performance
Bonus Management Measures" as a standard for linking
performance and rewards.

Mid-long term targets: Use long-term performance
results to find potential talents and link them withtalent cultivation, promotion and salary adjustment.

Grievance mechanisms

1. Improve the performance system: Report the key
performance indicators and the weight of each business
unit for the next year to the President at the end of eachyear and plan the performance system in accordancewith the company's strategy.
2. Implementation of the performance review plan: The form
will be opened every quarter for the employees to fill inand discuss target setting with the supervisor.
3. Start the performance form at the end of each quarterto provide employee self-assessment and supervisor
performance interviews.
4. Through the performance calibration of the top
management, reasonably allocate performance rankings
and issue department performance bonuses.
5. Coaching poor performers fill in the improvement recordform.
6. File record and management.

Boundary for the material topic
Tatung Co. and its subsidiaries.

Specific limitation regarding the
topic boundary
Performance disclosure is limited to
Tatung Co.

Policies
Values:Integrity, Honesty, Industry, Frugality.
Business Philosophy:
Shareholder Responsibility, Customer satisfaction,
Employee Harmony, and Industry-Education
Cooperation.

For those with unsatisfactory review results, their supervisor willconduct a performance counseling improvement interview,and the two parties will jointly formulate an improvement plan,
which includes plan drafting, cognition revision, and feedback
communication.

Mechanisms for evaluating
the effectiveness of the
management approach
The company conducts internal
control and internal audit checks ona regular or irregular basis.

Results of the evaluation of the
management approach
Performances in 2020:
92.3% of the employees havecompleted performance review(employees who were in probation
period, leave of absence, and shortterm contract were not included).

Related adjustments to the
management approach
NIL

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DMA:
Training and education
An explanation of why the topic ismaterial

Purpose of the management
approachCommitments

Responsibilities

Grievance mechanisms

Specific actions

Results of the evaluation of
the management approach

Business' success is relied on talented
employees. Tatung believes that only each
employee fully shows "TATUNG DNA" (Vision
and Philosophy) in their work can help thecompany to achieve goals and vision.

Short-term: Implement manpower
inheritance.
Long-term: Cooperate with thecompany's operations and businessdevelopment, continue to cultivate or
recruit the necessary management andprofessional talents.

Cooperate with the company's business strategy to breakthrough the transformation. Create value-added talent
assets. Improve business performance and move towards
sustainable operation.

Formulate education and training
policies and the education and training
responsibilities of each function/
management class to ensure the effective
operation and implementation of theeducation and training system.

1. "Tatung Company Education and Training
Manual" is published on the company's
internal webpage for employees to know; thequalifications for the selection of trainees foreach course are specified.
2. Class tutors are arranged for each course. In
addition to assisting the course administration,
students can make complaints during theclass; after class, various satisfaction surveys
are conducted, and the training unit will givethe results back to the students and related
supervisors after the training.

1. Establish an education andtraining system.
2. D r a f t e d u c a t i o n a n d
training plans.
3. Education and training
planning and design.
4. I m p l e m e n t a t i o n o f
education and training.
5. Education and training
check and abnormal
handling.

Performances in 2020:
There were 34,113.5 training hours
and each employee was given
12.12 hours in average with theaverage satisfaction 92.29%.

Boundary for the material topic
Tatung and its subsidiaries.

Specific limitation regarding the
topic boundary
Performance disclosure is limited to Tatung
Co.

Policies
Values:Integrity, Honesty, Industry, Frugality.
Business Philosophy:
Shareholder Responsibility, Customer
satisfaction, Employee Harmony, andIndustry-Education Cooperation.

Goals and targets
Short-term targets:Conducting 34,000 total training hours per year; the training
satisfaction reaches an average of 90%.
Mid-term targets: Enhancing the inheritance of knowledge,
technology and experience. Continue to strengthencourses related to business development to create
sustainable competitive advantages and increase in talent
assets.

Resources
Tatung has formulated the "Tatung
Company Education and Training
Manual" as a norm for education andtraining, including: education and training
management manuals, procedures,
specifications, various forms, etc., andmanage it with Plan, Design, Do, Review,
and Outcome mechanisms.

Long-term targets: Through changes in employees' behavior,abilities and attitudes, they can give full play in their jobs,
drive organizational performance improvement, and assist
the company's strategic targets and vision implementation.

1. Education and training check:(1) Evaluation and analysis: Perform integrated analysis, review and evaluation
during the course or after the course to properly monitor the implementation oftraining and improve the quality of training.
(2) Abnormal handling: Establish corrective procedures for abnormal conditions tomaintain the quality and effectiveness of training.
2. Education and training effectiveness evaluation: Perform pre- and after-classeffectiveness evaluation tasks, and report related results and improvements,
including trainee response evaluation (L1), knowledge learning evaluation (L2),applied behavior evaluation (L3), performance results Show (L4).

KPI

Due to the deterioration of the employment environment, the starting salary for freshmen is generally low
in recent years. Tatung, as a deep plowing corporation for a century in Taiwan, well protects the salaries
and benefits for her employees. Tatung enacts its rules and internal control to ensure the minimum salaryis complied with regulation. Tatung discloses the structure of the salary and methods of payment on"Company Rules", so that all the employees understand their rights and interests.

Tatung takes great concern to the overall performance of individuals, departments and organizations,and encourages employees to perform better. Through the performance review counseling mechanism
and career development, it helps to enhance and affirm the performance of employees. Employees areassessed according to the "Performance Management Method" regardless of gender. The purpose of theassessment is to identify talents with high performance potential and poor performance and effectively
links the performance with bonuses, rewards or promotions. The employee ratio for performance review in2020 is 92.3%2.

1
2

NIL

Mechanisms for evaluating the effectiveness of the management
approach

Salary and performance management

Based on the concept of gender equality, the basic salary between female employees and male
employees is 1:1. For different employment types, the ratio of basic salary and legal salary for migrant
workers and technicians are 1:1 and 1:1.05; for staffs is from 1.26~1.51:1 (Figure 5.2-1) based on different job
types, specialty and qualifications. In average salary, the female employee to male employee is 0.85~0.92:1
in 2020 (Figure 5.2-2); the average annual salary is NT$676,401 and the median annual salary is NT$596,301
for non-management employees1 (2,701 employees in total). Please refer to Figure 5.2-3 for details.

Related adjustments to the
management approach

1.26

1.34

1.43

1.51

1.00

1.05

$

$

$

$

$

$

Migrant
workers

Technicians

Staffs(bachelor)Research
staffs(bachelor)

Staffs(mater)Research
staffs(master)▲ Figure 5.2-1 Ratio between basic salary and legal salary for different employment types: Directors and top level managers are not included.
: Employees who were in probation period, leave of absence, and short-term contract were not included.

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Contents

1.0

1.0

1.0

1.0

1.0

1.00

1.0

1.0

1.0

1.0

1.0

Male
Female

0.96
0.92
0.87

0.88

0.89

0.92

0.89

0.90

0.89

0.88

0.90

0.90

2018

2019

0.85

Technicians
2016

2017

2018

Staffs
2019

2020

2016

2017

2020

▲ Figure 5.2-2 Salary ratio between female and male employees (by employment type)

Average salary
Unit: NTD

700,000

Median salary

No. of employees
Unit: Employee

2,974

3,000

680,000

2,900

2,833

660,000

2,701

2,692

640,000

2,800
2,700
2,600

620,000
600,000

620,570

627,213645,975

676,401

2,500

580,000

2,400

560,000

2,300

540,000

568,129

569,127

566,890596,301

500,000

2,200
2,100

520,000
2017

2018

2019

2020

Tatung adopts "Defined contribution plan" and "Defined benefits plan" as its post-employment
benefits. For "Defined contribution plan", Tatung makes monthly contributions of no lessthan 6% of the employees' monthly wages to the employees' individual pension accounts inaccordance with the Labor Pension Act. Expenses under the defined contribution plan for2020 were NTD 71,869 thousands.
For "Defined benefits plan", Tatung contributes an amount equivalent to 4% of the employees'
total salaries and wages on a monthly basis in accordance to Labor Standard Act to thepension fund deposited at the Bank of Taiwan in the name of the administered pension fundcommittee. Before the end of each year, Tatung assesses the balance in the designated laborpension fund. If the amount is inadequate to pay pensions calculated for workers retiring in thesame year, Tatung will make up the difference in one appropriation before the end of March
the following year. Tatung expects to contribute NTD62,400 thousand to its defined benefit
plan during the 12 months beginning after December 31, 2020. For detailed post-employment
benefits, please refer to Tatung 2020 Annual Report page 424~426.

0.84
0.80

Post-employment benefits

Labor-management relations
In order to provide employees with a working environment that complies with laws andregulations and continues to strive towards employee harmony. Tatung has "Regulationsof Processing Employees’ Complaints" and other practices in place for the employees tocomplain about any disputes or sexual harassments and provides a channel to deal with.
Tatung uses various methods such as gatherings, e-mails, electronic newsletters, or internal
documents to deliver information in regarding to strengthen anti-discrimination, sexual
harassment related prevention measures and appeal channels to the employees. The
employees can not only propose questions in labor-management meetings or to labor unions,but also can directly mail the questions to Chairman's Box or HR e-mail. There was no major
labor-management dispute in 2020.
Tatung sets the minimum notice periods (Table 5.2-1) regarding to operational changes in"Company Rules". When there is any major change in operation and may affect employees,
Tatung shall notify the employees according to it and give severance pay.

Table 5.2-1 The shortest notice period
Types of employees

Shortest notice period

Worked for 3 months~1 year

10 days

Worked for 1~3 years

20 days

Worked for more than 3 years

30 days

2,000▲ Figure 5.2-3 Number of non-management employees, average salary, and median salary

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Education and career development
Business' success is relied on talented employees.
Tatung believes that only each employee fully shows"TATUNG DNA" in their work can help the company
to achieve goals and vision. Therefore, Tatung takes"TATUNG DNA" as basic to develop an educationand training system which provides skill/profession
oriented training courses to the employees to help thecompany to cultivate the talents that fit into businessand achieve sustainable development.
Tatung plans training courses by taking company's
human resource policy into account and identifies
the annual capacity gap of organizational functions.
In December each year, a survey of the training
needs of senior managers and all employees iscollected. Based on the survey results and thecompany's annual business strategy, the next annual
training course is planned. The training target is
to capacity building of employee management,
professional skills, and performance improvement.
Figure 5.2-4 shows the structure of Tatung HR
development. Tatung has formulated the "Tatung
Company Education and Training Manual" as a norm
for education and training, including: educationand training management manuals, procedures,
specifications, various forms, etc., and managed
through various operations such as Plan, Design, Do,
Review, and Outcome. The manual is published oninternal website to let employees retrieve freely. We
arrange class tutors for each course to be assistanceand students with any questions can respond tothem. After the class, we conduct satisfaction survey
and the results and responses will be feedback tothe students and relevant managers to improve thequality of education and training in the future.
In 2020, we have organized 29 general courses which
covered from new recruits training, environmental
protection, occupational health and safety,
information safety, intellectual property andtrademarks etc. For advanced courses we haveorganized 18 specialized courses in each field, 17
courses for managers, various lectures. In total there
were 34,113.5 training hours and each employee
was given 12.12 hours in average with the averagesatisfaction 92.29%. However, it can be seen from
Figure 5.2-5 that the per capita education hours offemale employees in 2020 decreased compared to2019, while the number of male employees increasedslightly. It is because that some of the physical courses
for female employees have been suspended due topandemic, so training hours have been reduced. As
for male employees, it was less affected due to theon-line teaching were provided for technical grading
courses.

(1) (2)(4)(3)(1) Leading class for mid-level
managers(2) Problem analyzing and solving
class(3) Agile project managementclass(4) Class for new recruits

Unit: hours

24

23.14

Vision / Destiny

18.11

20

Strategy / Target

Generalemployees
Managers

Training performances

16

Operation plan

Performance elevation

Defining unsatisfied performances

Behavior modification

Professional learning

Input

Output

12
8

Input

Output4 Review
Reaction

1 PlanAnalysis on
insufficientworkingability

Review /Monitor2 Design

Output3 Implement

0

Input

▲ Figure 5.2-4 Tatung human resource strategic development system

Education courses in season 4, 2020

Male
employees
Femaleemployees

12.40
10.76

8.73
10.11
8.40

8.14

8.46

2016

2017

2018

10.85

4

Output

Input

14.94

14.35

2019

2020

Note:
The training
hours including
business
operatinglectures since
2018.

8.74

2016

8.50

11.33

12.69
11.80

12.81

10.18

7.78

2017

2018

2019

2020

▲ Figure 5.2-5 Training hours per employee

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Health promotion and disease prevention
Tatung believes that the health of the employees and their families isa valuable asset to the company. Tatung organizes numerous healthspeeches, seminars, health checks to let the employees understand theimportance of their health and promote to their families. The concreted
measures are follows:
1. Clean air, healthy and happy workplace environment
Smoking within the boundary of the companies/factories has beenprohibited. The employees, contractors, and visitors are not allowed
to bring cigarettes, matches and lighters into the company. Tatungalso clearly posts/marks "NO SMOKING" notices in the meeting room, at
entrances and exits. The reason for Tatung doing this is to build a clean
air and healthy workplace for everyone.
2. Welfare Committee regularly organizes the physical and cultural activities
to encourage the employees having healthy living. It also establishes
aerobic fitness club to provide employees physical activities to stretch
and relieve pressures in their spare time.
3. Health Examination Fair
In response to Covid-19 pandemic, the 2020 Health Examination Fair has
been cancelled. Tatung arranges high-quality regular health checkups for employees to give full play to the effects of early detection, early
treatment and prevention, and to protect the health of employees.
4. Tatung organizes health promotion seminars and also publishes
information about serious diseases on the company website ande-publications. The information contains not only about the diseases but
also the preventions and treatment channels.
5. Promote breastfeeding.
In order to encourage postpartum female employees to continue
breastfeeding after returning to the workplace, Tatung has set up 2
breastfeeding rooms to provide a friendly environment for postpartum
female colleagues to continue breastfeeding.
6. Tatung runs first-aid/CPR courses every year to enhance employee's
ability.

(1) (2) (3) (4)(5) (6)(1), (2) Blood donation acitivies(3), (4) First aid tranings(5), (6) Health seminars

In 2020, there was a global outbreak of Covid-19. In order to ensure the health of employees and reduce operational risks,
Tatung established an emergency response team and implemented the following measures from February 2020:
1. Before entering the company and the factories, allpersonnel must measure the body temperature with
infrared rays, and use 75% alcohol to dry-clean hands andwear a face mask.
2. Strengthen the personal protective measures, follow coughetiquette and keep hands clean and maintain goodhygiene habits.
3. Perform daily temperature check of all employees andrecord the temperature, and report abnormal conditions.
4. When employees have fever or acute respiratory
symptoms, personal and workplace hygiene management
will be implemented.
5. Strengthen the environmental disinfection of work areas,
meeting rooms, elevators, restaurants and other publicareas and maintain indoor air circulation.
6. Avoid large conferences and indoor activities where
people gather.

7. Emergency response team was established, and meetings
were held irregularly and recorded.
8. Implement real-name registration while move acrossdepartments.
9. Request guests, visitors, and suppliers fill out the healthdeclaration form and measure their body temperature. Ifthey have travel history in the pandemic area and have afever, they will be refused to enter the factory.
10. Provide the latest pandemic prevention information to theemployees in real time.
11. Count stocks of pandemic prevention materials every
week.
12. When necessary, initiate a different working places/
different working time/work-from-home mechanism.
13. Cooperate with the government's measures to provide"Pandemic Prevention and Care Leave".
14. Survey the footprints of the employees when requested by
CDC.

All personnel must measure the body temperature
with infrared rays before entering the company andthe factories.

Guests, visitors, and suppliers are requested
to fill out the health declaration form andmeasure their body temperature.

Promote Covid-19
pandemic prevention
information
Expand the seating distance of the restaurant
and reduce the risk of group infection.

Body temperature self-reporting system
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Table 5.2-2 Health promotion and disease prevention activities in 2020

Contents
Time

Activities

LocationsTime

Activities

Locations

8/6 Health promotion activities.

Taoyuan 1st Plant

Health seminar: Lung cancer, colorectal cancer, and food safety issue (31participants).

Taoyuan Wires andCables Plant

Pressure relief activity.

Taoyuan Wires andCables Plant

Health seminar: HPV.

Tayuan Plant

8/15~12/31 Arrange the employees who are at high risk of abnormal work overload tomeet with the factory doctor; track abnormal values in the health examination reportand manage health education.

San-Hsia Factory

H.Q.

9/3 Health promotion activities.

Taoyuan 1st Plant

1/30 Covid-19 prevention measures in the factory have been fully launched: all theemployees measure body temperature and spray alcohol on their hands before
entering the factory.

San-Hsia Factory

9/15 Health promotion activity.

San-Hsia Factory

Conduct special job health check.

H.Q./MacKay Memorial
Hospital

9/23 Health hints: 6 drugs should be avoided to consume with pomelo.

San-Hsia Factory

Covid-19 prevention measures promotion.

H.Q. and all the factories

Health check on the restaurant suppliers in H.Q.

H.Q.

2/27 Health promotion activities.

Taoyuan 1st Plant

Blood donation activity: 61 bags.

Taoyuan Wires andCables Plant

Noise tracking check – 4 ppl.

Min-Sheng Hospital
Ching-Kuo Campus

Pressure relief activity: Pomelo skin peeling competition (50 participants).

Taoyuan Wires andCables Plant

3/5 Health promotion activities.

Taoyuan 1st Plant

10/6 Blood donation activity: 77 bags.

San-Hsia Factory

Health seminar: Covid-19.

Tayuan Plant

10/8 Health promotion activities.

Taoyuan 1st Plant

April

4/9 Health promotion activities.

Taoyuan 1st Plant

Health seminar: Beware of the invisible killer in winter.

H.Q.

May

5/7 Health promotion activities.

Taoyuan 1st Plant

Hiking activities (250 participants).

Shihmen Reservoir

6/4 Health promotion activities.

Taoyuan 1st Plant

11/5 Health promotion activities.

Taoyuan 1st Plant

6/15 Advocacy on Dengue Fever Prevention and Control.

San-Hsia Factory

Health seminar: Cardiovascular diseases prevention (37 participants).

Taoyuan Wires andCables Plant

6/18 Blood donation activity: 96 bags.

San-Hsia Factory

Employee annual health check and special job health check.

Tayuan Plant

1. Employee annual health check and special job health check.
2. Implement questionnaire surveys on musculoskeletal, abnormal workload, illegal
infringements, etc.

San-Hsia Factory

12/2 Flu vaccination.

San-Hsia Factory

7/2 Health promotion activities.

Taoyuan 1st Plant

12/3 Health promotion activities.

Taoyuan 1st Plant

7/3 First-aid and AED lecture.

San-Hsia Factory

12/15 Health seminar: Back pain.

San-Hsia Factory

7/16 Blood donation activity: 160 bags.

H.Q.

12/23 35 people were given the flu vaccine.

Taoyuan 1st Plant

7/28 Heatstroke prevention advocacy.

San-Hsia Factory

Employee annual health check: 161 ppl.

Taoyuan Wires andCables Plant

Health seminar: Lung cancer and workplace pressure relief.

Tayuan Plant

Pressure relief activity: X’MAS competition (48 participants).

Taoyuan Wires andCables Plant

All year

January

February to
DecemberFebruary

March

June

June ~ July

July

Health passport rewards program.

H.Q.

Monitoring on the abnormal blood pressure.

San-Hsia Factory

1/2 Health seminar – ergology.

San-Hsia Factory

1/2 Health promotion.

Taoyuan 1st Plant

1/16 Influenza vaccination.

H.Q.

1/17 Blood donation activities – 102 bags in total.

AugustAugust to
December

September

OctoberNovember

December

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5.3 Health, safety, and disaster free
DMA:
Occupational health and safety
An explanation of why the topic ismaterial

Purpose of the management
approach

Practice occupational health andsafety in the work places is Tatung’s
responsibility.

Implement occupation health and safety inthe workplace.

Boundary for the material topic
Tatung Co. and its subsidiaries.

Specific limitation regarding the
topic boundary
Performance disclosure is limited to
Tatung Co.

Policies
Reduce occupational disasters and achieve
the goal of "Zero Disaster".

Commitments
Work hard to achieve the goal of "Zero Disaster".

Goals and targets
Short-term target:
1. Complete the implementation of ISO 45001 in all 4
factories and pass the certification by the end of 2021.
2. At least 95% correction rate for non-conformities found in
Accident Prevention Pays Program.
3. FR and SR are reduced by 10% each year.

Responsibilities

Specific actions

Results of the evaluation of the management
approach

The factories and the subsidiaries are responsible
for complying with applicable health and safety
regulations during daily operations, and the Healthand Safety Division is responsible for checking
the implementation results of the factories andsubsidiaries.

1. The factories and the subsidiaries operate inaccordance to health and safety regulations.
2. Health and Safety Division conducts on-site audits
to review the performances.

Performances in 2020:
1. Tayuan Plant and Taoyuan Wires and Cables Plant
have implemented ISO 45001 and passed thecertifications.
2. The correction rate of Accident Prevention Pays
Program is 100%.
3. SR is reduced by over 10%, however, FR for male
employees is risen.

Mechanisms for evaluating the effectivenessof the management approach

Resources
1. Accident, Prevention, Pays Program.
2. Internal audit under Internal Control System.

Conducts Accident, Prevention, Pays Program onsite audit and records down non-conformities. The
factories are requested to improve these and ESD
will track the improvement results.

Related adjustments to the management
approach
NIL

Mid-long term target:
Zero disaster.

In the case that recognition of dangerous materials is unsatisfactory, or that safety management has
not been satisfactorily accomplished in the work places, there may be effects of varying degree tothe employees' health and safety, and as a result, causing frequent disasters. This will not only threaten
the safety of employees, but also the safety of the publics, as well as adversely impact the surrounding
environment. Therefore, Tatung stipulates that the company should be in accordance with relevant healthand safety regulations in "Company Rules" and holds employees' health examination (free of charge tothe employees). Tatung also issues "Tatung Health and Safety Guidebook" for employees to follow. At
the same time, we set up occupational safety and health management units and occupational safety
and health management personnel in accordance with regulations to implement automatic inspections,strengthen occupational safety and health education and training, and promote laws and regulations
to enhance employees’safety awareness and responsibility to reduce the incidence of occupational
disasters.
In addition, Tatung holds "Health and Safety Committee" meetings in headquarter and factories tocommunicate and review the contents and progress of health and safety issues (Figure 5.3-1). The
percentage of labor representatives is better than the requirement of regulation (at least 33%). The
headquarter also organizes regular health and safety committee meetings and invites the representatives
in the factories to enhance the communications within the company.

44.00
41.67%

42.00
40.00

38.89%

38.00
36.00
34.00

大同
安全衛 公司生工作
守則35%
33.33%

33.33%

32.00
30.00

104 年

H.Q.

Tayuan
Plant

TaoyuanWires and Cables
Plant

Taoyuan 1st
Plant

San-Hsia
Factory▲ Figure 5.3-1 Percentage of labor representatives in Health and Safety Committees

8 月修

訂

▲ Tatung Health and Safety
Guidebook

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Table 5.3-1 The status of occupational health and safety management systems

Occupational health and safety management
Paying attention to health and safety work is Tatung’s culture. Through institutionalized,
documented, and systematic methods, it actively handles education and training,
regulatory review, hazard identification, and risk assessment, sets safety and healthimprovement priorities, sets goals and improvement plans. Through the implementationof improvement plans and regular audits, and then reviewed by the management tocontinuously improve health and safety performance, so that the goal of "zero disaster"
can be achieved. So far, all the factories3 have established ISO 45001 and passed
the certification. San-Hsia Factory has also established CNS 15506:2011 (TOSHMS) andpassed the certification. Table 5.3-1 shows the status of occupational health and safety
management systems.
Other than relying on the management systems, Tatung also carries out "Accident,
Prevention, Pays" Program every year and works hard to achieve the final target "zerodisaster" in the factories and subsidiaries. The contents of the program are summarized
below:
1. The factories and subsidiaries implement the projects which can improve or prevent
health and safety issues, and HSD reviews the performances and provides feedbacks.
2. An annual Accident, Prevention, Pays seminar is organized to exchange the healthand safety experiences between factories and subsidiaries.
3. Recommends outstanding factories or subsidiaries to compete governmental awards.
Tatung has set the target of non-conformities improvement rate over 95% from Accident,
Prevention, Pays Program onsite audit. For the items that have not been improved in
the current year, we will continue to track them and list them as non-conformities in thenext year's evaluation. 63 non-conformities were found in 2020's Accident, Prevention,
Pays Program on-site audit. The items were mainly laid on lacking proper preventative
measures for electric shock, lack of protection cover for machinery equipment, or nohealth and safety operation standards have been established for operations that are
particularly hazardous to health. By the end of 2020, all the non-conformities have beencorrected. In 2021's Accident, Prevention, Pays Program, we will continue to check thecompliance of occupational health and safety regulations, strengthen the physical andmental health protection measures for workers, the implementation of the labor work
environment monitoring plan, and the establishment of labor maternal health protection
plan to protect the safety and health of the employees.

Chemical hazard identification and risk assessment

Name of management
systems.

The percentage of all
employees covered bymanagement systems

The percentage of workers
who are not employee4
covered by management
systemNote

Tayuan Plant

ISO 45001

100%

0%

Acquired certification

Taoyuan Wires andCables Plant

ISO 45001

100%

0%

Acquired certification

Taoyuan 1st Plant

ISO 45001

100%

0%

Acquired certification

San-Hsia Factory

ISO 45001 and CNS 15506(TOSHMS)

90.35%

9.65%

Acquired certification

Tayuan Plant ISO 45001
certificate

Taoyuan Wires and Cables Plant
ISO 45001 certificate

Accident, Prevention, Pays Program onsite audit

In order to let the employees to understand the potential hazards of the working
environment, and to ensure that the concentration of harmful gases, vapors, and dusts inthe workplace does not exceed the standards for labor workplaces, and to protect thehealth and safety of employees, all the factories in Tatung have established a "Working
environment monitoring plan" and appointed Ministry of Labor certified monitoringorganizations to implement the monitoring. The monitoring plan and monitoring results will
be posted in obvious workplaces for employees to refer to.
In addition, in order to let the employees to correctly understand the hazard informationof chemicals, Tatung has established a "Hazard Communication Program". For containers
containing hazardous chemicals, they are labeled classification, hazard diagrams andformats, and added hazard warning messages and hazard prevention measures inaccordance with the requirements of the "Regulations for the Labeling and Hazard
Communication of Hazardous Chemicals". At the same time, Tatung posts up safety data
sheet for the chemical in a place that is easy to obtain in the workplace for reference byworkers. In addition, Tatung follows the requirements of the Ministry of Labor to formulatea "Grading Management Plan" for hazardous chemicals. The chemicals are evaluatedbased on their health hazards, distribution status, usage, or statistical results of monitoringdata in the operating environment. According to the risk level, Tatung implements
associated management measures and establishes a management list of chemicals withhealth hazards in the workplace.

3

The labeling and posting ofcontainers with hazardous
chemicals: Taoyuan 1st Plant has complete the implementation of ISO 45001 by the end of 2020 and passed the certification in Jan. 2021.

Safety Data Sheet is posted inworkplace4

Tatung chemical grading evaluation table

Working environment monitoring
report (San-Hsia Factory): Workers who are not employees but whose work and/or workplace is controlled by the organization.

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Health and safety training and regulation promotion

Health and safety performances

In order to raise the awareness of occupational health and safety among the employees and prevent
occupational accidents, Tatung opens health and safety related training classes for new recruits, generalemployees, and managers. The training classes introduce the related health and safety regulations suchas "Occupational Safety and Health Act" and demonstrate the prevention measures of the occupational
disasters. The training courses cover topics from prevention of disaster caused by machinery, equipment
or appliances, hazardous chemicals, falling, flying objects, high temperature, noise, as well as proper useof personal protective equipment, workplace ventilation, management on lighting, job safety analysis,
and prevention of illegal infringements in performing duties. For professional training, Tatung opens
training classes such as First-aid, Hazardous machinery or equipment, Fork lifters, VOCs, Dusts, DesignatedChemicals, etc. Please refers to Table 5.3-2 for more details.

Tatung continues to establish safety culture, reduce occupational disaster risk and provide a safe working
environment. When an occupational disaster is occurred, root-cause analysis will be conducted andcountermeasures will be implemented to prevent such case happening again. In 2020, there was nooccupational disease case and death incident; however there were 3 non-compliances (contractors) andfined NT$150,000 in total. The non-compliances are: (1) The use of fiber tape (cloth rope) as the suspending
equipment of the lifting equipment has significant damage or corrosion; (2) For the driving of the high-altitude
working vehicle, when leaving the driver's seat, the driver did not lower the workbench to the lowest position;(3) Failure to provide safety helmets for labors to wear. All the non-compliances have been improved.
Tatung will strengthen the inspection of contractors’ occupational health and safety operations to avoid
recurring violations in order to jointly protect the safety of contractors’ labors.

Regarding the promotion of laws and regulations, Tatung organizes the "Tatung Group Occupational
Health and Safety Seminar" every year to promote the new revisions of occupational health and safety
regulations and corresponding practices. When necessary, personnel from H.Q. will go to the factories
and the subsidiaries for counselling. The seminar in 2020 was held online and e-mail due to Covid-19
pandemic, the seminar focused on pandemic prevention measures, revisions to occupational health andsafety management plans, and new laws and regulations.

In terms of health and safety indicators, from Figure 5.3-2 and Figure 5.3-3, it can be found that female
employees have not experienced occupational accidents for 3 consecutive years, while the Disabling
Frequency Rate (FR) for male employees in 2020 is higher than in 2019. The main reasons were the increasein the number of traffic accidents when the employees go out on business, but the injuries were less serious,
so the Disabling Severity Rate (SR) continues to decline. In terms of workers who are not employees, there
was no occupational accidents in 2020.

Table 5.3-2 Health and safety training targets and results
Topics2017
No. ofparticipants

2018
No. ofparticipants

2019
No. ofparticipants

2020
No. ofparticipants

2021
Targetnumbers

Health and Safety Training Class (generalemployees and managers)

1,243

1,226

1,239

1,046

1,300

Emergency Training Class

1,059

1,121

1,163

913

620

0

0

75

101

16

Stationary Cranes Training Class

24

Health and Safety Training Class(construction contractors)

15

16

16

20

3

First-Aid Class (re-training)

89

11

100

5

18

Forklifters Training Class (over 1 tons)

3.00

69

276

57

24

2.00
2.00

0
0

0
25

25
2

88
33

24
0

Forklifters Training Class (re-training)

53

85

132

67

49

Training Class for Preventing Workplace
Violence

0

66

342

131

185

Occupational Health and Safety BusinessSupervisor Training Class

0

0

0

20

0

1.50

2.90

2.73

2.50

Stationary Cranes Training Class (retraining)First-Aid ClassIn 2020, Tatung has achieved the target of reducing the SR by 10% per year, but the FR has not reached thetarget. We will continue to strengthen the traffic safety advocacy of business units that frequently go out,
and require the supervisors in the factories and the subsidiaries to walk around the workplaces more often tostrengthen the work safety requirements, and continue to move towards the established targets.

1.25

80

1.29

60

1.00

40

0.50

20

0.00
Note:

0.00
2016

2017

96.03

100

2.08

1.98

120

2018

0.00

0.00

2019

2020

FR is one of the indicators selected by MOL for occupational
disaster statistic purpose. The formula is (No. of disability/
Total working hours) x 1,000,000.

▲ Figure 5.3-2 Trend of FR

0
Note:

57.35
40.14
16.82
15.19
2016

17.82
5.18
2017

0

0

0

2018

2019

2020

SR is one of the indicators selected by MOL for occupational
disaster statistic purpose. The formula is (Total lost days/Total
working hours) x 1,000,000.

▲ Figure 5.3-3 Trend of SR

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Happy workplace andsocial participation

Contents

5.4 Participation and benefits to the society

Supporting in traditions, arts and raising environmental protection awareness

Send love and light to the tribes

In support of paper carving art and artists, Tatung designed Tatung Boy Chinese Zodiac hand-held lanterns
which served as marketing artifacts for Tatung 3C’s festival sales. Tatung participated in the Taiwan Lantern
Festival in Taichung whose main theme was to promote sustainable development for the earth. As an
appeal for marine ecological conservation, Tatung Boy was made to represent son of the ocean enjoying
the friendly company of the sea creatures and co-live in harmony. Tatung supported local performing
arts groups by co-creating children’s drama, Rescuing Power Kingdom, which was performed for over
4,700 students on a tour to 7 elementary schools nationwide. By infusing notions of energy saving andenvironmental protection, children were being introduced the traditional and innovative ways of energy
generation as well as the correct ways of using electricity.

Tatung has devoted in the green energy industry for many years, andhas not only become a pioneer in green smart energy solutions; recently,
Tatung has also shown love to send electricity to the tribe, go deep into therural areas of Pingtung County, and care for the disadvantaged.
In the Paiwan Tribe in Fawan, Majia Township, Pingtung County, Taipower
used to set up poles for power supply. However, after the Morakot
Typhoon, it severely damaged the road leading to the tribe and washedaway the poles. In addition, the weather was bad and with the influenceof other factors, has made it more difficult for the tribe to re-establish theelectricity. Fortunately, in recent years, Tatung has silently launched the"Send Love and Light to the Tribes" project. A group of colleagues andpartners went deep into the remote villages and mountains of Taiwan, andsent electricity to light up the lights of various tribes in Taiwan.
This charity came to the Paiwan Tribe in Fawan, Majia Township, PingtungCounty. Tatung built 13 “Stone Slab House Smart Disaster Prevention
Micro-grid”6, so that tribal residents finally have the opportunity to enjoy
a more convenient life. There is no need to start a fire at night. The tribe
residents also expressed gratitude that "lighting on the tribe’s lights will bringconvenience to life, and also make the tribesmen out of the country more
willing to return to the tribe and inherit the culture."“Send Love and Light to the Tribes” project - Paiwan
Tribe in Fawan, Majia Township, Pingtung County.

In the future, Tatung will continue to spread love and send electricity to
the tribes, establish micro-grid systems, help more areas with electricity
difficulties, install mobile solar panels, so that tribal residents will no longer
live a life of using electricity depending on the weather, and also prevent
electricity cut-off from natural disasters. In addition to supplying tribal
lighting and household electricity, the micro-grid system can also take
into account the flexibility of residential electricity use and environmental
protection as well as achieve the goal of smart energy power supply thatcan be used locally without relying on the outside world.
Rescuing Power Kingdom children drama

Tatung 3C one-day safety inspection for home appliances
Taiwan’s population has turned into a negative growth, and it is estimatedthat it will enter a super-aged society in 2025. This also means that theburden of support for the young generations in the future will becomeheavier. In order to reduce the pressure of support and provide amore complete and comfortable living environment for the elderly, theestablishment of homes for the elderly, nursing centers, and other institutions
were also born in response to demand. Tatung 3C upholds the feelingof caring for the local and caring for the elderly, and actively initiateda one-day safety inspection activity for home appliances in “Southern
Region Senior Citizens’ Home, Minister of Health and Welfare”, especiallyfor seasonal appliances such as dehumidifiers and electric heaters usedin autumn and winter. It is hoped that through this activity, the safety ofelectrical appliances in the institution will be reviewed, and the elderly will
be educated on the correct use of home appliances, so as to do theirpart to protect the peaceful land of the elderly. Tatung is committed tothe development of the business and fulfills its social responsibilities. It is
hoped that through this event, it will achieve the effect of attracting new
ideas and promote the public's attention to the safety of the elderly's careenvironment.

5

Safety inspection activity for home appliances in“Southern Region Senior Citizens’ Home, Ministerof Health and Welfare”

Inspection on the safety of heaters

Hand-held lanterns of year of mouse

Tatung participated in Taiwan Lantern Festival in
Taichung: Send Love and Light to the Tribes channel on youtube: https://www.youtube.com/watch?v=n2tx9_U6MmI&t=5s

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SUSTAINABLE ENVIRONMENTTop Management
Statement
Contents
2020 CSR Highlights

Identificationon the stakeholders
and material topics

Profile of
Tatung Company

Environmental management
and comply with regulations

Targets-----------------------

Organization structure andgovernance

Responsible
supply chain,product safety,
and customer service

Happy workplace andsocial participation

1. Correction percentage over 95%
for the non-conformities from 3P
Program.
2. M a i n t a i n I S O 1 4 0 0 1 i n t h efactories.
3. N o . o f v i o l a t i o n s a g a i n s t
regulation are less than previous
year.

Performances in 2020-----------------------

1. Correction percentage was
93.1% and the target was notachieved.
2. All the factories' ISO 14001 passed
annual certification.
3. One violation in 2020 and thetarget was not achieved.

Energy and GHG management
Targets-------------------------

1. Energy intensity of represented
products in 2023 will be 6% less thanin 2018 and 1% less than the previous
year.
2. Energy saving rate will be at least
1% in the headquarters and thefactories from 2019~2022.
3. P r o m o t e I S O 5 0 0 0 1 e n e r g y
management system.
Short-term:
Factories with ISO 50001 pass annual
certification.
Mid-long term:
Implement ISO 50001 in Taoyuan 1st
Plant.
4. Carry out ISO 14064-1 GHG inventory.
Short-term:(1) Carry out GHG inventory basedon ISO 14064-1 every year in
Taoyuan Wires and Cables Plant,
Taoyuan 1st Plant, and San-Hsia
Factory.
(2) Use ISO 14064-1: 2018 to carry out
GHG inventory in 2022.
Mid-long term:
Implement ISO 14064-1 in Tayuan
Plant and the headquarters.

Performances in 2020-------------------------

1. 4 out of 7 represented products
have met the target. The target
achieve rate was 57.14%.
2. The average energy saving rate in
the factories and the headquarters
was 4.60%.
3. Tayuan Plant, Taoyuan Wires andCables Plant, and San-Hsia Factory
have passed ISO 50001 annual
certification.
4. Completed ISO 14064-1 GHG
inventory (year 2019) and passed
the verification for Taoyuan Wires
and Cables Plant, Taoyuan 1st Plant,
and San-Hsia Factory.

Waste reduction
management

Targets----------------

Reduce the amount ofwastes by 5% every year.

Performances in 2020----------------

Compared with 2019,the amount of wastes
was 22.13% less, met thetarget.

Green products
management

Targets------------------

1. Continue to seek for PV
system cases and aim tohave 220MWp capacity
by then end of 2021.
2. Continue to produce
environmental friendly,
energy saving, and watersaving products andapply for Green Mark,
Energy Label, or Water
Label.

Performances in 2020------------------

1. T h e t o t a l i n s t a l l e dcapacity was 161.73MWp
by the end of 2020.
2. New applied Green Mark:
5 models,
Energy Label: 63 models,
Water Label: 12 models.

Sustainable
environment

Annex

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Target:

6.1 Management on the environment
1990

1993

6%

⇧

Contents

Product carbon
footprint

1996

3P
Program

2009

Stage 2 Energy saving target

Energy audit

Baseline year

ISO50001

2018

2019

2020

2021

2023

2022

2010

2014

ISO14001

2015

2018

ISO14064-1

2023"Economic development should not create pollution to the environment but try to forge a marriage between
corporative development and environmental protection" is a sentence that Tatung's employees familiarwith. We set up "Pollution Prevention Education Center" in 1988 to promote environmental education in thefactories and subsidiaries. At this time, our management measures for sustainable environment are through theimplementation of "Pollution, Prevention, Pays (3P) Program" and "ISO 14001 Environmental Management System"in the factories and subsidiaries.

Tatung environmental management roadmap

DMA:

Comply with environmental regulations
An explanation of why the topic ismaterial

Purpose of the management
approachCommitments

Responsibilities

Specific actions

Results of the evaluation of the
management approach

Compliance is the most basic
responsibility of a company.
Violation of environmental
regulations may not only cause
pollutions, but also bring the risk offines or suspension of operation.

Immediately identify the risks ofviolations against regulations andmake improvement to avoid
pollutions to the environment andpenalties from the authorities.

Continue to implement Pollution, Prevention, Pays (3P)
Program and ISO 14001 to fulfill social responsibility
with a continuous improvement management model.

The factories and subsidiaries are responsible
for complying with environmental regulations
for daily operations. The headquarters
is responsible to audit the factories andsubsidiaries' conformance performances.

1. The factories and subsidiaries operatein accordance to the environmental
regulations.
2. The headquarters conducts 3P Program onsite evaluation and Internal Control System
on-site audit.

Boundary for the material topic

Policies

Short-term:
1. Correction percentage over 95% for the nonconformities from 3P Program.
2. No. of violations against regulation are less thanprevious year.
Mid-long term:
Achieve the goal of "The economic development
should not create pollution to the environment
but try to forge a marriage between corporative
development and environmental protection."

Performances in 2020:
1. 10 factories and subsidiaries wereconducted with 3P Program onsite evaluation. The correction
percentage was 91.3% which did notmeet the target.
2. One violation against the regulation
which did not meet the target.

Tatung and its subsidiaries.
Specific limitation regarding the
topic boundary

Performance disclosure is limited
to Tatung Co. and the subsidiaries
with manufacturing function(please refer to Annex 3).

Actively promote environmental
protection, energy saving andcarbon reduction to reduce theimpact to the environment.

Goals and targets

Resources

1. 3P Program on-site evaluation.
2. Internal Control System on-site audit.

Mechanisms for evaluating the effectiveness ofthe management approach

1. Identify non-conformities from the factories
and track the improvement results through3P Program on-site evaluation.
2. Through Internal Control System on-site audit
to ensure the compliances of the factories.

Related adjustments to the management
approach

NIL.

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Table 6.1-1 Description of 3P Program and its performances
Contents

Pollution, Prevention, Pays (3P) Program
Tatung started to implement "Pollution Prevention Pays, 3P" program in the factories and the subsidiaries which have
manufacturing function since 1993 to help Tatung to develop environmentally sound operations. Ten factories andsubsidiaries participated in 2020 (Annex 3). The elements of 3P program are listed on Table 6.1-1.
When there any non-conformity found against company rules or with potential to cause environmental pollution,
we will list such incidents and request the factories and the subsidiaries to correct them. We also set yearlycorrection target to be 95%. For the non-conformities which can not be corrected by the end of year, we will track
them and make them to be corrected next year. In 2020, there were 69 non-conformities that are requested to becorrected and 63 of these have been corrected by the end of year. The correction rate was 91.3% and did notmeet the target.

Aspects

Measures

Descriptions

Performances

Manufacturing
aspectPromote Clean Production
technology, fully utilize resources
and materials and to reduce thewastes and the production costs.

Improve the existing manufacturing processes
and management operations to eliminate
sources of pollution. Also improve upon therecycling/reuse, and exchange/reuse ofwaste materials.

In 2020, the amount ofwastes were reduced by
22.13% and 63.94% werereused.

Product aspect

Encourage to develop green
products to create additional
values for products.

Apply Design for the Environment, DfE”, in thedesign phase to produce “recyclable, lowpollution, toxic-free, resource saving, powersaving, and durable” products to benefit theenvironment.

In 2020, we acquired
Green Mark: 5 models;
Energy Label: 63 models;
Water Label: 12 models.

Management
aspectPerform 3P Program on-site
evaluation in the factories andsubsidiaries regularly.

The results can benefit management in theirreview of environmental performances anddraft of new policy and objectives.

Ten factories andsubsidiaries participatedin 3P program.

Conformity

Conduct internal audit.

Conduct internal audit on regulation
compliance in order to find out problem at firstplace and mitigate it.

Non-conformity
correction percentage
was 91.3% in 2020.

Taoyuan 1st Plant,
Tayuan Plant
passedcertification

San-hsia Factory
passedcertification

Taoyuan Wires
and Cables Plant
passedcertification

Tayuan Plant, Taoyuan
Wires and Cables Plant,
San-Hsia Factory updated
to ISO 14001:2015 andpassed certification

Taoyuan 1st Plant
updated to ISO
14001:2015 andpassed certification

1998

1999

2000

2017

2018

3P Program on-site evaluation

ISO 14001 Environmental management system
Tatung believes that by implementing ISO14001 is able to continue improve environmental performances, export
competitively, and company images. Thus, in 1996, Tatung started to implement ISO14001 among the factories
and the subsidiaries. So far all 4 factories have established ISO 14001 and certified every year. We commit that wewill continue to run ISO 14001 in the factories and subsidiaries to improve environmental performances in the future.
Figure 6.1-1 shows the implementation status of ISO14001 in the factories.

1996
Started to implement▲ Figure 6.1-1 ISO14001 implementation status

Compliance and major leaks
Tatung takes great concern on the development of environmental protection regulations. When there are public
hearings or seminars for new regulations, Tatung assigns professions to receive the latest information. In spite ofenvironmental management system, internal control system on-site audit, and 3P Program on-site evaluation havebeen implemented in the company, there still was 1 incident which breached the regulations in 2020. San-Hsia
Factory was fined NTD$60,000 due to violation against Waste Disposal Act. The reason was the storage period ofhazardous waste was longer than one year and was not applied for extension to the local competent authority twomonths prior to the deadline. We will further strengthen management in the factories and enhance complianceeducation to the staffs and the managers. In addition, we will continue to conduct internal control system onsite audit and 3P Program on-site evaluation to prevent such incidents happened again. Besides, there was no
significant spill in 2020.

Internal control audit
Authority
Audit

Improvement
H.Q.

3P Program on-site evaluation

ISO 14001
Factory audit▲ Figure 6.1-2 Measures practiced to ensure the compliance

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6.2 Energy consumption and GHG management
DMA:

Energy consumption and GHG management
An explanation of why the topic is material

Purpose of the management
approachGreenhouse gases emitted by humanactivities have already caused global
warming and led to the threat on thesustainable development. Corporations
actively to reduce the greenhousegas emissions are not only to show a
responsible image to the public but alsoable to reduce the operation costs fromrunning the business.

Reduce energy consumption and
GHG emissions.
Policies

Actively promote environmental
protection, energy saving andcarbon reduction to reduce theimpact to the environment.
Commitments

The factories are responsible for runningenergy management systems andimplement energy saving projects. Health &Safety Division is responsible for carrying out
energy audit and assisting GHG emission
inventory.

Long-term targets:
Implement ISO 50001 in Taoyuan 1st
Plant and pass certification.

Specific actions

Performances in 2020:
1. Completed ISO 14064-1 GHG inventory(year 2019) and passed the verification for
Taoyuan Wires and Cables Plant, Taoyuan 1st
Plant, and San-Hsia Factory.
2. Tayuan Plant, Taoyuan Wires and Cables
Plant, and San-Hsia Factory have passed ISO
50001 annual certification.
3. 57.14% of the represented products have
met the energy intensity target.
4. The average energy saving rate in thefactories and the headquarters was 4.60%.

Tracking energy intensity status through theannual energy audit.

Energy consumption

Related adjustments to the management
approach

NIL.

Purchased electricity

GJ

DieselLPG

Fuel oil

250,000

0

2016

2017

2018

2019

262.29267.11

12,615.28

12,885.75

642.66

13,576.72

14,196.95

50,0001,044.33

Purchased
electricity
87.31%

13,462.16

100,000

12,070.52

150,000

8,920.20

LPG
7.20%

146,283.87

200,000

170,255.66

Diesel5.32%

193,860.63

Fuel oil
0.16%

215,190.36

Direct energy sources that Tatung consumes arefuel oil, LPG, and diesel. Indirect energy sourcethat Tatung consumes is purchased electricity
from Taiwan Power Company. The amount ofenergy consumption in 2020 is shown on Figure
6.2-1 and Figure 6.2-2. The most consumed
energy in 2020 was purchased electricity andthe amount was 146,283.87 GJ (87.31%) whichequaled to 40,634.41 kkw-hr; followed by LPG with
12,070.52 GJ (7.20%) which equaled to 239.17
tons. The total amount of energy consumption
in 2020 was 28,486.93 GJ less than in 2019, which
was 14.53% reduction.

Annual energy audit.
Mechanisms for evaluating the effectivenessof the management approachContinue to carry out ISO 14064-1
GHG emission inventory, implement
ISO 50001 energy management
system, and propose energy saving
projects to mitigate global warming.

441.83

Performance disclosure is limited to TatungCo.

Mid-term targets:
1. Energy intensity of represented
products in 2023 will be 6% less thanin 2018.
2. Implement ISO 14064-1 in Tayuan
Plant and the headquarters.

14,003.49

Specific limitation regarding the topic
boundary

Short-term targets:
1. Carry out GHG inventory based on
ISO 14064-1 every year in Taoyuan
Wires and Cables Plant, Taoyuan 1st
Plant, and San-Hsia Factory.
2. Factories with ISO 50001 pass annual
certification.
3. Energy saving rate will be at least 1%
each year in the headquarters andthe factories.
4. Use ISO 14064-1: 2018 to carry out
GHG inventory in 2022.

12,410.45

Tatung and its subsidiaries.

Results of the evaluation of the management
approach

7,597.62

Boundary for the material topic

Responsibilities

Goals and targets

216,680.23

Contents

2020

Note: The energy data in 2019 from Taoyuan 1st Plant, Taoyuan Wires and Cables Plant, and San-Hsia Factory has been modified based on ISO 14064-1 verification
results. The energy data in 2020 was collected based on the same method however has not been verified yet. The energy data from H.Q. and Tayuan Plant
was collected from power bills and other energy receipts.

▲ Figure 6.2-1 Energy consumption breakdown in 2020

▲ Figure 6.2-2 Trend of energy consumption(by energy types)

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Greenhouse gas emissions

Calculated without verification

H.Q. and Tayuan Plant

Calculated without verification

Taoyuan Wires andCables Plant,
Taoyuan 1st Plant,
San-Hsia Factory

Calculated based on
ISO 14064-1 and verified.

Taoyuan Wires andCables Plant,
Taoyuan 1st Plant,
San-Hsia Factory

Calculated based on
ISO 14064-1 andplanned to be verified
by the end of 2021.

2019

2020

▲ Figure 6.2-3 Tatung GHG inventory and verification status in recent 2 years

CO2e (tons)
35,000

Diesel
LPG

20,00015,000Purchased
electricity
93.46%▲ Figure 6.2-4 GHG emission percentage in 2020 (by sources)

0

2016

2017

2018

2019

20.38

762.82

20.76

797.25959.6649.94

858.01

1,057.31

81.15

850.77924.26

34.33

5,000

884.9810,000565.83LPG
3.45%

664.33

Diesel3.00%

Fuel oil

20,682.91

25,000Purchased
electricity

24,072.26

30,000Fuel oil
0.09%

(3)

H.Q. and Tayuan Plant

28,702.14

For the purpose of enhancing the ability to do greenhouse gas inventory in the factories, Tatung runs
ISO14064-1 Internal Verification Class when necessary. We are expecting to have more well-trained
employees through these classes and they are able to do the greenhouse gas inventory well and pass
the verification by the third party in the future. Due to the headquarters and Tayuan Plant have not
implemented ISO14064-1, the GHG emissions (Types of GHG: CO2, CH4, N2O; Scope 3 emissions are notincluded) disclosed in this report are calculated as follows: the amount of energy sources disclosed
in previous paragraph multiplied by each emission factor. The GWP is based on IPCC, 2007. The
completed GHG emission inventory for Taoyuan 1st Plant, Taoyuan Wires and Cables Plant, and San-Hsia
Factory for year 2019 can be found in Annex 4 or MOP. The total GHG emission in 2020 was 22,130.45
tons CO2e (Figure 6.2-4) which is 3,719.48 tons CO2e (14.39%) reduction than in 2019. The emissions fromdiesel, LPG and fuel oil were 1,447.53 tons CO2e, and from purchased electricity was 20,682.91 tons CO2e
(Figure 6.2-5).

(2)(1)San-Hsia Factory GHG verification statement(2)Taoyuan Wires and Cables GHG verification
statement(3)Taoyuan 1st Plant GHG verification statement

33,115.40

Greenhouse gases emitted by human activities have already caused global warming and led to thethreat on the sustainable development. Corporations actively to reduce the greenhouse gas emissions
are not only to show a responsible image to the public but also able to reduce the operation costs fromrunning the business. In order to investigate the amount of GHG emissions thoroughly and comply withthe future regulations, Tatung voluntarily implements ISO14064-1 greenhouse gas management system
into the factories since 2009. So far, San-Hsia Factory, Taoyuan Wires and Cables Plant, and Taoyuan 1st
Plant carry out GHG inventory and get verified by third parties based on reasonable level of assurance
every year. We will implement ISO 14064-1 at the headquarters and Tayuan Plant in the future. In
response to the new version of ISO 14064-1:2018, we are planning to adopt it in 2022 when working on
year 2021’s GHG inventory. Figure 6.2-3 shows the GHG inventory and verification status in the factories.

31,900.15

Contents

(1)

2020

Note: 1. The energy data in 2019 from Taoyuan 1st Plant, Taoyuan Wires and Cables Plant, and San-Hsia Factory has been modified based on ISO
14064-1 verification results. The energy data in 2020 was collected based on the same method however has not been verified yet. Theenergy data from H.Q. and Tayuan Plant was collected from power bills and other energy receipts.
2. This report also modified the emission factor of electricity for year 2019 (0.509 kg/kwh) and use that emission factor to calculate GHG
emission for year 2020 due to the authority has not released the latest emission factor before the publishing date of this report.

▲ Figure 6.2-5 GHG emissions of Tatung

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Energy saving and GHG reduction
Global warming greatly increases the frequency of extreme weather
events and directly causes impacts to the operation of a business. In
order to fulfill corporate social responsibility and reduce operating
costs, followed by Stage 1 energy reduction target, Tatung proposed
Stage 2 energy reduction target in 2019: the energy intensity per
product in 2023 will be reduced by 6% than in 2018 (baseline year).

Table 6.2-2 Tatung energy saving projects and results in 2020
Energy saving projects (by categories)

To achieve the target, we have implemented ISO 50001 in thefactories to sharpen up company's energy performance. So far SanHsia Factory, Tayuan Plant, and Taoyuan Wires and Cables Plant haveestablished ISO 50001. Please refer to Figure 6.2-6 for more details. In
addition, we conduct annual energy audit and report the energy
consumption information to the government as well as implement
energy saving projects in H.Q. and the factories. In 2020, Tatung
reduced about 1.853 million kwh of purchased electricity consumption
via 5 dimensions (Table 6.2-2) which equals to 6,671.68 GJ. The saved
electricity contributed as much as 943.30 tons CO2e reduction. Figure
6.2-7 shows carbon reduction results for the past 5 years.

Amount of electricity Amount of electricity
saved (kwh)saved (GJ)

GHG reduction(tons CO2e)

Optimized manufacturing process to reduce operation time.

1,223,722

4,405.40

622.87

Replaced with higher energy efficient and energy saving
equipment.

285,6121,028.20

145.38Centralized operating areas and shut down unnecessary air
conditioners and lightings.

287,361

1,034.50

146.27

Increased the frequency of maintenance and inspection
from major energy using equipment, as well as controlled theoperating time to avoid leakage or wasting of pressured air orcooled air.

30,076108.27

15.31

Others26,475

95.31

13.48

Total

1,853,246

6,671.68

943.30

Energy saving project:
Transformer core vacuum drier improvement in Tayuan Plant

Before After▎Equipment was old andoutdated.
▎Low combusting andpower transmitting
The amount of energy consumed per
efficiency.
unit: 53kWh → 24kWh▎Poor insulation.
Electricity saved: 1,050,000 kwh per year.
▎Unable to keep in
CO2 reduction: 534 tons per year.
vacuum.

Note: 1 kwh of electricity emits 0.509 kg CO2e.

CO2e (Tons)

2,000
San-hsia
Factory passed
certification

2014
Started to
implement

2015

Tayuan Plant andTaoyuan Wires andCables Plant passed
certification

2016

1,614.52

1,500
Tayuan Plant
ISO 50001 certificate

Taoyuan Wires and Cables
Plant ISO 50001 certificate

2019
Tayuan Plant, Taoyuan Wires and Cables
Plant, and San-Hsia Factory updated to
ISO 50001:2018 and passed certification.

▲ Figure 6.2-6 Status of Tatung's ISO 50001

San-Hsia Factory
ISO 50001 certificate

1,432.85

1,299.50
1,090.37

943.30

1,000
500
0

2016

2017

2018

2019

2020

▲ Figure 6.2-7 Amount of GHG reduction

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The energy intensity achievement status of represented products in 2020, 4 of the 7 represented products
reached the target of reducing energy intensity by 2%, and the achievement rate was 57.14%. The
achievement status of each represented product is listed in Table 6.2-3. Products that did not meet thetarget are Transformer/Switchgear, Lan cable, and Motor. In terms of electricity saving rate, the headquarters
and all factories have exceeded 1%. The average electricity saving rate for whole company is 4.60% and thetarget is achieved. Our energy saving plan for 2021 is summarized as follows:

Table 6.2-3 Achievement status of Stage 2 Energy Saving Target (Year 2023 ↓ 6%)
Energy intensity in baseline
year (2018)

Energy intensity in 2019

Energy intensity in 2020

Target achievement
status in 2020 (↓2%)

Motor/Generator

51.8 MJ/HP

48.45 MJ/HP

42.25 MJ/HP

V

Represented products

Tayuan Plan

Taoyuan Wires and Cables Plant

Electric cooker

35.22 MJ/Unit

34.03 MJ/Unit

34.31 MJ/UnitV

The vacuum drier equipment for the productionof transformers will be replaced with new ones.
It is expected to be replaced by a biomass fuelboiler, and a high-efficiency and low-energy
consumption burner will be used to improve the
combustion efficiency. The drier door insulation
system will be repaired to enhance the air-tightstatus. The heat conduction pipelines will be
replaced and the insulation materials on the
inner wall of the drier will also to be replaced
to reduce heat loss. The motors and pumps
used in the boiler equipment will be replacedwith high-efficiency IE3 motor to improve
operating efficiency. The boiler operationinterface will introduce monitoring of various
process parameters, accumulate historical
data of related variables and compare energy
consumption, establish stand-alone energy
performance indicators and implements ISO
50001, and introduce automatic schedulingfunctions to reduce standby and heavy
production losses.

Improve the transmission equipmentof the stranding machine used in theprocess, replace the old DC motor witha AC inverter motor to save electricity,and change the existing transmission
aluminum belt to a rubber belt in the
middle of the process to reduce themotor load and introduce frequency
conversion control and reduce manhours during maintenance to saveenergy.

Commercial air
conditioner

55.78 MJ/KW

53.05 MJ/KW

40.14 MJ/KW

V

Transformer/
Switchgear

7,389.51 MJ/MVA

7,257.80 MJ/MVA

8,057.57 MJ/MVA

X

Watt-hour meter

7.49 MJ/Unit

7.40 MJ/ Unit

7.33 MJ/ UnitV

Lan cable *0.13 MJ/Meter

0.14 MJ/ Meter

0.14 MJ/ Meter

X

Power cable

15.59 MJ/ Meter

11.48 MJ/ Meter

16.34 MJ/ MeterX

San-Hsia Factory
Replace the old 6,000KVA high-voltage
transformer in order to improve the operating
efficiency. In the future, the transformer
integration of the power circuit will be
evaluated and the power consumption will
be reduced. Air compressor equipment will
be replaced with IE3 high-efficiency motors
to save electricity, and gas flow meters andsmart meters will be installed to monitor andestablish energy indicators, and repair air
compressor pipeline leakage during annual
maintenance to reduce power consumption.

Note:

st

Taoyuan 1 Plant

The baseline year is 2018. V represents the result meets the target, X represents the result does not meet the target.
＊ Lan cable has adjust the baseline year data due to originally “per box” was mistakenly used as the production unit of the Lan cable, it has been adjusted back to the “permeter” as the unit, together with the adjustment of the 2019 data

The high-pressure air compressor will be
replaced by a nitrogen high-pressure
air compressor, and the booster will be
replaced with an IE3 high-efficiency
motor. The pre-pressurization of thecompressed air will be replaced withexisting liquid nitrogen, which can
reduce the power consumption of thebooster due to gaseous nitrogen is a dry,
low-temperature gas, the original coolingsystem and dryer are no longer needed.
Introduce 5MW energy storage systemand cooperate with the government
to suppress peak power consumption,
help stabilize the frequency of
Taipower's power system and meet therequirements of the renewable energy
development regulations.

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Resources consumption and pollutants
management

River water

M3

Ground water

Tap water

Local purchased
percentage (by purchasevalues)100,000

Steel (including silicon steel)

6,214 tons

92.5%

50,000

Copper6,759 tons

1.2%

Aluminum

493 tons

100%

Insulation oil

1,376 kilo-liters

100%

0

2016

2017

2018

228,054

238,196

269,390

262,064
108,115

Amount of consumption

153,696

Main materials

211,879

150,000

138,640

Table 6.3-1 Amount of main materials and the percentage from local purchase

178,566

200,000

245,799

250,000

282,917

Tatung puts quality, price, supply days, and after sale service into account whenselecting suppliers. In order to ensure a good quality, Tatung requires suppliers
to provide new resources. Table 6.3-1 shows the consumption amount of mainmaterials3 and the percentage from local purchase.

161,059

Consumption and management on the main materials

292,811300,000

234,1176.3

242,003

Contents

2019

2020

▲ Figure 6.3-1 Amount of water consumption (by sources)

Consumption of water and management on the wastewater

Table 6.3-2 Wastewater treatment and effluent status in 20201

The sources of water for Tatung are from tap water, ground water, and river water.
Tatung consumed 598,233M3 (Figure6.3-1) of water in 2020 which was 63,049M3
less than the consumption in 2019. We will continue to conduct water conserving
projects in order to reduce water consumption. In view of the long-standing
problem of fresh water resources shortage in Taiwan, other than installing watersaving taps for the employee’s daily usage, we are also actively promoting watersaving solutions for manufacturing processes. For example, in 2020, Tayuan Plant
implemented the energy-saving improvement plan of transformer drier, and we
also installed with the cooling water circulation system. The cooling water can berecycled and reused, which can save about 5,000 M3 of water consumption every
year. We will continue to review the manufacturing processes and promote watersaving programs, and reduce water consumption.

Factory
San-Hsia Factory
Tayuan Plant
Taoyuan Wires andCables Plant
Taoyuan 1st Plant

As for the wastewater management, all the factories and subsidiaries have granted
government approved "water pollution prevention measures" and "permit for
effluent", as well as setup wastewater treatment facilities based on the prevention
measures. All the wastewater treatment facilities are operated in accordance tothe prevention measures and the amount and quality of the effluent are regularly
tested and reported to the authorities. The rest results are all below the effluent
standard, therefore the effluent from Tatung will not have significant impacts to thebiodiversity of the nearby habitats and the recipient water bodies. The detailed
effluent information is disclosed on Table 6.3-2.

Average
Average
COD
Suspended
Treatment concentration substances
method(mg/L)
concentration(mg/L)
Factories
setup
wastewater
treatment
facilities inaccordance
to therequirementsofregulations.

Amount ofeffluent (M3/year)

Recipient Effluent
water
reused bybodyothers

16.55

3.94

5,076

Heng River

9.50

5.05

2,024

New Street
River

11.72

7.01

27,796

New Street
River

11.24

15.72

9,650

Old Street
River

Total

None

44,546

New installed cooling water circulation system
for transformer drier in Tayuan Plant
1: The data is collected from EPA’s declaration system Effluent standard for COD: 100 mg/L, SS: 30 mg/L.

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3,500

Management on the air pollutant emissions
The main air pollutants from the factories are NOx, SOx, and VOC. Tatung declares the amount of emissions
and pays air pollution control fees to the authority. From Figure 6.3-2 and Figure 6.3-3 we can see the emissionsof VOC have reduced gradually year by year and the emissions of SOx have slightly increased. The reason
could be more diesels were consumed by RTO (the treatment facility that eliminate VOCs by combustion) in
the factories.
Tatung sets up and operates air pollutant treatment facilities in the factories in accordance to the regulation.
Pollutant concentration is regularly tested and met the standard. In addition to optimize the air quality andreduce the impact to the surrounding environment around the factories, we have implemented pollutant
treatment facilities with higher VOCs removal efficiency, such as RTO (Regenerative Thermal Oxidizer) in thepast few years.

3,000

SOx

kg
100,000

2,464

80,000

3,048

2,825

2,500

1,500
1,000

2,049

1,351

72,920

1,087

2016

56,90760,00046,26834,68040,000

1,500

1,227

20,471

1,097
20,000

500
0

VOC

2,109

2,000

Waste reduction and management
Tatung's waste reduction concept is mostly from product design and manufacturing process improvement to
reduce the amount of industrial wastes. The wastes are properly categorized and stored in accordance tothe relevant regulations, and eventually commissioned by domestic qualified treatment companies or reusecompanies. Tatung audits the commissioned companies from time to time to ensure that the wastes areproperly cleaned up or reused.

NOx

2017

2018

2019

2020

2016

▲ Figure 6.3-2 Amount of NOx and SOx emissions

design and process
1 Product
improvement to reduce waste

2017

2018

2019

2020

▲ Figure 6.3-3 Amount of VOC emissions

labeled,and re-use
2 Classified,stored in the factory
3 treatmentcompanies

Entrust qualified waste

and re-use
4 treatmentcompanies

Audit the entrusted waste

Obtain waste being

treateddocument from5 properentrusted companies

t
trac
Con

In 2020, Tatung generated 2,568.32 tons of industrial wastes, of which 2,502.80 tons were general industrial
wastes and 65.51 tons were hazardous industrial wastes (Figure 6.3-4). Compared with the amount of wastes
in 2019, the amount was reduced by 22.13% and met the target (5% reduction each year). We will continue
to work hard to reduce the amount of wastes in the future.

Proper ent
treatm ent
docum

Six methods were used for wastes treatment in 2020 (as listed on Table 6.3-3). The factories also have beenworking hard to recycle and/or reuse the wastes in order to minimize the impact to the environment. 1,642.07
tons of wastes were reused (63.94% of total wastes) in 2020.
Wastes clean up and treatment flowchart

Table 6.3-3 Waste treatment methods in 2020
Reuse
General industrial
wastes (tons)
Hazardous
industrial wastes(tons)
Percentage ofeach treatment
method (byweight)Incinerate

Solidify

Landfill

Physicaltreatment

Heat
treatment

Total

Tons
3,500

1636.96563.547.03

2.56

274.4618.25

2,502.80

Hazardous industrial wastes

General industrial wastes

56.95
54.26

3,000

30.08

51.24

2.28

0

0.533

6.35

65.51

2,000

23.94%

0.36%

0.10%

10.71%

0.96%

100.00%65.51

72.47%

69.42%

63.94%

60.00%

40.00%

3,392.95
2,930.28

3,241.57
2,502.80

2,832.90

30.00%

1,000

20.00%

500

10.00%

075.45%

50.00%

1,500

63.94%

76.71%

70.00%

56.85

2,500

5.11

80.00%

2016

2017

2018

2019

2020

▲ Figure 6.3-4 Amount of wastes generated

0.00%

2016

2017

2018

2019

2020

▲ Figure 6.3-5 Waste reuse percentages

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6.4 Green products for a better earth
DMA:

Promotion and management on environmental friendly products
An explanation of why the topic is material

Policies

Goals and targets

Specific actions

Results of the evaluation of the management approach

Following the trend of energy saving and carbon reduction,
Tatung has strengthened the development of healthy,
environmentally friendly, energy saving, and high energy
efficiency green home appliances. In addition to slowing climatechange, it can also create business opportunities.

Actively promote environmental
protection, energy saving andcarbon reduction to reduce theimpact to the environment.

Products are awarded with Green
Mark, Energy Label, or Water Label.

Boundary for the Specific limitation regarding
Purpose of thematerial topic
the topic boundary
management approach

Commitments

1. Tatung is responsible to researchand produce environmental
friendly, energy saving, and watersaving products.
2. Tatung 3C is responsible for thepromotion and sales of green
products.

1. Apply Design for the Environment, DfE", in the design phase to
produce "recyclable, low pollution, toxic-free, resource saving,power saving, and durable" products to benefit the environment.
2. Apply for EPA’s Green Stores and promote energy saving andenvironmental friendly products.
3. Respond to green procurement and encourage all units ofthe company to take environmentally friendly products into
consideration when purchasing items.

1. In 2020, we had 5 models awarded with Green
Mark, 63 models awarded with Energy Label, and 12
models awarded with Water Label.
2. T a t u n g 3 C “ K a o h s i u n g H u a x i a S t o r e ” w a scommended as “Green Stores of Year 2019” by EPA
in 2020.
3. Received certificate of appreciation for promoting
green procurement from EPB, Taipei City
Government.

Tatungand its
subsidiaries.

Performance disclosure
is limited to Tatung Co.,and TCPC (Tatung 3C
Stores).

Reduce theenvironmental
impact from Tatung's
products.

Provide high-quality productswith innovative technology,
realize energy saving,environmental protection,and healthy life, and fulfill the
responsibilities of global citizens.

Responsibilities

Mechanisms for evaluating the effectiveness of the management
approach

Related adjustments to the management approach

Encourage the factories and subsidiaries to develop environmental
friendly products through 3P Program evaluation.

NIL.

Establishing solar PV systems to minimize air pollution and GHG
emissions
In line with the government's green energy policy and the changes in the global
industrial situation, Tatung has continued to innovate, steadily cultivated thesolar photovoltaic market, combined with intelligent technology and gradually
expanded from the early public housing roofs and landfill sites to the fish-electricity
symbiosis power stations, cemetery sites, and photovoltaic stadiums. Tatung
not only has good engineering quality and active innovation, but also be readyin the fields of power plant operation, green power transfer and renewableenergy certificates to work together for the liberalization of Taiwan's electricalindustry. By the end of 2020, Tatung has completed the solar photovoltaic powersystems with capacity of 161.73MWp, which can generate nearly 188.89 million
kilowatt-hours of electricity per year, with a carbon reduction of 96,145 tons/year2,
which is equivalent to the annual carbon reduction of about 5,500 hectares3 ofafforestation on flat land.
Tatung has invested in the field of renewable energy for more than 10 years. Its
long-term hard work has gradually gained recognition in the country. In recent
years, it has won the "2020 Public Construction Commission Golden Quality
Award” by Kaohsiung City Government. Tatung Forever Energy Company won"Honor Award of Golden Peak Award" issued by Outstanding Enterprise Manager
Association.

Honor Award ofGolden Peak Award

Looking forward to the future, Tatung will adhere to the sustainable development
strategy and actively promote the energy transformation in line with thegovernment's green energy policy. The goal is to complete 220MWp solar PV
systems accumulatively by the end of 2021. We are aiming to lead the solar powerindustry to reciprocate and innovate through various industry cooperation andto expand setup area for PV solar systems. We will provide more opportunities forcooperation in the solar energy industry. For more details about Tatung PV solar
projects, please browse: http://www.tatung.com.tw/solution/detail/16
2
3: The emission factor for electricity is 0.509 kg CO2e.
: Based on the research of Forestry Bureau (Study on Carbon Fixation and Growth Monitoring of the Plantations in Pingtung: tfbc-1010511), the carbon fix
amount is 17.6 tons/hectare/year for afforestation on flat land.

2020 Public Construction
Commission Golden
Quality Award

PV solar system on the roof of stadium at Sanxia Campus,
National Taipei University

PV solar system at No. 4 cemetery, Xinwu District, Taoyuan City

Target: 220MWp

161.73MWp
127.15MWp

43MWp

2016

70MWp

2017

91.70MWp

2018

2019

2020

2021

Total PV solar systems installed and our target in 2021

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Devote in developing environmental friendly
products

Providing high-quality products with innovativetechnology, realize energy saving, environmental
protection, and healthy life, and fulfilling the responsibilities
of global citizens is our vision. We tirelessly dedicate to thedevelopment of green products and many of them havebeen awarded with Green Mark, Energy Label, and Water
Label. There were 5 models awarded with Green Mark,
63 models awarded with Energy Label, and 12 models
awarded with Water Label in 2020. Please refer to Table
6.4-1 and Figure 6.4-1 for more details.
In addition to household products, Tatung is also
committed to developing high energy efficiency industrial
products. In 2020, we independently developed thenation's largest capacity 9,000kVA amorphous alloy diecast transformer, becoming the only manufacturer in
Taiwan capable of manufacturing ultra-large capacitytransformers. This transformer has low operating noise andlow energy consumption characteristics. The operating
noise value is about 5 decibels lower than the national
standard. The energy consumption is even compared tothe traditional 1,250kVA silicon steel iron core transformer.
Compared with the same capacity 9,000kVA siliconsteel type, the power consumption of this transformer
is reduced by 44.8%. If it operates for a year, it can
reduce the power consumption by 112,310 kw-hr, whichis equivalent to a reduction of 57 tons of greenhouse gas
emissions.

Table 6.4-1 Green products within the validity period
Green
Mark

Energy
Label

Water
Label

Electric fans

－

√

－

Refrigerators

√

√

－

Washing machines

－

√

√

Monitors－√－

Dehumidifiers

√

√

－

Products

Domestic air
conditioners

√

√

－

Amorphous transformers

√

－

－

√

－

－

√

－

－

Cast resin dry typetransformers
Amorphous cast-resin
dry type transformers
Note: as of 2021/4/7.

Power consumption
at 50% loadingPowerconsumption(kWH)

Promotion on green consumption

Power consumption
at 0% loading

700.00In addition to produce energy-saving, environmentally-friendly and watersaving products, Tatung also combines its own sales channel- Tatung
3C to promote green products. In addition to holding energy-saving
and environmentally-friendly product promotion activities from time totime, Tatung also has 22 Tatung 3C Stores4 been registered as GreenStore5 by EPA. The Green Stores of Tatung 3C will announce the typesof products sold in the stores with Green Mark, Energy Label, and Water
Label to strengthen consumers' recognition of Green Mark and Green
Consumption. This is able to promote the development of green industries
and reduce the adverse effect to the environment and to improve thequality of the environment. Thus, Tatung 3C "Kaohsiung Huaxia Store"
once again was commended as "Green Stores of Year 2019" by EPA in
2020.

600.00311.37 kWH

500.00Power consumption is
reduced by 44.8%

400.00300.00

Tatung 3C "Kaohsiung Huaxia Store" wascommended as "Green Stores of Year 2019" by
EPA in 2020.

308.59 kWH

200.00Unit

374.74 kWH

100.00

Tatung Co.
69.82 kWH

0.00
CRGO

Tatung 3C
StoresAMT

9,000kVA amorphous alloy die-cast transformer and its
energy saving performance
Unit：
ModelsEnergy
Label

Green
Mark

74
63

19
1

4 9

2017

9

2018

Tatung 3C energy saving products promotionsin 2020

22
4

2019

MeasuresResearching andproducing the
Applying for Green Mark, Energy
environmental friendly,
energy saving, and water Label, Water Label, or Carbon Label.
saving products.
● Registered as EPA’s Green Stores
Promoting and selling ● Holds energy-saving andenvironmental-friendly products
green products.
promotion activities from time totime.

As for the recycle on the wasted products, Tatung takes great attention
on this issue. Tatung pays "Recycling and Cleaning Fee" to the government
agency (Recycling Fund Management Board) to carry out countrywide
waste recycling affairs. Based on the statistics in 2020, the average
recycling rate for electric/electronic6 and information devices was
71.84%7. In addition to paying fees, Tatung proactively informs consumersof the recycling information of large home appliances8 on sales andonline shopping sites, and provides consumers with recycling services
for large home appliances, waste batteries and CD disc at Tatung 3C
stores to ensure that waste products enter legal recycling system to avoid
damage to the environment.

Water
Label

98

33 31

Responsibilities

Product and package recycling at the end of life

133

2016

Table 6.4-2 Green consumption promoting measures taken by Tatung

5 12

2020

In regarding to the packaging materials of household appliances andconsumer products, Tatung believes that the packaging materials arewell recycled. The reason behind this is the recycling channels in Taiwan
are well established and citizens are highly educated and aware to
do recycle in their households. For packaging materials (mainly wood/iron pallets or axles) used on large industrial products such as cables,transformers, power generators, motors, they are recycled and reused ondaily operations.

▲ Figure 6.4-1 No. of new certified or renewed green products
4: As of 2021/3/5.
: https://greenliving.epa.gov.tw/newPublic/Eng/Application/GreenStore
6: Refrigerators, washing machines, TVs, air conditioners, and electric fans.
7: https://recycle.epa.gov.tw/ConvenienceServices/Downloadss
8: Refrigerators, washing machines, TVs, and air conditioners.
5

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Total comprehensive income of the subsidiaries is attributed to the owners of the parent andto the non-controlling interests even if this results in the non-controlling interests having a
deficit balance.

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Contents

TATUNG 2020 Annual Report

If the Company loses control of a subsidiary, it:

A. derecognizes the assets (including goodwill) and liabilities of the subsidiary;B. derecognizes the carrying amount of any non-controlling interest;
C. recognizes the fair value of the consideration received;
D. recognizes the fair value of any investment retained;
E. recognizes any surplus or deficit in profit or loss; andparent’sof components
previously
recognized in othercomprehensive
Annex 1F. reclassifies
Tatung theCo.
andsharesubsidiaries
notes
to consolidated
financialincometoprofitor
loss.
statements

TATUNG CO., LTD. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Expressed in Thousands of New Taiwan Dollars unless otherwise Specified)

Holding percentage(a) The consolidated entities are listed as follows:

December 31, December 31,
Investor

Holding percentage

The Company

Investor
Investment Co., Ltd., Chih Sheng Realty

Subsidiary

Main businesses

Chunghwa Picture Tubes, Ltd.
(“CPT”) (Note1)

2020

2019

39.67%

39.67%

Tatung DIE Casting Co., Ltd.

(“TSTI”)

Software and hardware service and43.34%

San-Chih Semiconductor Co.,
Ltd.(“SCSC”)

Manufacture and sale of electronics

18.48%

18.48%

Telecommunication devices.

100.00%100.00%

Manufacture and sales of

70.14%

57.08%

100.00%100.00%

The Company

Tatung Consumer ProductsLtd.

99.10%

99.10%

Industrial coatings, electrocution(“TFC”)

54.63%

54.63%

Ltd. (“SCAD”)
The Company, SCAD and Chih-Sheng
Investment Co., Ltd.

Tatung Electric (Singapore) Pte.

Professional investment holding

Investment Co., Ltd.

100.00%

Tatung Co. of America Inc.

Note 250.00%

Manufacture of electronic products

Note 399.99%

Sale and purchase of IT products

Note 4100.00%

Manufacture and sales of motor

100.00%100.00%

Sales and service of IT andhousehold electronics products in

The Company
The Company
The Company

Tatung Mexico S.A de C.V.
Tatung Science and Technology,
Tatung Electric Company ofAmerica, Inc.

100.00%99.99%

products in the U.S.

100.00%

The Company

Tatung Netherlands B.V.

Sales of electronic products

100.00%100.00%

The Company

TATUNG CZECH s.r.o

Manufacture of IT products

100.00%100.00%99.99%The Company

Tatung Medical Healthcare

Design and sales of medical

95.85%

95.85%

86.05%

85.00%

Note 5100.00%Note 5100.00%estateChunghwa Electronics

100.00%Professional investment holdingInc.

production and sales of chemical
Shan-Chih Asset Development Co., Development and leasing of real

100.00%(“TMX”)

products
The Company

100.00%the US

coatings resistor coatings,

Investment Co., Ltd.

90.00%

Ltd.

digital computer products

Tatung Fine Chemicals Co.,

90.00%

Purchases, sales and services of raw

Tatung Information (Singapore) Pte. Professional investment holding

services
Sales of home appliances and(Taiwan) Co., Ltd.
Development Co., Ltd. and Chih-Sheng

Tatung Electronics(s) Pte. Ltd.

Ltd.

The Company

semiconductors and chips
EMCIRF testing and certification

100.00%material

The Company

Central Research Technology Co.,

100.00%

Sales and purchase of electronic
products

Industry Company Ltd.

The Company

99.99%

parts, home appliances and IT

The Company

The Company and Chunghwa Electronics

The Company, Chunghwa Electronics

Tatung Company of Japan, Inc.

43.34%(“FD”)
Taiwan Telecommunication

99.99%

Manufacturing and sales of IT
products, home appliances and AI

The Company

The Company

Development Co., Ltd.

Tatung (Thailand) Co., Ltd.

meter

Co.
Development Co., Ltd

The Company

system integration

The Company, and Chunghwa Electronics Forward Electronics Co., Ltd.

51.00%

Manufacturing and sales of casting
mold

The Company

products

The Company, Shan-Chih Investment Co., Tatung System Technologies Inc.

2019

51.00%

Main businesses

picture tubs and TFT-LCD

Co., Ltd.
Ltd. and Shan-Chih Asset Development

Manufacture, research and sale of2020

Subsidiary

December 31, December 31,
The Company, Chunghwa Electronics

TatungCSR Report

ANNEX

2021

Technologies Co., Ltd.
The Company

instruments.

Toes Opto-Mechatronics Co., Ltd.

Manufacture of data storage andprocess equipment

141

23

The Company

Tatung Vietnam Co., Ltd.

Manufacture and sales of home
appliances

The Company

Tatung Electric Technology (VN)Co., Ltd.

Manufacture and sales of wire andcable

The Company

Chih-Sheng Investment Co., Ltd.

Professional investment holding

100.00%100.00%

The Company and Chunghwa Electronics

Shan chih Investment Co., Ltd.

Professional investment holding

100.00%100.00%

The Company

Absolute Alpha Limited

Professional investment holding

100.00%100.00%

The Company

Tatung Forever Energy Co., Ltd.

Solar energy related business100.00%99.10%The Company

Leap High Limited

Professional investment holding

The Company

Tung Yang Energy Co., Ltd.

The Company
The Company
The Company

Investment Co., Ltd.

Note 665.00%

Solar energy related business100.00%100.00%Chih Kuang energy Co., Ltd

Solar energy related business100.00%100.00%Shan Shin energy Co., Ltd.

Solar energy related business100.00%100.00%Yau Yang Energy Co., Ltd.

Solar energy related business100.00%100.00%24

Consolidated statements

142

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TATUNG 2020 Annual Report

Appendix - Consolidated statements
TATUNG CO., LTD. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Expressed in Thousands of New Taiwan Dollars unless otherwise Specified)

TatungCSR Report

ANNEX

TATUNG CO., LTD. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Expressed in Thousands of New Taiwan Dollars unless otherwise Specified)Contents
Holding percentage

Holding percentage

December 31, December 31,
Investor

Subsidiary

Main businesses

2020

2019

December 31, December 31,
Investor

Subsidiary

Main businesses

2020

2019

The Company

Ting Shin Energy Co., Ltd.

Solar energy related business100.00%100.00%TMX

TMX Logistics, Inc.

Hub service

Note 3100.00%

The Company

Zhi Shin Energy Co., Ltd.

Solar energy related business100.00%100.00%TMX

TMX Technologies Inc.

Technologies & business

Note 3100.00%

The Company

Tung Kuang Energy Co., Ltd.

Solar energy related business100.00%-Investment holding

100.00%100.00%

The Company

Tung Shin Energy Co., Ltd

Solar energy related business100.00%-Information software Service

100.00%100.00%Software design and development

Shan Chin Investment Co. Ltd(Note 10)(Note 10)The Company

Chuang Shih Neng Co., Ltd.

Solar energy related business100.00%-(Note 10)CPT

Chunghwa Picture Tubes (Bermuda) Investment holding and sales of

CPTB

Chunghwa Picture Tubes (Malaysia) Manufacture and sale of CRT

Ltd. (“CPTB”)

100.00%100.00%100.00%100.00%

TFT-LCD

Sdn. Bhd. (“CPTM”)
CPTB

CPT Display Techology (Shen-

Investigation of market information

100.00%100.00%Zhen) Co., Ltd
Forward Electronics Co., Ltd.

Forward Development Co., Ltd.

Investment holding

100.00%100.00%Forward Development Co., Ltd.

Forward Electronics Equipment

Manufacture and sale of tuner,

100.00%100.00%(Dong Guan) Co., Ltd

keyboard, mouse, remote

Manufacture and sale of backlight

TSTI

Chyun Huei Commercial
Technology Inc.

TSTI

Tisnet Technology Inc.

100.00%100.00%TSTI

TSTI Technologies (Shanghai) Co., Information software Service
Ltd.

100.00%94.00%

Chih-Sheng Investment Co., Ltd.

Chih Sheng Investment (BVI) Co.,

100.00%100.00%Note 752.17%
100.00%Ltd
Chih-Sheng Investment Co., Ltd.

HEDA Biotechnology Co., Ltd.

100.00%100.00%Chih Sheng Holding Co., Ltd.

Investment holding

100.00%Chih Sheng Holding Co., Ltd. and CPTB

Goldmax Asia Pacific Ltd

Investment holding

51.26%

51.26%

Chih Sheng Holding Co., Ltd.

Chih Sheng Holding HK Limited

Investment holding

100.00%100.00%Absolute Alpha Limited

Tatung Information Technologies

Sales of electronic products

100.00%100.00%Design and construction of

99.87%

99.87%

50.61%

50.61%The Company and Shan-Chih Asset

Tatung Forestry and Construction
Co.

structural engineering.

Taipei Industry Corporation

Manufacturing sale of construction

Development Co., Ltd

related material and property
rental business.

socket and connector.
SCSC

Greater Power Limited

Investment holding

100.00%100.00%SCSCChih De Investment Co., Ltd.

Investment holding

100.00%100.00%

Tatung Fine Chemicals Co. and Shang

Tatung Coatings (Kunshan) Co.,

Manufacture and sale of industry

100.00%100.00%Ltd.

Tatung Fine Chemicals Co.

Manufacture and sale of printer ink,

Technology Materials Co., Ltd.

100.00%100.00%electro-deposition highperformance coating.

Tatung Fine Chemicals Co.

Shang Chih International Chemical Investment holding

Shang Chih International Chemical

Dongguan Tongli Trading Co., Ltd. Wholesale of painting, coating and100.00%100.00%100.00%100.00%Industry Co., Ltd.
Industry Co., Ltd.
Tatung Information (Singapore) Pte. Ltd.

chemical products.
Tatung Information Technology

Manufacture and sales of various

and Chih Sheng Holding HK Limited(Jiangsu) Co., Ltd.

electrical products

Tatung Information (Singapore) Pte. Ltd.

Tatung Compressors

Manufacture and sales ofand Shan-Chih International Holding(ZHONGSHAN) Co., Ltd.

100.00%100.00%100.00%100.00%

Tatung (Shanghai) Co., Ltd

generators and transformers

100.00%100.00%Shan-Chih Asset Development Co.

Shan-Chih Asset International

Investment Holding

100.00%100.00%Realty and Leasing Service

100.00%100.00%Investment Holding

100.00%100.00%100.00%100.00%Note 8100.00%Investment Holding

100.00%100.00%Investment Holding

Note 9100.00%100.00%100.00%100.00%100.00%Holding Corporation
Shan-Chih Asset International Holding

Shan-Chih Asset International Holding
Corporation

Tatung Chih Sheng EnterpriseManagement Cosulting
Shan-Chih Asset International(Hong Kong) Holding Limited

Tatung Forever Energy Co., Ltd.

Sheng Yang Energy Co., Ltd.

Solar energy business

Tatung Information (Singapore) Pte. Ltd.,

Myanmar Tatung Co., Ltd.

Sales and customer service of solar

and Tatung (Thailand) Co., Ltd.

energy, industrial motor, home
appliances, industrial air
conditioner

Tatung Information (Singapore) Pte. Ltd.

Tatung Myanmar JV Holding Co.,
Ltd.

Technologies Co., Ltd.
Tatung Medical Healthcare Technologies

reciprocating compressors.
Manufacture and sales of motors,

Shan-Chih International Holding

Realty management

Tatung Medical & Healthcare

Tatung Medical & Healthcare
Technologies Inc.
Insured Pharmaceuticals Co., Ltd.

Co., Ltd.

Corporation
Tatung Electric (Singapore) Pte. Ltd. andChih Sheng Realty Co., Ltd.

(Shanghai) Co., Ltd.

coating
Huaian Tatung Advanced

Shan-Chih Asset Development Co., Ltd

Corporation

coating and electro-deposition

Co., Ltd.

Produce, food retail and wholesale

Chih Sheng Investment (BVI) Co., Ltd

tuner, keyboard, mouse, switch,

Chih International Chemical Industry

Investment holding

industry

and Taipei Industry Corporation

unit for TFT-LCD, driving board,

Technology Co., Ltd.

Corporation

Shan-Chih Asset Development Co., Ltd

potentiometer.
Suzhou Forward Electronics

Shan-Chih International Holding

Corp.

controller, switch, socket and
Forward Development Co., Ltd.

development

100.00%100.00%

Tatung (Shanghai) Co., Ltd

Pharmaceuticals and warehousing
and transportation service

Tatung Xin Ji (Guangdong)Electrical engineering system

Technology Co., Ltd.

installation service

Corporation

143

25

26

Consolidated statements

144

(114)

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Annex 2
Contents

Business
Units
Heavy
Electrical
Equipment
BU

Cable BU

Motor BU

AdvancedElectronics
BU

Appliance
BU

Products and services provided by Tatung
Products and Services

Important Certifications

Researching, developing and manufacturing all kinds of transformers rated
345kV 1000MVA and under, all kinds of reactors rated 345kV 100MVAR andunder, gas insulated switchgears and outdoor gas circuit breakers up to 161kV
class, 36kV series of switchgear, power distribution equipment, and otherindustrial equipment.

Business
Units

Products and Services

Smart
Meter BU

Smart Meter BU provides various types of smart meters and AMI systems. Tatung
has the ability of integrating the systems of smart meter infrastructure andintegrating different communication technologies such as RF, PLC, 4G and NB-IoT
communications to develop smart meter application functions to meet customer
needs and improve system performance. It also became the sole aggregator of
demand response in Taiwan, and the first case has been successfully completed inearly 2020.

SystemIntegration
BU

System Integration BU is committed to specializing in the fields of informationand communication systems as well as electromechanical systems. The Dept. ofInformation and Communications Technology Services: we have more than 30
years for helping customers deal with the computerization and automation of
their systems and have endeavored to meet the needs of the ICT market in theera of technology. We’ve been a representative solutions provider of high-quality
system integration in Taiwan. We specialize in ICT system integration, network
security planning & implementation, and application software development.
We have rich capabilities and experience in large-scale system integration
solutions. Our service team members have owned a wide range of IT professional
skills, certificates and service network all over Taiwan by 13 direct branch offices
to provide customers fast services. We will continue to devote ourselves todeepening the fields of information and communication integration, cloud
applications, information security, outsourcing services, business intelligence andsystem development, and then will become the leading solutions provider in those
fields in the near future. The Dept. of Electromechanical Systems: When Taiwan’s
infrastructure constructions began in the 1960s and 1980s, Tatung Company
made an important contribution to the various infrastructure constructions suchas power generation, power transmission as well as power supply. Electrical andmechanical systems related businesses are:
1. Provide power plants, large substations, transmission & distribution systems, solar
power generation and motor related electromechanical integration services.
2. Residential and factory-built electromechanical engineering, including
planning as well as construction for smart building.
3. Sewage (waste water) treatment, which has reached the industrial waste
water Zero Discharge standard.
4. Traffic mechanical and electrical engineering for Rails and roads as well as sign
control systems.
We have owned cross-domain professionals, which covers various functionalities
such as power, electronics, mechanics, smart control, information technology,
communications, transportation and project management. They are responsiblefor integrating cross-domain professionals, coordinating cross-organizational
interfaces, providing integrated design, project management and maintenanceservices.

─

Solar
Energy BU

In order to cooperate with the professional team promoted by the government
policy, the Solar Energy Division invested in domestic public buildings and various
types of solar photovoltaic fields in the long term. Solar Energy BU provide renewableenergy project development, design, construction and maintenance services. The
solar team leverages the Group's supply chain integration advantages, coupledwith rich design planning and project management experience, the project
performance is spread across Taiwan. At present, it is actively expanding groundbased landfill sites and water-based sites, and additionally take mechanics andelectronics in advantage ability to enter the large-scale ground power station
market. In terms of maintenance, we could through smart monitoring technology
to develop business opportunities for maintenance of power plants, provide quality
maintenance services, and promote renewable energy policy.

─

Smart
Energy BU

Smart Energy BU (SEBU) consists of Micro-grid & Energy Storage System Teamand AIoT & Data Science Team. Dedicated in energy management systemdevelopment and energy storage system integration, this BU specialized in design
and implement regional energy supply in the collaboration with renewable andtraditional energy sources. The system can operate independently or work withthe main grid in the purpose reducing fuel consumption and ensure the stabilityof regional energy supply as well. As the real-time data collection IoT infra is alsoestablished while the energy operation and facility monitoring are being analyzed
and predicted in the cloud, the overall system dashboard is visually presented withthe predict maintenance undergoing constantly.

─

2306

4A4Y002

With more than fifty years of technical experience, this business unit is
responsible for manufacturing and sale of various wires, cables, optical fiber
cables and busway which are widely used in telecommunication, powertransmission, power distribution, solar photovoltaic generation system andvarious industrial equipment, home appliance and IT network & electronic
components.

With more than 70 years of technology and experience, Motor BU researches
and produces all kinds of energy saving high-efficiency, single phase, andthree phase high/low voltage motor from 1/8~50,000 HP, including a varietyof special motors and applications system such as premium efficiency
motors, electric vehicle motors, high temperature resistant motors, explosion
proof motors, wound rotor motors, vertical high thrust pump motors, gear
reducer, inverter driver motors, aluminum frame motors, brake motors, oil wellpump motors, water pump motors, immersible pump motors, built-in type
spindle motors, rolling mill motors, elevator motors, crane motors, permanent
magnet motors, IoT connected smart motor monitoring sensor and system,
railway traction motors, inverters, control panels etc., as well as provides totalsolutions for electrical testing equipment and plant power equipment systemengineering projects to serve a variety of industries.

2306

2306

AEBU focuses on providing design and manufacturing products & solutions to
global ODM/OEM customers. The product lines include: digital entertainment
and Internet-of-Things (IoT) products. The digital entertainment product line
includes gaming headsets, AI noise cancelation headsets, true wireless stereo,
smart speaker, streaming microphone, and entertainment accessories. The
IoT product line includes IP & streaming camera, smart energy management
and sensing-&-control products. Tatung’s customers can benefit from Tatung’s
fast reactions to accommodate market needs and flexibility in design
customization. The on-going research and development will further enhancecompetitiveness in features and costs of customers’ products.

Strengthen brand operation. We continued to enhance brand value with
innovative design, superior quality and technical services in both domestic
and overseas market. We served a wide range of products includingcommercial and residential energy-saving air-conditioners; Centennial Edition
Steam rice cookers, Easy cooker (Fusion cooker). We launched a series of cobranding rice cookers, Smart 4K TFT displays, and developed the new stylish
juicer, electric teapots and other small appliances. We actively participatedin product design competitions globally to improve the brand's exposurein the market. In the recent years, we have consecutively obtained majorinternational design awards such as the German iF Industrial Design Award, theReddot Design Award, the Japanese Good Design, and the Taiwan ExcellenceAward. We have also obtained multinational safety certification and Taiwan
MIT certification. To pursue the blooming AIoT trend, we developed smart
home appliances for smart energy saving and living applications. Throughsensing and IoT technology, a variety of terminal devices can be connected
to provide smart living solutions according to user’s needs, such as consumer
power management, remote control, scheduling control, and personalized
scenario modes, etc. Consumers can also integrate voice activated functional
services to enjoy digitized life experience.

R31001
RoHS

Important Certifications

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Contents

Annex 3

Factories and subsidiaries participated in 3P Program and Accident
Prevention Pays Program in 2020
Factories owned by Tatung

Subsidiaries

Tayuan Plant

Tatung Die Casting Co., Ltd.

Taoyuan Wires and Cables Plant

Tatung SM-Cyclo Co., Ltd.

San-Hsia Factory

Annex 4

Greenhouse gas emissions verified based on ISO 14064-1

The amount of GHG emissions in 2019 (verified based on ISO 14064-1)
Factory

Amount of GHG emissions (Unit: tons CO2e)
Scope 1

Scope 2

Taoyuan Wires and Cables Plant

395.6179

7,866.1639

Tatung Fine Chemicals Col., Ltd.

San-Hsia Factory

1,219.1026

7,168.5147

Taoyuan 1st Plant

Shan Chih Semiconductor Co., Ltd.

Taoyuan 1st Plant

16,561.4552

1,461.2861

Meter Factory

Forward Electronics Co., Ltd.

Total

18,176.1757

16,495.9647

Note: Only factories and subsidiaries with manufacturing function are participated in 3P program and Accident Prevention Pays program.

Note: The factories conduct GHG emission inventory and verification for the previous year by the end of each year. Hence, the amount of emissions foryear 2020 will be disclosed on "2022 Tatung Corporate Social Responsibility Report".

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Contents

Annex 5GRI Standards content index
GRI Content Index

GRI Standard

Disclosure

Pages/URL

Note

GRI 101: Foundation

Ethics and integrity

Pages/URL

102-2 Activities, brands, products, and services

15, Annex 2102-3 Location of headquarters

15, 16102-4 Location of operations

15, 16102-29 Identifying and managing economic, environmental, 29, 30, 39
and social impacts

102-5 Ownership and legal form

15102-31 Review of economic, environmental, and social topics

5, 29, 30, 39

102-6 Markets served

15, 16102-32 Highest governance body’s role in sustainability reporting

About this report102-7 Scale of the organization

15

102-35 Remuneration policies

27

102-8 Information on employees and other workers

15102-36 Process for determining remuneration

27

102-9 Supply chain

43, 44102-40 List of stakeholder groups

1, 2

102-41 Collective bargaining agreements-

102-42 Identifying and selecting stakeholders

1, 2

102-43 Approach to stakeholder engagement

1, 2

102-44 Key topics and concerns raised

3, 4

102-45 Entities included in the consolidated financial statements

Annex 1

102-46 Defining report content and topic Boundaries

11, 12102-47 List of material topics

8, 9, 10102-48 Restatements of information

About this report102-49 Changes in reporting

96, 98102-50 Reporting period

About this report102-51 Date of most recent report

About this report102-22 Composition of the highest governance body and its 26
committees

102-52 Reporting cycle

About this report102-23 Chair of the highest governance body26

102-53 Contact point for questions regarding the report

About this report102-24 Nominating and selecting the highest governance body25

102-54 Claims of reporting in accordance with the GRI Standards

About this report102-25 Conflicts of interest

27

102-55 GRI content index

Annex 5102-56 External assurance

Annex 6102-11 Precautionary Principle or approach

36, 37, 38

102-12 External initiatives

18

102-13 Membership of associations

17

102-14 Statement from senior decision-maker

Top management
statement

102-15 Key impacts, risks, and opportunities

Top management
statement, 17102-16 Values, principles, standards, and norms of behavior

33, 34, 36

102-18 Governance structure

25, 26, 28

102-19 Delegating authority

39

102-21 Consulting stakeholders on economic, environmental,
and social topics

Note

GRI 102: General Disclosures

15

No significant
changeStakeholder
engagement102-20 Executive-level responsibility for economic, environmental, 30, 39
and social topics

Governance

Disclosure102-1 Name of the organization

102-10 Significant changes to the organization and its supply chain

Strategy

GRI Standard
GRI 101: Foundation

GRI 102: General Disclosures

Organization
profileGRI Content Index

1, 2, 3, 4

102-26 Role of highest governance body in setting purpose, 25, 29, 30
values, and strategy

Reporting practice102-27 Collective knowledge of highest governance body25, 26102-28 Evaluating the highest governance body’s performance29, 30

Tatung does not haveany collective bargaining
agreements at the
moment.

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GRI Content Index
Contents

GRI Standard

GRI Content Index

Disclosure

Pages/URLNote

GRI Standard

Material topics

103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components

11, 12, 31, 32

103-3 Evaluation of the management approach

GRI 403:
Management
Approach

Disclosure on non-financial information
GRI 103:
Management
Approach103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components

11, 12, 31, 32

103-3 Evaluation of the management approach103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components

71, 72Disclosure 202-2 Proportion of senior management hiredfrom the local community

66

GRI 103:
Management
Approach418-1 Substantial complaints concerning breaches of 59
customer privacy and losses of customer data

Product quality and safety

103-2 The management approach and its components

403-5 Worker training on occupational health and safety

11, 12, 85

403-6 Promotion of worker health11, 12, 77, 78, 79, 80

403-9 Work-related injuries

86403-10 Work-related ill health86103-2 The management approach and its components

11, 12, 33, 34

419-1 Non-compliance with laws and regulations in thesocial and economic area

38, 65, 86

103-1 Explanation of the material topic and its Boundary

GRI 103:
Management
Approach103-2 The management approach and its components

11, 12, 63, 64

103-3 Evaluation of the management approach
11, 12, 47, 48

401-1 New employee hires and employee turnover103-3 Evaluation of the management approach

GRI 416: Customer
health and safety

4 0 3 - 4 W o r k e r p a r t i c i p a t i o n , c o n s u l t a t i o n , a n d 11, 12, 81, 82
communication on occupational health and safety

Employment103-1 Explanation of the material topic and its Boundary

GRI 103:
Management
Approach

11, 12, 83, 84

11, 12, 55, 56

103-3 Evaluation of the management approach

GRI 418: Customer
privacy403-2 Hazard identification, risk assessment, and incident
investigation

103-3 Evaluation of the management approach

GRI 419:
Socioeconomic
compliance103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components

11, 12, 83, 84

103-1 Explanation of the material topic and its Boundary

202-1 Ratios of standard entry level wage by gendercompared to local minimum wage

Customer privacy management
GRI 103:
Management
Approach403-1 Occupational health and safety management system

Comply with social and economic regulations

11, 12, 69, 70

103-3 Evaluation of the management approach

GRI 202: Market
presenceNote403-8 Workers covered by an occupational health and 83, 84
safety management system

Topic-specificdisclosures

Market presence
GRI 103:
Management
Approach

Pages/URL

Occupational health and safety

Corporate governance and ethical practiceGRI 103:
Management
Approach

Disclosure416-1 Assessment of the health and safety impacts of 51, 52
product and service categories
416-2 Incidents of non-compliance concerning the health 51
and safety impacts of products and services

GRI 401: Employment

65

401-2 Benefits provided to full-time employees that are not 68
provided to temporary or part-time employees
401-3 Parental leave

68

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GRI Content Index
Contents

GRI Standard

GRI Content Index

Disclosure

Pages/URLNote

GRI Standard

Training and education
GRI 103:
Management
Approach
GRI 404: Training andeducation

GRI 103:
Management
Approach

GRI 417: Marketingand labeling95, 96302-3 Energy intensity

101, 102

103-3 Evaluation of the management approach302-4 Reduction of energy consumption

99, 100

417-1 Requirements for product and service information and 53, 54
labeling

305-1 Direct (Scope 1) GHG emissions

97, 98, Annex 4305-2 Energy indirect (Scope 2) GHG emissions

97, 98, Annex 4305-5 Reduction of GHG emissions

99, 100

103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components

11, 12, 47, 48, 55, 56

417-2 Incidents of non-compliance concerning product and 53
service information and labeling

GRI 302 Energy

GRI 305 Emissions

Performance review and career development

GRI 404: Training andeducation

Comply with environmental regulations

103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components

11, 12, 69, 70

103-3 Evaluation of the management approach404-2 Programs for upgrading employee skills and transition
assistance programs

75, 76103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components

GRI 103:
Management
Approach103-2 The management approach and its components

11, 12, 91, 92

103-3 Evaluation of the management approach

GRI 307
Environmental
compliance307-1 Non-compliance with environmental laws and 93
regulations

Promotion and management on environmental friendly products

11, 12, 63, 64

103-3 Evaluation of the management approach103-1 Explanation of the material topic and its Boundary

405-1 Diversity of governance bodies and employees

25, 26, 65, 66

405-2 Ratio and basic salary and remuneration of women tomen

71, 72, 73

GRI 406: Nondiscrimination

406-1 Incidents of discrimination and corrective actions
taken

65

GRI 412: Human rights
assessment

412-1 Operations that have been subject to human rights 65, 67
reviews or impact assessment

GRI 405: Diversity andequal opportunity

103-1 Explanation of the material topic and its Boundary

404-3 Percentage of employees receiving regular 71
performance and career development reviews

Human rights, equality, and non-discriminations
GRI 103:
Management
Approach

11, 12, 95, 96

302-1 Energy consumption within the organization

417-3 Incidents of non-compliance concerning marketing 57
communications

GRI 103:
Management
Approach103-2 The management approach and its components
103-3 Evaluation of the management approach

75, 76

Marketing and labeling
GRI 103:
Management
ApproachNote103-1 Explanation of the material topic and its Boundary
11, 12, 71, 72

103-3 Evaluation of the management approach404-1 Average hours of training per year per employee

Pages/URLManagement on energy and GHG emissions

103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components

Disclosure

GRI 103:
Management
Approach103-2 The management approach and its components

11, 12, 107, 108

103-3 Evaluation of the management approach

GRI 302 Energy

302-5 Reductions in energy requirements of products andservices

107, 108, 109

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GRI Content Index
Contents

GRI Standard

Disclosure

Pages/URL

Note

Annex 6

Assurance statements

Other topics
Economic performanceGRI 201: Economic
performance

201-1 Direct economic value generated and distributed

19, 20201-2 Financial implications and other risks and opportunities
due to climate change

Top management
statement, 37

201-3 Defined benefit plan obligations and other retirement 74
plans

Anti-competitive behavior
GRI 206: Anticompetitive behavior

206-1 Legal actions for anti-competitive behavior, anti-trust, 57
and monopoly practices

Supplier management
GRI 308: Supplierenvironmental
assessment

308-1 New suppliers that were screened using environmental
criteria

43, 44, 45, 46

GRI 414 : Suppliersocial assessment

414-1 New suppliers that were screened using social criteria

43, 44, 45, 46

Labor/ management relations
GRI 402 Labor/
management
relations402-1 Minimum notice periods regarding operational 74
changes407-1 Operations and suppliers in which the right to freedom 67
of association and collective bargaining may be at riskChild labor, forced or compulsory labor
GRI 408: Child labor408-1 Operations and suppliers at significant risk for incidents
of child labor67

GRI 409: Forced orcompulsory labor409-1 Operations and suppliers at significant risk for incidents
of forced or compulsory labor

41

Management on wastes
GRI 306: Waste

306-3 Waste generated
306-5 Waste directed to disposal

105, 106
105, 106Management on water and resources
GRI 301: Materials
GRI 303: Water andeffluents

TUV Asia Pacific Ltd. Taiwan Branch (‘TUV NORD’) has been commissioned by the management of TATUNG Co. (‘the Company’) to carry out an
independent assurance of 2021 TATUNG Corporate Social Responsibility Report for the fiscal year 2020 (‘CSR Report’). TUV Asia Pacific CSR
Assurance Statement is based on AccountAbility AA1000 Assurance Standard v3 and the Global Sustainability Standard Board (GSSB) ReportingStandards GRI Standards.

TATUNG Co. is responsible for the collection, analysis, aggregation and presentation of information within the Report. TUV NORD’s responsibility in

Freedom of association and collective bargaining
GRI 407: Freedomof association andcollective bargaining

Assurance Statement301-1 Materials used by weight or volume103

301-3 Reclaimed products and their packaging materials

110

303-3 Water withdrawal

103, 104

303-4 Water discharge

103, 104

performing this work (assurance of the report) is in accordance with terms of reference agreed in the scope of engagement with the Company. The
management of TATUNG Co. are the intended users of this statement.

The assurance engagement is based on the assumption that the data and information provided to in the Company’s sustainability report is complete andtrue.
Nature and Scope the Assurance
TUV NORD has developed a set of protocols for the Assurance of Sustainability Reporting based on our professional experience, international assurance
best practice, AA1000 Assurance Standard v3 and the Global Sustainability Reporting Standards (GRI Standards), include the text, and data inaccompanying tables, contained in this report.
The assurance of the CSR Report for the fiscal year 2020 related to TATUNG Co. businesses (Headquarter, Tayuan Plant, Taoyuan Wires and Cables
Plant, Taoyuan 1st Plant, and San-Hsia Factory).
The content of the report includes the following:
1) Reporting of economic, environmental, and social indicators; the year of activities covered in the CSR Report is 01.2020 to 12.2020;
2) Information related to the Company’s issues, responses, performance data, case studies and underlying systems to manage Sustainability related
data and information;3) Information related to the Company’s adherence to inclusivity, materiality and responsiveness and stakeholder engagements;
4) The report is “in accordance” with the GRI Standards – CORE option.
Assurance Methodology
TUV NORD is a licensed global assurance provider of Sustainability services, with quality, environmental, social and sustainability assurance specialists
working all over the world.
Our assurance engagement was planned and carried out in accordance with the GRI Standards and the TUV Asia Pacific CSR Assurance Protocol for

AA1000 Assurance Standard v3 and the Global Sustainability Reporting Standards (GRI Standards). Assessment of the company’s adherence toinclusivity, materiality and responsiveness and stakeholder engagements was based on AA1000 Assurance Standard v3 and the GRI Standards.

Our assurance involved the following activities:* Gather objective evidence on the performance indicators as mentioned in the report.
* Review any issues raised by external parties that could be relevant to the Company’s policies.
* Review of expectations of local and national regulations; international standards and those of general concern both in the public eye and/or raised byexpert opinion.
* Documentation; record review and evaluation of the report contents against the GRI Standards application requirements.
* Discussion with managers and relevant staff on the Company’s approach to stakeholder engagement.
* Interviews with relevant staffs involved in sustainability management, gathering information and report preparation.
* Review key organizational developments.
* Review of internal and external audits findings.
* Review of supporting evidence based on the information made in the report.
* Sampling method used to ensure the correctness of the data

Management on water and air pollutants
GRI 305: Emissions

305-7 NOx, SOx, and other significant air emissions

105, 106

GRI 303: Water andeffluents

303-4 Water discharge

103, 104

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TatungCSR Report

ANNEX

Contents

Opinion Statement
The Company’s CSR Report provides an appropriate view of the Company’s CSR programs and performances during fiscal year 2020.
The economic, social and environment performance indicators as mentioned in the CSR Report are represented appropriately. The CSR performanceindicators disclosed in the report demonstrate the Company’s efforts recognized by its Top Management and stakeholders.
The report also presents the company’s performance in the wider context of sustainability.
GRI Standards, the recommendations are as follows:

In accordance with the AA1000 Assurance Standard v3 andJack Yeh
General Manager
TUV Asia Pacific Ltd., Taiwan Branch
Issue Date : 02.06.2021
TUV Asia Pacific Ltd., Taiwan Branch
Rm. A1, 9FL., No. 333, Tung Hua S. Rd., Sec. 2, Taipei, 10669, Taiwan R.O.C.

Stakeholder InclusivenessThe company well identified its stakeholders through CSR reporting committee, and collected 285 effectiveness questionnaires for materiality fromstakeholders, for 15 material topics in Economic, Environment and social aspect to be declared. The company has well identified the stakeholders, andexplained how it has responded to their reasonable expectations and interests. For further report, the principles of balance could be considered whilecollecting the material information from stakeholders.
Sustainability Context
The report has not only clear described the relationship between sustainability and organizational strategy as well as the context in which disclosures are
made, but also evaluated the material topics refers to Sustainable Development Goals (SDGs). The quantitative long-term goals on the economic,
environmental, and/or social topics reflect the related 6 SDGs goals could be declared in the further report.
Materiality
The material topics were identified based on the two dimensions of this reporting principle, also the aspect and boundaries were assessed throughquestionnaires feedback from stakeholders and prioritization of key managers & functional heads. The company’s CSR Report also declared twomaterial topics - “Corporate governance and ethical practice” and “Disclosure on non-financial information”. The company could consider to adding
more timely or updated disclosure channels for the implementation on “Disclosure on non-financial information” targets.
CompletenessThe report well included coverage of material topics, sufficient to reflect significant economic, environmental, and social impacts to assess thereporting of the company’s performance. For the reporting completeness, the company could consider to disclose the performance for supply chain
management through the effectively assess the risks for whole supply chain.

Reliability and accuracy of performance information:
In accordance to Type II, High level of assurance requirements, it can be concluded that the contents mentioned in the CSR Report isreliable. The Company has a robust management system for obtaining objective evidences and data for the reporting in the Company’s
CSR Report.
Statement of Independence and Competence
TUV NORD Group is the world’s leader in inspection, testing and verification, operating in more than 70 countries throughout the world and providing
services which includes management systems and product certification; quality, environmental, social and ethical auditing and training; environmental;social responsibility and sustainability report assurance.
TUV Asia Pacific Ltd. Taiwan Branch, affirms its’ independence from TATUNG Co. and confirms that there are no conflicts of interest with theorganization or any of its subsidiaries and stakeholders when performing the assurance of the CSR Report. TUV Asia Pacific Ltd. Taiwan Branch was
not involved in any manner with the said Company, when the latter was preparing the CSR report.
The assurance team consists of well experienced, qualified and registered Quality - ISO 9001、ISO 14001、ISO 14064-1、ISO 45001、SA 8000、
QC080000、ISO 50001、ISO 27001 Lead Auditors. The team based on their qualifications, extensive knowledge and experience of the industry provided
the much required expertise for this assignment.

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Annex 7
Contents

Feedback Survey FormThanks for reading "2021 Tatung Corporate Social Responsibility Report", and sharing Tatung's achievements
toward sustainable development. Tatung welcomes your opinions and believes that communication should
be a dialogue. In order to present the next edition in clearer and understandable way, please take a few
minutes to fill in your opinions or advices and return it to us.
Mailing address:

Health & Safety Division, Tatung Co.,
No. 22, Chungshan North road. 3rd sec., Taipei, Taiwan

e-mail：csrreport@tatung.com
1.

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Opinions：

2.

In what chapters are you most impressed in this report?

□Top Management Statement□Identification on the stakeholders and material topics□Profile of Tatung Company□Organization structure and governance□Responsible supply chain, product safety, and customer service□Happy workplace and social participation□Sustainable environment
Opinions：

3.

In what chapters do you think needed to be improved in this report?

□Top Management Statement□Identification on the stakeholders and material topics□Profile of Tatung Company□Organization structure and governance□Responsible supply chain, product safety, and customer service□Happy workplace and social participation□Sustainable environment
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