Tatung
CSR Report▲ PV roofing on Kanhai Park’s public buildings -the largest single PV field of 1991.4kWp in Hsinchu.

2020
TATUNG CSR"2020 Tatung Corporate Social Responsibility Report" has been prepared inaccordance with the GRI Standards: Core option and AA1000 AS: 2018. We
expect this report is able to present a more focused content to the needs of the
stakeholders, as well as sharing the sustainable achievements done by Tatung in asystematical 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 San-Hsia Factory.
Due to TCPC is mainly in charge of the sales of Tatung's house appliances andconsumer products, part of TCPC's information (sales activity and consumer
data management) is also disclosed in this report. The disclosure boundary ofsome material topics may be beyond the scope above and will be speciﬁcallydescribed in its DMA.

▒

About thisreportPrevious reports

This report is our 19th non-financial
report since 2002. The previous report
was published in June 2019.

Contact Point forquestions regarding to
the report

This report is prepared by "CSR
Reporting Committee" and thecontact 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/en/responsibility_rp.asp
The contents of the English version are translated
from Chinese version. Tatung has done the best
to ensure the accuracy of this report. If there
is any discrepancy, the latest information fromthe relevant departments of the company shallprevail.

Reporting cycle and reporting period

Tatung Corporate Social Responsibility Report is published before the end ofJune annually. Unless otherwise stated, the data and activities in this report aregathered from 2019.1.1~2019.12.31.

Restatements of information

The energy usages and GHG emissions for year 2015~2018 are restated (page 78,80). The reasons are:
1. The factories carried out GHG emissions external veriﬁcations for year 2018 by
the end of 2019.
2. The government official issued the latest electricity emission factor for year2018.
3. Small amount of electricity of Meter Factory (base in Taoyuan Wires andCables Plant) are added in 2015~2018.

CSR Report preparation procedures

1. Gather sustainable topics, reporting standards, veriﬁcation standards, etc.
2. Identify stakeholders and material topics of the year, and submit to"Corporate Governance Committee" for approval.
3. Prepare the report in accordance to reporting standards.
4. Submit the drafted report to "Corporate Governance Committee" forapproval.
5. Conduct third party veriﬁcation for the report.
6. Submit the report to Chairman for issuance.

Data measurement techniques

Financial data is cited from the annual report and presented in New Taiwan
Dollars. Social, quality and environmental performance ﬁgures are presented inmetric units, and the data reported to the authorities is preferentially used. The
rest of data is from internal statistics of the relevant divisions of the company.

External assuranceThis report has been veriﬁed by TÜV Asia Paciﬁc Ltd. Taiwan Branch (TUV NORD)
based on AA1000AS:2018 (Type 2, high level assurance) and GRI Standards. The
assurance statement is enclosed in Annex 6.

Resilience,
Adaptability andSustainability

Chairman▒Topmanagement
statement

Tatung has upheld the spirit of "Integrity, Honesty, Industry, and Frugality"
and a down-to-earth attitude since founded. We are committed toinnovation, talent cultivation and cross-industry cooperation. While thecompany pursues the growth in operations and profits, we also actively
practices environmental protection, social integration, and corporate
governance (ESG) to pursue the sustainable development and fulfill
corporate social responsibilities.
In terms of environmental protection, in response to the risks andchallenges brought by climate change, we have launched various actionplans. In terms of creating clean energy, we have accumulatively installedabout 130MW of solar power system by the end of 2019, and intended toacquire large-scale power plants in Chi-Gu Solar and Fishery co-existence
special zone, Tainan. This project is expected to get on grid before theend of 2021. We constructed an intelligent system to make the main bus
station of Pisek, Czech Republic go smart. The project won "2019 Smart City
Systems Integration Award" and demonstrated our ability in solar energy
system, smart meter, cloud hosted energy management, and cloud-hosted
environment monitoring system. In the development of environmentallyfriendly, energy-saving and water-saving green products, Tatung, the ﬁrst
company in Taiwan, launched the large horsepower 60Hz IE4 induction
motor series up to 200HP and in the household appliance products, 22models have won Green Mark, 98 models have won Energy Label, and 4
models have won Water Label in 2019. We will continue to establish thesmart solutions of green energy, energy creation and energy saving toﬁght climate change and work with customers and consumers to achieveenergy-saving, environmentally friendly and healthy lives.

In terms of social integration, in the past few years, we have worked together with the supply chain to implement
corporate social responsibility and introduced CSR-related issues into the supplier's on-site evaluation. In 2019, we further
issued "Declaration of Minerals Conflict-Free from Tatung Company" to refuse to use the minerals from conflict region
and declared to the suppliers to follow. To support Taiwan's performing art groups, we co-created the children's drama,"Rescuing Power Kingdom", with Eyuan Puppet Theatre. The drama was performed to 7 elementary schools in a tour
nationwide in 2019. Concepts of energy saving, healthy living, and environmental protection were also incorporated in
the play to better inﬂuence students on their daily habits. In an effort of bringing care and positive attitude towards life
to the underprivileged children, we organized the Tatung Charity Soccer Summer Camp for the 9th consecutive year byutilizing our unique soccer resources. A total of 340 vulnerable children of grade 1-9 from 15 orphanages were invited tothe summer camp. We aim to educate all participants the spirit of teamwork and sportsmanship through the playing of
football game and hence have the spirit put into practice in their everyday life.
In terms of corporate governance, Tatung has "Corporate Governance Committee", with independent directors andexternal directors as members, responsible for reviewing the effectiveness of corporate governance-related business
implementation. In 2019, we appointed the chief of Legal Division as the chief corporate governance ofﬁcer to assist withcorporate governance related matters. Tatung also 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 of ESG and sustainable
development.
Look into future, Tatung is a pioneer in Taiwan's home appliances and electromechanical systems. We have excellent
capabilities and experiences in integration of various advanced systems. In recent years, it has been under transformationof green energy combined with intelligence. Since the outbreak of COVID-19 in 2020, the world economy faces serious
downturn and critical challenges from overall market. We will focus on stabilizing core operations as the driving forces forfurther growth. On the one hand we will seek strategic partnerships and drive the value of Tatung brand and channel.
On the other hand, we will establish the smart solutions of green energy, energy creation and energy saving to slow
down global warming. While pursuing company development, Tatung will continue to deepen corporate governance,
and from the perspective of stakeholders, improve ESG information disclosure, and fully communicate with stakeholders.
Tatung will use "resilience, adaptability, and sustainability" to advance towards the vision of sustainable development.

35

About this report
Top Management Statement
2019 CSR Highlights

CH4

11
CH2

▒

Contents

Proﬁle of Tatung
Company
2.1 Company proﬁle01
CH1
Identiﬁcation on thestakeholders andmaterial topics
1.1 Identiﬁcation on thestakeholders andengagement channels
1.2 Identiﬁcation on thematerial topics
1.3 Tatung andSustainable
Development Goals

2.2 Financial
performances
2.3 Services and products

19
CH3

Organization structureand governance
3.1 Corporate structure
3.2 Corporate governance

Responsible supply chain, productsafety, and customer service
4.1Responsible supply chain
4.2Product responsibility
4.3Sales and customer information management

49
CH5
Happy workplace andsocial participation
5.1 Building a friendly working
place
5.2 Good working conditions
and career development
5.3 Health, safety, and disasterfree
5.4 Participation and beneﬁts tothe society

93
ANNEX

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 programand Accident Prevention Pays
Program in 2019
Annex 4 Greenhouse gas emissions
veriﬁed based on ISO 14064-1
Annex 5 GRI Standards content index
Annex 6 Assurance statements
Annex 7 Feedback survey form

71
CH6
Sustainable
environment
6.1 Management on theenvironment
6.2 Energy consumption
and GHG management
6.3 Resources consumption
and pollutants
management
6.4 Green products for abetter earth

2020
TATUNG CSRSocial aspect:■ No. of discrimination, forced, orcompulsory labor incident.

■ Percentage of local employees.
■ Average salary ratio between female

and male employees.
■ Percentage of employees who arelabor union members.
■ Average education/training hours per
employee■ Education and training satisfaction.
■ Correction percentage of"Occupational Accident Prevention
Pays" program.

▒■ Supplier commitment letter.
■ Management on conﬂict minerals.

2019 CSR
Highlights■ Consumer satisfaction.
■ No. of complaints about information

leaking received from the consumers.

Economic-governance aspect:

Environmental aspect:■ No. of awards.

5■ Electricity reduced.

2.82 Million kw-hr

62.5%■ GHG emissions reduced.

1,500 tons CO2e

The performance of the boardof directors: Good.

■ Percentage of products achieved

1.26 ∼ 1.51：1■ Waste recycling percentage.

■ Percentage of external/independent

directors in the board.

■ Governance.
■ Ratio between staff's basic salary andlegal salary.
■ Percentage of managers from local inhigh level management■ Disclosure on non-ﬁnancial information.

energy intensity target.

100%• Published CSR report for 18
consecutive years.

■ Green products.

• MSCI ESG Ratings: A.
■ Promotion on green consumption.
■ Solar power systems capacity on grid.

093.23%
0.85 ∼ 0.90：1
70.65%
12.46 hours
91.69%
100%
New introduced suppliers 100% signed
backIssued "Declaration of Minerals ConﬂictFree from Tatung Company" anddeclared to the suppliers to follow.
Maintenance: 95.3%.
Shipping: 97.0%.
085.71%
69.42%• Green Mark: 22 models
Energy Label: 98 models
Water Label: 4 models• Certiﬁcate for "Apply Green Mark for 20
consecutive years" from EPA
TCPC"s TungHai Exibition Center andHuaxia Store won "Green Stores of theYear" from EPA
127.15MWp accumulated (approximately
80,000 tons CO2e reduction/year)

2020
TATUNG CSR

Table 1.1-1 List of stakeholders and engagement channels

Identiﬁcation on
the stakeholders
and material
topicsListening and responding to the topics which are concernedby the stakeholders is a key element for a company to achievesustainable development and carry out corporate social 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 ofchannels.

1.1 Identiﬁcation on the stakeholders andengagement channels

Meaning to Tatung

Communication channels and frequencies

Shareholders

The investors who support Tatung.

- Shareholders' meeting / Once per year
- Irregular shareholders' meetings, direct phoneline (+886-2-25925252 ext. 3258), shareholder
e-mail / Irregular- Disclosure of ﬁnancial information on ofﬁcial
website and MOPS (market observation post
system) / Every month

Customers

The companies having business with Tatung.

Customer service, PM / Irregular

Employees

The most valuable assets. With theirinnovated ideas and experiences, Tatung iscapable to counter any challenges.

- Chairman's mailbox, HR mail box, complaint
mechanism, scheduled education and training,
notice board / Irregular- Biweekly HR newspaper / Once per 2 weeks- Health and Safety Committee in the headquarterand factories / Once per 3 months- Labor-management meeting / Once per 3
monthsLocalcommunities
and parties

Tatung's good neighborhood. Bycommunicating with them, Tatung is able toﬁnd out what more we can do to carry out
corporate social responsibility.

- Direct phone lines / Irregular- Social charity/donation activities / Irregular

Authorities

Instructors of Tatung. Following thegovernment policies and complying withregulations is the basic principle of Tatung.

- Onsite audits / Irregular- Hearings, seminars / Irregular

Suppliers

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

- Supplier complaint mailbox supplier@tatung.
com / Irregular- Supplier evaluation, annually re-evaluation /Once per year
- Supplier assessment / Once per monthConsumers

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

- TCPC phone lines (+886-800052666), Tatung 3C
Stores, ofﬁcial websites, etungo online shopping
website / Irregular- Satisfactory survey / Upon shopping or repair
service

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 theoperation of the company or any organization or persons having impacts to the company. Sevenstakeholder groups such as shareholders, customers, employees, local communities and parties,
authorities, suppliers and consumers have been 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.

»1»

» »

CH1

Stakeholder
groups2

2020
TATUNG CSR
Identification on thestakeholders and material topics

1.2 Identiﬁcation on the material topics

Table 1.1-2 Topics concerned by the stakeholders and our responses
Stakeholder
groupsShareholders

Customers

Concerned topics
Governanceand ﬁnancial
performances

Product quality andcustomer information
management.

Tatung's responses

Chapters

1. Seeking partner to strengthen Tatung brand andchannel business.
2. Establishing the smart solutions of green energy,
energy creation and energy saving.
(1) Continuing to develop solar power plants.
(2) Integrate energy storage, smart meters andmicro-grids to develop proﬁtable business model.
(3) Seeking foreign strategic partners to accelerate
and expand the installation of solar power plants.
3. To realize the implied value by developing land
assets.
4. Focus on core businesses, and continuously dispose
non-core or loss-making businesses to optimize
company structure.

2.2、2.3

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

4.2、4.3

Table 1.2-1 Material topics identiﬁcation procedure

Employees

Labor rights, welfares

Complying with labor and health and safety regulations.

5.1、5.2、5.3

Local
communities
and parties

Pollutant emissions,interaction with local
communities

1. Installing air pollutant and wastewater treatment
facilities.
2. Participating in community development andcharities events through commercial activities, noncash property endowments, volunteer service andother free professional services.

5.4、6.3

Carrying out internal control and internal audit to ensure
conformity.

3.2、6.1

Authorities

Suppliers

Consumers

Compliance

The quality of partsand products,
the requirements
regarding tohazardous substances

Establishing ISO 9001, enhances supplier quality
management, products that pass related veriﬁcations.

Product safety
and labeling,
personal information
management

1. Complying with product safety and labeling
regulations, and establishing feedback and antirecurrence mechanisms.
2. Establishing ISO 27001 to enhance information
management.

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 concluded 26 possible sustainable topics
that may have impacts to the stakeholders and to the company based on the past operation experiences, futurecompetitive 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.

Tatung integrates the past operation experiences, future competitive strategies, and thefollowings to identiﬁy the sustainable topics that related to our operations:
1. GRI Standards' topic-speciﬁc standards;
2. SDGs;
3. Other companies' experiences in the industries.

Step 2:
Ranking.

1. Invite stakeholder to complete surveys (including online survey) to collect their opinions inregarding 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 and deﬁne the topics withcombination grading 12 and above as material topics.

Step 3:Conﬁrmation.

Submit the prioritized topics and material topics list to "Corporate Governance Committee"
for conﬁrmation. The outcome will be the material topics in CSR Report of the year.

Step 4:
Reporting.

CSR Reporting Committee discusses the contents of the report and in accordance to GRIStandards to gather and present the information.

Table 1.2-2 Tatung's sustainable topics

4.1

4.2、4.3

1»3»

Step 1:
Identiﬁcation onsustainable topics.

Economic andgovernance dimension
Economic performance

Supplier management

Child labor, forced orcompulsory labor

Management on water andresources

Market presence

Employment

Social participation

Management on energy and
GHG emissions

Corporate governanceand ethical practice

Performance review andcareer development

Product quality and safety Management on wastes

Disclosure on nonﬁnancial information

Labor/management
relationsMarketing and labelingManagement on water andair pollutants

Anti-competitive
behavior

Training and education

Customer privacy
management

Promotion and management
on environmental friendly
products

Human rights, equality,and non-discriminations

Comply with social andeconomic regulations

Comply with environmental
regulations

Occupational health andsafetyFreedom of associationand collective bargaining

Management1on theenvironment

Social dimension

Environmental dimension: In the identification of sustainable topics this year, Tatung considered that the management practices of "Management on the environment" topic
have been included in other environmental topics. In order to avoid repeated reports, it was deleted from the list of sustainable topics. When Corporate
Governance Committee later on reviewed sustainable topics and material topics, it instructed to put "Management on the environment" topic back into
the list of sustainable topics and set it as one of the material topics of this report.

» »

CH1

4

2020
TATUNG CSR
Identification on thestakeholders and material topics

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 groups of the
stakeholders are from those were contacted by the members of CSR Reporting Committee and those who took
online survey on the CSR Report downloading page of the company's ofﬁcial website during December 5, 2019 to
December 31, 2019. Totally 295 surveys were recovered and the most concerned topics were ranked. Please see
Figure 1.2-1 for details.
Low

Corporate governance and ethical practice
Product quality and safety

Employment→

High
Economic andgovernancedimension

High

SocialdimensionLevel of impact to the company ↓Customer privacy management

Degree of concerns↑

Economic performance←

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 comprehensively evaluated and discussed the degree ofconcerns from the stakeholders. The topics with multiplied score above 12 points were deﬁned as material topics(located in the blue area on Figure 1.2-2) and reported to Corporate Governance Committee for conﬁrmation.

Environmental
dimension

Comply with environmental regulations
Labor/management relations
Marketing and labelingMarket presence
Occupational health and safety
Promotion and management on environmental
friendly roductsManagement on wastes
Comply with social and economic regulations

Disclosure on non-financial information

5.000

Low

Human rights, equality, and non-discriminations

Management on energy and GHG emissions
Social participation
Anti-competitive behavior
Management on water and resources
Performance review and career development
Freedom of association and collective bargaining

4.000

5
7

3.500
3.000

12
13
15

2.000

24
26

3.3000

23

22

21

20

3.80003.9000253.40003.5000Low

3.60003.70004.0000← Degree of concerns to the stakeholder →1 ▪ Corporate governance andethical practice2 ▪ Product quality and safety

5 ▪ Disclosure on non-financial
information
6 ▪ Occupational health and safety

3 ▪ Comply with environmental
regulations
4 ▪ Customer privacy management

7 ▪ Management on energy and
GHG emissions
8 ▪ Marketing and labeling

14 ▪ Management on water and air
pollutants
15 ▪ Economic performance18 ▪ Social participation

22 ▪ Supplier management

19 ▪ Human rights, equality, andnon-discriminations
20 ▪ Employment

23 ▪ Training and education

21 ▪ Market presence

4.1000High

9 ▪ Management on wastes

4.20004.300013 ▪ Labor/management relations2

10 ▪ Promotion and management onenvironmental friendly products
11 ▪ Comply with social andeconomic regulations
12 ▪ Management on theenvironment
26 ▪ Child labor, forced orcompulsory labor

24 ▪ Freedom of association andcollective bargaining
25 ▪ Performance review and careerdevelopment▲ Figure 1.2-2 Distribution of the material topics

2

»5»

2

19

17 ▪ Management on water andresources▲ Figure 1.2-1 Degree of concerns on the sustainable topics by Tatung's stakeholders

10

4

18

2.500

1.000

8

9
14

16

17

3

6
11

16 ▪ Anti-competitive behavior

Child labor, forced or compulsory labor

Environmental dimension

1

Supplier management
Training and education

Social dimension

4.500

1.500

Management on water and air pollutants

Economic and governancedimension: Corporate Governance Committee considered labor/management relations as an important corporate governance strategy, so this topic was directlylisted as a material topic in this report.

» »

CH1

6

2020
TATUNG CSR

CH1Identification on thestakeholders and material topics

Table 1.2-3 Material topics in recent 3 years
Material topics in 2018 Material topics in 2019

Material topics in 2020 and their meanings to Tatung

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

Disclosure on nonﬁnancial information

Product quality andsafetyDisclosure on
non-ﬁnancial
information

Disclosing relevant and reliable ESG information candemonstrate the company's achievements towards
sustainable development, as well as communicate withstakeholders.

Comply with social andeconomic regulations

Comply with social andeconomic regulations

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

Labor/management
relationsCustomer privacy
management

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

Occupational health and Labor/management
safetyrelationsOccupational
health and safety

It is our responsibility to provide a safe working
environment for employees.

Product quality and safety Marketing and labelingMarketing andlabeling

This is our corporate social responsibility to ensure that "themarketing and labeling of products and services should
follow the relevant laws and international standards, andshould not damage the rights and interests of consumers."

Comply with socialand economic
regulations

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

Customer relation
management

Occupational healthand safety

Management on energy
and GHG emissions

Management on theenvironment

Labor/
management
relations

Tatung integrates labor management levels, working
together for coexistence and common prosperity, so that
employees can feel at ease and satisﬁed with each job.

Management on wastes

Comply withenvironmental
regulations

Comply withenvironmental
regulations

Management on waterand air pollutants

Management on wastes Management onenergy and GHG
emissions

These four topics echo the principles of Tatung's
sustainable environmental development principal: "theeconomic 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.

Environmental friendly
products

Management on waterand air pollutants

Management on
wastesComply withManagement on energy Management onenvironmental regulations and GHG emissions
the environment-»7»

Environmental friendly
products

Promotion andmanagement onenvironmental
friendly productsThis topic echoes Tatung's product design concepts:"Environmental friendly, energy saving and water saving."

Table 1.2-4 The boundaries of material topics
Dimensions

Material topics

Corporate governance
Economicand ethical practice
andgovernance
Disclosure on nonﬁnancial information
SocialTatungSubsidiaries Suppliers DMA pages
Company

GRI indicators

UN SDGs

■

△

▲

26

Not Applicable

■

△

-

26

Not Applicable

Product quality andsafety

■

△

▲

40

GRI 416-1、416-2

Not Applicable

Customer privacy
management

■

△

▲

45

GRI 418-1

Not Applicable

■

△

▲

63

GRI 403-1、403-2

■

△

▲

40、45

GRI 417-1、417-2、
417-3

Not Applicable

■

△

▲

27

GRI 419-1

Not Applicable

■

△

▲

55

GRI 402-1

■

△

▲

74

GRI 307-1

Occupational healthand safety
Marketing and labelingComply with social andeconomic regulations
Labor/management
relations
Environment Comply withenvironmental
regulations
Management onenergy and GHG
emissions

■

△

－

77

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

Management on
wastes

■

△

▲

83

GRI 306-2

Management on theenvironment

■

■

▲

74

Not Applicable

Promotion andmanagement onenvironmental friendly
products

■

■

－

88

GRI 302-5

Not Applicable

Not Applicable

Not Applicable

Note: ■ 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 not disclosed in this report; ▲ represents that the relevant management measures are applied to the
suppliers, the detailed information in disclosed in Chapter 4.1.
Note 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 theirofﬁcial websites.

» »In this report, we have identiﬁed 13 material topics. In terms of economic and governance dimension, the topics
are Corporate governance and ethical practice and Disclosure on non-ﬁnancial information. In terms of social
dimensions, the topics are Product quality and safety, Customer privacy management, Occupational health andsafety, Marketing and labeling, Comply with social and economic regulations, and Labor/ management relations.
In terms of environmental dimension, the topics are Comply with environmental regulations, Management onenergy and GHG emissions, Management on wastes, Promotion and management on environmental friendly
products, and Management on the environment. We can ﬁnd from Table 1.2-3 that the material topics in the past
three years have not changed much. We will make detailed responses to these 13 material topics in the following
chapters. The correlation of each material topic in the value chain is shown in Table 1.2-4.

8

2020
TATUNG CSR
Identification on thestakeholders and material topics

1.3 Tatung and Sustainable Development Goals

Table 1.3-1 Measures taken for responding SDGs
SDGs

»9»

Description■ By 2030, empower and promote■ Complying with human

Ensuresustainableconsumption
and production
patterns.

■ By 2020, achieve the■ Complying with RoHS and REACH

Take urgent
action tocombatclimatechange and its
impacts.

■ Integrate climate change■ Carrying out green house gases

Measures

Ensure accessto water andsanitation forall.

■ By 2030, improve water quality

Ensure accessto affordable,
reliable,sustainable andmodern energy
for all.

■ By 2030, increase substantially the■ Expanding solar power systems

Promoteinclusive andsustainableeconomic
growth,employment
and decent
work for all■ By 2030, achieve full and■ Ensuring the salary paid to theby reducing pollution, eliminating
dumping and minimizing releaseof hazardous chemicals andmaterials, halving the proportionof untreated wastewater andsubstantially increasing recycling
and safe reuse globally.

share of renewable energy in the
global energy mix.
■ By 2030, double the global rate of
improvement in energy efﬁciency.

productive employment anddecent work for all women andmen, including for young people
and persons with disabilities,
and equal pay for work of equalvalue.
■ Protect labor rights and promote
safe and secure working
environments for all workers,
including migrant workers, inparticular women migrants, andthose in precarious employment.

■ Maintain well function of thewaste water treatment facilities in
the factories to ensure the qualityof the efﬂuents are complied withthe standards.

and aim to achieve 197MWp
capacity by the end of 2020.
■ Raising energy efﬁciency on
the products and continually
applying for Energy Label, Green
Mark, and Water Label.
■ Strengthen the ability in the ﬁeld
on smart energy managementand dispatching by combining
with energy storage, smart metersand micro-grids.

employees is complied with theregulations or better.
■ Conducting “Working condition
monitoring”.
■ Establishing ISO 45001 Health and
Safety Management System toreplace the current OHSAS 18001
by the end of 2021.

Measures

Reduceinequality within
and amongcountries.

Table 1.3-1 Measures taken for responding SDGs
SDGs

Description
the social, economic and politicalinclusion of all, irrespective ofage, sex, disability, race, ethnicity,
origin, religion or economic orother status.
■ Ensure equal opportunity andreduce inequalities of outcome,including by eliminating
discriminatory laws, policies
and practices and promoting
appropriate legislation, policies
and action in this regard.

environmentally soundmanagement of chemicals
and all wastes throughout theirlife cycle, in accordance withagreed international frameworks,
and signiﬁcantly reduce theirrelease to air, water and soil inorder to minimize their adverse
impacts on human health andthe environment.
■ By 2030, substantially reduce
waste generation throughprevention, reduction, recycling
and reuse.
■ Encourage companies,
especially large and transnational
companies, to adopt sustainable
practices and to integratesustainability information into theirreporting cycle.

measures into national policies,
strategies and planning.
■ Improve education, awarenessraising and human andinstitutional capacity on climatechange mitigation, adaptation,
impact reduction and early
warning.

rights regulations, supporting
gender equality, and banning
discrimination of any form are
set in the clauses of "Tatung
Corporate Social Responsibility
Best-Practice Principles".
■ Recruiting only on capability. The
starting salary ratio for male andfemale employees is 1:1.

regulations to ensure a green
supply chain.
■ 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.
■ Recycling wasted large home
appliances, batteries, and CDs in
Tatung 3C Stores.
■ Publishing Tatung CSR Reportin June every year to disclosecompany's sustainable
information.

inventory every year based on
ISO 14064-1.
■ Announcing 2nd stage energy
saving target – the products'
energy intensity will be 6% lower in
2023 when comparing to 2018.
■ Having environmental
education courses opened
to the employees, and GHG
management course to thespecialties.

»

UN announced Sustainable Development Goals (SDGs) in September 2015 to be a roadmap to sustainable
development for the next 15 years. Corporations are playing important roles to the success of SDGs. As alocal company who has been deeply plowed for a century, Tatung supports SDGs and integrates the goalsof "Responsible consumption and production", "Reduced inequalities", "Decent work and economic growth","Affordable and clean energy", "Clean water and sanitation", and "Climate action" into our sustainable strategies.
Among the material topics identiﬁed this year, "Promotion and management on environmental friendly products","Occupational health and safety", "Product quality and safety", "Management on wastes", "Disclosure on nonﬁnancial information", and "Management on energy and GHG emissions" are also correspond to SDGs' goal 7, 8,
12, and 13. The measures taken for SDGs are listed on Table 1.3-1.

10

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CH1

2020
TATUNG CSR

2.1 Company proﬁleEstablished 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 dedicated to manufacturing energy-saving products, systems andservices with three business groups working on smart grids, smart communities and smart households
to produce a number of energy-saving and highly efficient electronic products, household
appliances, high efﬁciency smart motors, power supply facilities and automatic control products.
They are fully integrated with information and communication systems as well as well-rounded andinstant services in relation to their products and solutions.

CH2

Our smart grids rely upon our system solutions and power business groups for the supply of smart
electricity meters, communication modules, concentrators, FTU/FRTU, high-efﬁciency and energysaving motors and transformers and switch/ control gears, etc. We also provide such fully integrated
system solutions and technological services as AMI communication and system control stations,advanced power distribution automation, smart transformer stations and power plants.

Proﬁle of Tatung
Company

Capital (Billion NTD) :NT$23.395
NT$
23.395Insofar as our smart community is concerned, our business groups of system solutions haveintegrated solar power systems, energy-saving systems, other recyclable micro-grid systems,
the SHMS system (for household energy saving, security, and health care), and the SBMS system(for corporate smart buildings to manage energy saving) into our well-rounded solutions andtechnological services.

Sales revenue (Billion NTD):
NT$17.826
NT$
17.826
No. of employees:
2,910

For smart homes, we have integrated the our manufactured appliances and system solutions into
an advanced solution for smart home applications which can be used on cell-phones or tablets,
together with our cloud services, in order to provide a energy-saving, convenient, safe and healthysmart life as we offer smart, energy-saving and environment-friendly household appliances, IP
cameras, surveillance systems, smart gateways, energy-saving sensors, environmental sensors, etc.
Tatung is equipped with core technologies to manufacture important products in the systemsolutions while working with strategic business partners to target the world market. For more
information about us, please visit "TATUNG Ofﬁcial Channel 1".

Operation sites:• 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

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 Forward Electronics (8085),
Tatung Fine Chemicals (4738: Emerging stock market), Elitegroup Computer Systems (2331), andTatung System Technologies (8099). Please refer to Annex 1 for the list of consolidated entities.

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.

»» 11 »: TATUNG Ofﬁcial Channel- https://www.youtube.com/user/TATUNGTW/featured

12

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1

2020

CH2

TATUNG CSRCompany profile

Table 2.1-1 Membership status in the associations or organizations

Taiwan Tatung Co.
Headquarter

Power BG︱Power Equipment BU / Motor BU

San-Hsia Factory
Tayuan Plant

Consumer BG︱Advanced Electronics BU / Appliance BU

Tayuan Wires andCables Plant
Tayuan 1st Plant

Czech

China

Association/organization

System BG︱Smart Meter BU / Solar Energy BU / Smart Energy BU /Electrical Engineering Division / System Integration BUINVESTMENTS︱Forward Electronics, Tatung System Technologies,

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

Japan

MemberTaiwanThailandSingapore

Association/organization

MemberManaging
role2

The Third Wednesday Club■

Taiwan Digital Television Committee■

Chinese International Economic Cooperation
Association■

Chinese Institute of Engineers■

Chinese Blood Donation 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■

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■

Taiwan Water Pipe Engineering Industries
Association■

Taiwan Metal Industry Association■

BELLWETHER International Group■

European Chamber of Commerce Taiwan■■

The American Chamber of Commerce inTaipei■■Taiwan Electric Power Association■

Taipei Electrical Commercial Association■

Taiwan Telematics Industry Association■

Taiwan Wind Energy Association■

Taiwan Electrical and Electronic
Manufacturers’ Association
Taiwan Refrigeration and Air-Conditioning
Engineering Association R.O.C.
Monte Jade Science & Technology Associationof Taiwan
Taiwan Institute for Climate Change andEnergyU.S.AManaging
role2

■

■

■
■

■

Taiwan Association of Energy Service
Companies
Taiwan Association of Information andCommunication Standards

■

■
■3

Taiwan Motor Industry Association■

Taiwan Environmental Engineering Association■

Taiwan Smart Grid Industry Association

■

■

■

Taiwan Power and Energy Engineering
Association■■

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

■

Table 2.1-2 The main domestic subsidiaries
Optoelectronics

Chunghwa Picture Tubes, Ltd.
Forward Electronics Co., Ltd.*
Shan Chih Semiconductor Co., Ltd.
Tatung Forever Energy Co., Ltd.

Energy Solutions
Business▲ Figure 2.1-2 Tatung Co. global network

Tung Yang Energy Co., Ltd.
Chih Kuang Energy Co., Ltd.
Shang Shin Energy Co., Ltd.
Yau Yang Energy Co., Ltd.

Retail Channel
Business

Electronics &Information BusinessIndustrial ApplianceBusiness and System
Chemical Engineering
Business
Asset Development
Business

Ting Shin Energy Co., Ltd.
Zhi Shin Energy Co., Ltd.
Tatung Consumer Products (Taiwan) Co.,
Ltd.

OthersTatung System Technologies Inc.*
Central Research Technology Co., Ltd.
Toes Opto-Mechatronics Co. Ltd.
Tatung Fine Chemicals Co., Ltd.*
Shan Chih Asset Development Co., Ltd.
Chunghwa Electronics Development Co.,Ltd.
Shan Chih Investment Co., Ltd.
Tatung Medical & Healthcare
Technologies Co., Ltd.
Tatung Die Casting Co., Ltd.
Chih Sheng Investment Co., Ltd.

Note: *As of 2019/12/31 Listed/OTC and Emerging companies.

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

»

3

14

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2

2020
TATUNG CSRCompany profile

Table 2.1-3 Awards received in 2019Award

Description
Tatung constructed an intelligent system to make the main bus station of Pisek,
Czech Republic go smart. The project utilized applications of solar energy
system, smart meter, cloud-hosted energy management, and cloud-hosted
environment monitoring system.

2019 Smart City Systems
Integration Award
Taiwan Excellence Silver Award2019

100th Anniversary Cooker

Taiwan Excellence Award 2019

Toaster grill

Energy Conserving Award by
Bureau of Energy

Taoyuan Wires and Cables Plant

Certiﬁcate of Appreciation forLong-term supporting Green Mark.

Environmental Protection Agency issued Certiﬁcate of Appreciation forsupporting and receiving Green Mark for 20 consecutive years.

Table 2.1-4 Initiatives endorsed by Tatung
Organization

Item

Chinese Blood Donation
Association

Corporate blood donation

Health Promotion
Administration

Smoke-free/Healthy workplace

2.2 Financial performances
2019 is the 101th anniversary of the founding of Tatung Company. Although affected by the huge losses of the two
investment companies, Chunghwa Picture Tubes, Ltd. (CPT) and Green Energy Technology Inc.(GET), the overall
operation results of Tatung have turned around with proﬁts contributed from Shan Chih Asset Development Co., Ltd(SCAD). Facing global business challenges, Tatung will continue to engage in corporate transformations toward
the development of green energy, energy saving, energy storage, and smart energy. In 2019, Tatung's standalone
revenue was NT$17.826 billion, core business operating loss was NT$0.864 billion; together with non-operating
income from investments, the net proﬁt after tax was NT$2.876 billion which resulted in earning of NT$1.24 per share.
The standalone revenue in 2019 was declined 6.9% compared with 2018. The results combined with declined
in consumer products sales and sales grown in industrial products such as motors and power equipment. The
standalone operation losses were came from home appliance and power equipment, which account for a
relatively high proportion of the overall revenue, due to market competition with gross margin decreased. Tatung
has cut off low-margin rate product lines and adopted various cost reduction measures. Also we continuously
invested resources in development of energy and smart management systems to boost our revenue growth andprofitability, with a view to expanding its niche-oriented energy and systems business. In the investments, CPT's
application for bankruptcy is being reviewed by the court, and GET was ruled bankruptcy by the court in early2020. The impact of the two investment companies on Tatung in 2019 has gradually weakened. In addition, SCAD
has begun delivering house units to buyers of project Tatung Manor ﬁrst phase and recognized proﬁts by portion in
2019. The net investment income in 2019 was about NT$5.29 billion which mainly came from the dispose of lands of
SCAD and the continuous operation improvement of all other investment companies.
Tatung operates normally on a daily basis and accepts no financial support from the government. For moredetailed ﬁnancial performances, please refer to "Tatung 2019 Annual Report" which can be downloaded at:
http://www.tatung.com.tw/Content/annual-report.asp

Table 2.2-1 Financial income and expenses of Tatung
Item

2015

2016

20174

2018

2019

Operating revenue

18,151,104

17,259,632

17,482,835

19,138,488

17,825,749

Realized gross proﬁt

1,581,503

2,404,376

2,164,903

2,064,017

1,789,027

Personnel expenses5

2,518,948

2,403,307

2,379,086

2,329,118

2,269,620

Income from operations(966,334)(51,462)(177,326)(391,692)(863,857)(2,107,282)(2,363,313)

280,968(10,313,757)

3,466,194(1,399)70,83036,67562,543

273,542(3,075,015)(2,343,945)

140,317(10,642,906)

2,875,879

Earnings per share (NT$)(1.35)(1.03)

0.06(4.75)

1.24

Dividends per share (NT$)

0

0

0

0

0

Unit: NT$
Non-operating income
Thousand ( )and expenses
represents
negative values Income tax beneﬁt

Net loss attribute to equity
attributable to owners ofparents

4

5» 15 »: Tatung has changed the measurement of investment property from cost model to fair value model starting from January 1, 2018. As a result, Tatung
restated its ﬁnancial statement for year 2017 and the ﬁnancial data disclosed in this report was updated as well.
: Personnel expenses include salaries, staff labor and health insurance, pension, and others.

»

Tatung received many awards and certiﬁcations on operations and products in 2019 (Table 2.1-3). Tatung also
endorses initiatives in regarding care disadvantaged groups and employee's health (Table 2.1-4). All theseacknowledgements from all sides are certainly the drive behind the growth of Tatung.

16

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2020
TATUNG CSRCompany profile

2.3 Services and products

Consumer BG
Except Taiwan's ﬁrst brand in rice cooker, the main products include commercial and household products are allwith energy-saving and smart controlling. Through sensing and IoT technology, all products can provide services
such as consumer power management, remote control, scheduling control and personalized smart living. In
recent years, Consumer BG has won iF Industrial Design Award (Germany), Red Dot Design Award (Germany),
Good Design (Japan) and Excellence Awards (Taiwan). Moreover, its sub-brand "Yin-hsian in fresh" is conducts asmart agricultural monitoring system that can accurately control the greenhouse environment and help farmers toengage in high-efﬁciency, high-quality and high-capacity smart agriculture.

330,267
5,308,973
414,068

In recent years, Power BG has continued to adjust its product portfolio, and in response to market demand, has
successively developed new smart products with environmental protection and low energy consumption traits. It
has also developed new products such as GIS and reactors, contributing to capture the business opportunities in
the growing renewable energy market. With more than 70 years capabilities and experiences, Power BG produce
various energy-saving with high efﬁciency motors, including ultra-high-efﬁciency IE3 /IE4 motors, explosion-proof
motors, TSMS, and TiMS in advanced the competitors. It also invested to develop high-voltage electric vehicle
motors combined with controllers to capture opportunities of growing electric vehicle market.

3,582,593
1,172,276

2017

13,432,551

19,084,084

3,821,659
978,1032018

12,573,065

966,800
800,850
99,498

2019
792,836

9,266,499
4,108,390

25,301,644

15,916,997

36,964,275

13,032,806
4,248,993

2015
600,0172016

3,115,095

32,655,577

13,660,197

406,978
33,567,544

9,057,769
3,577,037

2017
326,5374,374,752
4,837,812

2018

23,041,902

1,757,928
1,416,591

6,491,023
4,359,505

2019

1,109,253

05,000,000

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

Note: The segment of real estate development department was added since 2019 and the values in 2018 were also modiﬁed.

The sales values are shown on Figure 2.3-1.

» 17 »

OthersExportPower BG

17,995,465
14,543,661

2016

System BG
We installed over 130MW solar power plants by the end of 2019, and intend to acquire large-scale power plants
in Chi-Gu Solar and Fishery co-existence special zone, Tainan. This project is expected to start to installation in
2nd half of 2020 and get on grid before the end of 2021. With excellent power-related experience and system
integration capabilities, we are the only one authorized electricity demand and dispatching aggregator by
Tai-Power Company, which demonstrating our technical capabilities with long term accumulated. Beyond
domestic market, System BG, with its total solutions of complete smart meters and systems, successfully
penetrated to international markets such as Japan, Thailand, Malaysia, and the Middle East. There are great
business opportunities to expand in ASEAN. In 2019, System BG participated in the regional energy storage
equipment technology demonstration verification program of the Energy Bureau of the Ministry of Economic
Affairs, and successfully won project of Zhang-bin grid-connected veriﬁcation system of the Industrial Technology
Research Institute. It will integrate the 10MW / 10MWh battery system and will become the first cross-brandenergy management system in Taiwan for heterogeneous battery integration. The move will strengthen the
our capabilities in smart energy management and power dispatching with very solid foundation in the coming
liberalized electricity market.

Real estate development
department

19,932,691

14,987,003

2015

Consumer productdepartment

NT$ Thousand▲ Figure 2.3-1 Tatung's domestic and export sales values»

Climate change caused by global warming poses risks to businesses and also creates opportunities. Tatung
will continue to focus on green energy, energy saving, energy storage, and smart energy, combine with IoTtechnology to deepen the core technology of smart energy management. With the performance of forwardlooking performances, Tatung is going to become a leading manufacturer with a full range of product and service
delivery capabilities in the era of power freedom. For detailed product information, please refer to Annex 2. The
focus of operations in 2020 is as follows:

Machinery andenergy department

Domestic

Tatung holds three business groups. To sustain strong and long-term growth, Tatung focuses particularly on thedevelopment of advanced technologies and global network of operation. With its overseas branches, Tatung is ina solid position to deliver products more efﬁciently and render customer services more effectively.

Opticaldepartment

18

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2020
TATUNG CSR

3.1 Corporate structure
The governance structure of Tatung is shown on Figure 3.1-1. The top management level is shareholders' meeting,followed by board of directors, chairman, president, and executive vice president. There are three functional
committees under board of directors, such as audit committee, remuneration committee, and corporate governancecommittee, to assist directors. Currently the chairman and president positions are both Wen-yen Kuo Lin . Apart fromthe administrative divisions, Tatung is also consisted with Power BG, Consumer BG, System BG, and domestic/overseas
subsidiaries.
1

POWER BG

CH3

Organization
structure andgovernance

CONSUMER BG

Power Equipment BU
2Motor BU

AdvancedElectronics BU
3Appliance BU

4Smart Meter BU

TARGET
Short-termtargetInternal Audit Committee

TARGET

President

Executive
Vice President

Solar Energy BU
Smart Energy BUElectrical Engineering
Division

Corporate Governauce Committee

Long-term
targetChairman

SYSTEM BG

1. Appointing chief corporate governance officer to be responsible
for corporate governance related matters, implement corporate
governance, and improve the effectiveness of the board of directors.
2. Conducting the performance evaluation for the board of directors
and the functional committees in order to strengthen corporate
governance and enhance the functions of the board of directors andvarious functional committees.
3. Revising the relevant principles of corporate governance at any timein accordance with the latest published version from the authority.
1. The board of directors appointed chief of Legal Division 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 "Good" for both ofthem.
All operations follow the company's corporate governance related
principles and comply with the evaluations of corporate governance.
The company's managers and all employees abide by the ethicalcorporate management to avoid illegal incidents and ensure thecompany's sustainable operation and performance, and continue
to care for the environment, consider social and culture factors, andstrengthen corporate governance to fulﬁll corporate social responsibility.

Remuneration Committee

Mid-term
targetCorporate governance

Board ofDirectors

Audit Committee

Performancein 2019

Shareholders'Meeting

System Integration BU
Human Resources &General Administration Division
Finance & Accounting Division
Stock Affairs Division
Procurement Division
Management Information
System Division
Legal Division

Note : The figure was updated to March, 2020.
Note 1: Owns Tayuan Plant and Taoyuan Wires and Cables Plant at
Dayuan Industrial Park in Taoyuan City.
Note 2: Owns San-Hsia Factory in Sanxia district, New Taipei City.
Note 3: Owns Taoyuan 1st Plant in Dayuan district, Taoyuan City.
Note 4: Owns Meter Factory in Taoyuan Wires and Cables Plant.

Disclosure on non-ﬁnancial information

Product Verification andCustoms Department
Health & Safety Division
Domestic Subsidiaries
Overseas Subsidiaries

Publish CSR report every year in accordance to the regulation.

▲ Figure 3.1-1 Tatung operation structure» 19 »: Chairman Wei-Shan Lin resigned and the board elected director Wen-Yen K. Lin to take over chairmanship on February 1, 2018. Tatung has been fullyin compliance with law and regulations for corporate governance and business operation. To strengthen corporate governance, the Board has set up
Corporate Governance Committee to assist company operation be conducted under the realm of professional managers.

»

1

20

»

Performancein 2019

Published "2019 Tatung Corporate Social Responsibility Report" in June.
The report has been uploaded to Tatung's ofﬁcial website and MOPS.

2020
TATUNG CSR

CH3Organization structure andgovernance

Shareholders' meeting

Tatung has Stock Affairs Division to be responsible for receiving suggestions or questions raised by shareholders. The boardof directors and senior managers jointly understand the opinions and concerns of shareholders, and clearly explain thecompany's policies to obtain shareholders' support. Tatung has set up an "Investors" section2 on the company's ofﬁcial
website to disclose financial and corporate governance related information, and also immediately announces theinformation that need 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 systemof 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 board of directors has 8 members3 which consisted with three independent directors and two external directors
to guide company strategy, supervise 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 their ability 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. Basicrequirements and values, professional background, knowledge and skills of nominators are taken into account. As
outcome, the proportion of directors with employee status is 12.5%, the proportion of female directors is 12.5%, theproportion of independent directors is 37.5%. Each director has expertise like law and ﬁnance and from various industries.
Please refer to Table 3.1-1 for our directors' information.
The board of directors has held 16 meetings in 2019. The status for the attendance of directors is listed on Table 3.12. When there is event of conﬂicts of interest during board of directors' meeting, Tatung follows related regulations toresolve it. The case of directors' withdrawing from motion due to conflict of interest in 2019 was: Board meeting on
2019.08.14 (subsequent meetings) with discussion on Tatung's Lending Funds and endorsement and guarantee to its
subsidiary Shan Chih Semiconductor Co., Ltd. Director Wen-yen K. Lin, Lung-ta Lee, and Peng-fei Su was evaded andnot participating in voting in accordance with Article 206 of the Company Law.
In order to strengthen corporate governance and enhance the functions of the board of directors and various
functional committees, Tatung has "Board and Functional Committee Performance Evaluation Guidelines". The boardof directors and functional committees of the company shall perform at least one internal performance evaluationeach year. In addition, the board of directors shall perform at least one external performance evaluation every three
years. The results of internal and external performance evaluation shall be completed before the board of directors
held within three months after the start of the second year and submitted to the board of directors. The proceduresfor the establishment of directors' remuneration, in addition to the provisions of the Articles of Association, are basedon the above criteria and the relevant measures of the functional committees. The relevant performance appraisal
and remuneration rationality are reviewed by the functional committees and the board of directors. At any time, thedirectors' remuneration system will be reviewed in a timely manner depending on the actual operating conditions andrelevant laws and regulations.
2
3» 21 »: http://www.tatung.com.tw: The member of the board of directors will be re-elected on Shareholders' meeting in 2020.06.30. The information of the board members in this report is stillbased on the 2017 election results.

Name / Title

Basic requirements
and values

Professional background

Professional knowledge and skills

Gender Nationality

Educational background

Ability Ability to Ability to
Ability to Knowledge
An
Ability to Ability to
to make perform
conduct conduct crisis of the international lead make
operational accounting management management industry
marketpolicyjudgments and administration
perspective.
decisionsﬁnancial
analysis.

R.O.C.

Master of Economics, Maryland
University

√

√

√

√

√

√

√

√

Male

R.O.C.

Bachelor of MechanicalEngineering, Tatung University

√

√

√

√

√

√

√

√

Male

R.O.C.

Doctor of Philosophy, LLD Instituteof the Law of the Sea National
Taiwan Ocean University

√

√

√

√

√

√

√

√

Sheng-Wen Tsai
Male
Director

R.O.C.

Bachelor of Accounting Fu-Jen
University

√

√

√

√

√

√

√

√

Lung-Ta Lee
Director

Male

R.O.C.

Ph.D. of Chemical Engineering,
Tatung University

√

√

√

√

√

√

√

√

Male

R.O.C.

√

√

√

√

√

√

√

√

Male

R.O.C.

√

√

√

√

√

√

√

√

Male

R.O.C.

√

√

√

√

√

√

√

√

Wen-Yen K. Lin
FemaleChairman
Representativeof Tatung
University
I-Hua Chang
DirectorShou-Huang
Chen
DirectorPeng-Fei Su
Independent
Director
Tzong-Der Liou
Independent
Director
Chi-Ming Wu
Independent
Director

M.S. in Graduate Institute ofBusiness Administration, National
Chengchi University
Ph. D., Nagoya University,
Japan Chair Professor, Nagoya
University, Japan
Ph.D. in Finance, University ofMississippi, U.S.A.

Table 3.1-2 The status for the attendance of directors

37%
50~60

63%
Over 60▲ Figure 3.1-2 Age distribution of theboard members

Title

Name

Attendancein person

Attendanceby proxyAttendance
rate (%)

Chairman

Wen-Yen K. Lin

16

0

100

Director

TatungUniversity / I-Hua
Chang

15

1

93.75

DirectorShou-Huang
Chen

14

2

87.50

Director

Sheng-Wen Tsai

16

0

100

Director

Lung-Ta Lee

16

0

100

Independent
Director
Independent
Director
Independent
DirectorPeng-Fei Su

16

0

100

Tzong-Der Liou

16

0

100

Chi-Ming Wu

16

0

100

»

In order to maintain a two-way communication channel with shareholders and investors, Tatung has implemented anelectronic voting system since 2007. Through electronic voting, shareholders can directly participate in decision-making,reduce agency costs and risks, and increase shareholders' willingness to exercise voting rights and practice the spirit of"shareholder activism". In 2019, the number of shareholders to exercise voting rights by electronic voting was 19,516, andthe total number of electronic voting rights was 670,464,200.

Table 3.1-1The policy to diversify the membership of the board has been carried out

22»

The shareholders' meeting is composed of all shareholders. Tatung follows the Company Act, Securities and Exchange
Act and other relevant laws to hold a regular shareholders' meeting every year, and accepts the proposals ofshareholders holding more than 1% of the total issued shares of Tatung to the shareholders' meeting, and in accordancewith the rules of procedure to implement the matters that must be resolved by the shareholders' meeting and fullycommunicate with shareholders. The director nomination system adopts the candidate nomination system and the termof ofﬁce is three years. The independence of the candidates for independent directors also complies with the provisionsof 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 Tatungin accordance with the law.

2020
TATUNG CSR
Organization structure andgovernanceInternal Audit Committee

Table 3.1-5 Remuneration to directors in 2019

Tatung has Internal Audit Committee (which is responsible to Board of Directors) to assist the board of directors
and managers 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.
Job title/Name

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 2019 was
to review the quarterly report, semi-annual report, annual ﬁnancial report and proﬁt distribution table; revise the internal
control system and related policies and procedures;, material asset or derivatives transactions; offering or issuanceof any equity-type securities; material lending founds, endorsements or guarantees; hiring or dismissal of an attesting
CPA, or the compensation given thereto; significant investment evaluation and management; and corporate risk
management, etc. Table 3.1-3 shows the member attendance status.

Attendance in person

Attendance by proxy

Attendance rate (%)

ChairPeng-Fei Su

20

0

100

MemberTzong-Der Liou

20

0

100

Member

Chi-Ming Wu

20

0

100

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 theboard of directors according to law, which is responsible for prescribing and periodically reviewing the performance andthe compensation policy, system, standards, and structure for directors and managerial ofﬁcers, as well as periodicallyevaluating and prescribing the compensation of directors and managerial ofﬁcers on the ﬁrst quarter of each year.
Table 3.1-4 shows the attendance status of Compensation Committee in 2019.
The Board of Directors is authorized to determine the transportation allowance and remuneration to directorsof 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 theCompany's business on the order of the Board of Directors. The appointment, dismissal and remuneration ofpresidents and vice presidents shall be subject to the Company Law. Furthermore, remuneration will also be
allocated from the Company's earnings, if any, in accordance with Article 24 of the Company Regulations.

Table 3.1-4 Status for the attendance of Compensation Committees» 23 »

Name

Director
Lung-Ta Lee
Director
I-Hua Chang

2,640

15,270

-

-

-

30

600

1,160

11,16011,592

-

-

-

-

-

-

Director
Sheng-Wen Tsai
Independent-Director
Peng-Fei Su
Independent-Director
Tzong-Der Liou
Independent-Director
Chi-Ming Wu

Compensation Committee

Title

Chairman
Wen-Yen K. Lin

Attendance in person

Attendance by proxy

Attendance rate (%)

Chair

Chi-Ming Wu

2

0

100

MemberTzong-Der Liou

2

0

100

MemberPeng-Fei Su

2

0

100

Note: This Table is cited from 2019 Tatung Annual Report. Please refer to page 19 and page 20 for more information.

Corporate Governance Committee

In order to have sound corporate governance, Tatung has established a Corporate Governance Committee with
its organizational charter in accordance with the resolutions made by the board of directors in 2018. The board of
directors elected 3 independent directors and 2 external directors to be members of the committee and responsible forcorporate governance related matters. In 2019, chief of Legal Division was appointed as chief corporate governanceofﬁcer. 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 membersof 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 procedures for corporate governance, and submit to the resolution of theboard 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 and report to the board of directors.
5. Review the effectiveness of the implementation of the corporate governance system.
6. Other duties in accordance with the board resolutions.

»

Name

Retirement pension

DirectorShou-Huang Chen

Table 3.1-3 Status for the attendance of Audit Committee members
Title

Remuneration allocatedBusiness execution
from earnings
expenses
All
All
All
All
companies
companies
companies
companies
The
The
The
The
included inincluded inincluded ininCompany included
Financial Company Financial Company Financial Company Financial
statements
statements
statements
statements
Remuneration

24

»

CH3

2020
TATUNG CSR
Organization structure andgovernance

3.2 Corporate governance

Table 3.1-7 Status for the attendance of Corporate Governance Committee
Title

Name

Actual (in person)
attendance

Entrusted attendance

Actual (in person)
attendance rate%

DMA

Chair

Tzong-Der Liou

4

0

100

Corporate governance and ethical practiceDisclosure on non-ﬁnancial information

MemberPeng-Fei Su

4

0

100

Member

Chi-Ming Wu

4

0

100

MemberShou-Huang Chen

1

3

25

MemberSheng-Wen Tsai

4

0

100

An explanation Corporate governance is a mechanism to guide and manageof why the topic a company. It is important to implement the responsibilitiesof business operators, and protect the legitimate rights andis materialinterests of shareholders and take into account the interests ofother stakeholders.
Boundary for the
Tatung and its subsidiaries.
material topic
Speciﬁclimitation
Performance disclosure is limited to Tatung Co.
regarding the
topic Boundary
Purpose of theGood corporate governance should be achieved by theboard of directors and management in a manner that is in
management
the best interests of the company and all shareholders, assists
approachin the operation of the company, and provides an effective
monitoring mechanism to incentivize the company to makegood use of resources, improve efﬁciency, and thus enhancecompetitiveness and promote social welfare for the society.
Policies
Tatung has established "Procedures for Ethical Management
and Guidelines for Conduct", "Corporate Social Responsibility
Best Practice Principles", and "Corporate Governance Best
Practice Principles" as guidelines for implementing corporate
governance and ethical management.
Goals and
Short-term target:
targets
1. Appointing chief corporate governance officer to be
responsible for corporate governance related matters,
implement corporate governance, and improve theeffectiveness of the board of directors.
2. Conducting the performance evaluation for the boardof directors and the functional committees in order tostrengthen corporate governance and enhance thefunctions of the board of directors and various functional
committees.
3. Revising the relevant principles of corporate governanceat any time in accordance with the latest publishedversion from the authority.
Mid-term target:
All operations follow the company's corporate governancerelated principles and comply with the evaluations ofcorporate governance.
Long-term target:
The company's managers and all employees abide by the
ethical corporate management to avoid illegal incidents
and ensure the company's sustainable operation andperformance, and continue to care for the environment,
consider social and culture factors, and strengthen corporate
governance to fulﬁll corporate social responsibility.
Mechanisms forevaluating the
Tatung has "Board and Functional Committee Performance
effectivenessEvaluation Guidelines" and performs internal evaluation of theperformance of the board and functional committees eachof theyear.
management
approachResults of the
1. Chief of Legal Division was appointed as chief corporate
evaluation of the governance ofﬁcer in 2019.
2. 4 Corporate Governance Committee meetings were held
management
to discuss corporate governance related issues in 2019.
approach
3. Results of the internal evaluation of the performance ofthe company's 2019 board of directors and functional
committees were both "GOOD".
RelatedTatungfollows the check items of "Corporate Governanceadjustments
Evaluation" implemented by TWSE to review and improve theto thepractice of each aspect of the company and fully improve
management
the quality of corporate governance.
approach

An explanation The transparency of a company's non-financialof why the topic information is an important tool for measuring its
is material
sustainable development and corporate value.
Investment institutions, government agencies and otherstakeholders all attach great importance to this topic.
Boundary for the
Tatung and its subsidiaries.
material topic
Speciﬁclimitation
Performance disclosure is limited to Tatung Co. andregarding thecertain subsidiaries.
topic Boundary
Purpose of the
By proactively disclosing the company's ESG information
management
and achievements, and focusing on meeting theapproach
expectations of stakeholders to systematicallydemonstrates the company's efforts towards sustainable
development.
Commitments
Tatung commits that the company should fully disclose
relevant and reliable corporate social responsibility
related information to enhance information transparency.
Goals andPublishes Tatung Corporate Social Responsibility Report bytargets
the end of June every year.
Resources
Tatung has organized CSR Reporting Committee to be
responsible to prepare CSR Report.
Grievance
Tatung CSR Report feedback e-mail:mechanisms
csrreport@tatung.com
Speciﬁc actions Prepare CSR report in accordance with GRI Standards and"Taiwan Stock Exchange Corporate Rules Governing the
Preparation and Filling of Corporate Social Responsibility
Reports by TWSE Listed Companies”.
Mechanisms forevaluating theSubmit the drafted CSR Report to “Corporate GovernanceeffectivenessCommittee ” for approval and submit the report toof theChairman for issuance.
management
approach“2019 Tatung Corporate Social Responsibility Report”
Results of theevaluation of the was published in June, 2019. The reports can be
downloaded:management
approachhttp://www.tatung.com/Content-EN/csr-report.asp
Relatedadjustments
NIL.
to themanagement
approach

In order to strengthen corporate governance and enhance the functions of the board of directors and various
functional committees, the board of directors passed the "Board and Functional Committee Performance Evaluation
Guidelines" in 2018. The board of directors and functional committees of the company shall perform at least one internal
performance evaluation each year. The results of internal performance evaluation of 2019 were submitted to the boardof directors on February 13, 2020. The measurement items and scoring standards of the evaluation indicators shall bebased on the board of directors of the company and speciﬁcation of functional committee performance evaluation
guidelines (Table 3.1-8). The results of the internal evaluation of the performance of the company's 2019 board of
directors and functional committees were both "GOOD".

Table 3.1-8 Evaluation content of the performance of the board and functional committees
Criteria for evaluating theperformance of the board of
directors

Criteria for evaluating theperformance of the board
members (on themselves)

Criteria for evaluating theperformance of functional
committees

1Participation in the operationof the company.

1

Alignment of the goals andmissions of the company.

1

Participation in the operationof the company.

2

Improvement of the qualityof the board of directors’decision making.

2

Awareness of the duties of adirector.

2

Improvement of qualityof decisions made by thefunctional committee.

3Composition and structure of
the board of directors.

3

Participation in the operationof the company.

3

Composition and structure offunctional committees.

4

Election and continuing
education of the directors.

4

Management ofinternal relationship andcommunication.

4

The committee's election andcontinuing education.

5

Internal control.

5

The director's professionalism
and continuing education.

5

Internal control.

6

Participation in sustainable
operations (ESG).

6Internal control.

»Internal evaluation of the performance of the board and functional committees» 25 »

DMA

26

»

CH3

2020
TATUNG CSR
Organization structure andgovernanceComply with social and economic regulations

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 PracticePrinciples". The principles are agreed by board of directors and aiming to achieve the followings:

An explanation of why
the topic is material

Ensure that company and personnel complying with laws andregulations to avoid or reduce the legal risk of criminal losses within thecorporate.

1. Protect the rights and interests of shareholders.

Boundary for thematerial topic

Tatung and its subsidiaries.

2. Strengthen the powers of the board of directors.

Speciﬁc limitation
regarding the topic
Boundary

Performance disclosure is limited to Tatung Co.

3. Fulﬁll the function of supervisors.

Purpose of the
management
approach

Tatung complies with social and economic laws and regulations
and becomes a benchmark for excellent companies andindustries in the society.

Goals and targets

Short-term target:
Tatung operates in good ethical practice and continues to follow relatedsocial and economic laws and regulations.
Long-term target:
Tatung will continue to operate sustainably and fulﬁll its role as a corporate
citizen.

Resources

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

Mechanisms forevaluating theeffectiveness ofthe management
approach

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

Results of the evaluationof the management
approach

In 2019, Tatung did not have any major violations against social andeconomic laws and regulations.

Related adjustments
to the management
approach

NIL

Good corporate governance and ethical management are the keystones for a corporate
to achieve sustainable development and demonstrates its social value. Since 1918, we havetaken "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 and Guidelines for Conduct", "Ethical Conduct Principles",and "Corporate Social Responsibility Best Practice Principles". We keep abreast of global trends
and adjust with the times to follow our various businesses. On the other hand, through theimplementation 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 sustainablebusiness, but also fulfill our responsibility for environmental sustainability and corporate social
responsibility.

» 27 »

Corporate Governance Best Practice Principles

4. Respect the rights and interests of stakeholders.
5. 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 a goodbusiness 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. Ethicaltraining and education are conducted among the mentioned personnel regularly. Persons and companies who
have business with Tatung are invited to attend the education 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 ofcompany assets, to follow the laws and regulations, to encourage the reporting of any violations of law or ethicalbehavior and conduct of disciplinary measures, Tatung has formulated "Ethical Conduct 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 the company. The convention
states that employees must not doing fraud or receiving gifts from others in duties, and shall not disclose the company's
technologies and business contents. Tatung has established relevant control measures for this, such as Company Rules,"Ethical Corporate Management Best Practice Principles" and "Procedures for Ethical Management and Guidelines for
Conduct" to prohibit every member in the company from doing non-ethic behaviors. Tatung also established internal
control measures such as internal control system, scheduled and unscheduled audits of the Internal Control Committee
and Internal Audit Committee. The contracts signed with the suppliers are added the requirements such as shall notbribe or provide improper beneﬁts to Tatung employees. Work rotations for procurement, ﬁnance and human resources
departments are also practiced to reduce the risk of corruption. We also announce the "Corporate Ethics Statement
for the Group" on the company's internal website from time to time. In addition, we have relevant systems for reporting
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.

»

DMA

28

»

CH3

2020

CH3

TATUNG CSR
Organization structure andgovernanceInternal 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:

Risk management

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

1. Ensure the enforcement of company policies and rules.

Table 3.2-1 Structure of risk management

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

Risk management

Internal control system covers all operations of Tatung, including accounting, ﬁnance, planning, organization, control andmanagement, and information about sales, production, purchasing, materials, engineering, personnel and research anddevelopment. In addition, internal control should prepare, distribute, report and analyze data to the management level, sothat 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 Sale and 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 accessand other activities. Tatung monitors and controls the system and operation procedures continuously by carrying out theinternal auditing and review meetings of Internal Control Committee. Such practice can enhance the internal control
system and optimize the efﬁciency of corporate 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 toeffectively optimize the corporate governance of subsidiaries.
In addition to internal control system, Tatung has introduced and maintained various of management systems in thefactories 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 procedures of the management
systems to review and update the related laws and regulations. At the same time, the factories conduct internal audit andmanagement review to ensure the operations can comply with the laws and regulations. The administrative in headquarter
also announce the latest and related regulations to the employees by 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.
Corporate GovernanceCorporate Governance(X) Execution of internal control system
1. Internal control statement

Tatung Company Limited by SharesInternal Control System Statement
Date: March 12, 2020
The Company states the following with regard to its internal control system during fiscal year 2019, based on the findings of aself-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, 2019, 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 8 attending directors in the Board of Directors Meeting of theCompany on March 12, 2020.
Tatung Co., Ltd.

Wen-yen K. Lin
Chairman

Wen-Yen K. Lin
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").
3. Where CPAs are retained to audit the internal control systems, please disclose the CPAs' audit report:

None.

▲ Figure 3.2-1 Internal control system statement in 2019
TATUNG 2019 Annual Report» 29 »

46

Bodies in charge

Strategy &operation risk

1. Board of directors.
2. High-level management (Chairman, president).
3. Management of each plant and division (Generalmanager, director, and center manager).

Market risk

Sales unit of each plant and division

Financial & Liquidity
Finance & Accounting Division
risk
Legal risk

Legal Division

Responsibilities
1. Stipulation & implementation ofmanagement policies.
2. Assessment & analysis of operation
performance.
Business & sales promotion as well as market
research and evaluation.
Final accounting of cost, funds allocation andcontrol, and hedging of interest and exchange
rates.
Process of litigation and non-litigation cases.

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

Risk type

Governance Change in management

Countermeasure
Tatung has a strong and stable management team, and there is no risk from thechange in the management.

Financial Supervisory Commission (FSC) has repeatedly imposed penalties on
violations by the same mainland China investment, 4.06% shareholding in May 5, 2017,8.78% in December 5, 2017 and 18.01% in January 17, 2019 respectively. There must
be loopholes in the law enforcement that mainland China could take advantage
of and that is why they could continue to violate the laws and regulations in Taiwan,even with repeated penalties. Therefore, we would like to pledge to the authorities tocheck into the loopholes in the enforcement in order to protect not only Tatung but
also all companies in Taiwan. Tatung Board decides to take legal actions to protect
corporate and shareholders' interest:(1) Regarding the Mainland China investment fined by the Financial Supervisory
Commission, it is alleged to be against Article 157 of Securities and ExchangeAct. Tatung Board made the resolution to engage a law firm to claim for thedisgorgement of any proﬁts realized from the buy and sale on January 29, 2019.
(2) The attorneys representing the company filed a lawsuit in Taiwan Taipei
Major transfer or swap ofDistrict Court against the shareholder and designated persons to claim for thestocksdisgorgement of any proﬁts realized from the buy and sale plus interest.
(3) The Board received a letter from the Securities and Futures Investors Protection
Center (hereinafter referred to as the SFIPC) on June 24, 2019. The letter statedthat a shareholder, Longlife International (Hong Kong) Company Limited,purchased Tatung's shares through FINI accounts from January 11, 2017 to April
24, 2018. The proﬁts realized from the sale and purchase were alleged to be NTD
1,225,988,645 (according to the letter, a part of the amount of NTD 443,265,434
had been over the Statute of Limitations by June 21, 2019). The SFIPC required
the company to request the shareholder to add interest at the legal interest rate.
Tatung had claimed for the disgorgement of any proﬁts realized from the buy andsale. However, there is an issue about the commencement of term which led tothe statement from SFIPC's letter about a part of the amount had been over the
Statute of Limitations. Tatung alleged that the commencement of term should
start from the time Tatung ﬁled the lawsuit and the company will make every effort
to claim in the court for protecting Tatung's and all shareholders' interest.

»

4. Evaluate the performances for each division.

30»

3. Ensure the accuracy of accounting and operating information.

2020
TATUNG CSR
Organization structure andgovernance

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

Operation» 31 »

Risk typeCountermeasure• Tatung adopted and made public "Ethical Corporate Management Best PracticePrinciples" and "Procedures for Ethical Management and Guidelines for Conduct"
at its official website, issued and announced internally the Company Rules and"Corporate Ethics Statement for Group Employees." Tatung continues to enhancecore corporate philosophy – "Integrity, Honesty, Industry, and Frugality," and statesthat the employees are prohibited to perform malpractices or accept gifts of others
in regarding to their jobs.
Non-ethical behavior• 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.
• With the mass demand for energy efficiency & carbon reduction technique tocope with global warming, Power Equipment Business Unit and System BusinessGroup of the Company have developed deep technical foundation, kept putting
efforts on research & development, and expanded the business of key products
as well as system aggressively in smart grid to ensure its technology and market
leading position in domestic electricity generation, power transmission & distribution
and energy management. Tatung marches into oversea market and aims at theenergy technology industry leader.
Changes in technologies • With the trend of energy efficiency and carbon reduction, Appliance Business Uniton the ﬁnancial position
has strived to carry on fine tradition, and reinforced to develop high-quality green
and operation of thehome appliances with health, environment protection, energy-saving and highCompany
efficiency concepts to increase the sales performance and profit.
• With the advent of the digital era, Tatung is aggressively pursuing R&D, production
and marketing of products that integrate information, communications and home
appliance functions to cater to the demand of the digital-age family.
• The Company's focus is on developing visual products, such as LCD TVs and LCD
monitors, which offer bright market prospects.
• With the coming of age of personal high-frequency radio communication, Tatung is
actively exploring opportunities in 4th generation wireless communications business.
• 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 thesafety 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 goalof "uninterrupted service, no loss of information, personal information not leaked,
and enterprise sustainable operation". Committee conducts risk assessments on
Information securitya regular basis or in the event of major changes in the information technology
environment. As a basis for the operation of the information security management
system, the information 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

Category

Finance

Legal

MarketRisk typesemi-annual external auditor's audits, two outsourcing consultants' externalcounseling every year, and an annual internal audit of the audit committee todetermine the implementation status of the information security management
system and whether to achieve the information security objectives of conﬁdentiality,
integrity, availability and compliance of each service.
• Derivatives can be used as a hedge against interest rate fluctuations for the
Tatung's long-term debts.
•
When considering mid to long-term bond issues, Tatung carefully sets its target
Interest rateinterest 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.
• 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 foreignexchange position that is exposed to currency exchange risks. The management
Exchange rateof risks involving such derivatives are set forth in the Company's "Operational
Procedures for Derivatives Treading." Tatung also has an internal control system tosupervise the loss limit of foreign currency transactions.
• Tatung carefully monitors any changes in local and foreign policies and makes
appropriate adjustments in our internal control system and operations whennecessary.
Changes in policies andlaws• 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.
Concentration of sales
and purchase.
Environment

Environmental,
health andsafetyClimatechangeCountermeasure

Health and safety

Tatung will arrange for alternative sources for purchase, and will diversify its customer
base in order to reduce the concentration of sales.
• Continue to run environmental management system to elevate environmental
performance.
• Conduct "Pollution Prevention Pays" program and internal control system to preventthe violations of regulation.
• 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 • Continue to run energy management system to elevate energy performance.
tax• Continue to promote energy saving projects.
Carbon emission
disclosure• Conduct GHG emission inventory.
• Promote product carbon footprint.

Water resource

Promote water saving projects.

In addition, Xintong Investment Consulting Co., Ltd. applied for an injunctive relief with the Taiwan High Court on
November 22, 2019, requesting that the chairman, directors and independent directors of Tatung be prohibitedfrom exercising the rights of the chairman, directors and company seal, and that three impartial professionals
are appointed as temporary managers of Tatung, to serve as chairman and board of directors. Tatung received
a notice from the Taipei District Court on January 7, 2020 and has appointed attorneys to work with the court.
Subsequently, the case was transferred to the Taipei District Court for adjudication by the Taiwan High Court due
to jurisdictional errors and was rejected by the Taipei District Court on February 27, 2020.

»

Category

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

32

»

CH3

2020

CH3

TATUNG CSR
Organization structure andgovernanceCorporate social responsibility
Policy and management
Established in 1918, Tatung, formerly known as Xie Chih Business Enterprise, has evolved and grownover the decades into one of Taiwan's leading conglomerates. The foundation of Tatung is built on four
fundamental values—Integrity, Honesty, Industry, and Frugality. Developed by Tatung's founder andformer chairman, Mr. Shan-chih Lin, they represent the essence of the Company's commitments to ourcustomers, shareholders, and employees. Mr. T. S. Lin, Chairman Emeritus of Tatung, further extended
the precepts behind these core values to serve as the guidelines for the Company's continued successand 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 2018.5.15).
The principles act as guidance for implementing corporate governance, sustainable development
and the environment, the maintenance of social welfare, strengthening CSR disclosure. The results andperformances will be reported to board of directors every year.

Table 3.2-3 Tatung CSR responsible units

Environmental
management

Ethicalcorporate
management» 33 »

Duty

Legal Division

In charge of bringing forward andcarrying out the policies, systems,
management, and implementation
programs for corporate social
responsibility.

Health &Safety Division

In charge of environment
management including drafting,promoting, and maintaining relevant
environment management systems
and concrete action plans, and held
environment education courses fortheir managerial ofﬁcers and other
employees on a periodic basis.

Human
Resources& General
Administration
Division

In charge of the revision,
implementation, interpretation,
consulting service, and notiﬁcation of
the contents of the "Procedures for
Ethical Management and Guidelines
for Conduct."

Legal Division

In charge of the revision,
implementation, interpretation,
consulting service, and notiﬁcation of
the contents of the "Procedures for
Ethical Management and Guidelines
for Conduct."

Report to the board of directors

The implementation of
corporate social responsibility
and environmental
management results werereported to the board of
directors on 2020.2.13.

Shareholder
responsibility

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.

Customer satisfaction
To re-invest profits in pursuit ofbetter product quality so as
to create value for ourcustomers.

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

Disclosure on non-ﬁnancial information
In order to actively and effectively disclose company information and show the achievements in sustainable
development, Tatung followed GRI (Global Reporting Initiative) framework and started to publish "Tatung
Corporate Environmental Report" since 2002. Starting from 2008, the environmental report was renamed to"Tatung Corporate Sustainability Report" due to the balance of disclosed information. We introduced thethird-party veriﬁcation to raise the credibility of the reports since 2012. From 2015, with the request from theauthority, we once again changed its name to "Tatung Corporate Social Responsibility Report".
In order to implement CSR policies and disclose ESG information to the stakeholders, we promise to issue a CSR
Report after approval by the Chairman in June each year.

The implementation of ethicalcorporate management results
were reported to the board of
directors on 2019.12.17.

»

Corporatesocialresponsibility

Responsible unit

To cultivate young engineering talentand to lend efforts to research anddevelopment through cooperation
between the company and Tatung HighSchool as well as Tatung University.
Realizing the importance of education ina 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 to education as amanifestation of long-term commitment
to social well being.

Employee harmony

34

»

Topic

Integrity•
Honesty•
Industry•
Frugality

Industry-educationcooperation

2020
TATUNG CSR

CH4TargetSupply chain management

TargetSales

TargetAll new suppliers sign back the Supplier Commitment Letter.

TargetAware of change in regulations and comply with regulations.

TargetProduct responsibility

TargetCustomer management

Target1. All the products are complied with product inspection andlabeling regulations.
2. Strive for product awards or certiﬁcation.

Target

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

Performancein 2019» 35 »

Performancein 2019

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

1. No. of products violated product inspection andlabeling regulations: 0.
2. "100th Anniversary Cooker" won Taiwan Excellence
Silver Award 2019, Toaster Grill won Taiwan
Excellence Award 2019.

Performancein 2019

1. No. of complaints in regarding to violating customer
privacy or losing customer information: 0.
2. Satisfaction for repairing: 95.3%, satisfaction for shipping:
97.0%.

»

Performancein 2019

100% of new suppliers have signed back the SupplierCommitment Letter.

36»

Responsible
supply chain,product safety,
and customer
service2020
TATUNG CSR

CH4Responsible supply chain,product safety,
and customer service

4.1 Responsible supply chain

Introduction and management on suppliers

Tatung believes that with good relationship with decent suppliers can make sure getting high quality parts/products toraise productivity to share the beneﬁts to the customers around the world. Hence, Tatung conducts internal control andrelated management procedures to manage and introduce suppliers. Regular supplier auditing is conducted in BUs andsubsidiaries.
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 also prefers purchase from local suppliers in Taiwan in order tosupport 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 brandnew materials in providing main materials, parts, and products.
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 thecontract. Also from 2015, we started to request suppliers to sign the "Supplier Commitment Letter", which includes healthand safety, environmental protection, human rights topics. The commitment letter is a must have document to become
Tatung's supplier. In response to 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.

Tatung groups its suppliers into four categories; each category has its own introducing procedures and management
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, andimplementation of environmental management system as an extra evaluation for introduction of a new supplier. The
detailed management measures are shown on Table 4.1-2 and Figure 4.1-2 (Category I as an example). The supplierwith assessment 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 4.1-3). Any non-conformities found will be requested
to correct. An annual re-evaluation is periodically implemented for main components suppliers, listed component
suppliers, and outsourcing suppliers (Figure 4.1-4). 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 for the safety of the service-providing suppliers (construction,
waste disposal, repairing) who operate in the factories and subsidiaries, 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.

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 andlabor conditions

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

Environmental
protection

Comply with environmental protection regulations.

Anti-conﬂict
mineralsComply with Tatung anti-conﬂict mineral policy.

Corporate social
responsibility

Comply with Tatung's and the suppliers' ethical and CSR policies.

China

2.88%

Hong Kong

1.30%

Japan

0.61%

Category I

1. Monthly
1. Important materials (parts, components, half-ready products, and ▓ On-site assessment
assessment1
products).
▓ Sign procurement
2. Annual recontract
2. ODM/OEM
evaluation2▓ Sign commitment letter
3. Outsourcing (including full case, manufacture only, product only).
4. Significant to product quality that need intensive management andtutoring.

Category II

1. Suppliers, who provide raw materials, ready to sale products, imported ▓ Document review
Monthly
components, with less quality risks.
assessment▓ Sign procurement
2. Suppliers who are world famous company with top capability in productcontractand QA/QC.
▓ Sign commitment letter

0.54%

Others» 37 »

Introducing procedure Management

Suppliers who build factory, apartment, ofﬁce building, system installation, ▓ On-site assessment or Evaluation afteror repair project.
document review for the case iscompletedexisted cases
Construction▓ Sign procurement
contract▓ Sign commitment letter

South Korea▲ Figure 4.1-1 Suppliers' geographic distribution in 2019 (by numbers)

Classiﬁcation criteria

Tatung anti-conﬂict
mineral policy

12

1. Suppliers who provide office appliances, hard wares, software, waste ▓ Sign procurement
Monthly
disposal, veriﬁcation, etc.
contract
assessment▓ Sign commitment letter
2. Suppliers who provide instruments or equipments.
3. Technical maintenance service.

: 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.

»

Taiwan91.73%

2.93%

Category

38»

OthersTable 4.1-2 Category of suppliers and introducing/management measures

2020
TATUNG CSR

CH4Responsible supply chain,product safety,
and customer service

4.2 Product responsibility

BUs

Providesamples forinspection

Pass

Evaluation
based ondocument review
and on-site
assessment

On-siteassessment

Pass

Input into
supplier databaseand under
management

Monthlyassessment

Annualre-evaluation(including
CSR topics)

Fail

Product quality and safety
An explanation of Product quality and safety are the most basic responsibilities of a
why the topic is
company. If customer suffered property losses and physical harmmaterial
due to product problems, it is not only violating laws and regulations,but also seriously affecting the reputation of the company andcausing customers to distrust the brand of the company.
Boundary for the
Tatung and its subsidiaries.
material topic

FailSpeciﬁc limitation
regarding the
topic Boundary
Purpose of the
management
approachRe-examing

Pass

Procurement

R&D(including CSR
topics)

QA/QC(including CSR
topics)

Pass

Manufacturing

Policies▲ Supplier introducing and managing procedures (Category I)
Commitments

Grade B
0.35%

Grade C
1.49%

Grade B
91.04%

Grade A
98.45%

Note: Grade A and B are qualiﬁed suppliers; Grade C/D is failed frommonthly assessment and required to be improved within limited
time.

Note: Grade A and B are qualiﬁed suppliers; Grade C is failed fromannual re-evaluation. 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 1.41%. The main reason was due to the
supplier did not have actual performances in 2019 anddisqualified from our supplier list.

▲ 4.1-3 Result of suppliers' monthly▲ 4.1-4 Result of suppliers' annual re-assessment in 2019» 39 »

evaluation in 2019

Performance disclosure is limited to Tatung Co.
Through internal control system and business meetings, we
can grasp the issues or problems generated in each plant andoutside and the requirements of stakeholders, so that quality andsafety management resources can be effectively used, and thepolicies and goals can be achieved. Departments, which affectquality and safety, well plans and operates to achieve quality
enhancement, industrial waste reduction, and good quality andsafety management beneﬁts.
Through Customer First, Total Participation, and The Six Fundamental
Powers, as well as the implementatoiin of the safety management
system to achieve the goals of exellent product performance,
reliable quality, punctual delivery, rapid and satisfactory services,close relationships with customers, and income exceeding
expenditure.
Tatung guarantees product safety and provides quality services.

Goals and targets Short-term target:
1. Maintain ISO 9001 certiﬁcation and TAF certiﬁed laboratories in
the factories.
2. All the products are complied with product inspection and safety
regulations.
3. Strive for product awards or certiﬁcation.
Mid-long term target:
Treat zero defects as the only standard for management andoperations.
Responsibilities
1. Comply with national and international standards.
2. Products that meet customer requirements.
Grievance
1. Tatung products: Customer service section on the ofﬁcial website3.
mechanisms
2. Tatung house appliances: 0800-052-666
Mechanisms for
1. The person in charge of each factory reports the quality status toevaluating thethe president in the monthly business meeting.
effectiveness of
2. Audits the quality management status regularly of each factory
the management
by internal control.
approach
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 the goals.
Results of the
In 2019:
evaluation of the 1. ISO 9001 certiﬁcation and TAF certiﬁed laboratories in the factories
management
have passed annual certiﬁcation.
approach
2. "100th Anniversary Cooker" won Taiwan Excellence Silver Award
2019, Toaster Grill won Taiwan Excellence Award 2019.
3. No. of products violated product inspection regulations: 0.
Relatedadjustments to
NIL
the management
approach

Grade A
7.46%

Grade C/D
1.21%

DMA

DMA

Removingfromsupplier
database

3

Marketing and labeling (labeling)
An explanationof why the topic
is material
Boundary for thematerial topic
Speciﬁclimitation
regarding the
topic Boundary
Policies

Commitments
Goals andtargets
Responsibilities
Grievancemechanisms
Mechanisms forevaluating theeffectivenessof themanagement
approachResults of theevaluationof themanagement
approach
Relatedadjustments
to themanagement
approach

The markings and labels of the products should be clear
and correct, and comply with customer requirements andregulations.
Tatung and its subsidiaries.
Performance disclosure is limited to Tatung Co.
To ensure the consumers having accurate and sufficientamount of product information and instructing consumers to
use the products safely and correctly.
The content of the product is clearly labeled and neverdeceives the public.
Product labeling is complied with regulations.
1. Comply with national and international standards.
2. Products that meet customer requirements.
1. BSMI/Bureau of Energy
2. International Safety Certiﬁcation Agency.
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.
No. of products violated product labeling regulations in 2019:
0.

NIL: http://www.tatung.com/Content-EN/csr-service.asp»

Procurement
division

40

»

Top
manager
in BU

Supplier

2020
TATUNG CSR

CH4Responsible supply chain,product safety,
and customer service

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, enhance competitiveness 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 and strictly follow and implement
the management mechanism of this system to ensure the production of stable quality products, enhance brandimage, strengthen customer conﬁdence, expand market and achieve the goal of sustainable business.
Tatung is constantly improving product quality by using quality key performance indicator (KPI) and setting
quality targets as the target of quality achievement every year (Short-term: achieving annual quality objectives;
Mid-term: strive for product awards or certification ; Long-term: treat zero defects as the only standard for
management and operations). The detailed process of management and implementation is shown in Figure 4.22. The factories regularly audit the quality control projects every month, and continuously strive for perfection in
all aspects of quality according to the P-D-C-A management cycle, in order to continuously improve productquality and achieve quality goals at all stages.

Settingannual quality
targetConfirm
quality
improvement
activities

Quality
performance
review

Measureannualquality results▲ Quality KPI management flowchart

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, and Wire and Cable Testing Lab in the factories (as shown in Table 4.2-2) to provide the assuranceof excellent quality. For the management of hazardous substances, in addition to sending the samples to third
parties for testing (RoHS, REACH, ect), Tatung has Tatung Environmental Research Center in the 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.

Table 4.2-1 Tatung products that acquired ISO 9001:2015

Taoyuan 1st Plant

Window mounted air conditioners, separated type air conditioners, dehumidiﬁers, box shaped air
conditioners, water cooling central air conditioning systems, rice cookers, electric fans.

San-Hsia Factory

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

Tayuan Plant

Oil-immersed transformers (below and including 345KV), 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 typetransformers (below and including 36KV), Cast resin dry type potential & current transformers (below
and including 36KV), High voltage & low voltage metal-enclosed switchgear & control gear (below andincluding 72.5KV), Metal-clad switchgear (below and including 36KV), Motor control center (below andincluding 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, Watthour meters.

Taoyuan Wires
and Cables 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

Electricity meters.

▲ ISO 9001 certification/▲ Certificates of TAF certified labs

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

Testing items

Register Date

Calibration Lab

L0003-090302 Measuring and calibrating of products.

1990.06.01

Tatung Environmental Research Center

Water quantities and quality, hazardous
L1697-191016 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

L2270-110120

Tatung Switchgear Testing Lab

L2308-110323 Switchgear testing.

2011.03.23

Tatung Generator Set Testing Lab

L2442-180123 Generator testing.

2011.10.12

Tatung Motor Testing Lab

L2613-120701 Motor testing.

2012.07.01

Cooling capacity and EER of air
conditioner and water chiller.

Tatung Taoyuan Wire and Cable Testing Lab L2964-181121 Wires, cables, and busway testing.

2011.01.20

2015.04.29»» 41 »

Registered product42»

Factory2020
TATUNG CSR

CH4Responsible supply chain,product safety,
and customer service

Product safety

Most of the countries make the laws and regulations in regarding to product's quality and safety in order toprotect 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 website4, medias
and TCPC website5 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, energy-efficiency, and safe products. In
response to some defected dehumidiﬁers, BSMI announces recall messages6 every year. Some models of Tatung's
dehumidifiers are on the recalled list (Models: TWD-500B, TWD-510B, TWD-511B, TWD-711B, TWD-710B, TWD-660B,
TDH-200HB, TWD-1400B, and TWD-1400BL). Consumer who has these particular models can make a phone callto Tatung or TCPC and the specialist will visit your place for service free of charge. Tatung 3C also launched
the dehumidifier replacement campaign in 2019 to provide preferential repurchase programs for the abovementioned models to attract consumers to review the models of dehumidiﬁers in order to increase the number ofrecalls.

Product labeling

In order to let consumers having accurate and sufﬁcient amount 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, maintenance guide and notice in the packages(as shown on Figure 4.2-4) to provide the consumers with sufficient information to use the products safely andcorrectly. Tatung has responsible department in each BU for the management, review, and monitor of productlabeling issue, as well as takes part in BSMI market survey to ensure the correct labeling.
In 2019, we were notiﬁed of a suspected violation of the "Labeling Criteria for Electrical Appliances". After communicatedwith the authority, it was ruled that there was no violation of the law and the case was withdrawn. However, we still
paid attention to the relevant labeling regulations and this case was also reported back to the production process andrelated units to prevent future violations.

Product hazardous substances information

Tatung follows relevant regulations on hazardous substances in 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 andprotect the health and safety of consumers. In addition to fully disclosing the contents of hazardous substances in the
product manuals (Figure 4.2-5), we also disclose such information on Tatung's ofﬁcial website "Hazardous substances in
products" section7 (Figure 4.2-6), which fully protects consumers' right to know.

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

1. 產品特點Business group

2. 產品外型及各部名稱

Power BG
System BG
Consumer BG

Standards, certiﬁcations, and veriﬁcations·電扇元祖，復古造型·五段4速風量控制·金屬製電扇，鋁合金扇葉·90度自動擺頭裝置

前網

CNS Standards, China Compulsory Certiﬁcation, CanadianStandards, American Safety Standards, ETL Verification, EU
Network System Veriﬁcation, Japan PSE Certiﬁcation.

後網
前殼加油孔
後殼加油孔
擺頭鈕

3. 安全注意事項

4. 操作說明

· 請勿自行拆解、修理、或改造電扇。
· 電扇運轉中，不得使之傾倒或不正常拿取，會導致故障或損壞。
· 請勿使用110V電壓以外的電源。
· 電扇運轉中，若機體發生異常的震動，請立即停止使用。
· 拆除前後網及扇葉前，請先關閉電源並將插頭從插座上拔除。
· 當發現產品有任何異常時，請立即拔掉電源插頭並通知大同直營專業服務中心處理。

1. 將電源線插入電源插座
2. 開關操作型

1.微風使用本產品前，請詳細閱讀本說明書及安全注意事項，並請正確使用本產品，以保障您自身及他人的安全，避免財產上的損失!
·本電器不預期供生理、感知、心智能力、經驗或知識不足之使用者(包含孩童)使用，除非在對其負有安全責任的人員之監護或指導下安全使用。
注意·孩童應受監護，以確保孩童不嬉玩電器。

2.弱風

3.中風

消

3. 俯仰裝置(操作時請關掉電扇運轉):旋轉節不可對電扇噴灑液體，如
殺蟲劑等。

俯仰旋轉鈕

‧會受傷或造成扇葉損壞。
‧塑膠或塗裝部分恐怕會變‧尤其是小孩子要特別注意。
質或破損。

滑動開關

嬰兒、病人、老人等不要
長時間直接吹到風。

請不要放在會捲到窗簾或造
成安定轉動障礙的地方。

‧對健康不好。

‧傾倒的話，會造成馬達不良。

高溫(40°)以上、高溼(洗C澡間)等或灰塵多或使用酸、鹼、油等場所最好不要使用。

‧會造成故障火變形之原因

TF-D14A/ TF-D14A(BK)
110V~60HZ
70W

網圈是為了固定住網罩，使網罩不容易被取下，網圈如果沒有安裝好，可能在運轉
中卡進網罩內，造成扇葉受損。

修理時避免用力衝撞扇葉、網罩，以免造成破損。

不要在風扇前使用噴霧器(打掃用、殺蟲劑、造型噴霧等)可能造成風扇變質、破損等情況。

運轉停止後，馬達轉軸還在發熱時，請勿用手觸摸以免燙傷。需維修
時請等候其冷卻再進行動作。

清潔電風扇時，僅能使用中性清潔劑(洗碗精)，以免造成風扇變質、變色、塗裝掉落。

請避免在窗簾附近使用，網罩將窗簾吸進會造成扇葉受損。

·請一手扶住扇網，一手鬆開俯仰旋轉鈕。
·將扇網角度調整至所需位置，再將俯仰旋轉鎖緊。

4. 擺頭裝置(擺頭鈕):注意事項

插頭自插座上拔除，同時聯
絡大同直營專業服務中心進·壓入時電扇會左右擺頭，拉起時則停止擺頭。
·擺頭角度:左右各45度

行維修更換，切勿自行處理

214吋元祖桌扇

號

功 率若發現電源線有短路或損壞
情形，請立即關閉電源並將

注意:因本產品為金屬製，且採用含油合金軸承及自動往復循環給油裝置，經長久使
用後，如馬達運轉時軸心發出微量機械的摩擦聲音，可於前殼與後殼加油孔中
添加市售的針車油，以延長馬達的使用壽命。

耗

6. 特別叮嚀

4.強風

注意: 本產品電源線插頭處附有接地端子，為防止意外感電，請安裝地線。

運轉中決不能將手或東西
放到扇網內，尤其是扇葉
背面很危險。

名

額定電壓/頻率

欲調整俯仰角度時 :尾蓋

CNS Standards, China Compulsory Certification, American
Safety Standards, U.S. Federal Communications Commission
for Telecommunications, Product Inspection Label from BSMI,
Japanese Emissions Control Standards.

品

請選您所需的風速移動開關。

扇葉

ANSI International Certiﬁcation, IEC International Certiﬁcation,
DLMS/COSEM Conformance, etc.

5. 產品規格3清潔與保養7. 緊急處理方法當發現產品有任何異狀時，請立即拔掉電源並通知大同直營專業服務中心處理。
服務電話詳見本說明書封面底頁。

以免觸電危險。

4

保養前請先停止馬達運轉，一定5
要抓住插頭從插座上拔出來。

請勿用溶劑、揮發油、鹼性洗劑、煤
油、甲苯、酒精、化學抹布等來擦洗，否則可能會導致塑膠或塗裝部分之變色或變質。

▲ Figure 4.2-4 Product labeling and instruction (e.g. desk fan)

扇葉、本體有髒汙時，先用溫水浸過廚方洗潔劑的布擦洗乾淨後，再用柔
軟的乾布徹底擦乾淨

10. 限用物質含有情況標示聲明書
Declaration of the Presence Condition of the Restricted Substances Marking型號(型式): TF-D14A,TF-D14A (BK)

設備名稱: 14吋元祖桌扇
Equipment name

Type designation (Type)

限用物質及其化學符號

單元
Unit

Restricted substances and its chemical symbols

多溴聯苯(PBB) 多溴二苯醚(PBDE)
鉛(Pb) 汞(Hg)鎘(Cd)
六價鉻(Cr+6)
Lead Mercury Cadmium Hexavalent Polybrominated Polybrominatedchromiumbiphenyls
diphenyl ethers

機構件
馬達
螺絲組件
電源線
差異件

TWD-511B

TWD-711B

TWD-710B

懷疑故障時(使用中發現異常時，請依下列表格檢查)光觸媒
抑菌
TWD-660B

TWD-200HB

TWD-1400B

TWD-1400BL

異常狀況

檢查事項

扇 葉 不 運 轉 時‧電源插頭是否確實地插在插座上?
‧扇葉與網罩是否不符合?

扇葉運轉時有聲音‧扇葉是否有牢固的組裝?
．網罩是否有牢固的組裝?
‧扇葉與網罩是否相符?

停電後不能正常運轉‧將電源插頭拔除後重新插入

4https://safety.bsmi.gov.tw/wSite/lp?ctNode=8206&CtUnit=2583&BaseDSD=7&mp=65
http://tcpc.tatung.com
6
BSMI dehumidiﬁer recall message: https://safety.bsmi.gov.tw/wSite/public/Data/f1578297434498.pdf
5» 43 »

Note 1：“Exceeding 0.1 wt %” and “exceeding 0.01 wt %” indicate that the percentage content
of the restricted substance exceeds the reference percentage value of presence condition.
Note 2：“○” indicates that the percentage content of the restricted substance does not exceed
the percentage 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.

如果故障情形，並非如上表所述，請立即拔掉電源插頭並通知大同直營專業
服務中心處理，請勿自行拆卸與分解改裝。

6▲ Figure 4.2-2 Dehumidifiers that need to be recalled

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。

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。

▲ Figure 4.2-6 Hazardous substances in products section on▲ Figure 4.2-3 Dehumidiﬁer

the official site

replacement campaign poster7

7▲ Figure 4.2-5 Hazardous

substances containing
information (e.g. desk fan)

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

TWD-510B

44»

TWD-500B

2020
TATUNG CSR

CH4Responsible supply chain,product safety,
and customer service

4.3 Sales and customer information management

Wide-spread service locations and convenient shopping experiences
DMA

DMA
Marketing and labeling (marketing)Customer privacy management

An explanationof why the topic Comply with regulations.
is material
Boundary forthe material
Tatung and its subsidiaries.
topic
Speciﬁclimitation
Performance disclosure is limited to Tatung Co. and TCPC
regarding the (including Tatung 3C Stores and etungo).
topic Boundary
Purpose of the
management Ensure that the advertising content is correct, legal and fair.
approach
Policies
TCPC Marketing and Advertising Policy.

An explanationof why the topic Comply with regulations. Tatung takes great concern on it.
is material
Boundary forthe material
Tatung and its subsidiaries.
topic
Speciﬁclimitation
Performance disclosure is limited to Tatung Co. and TCPC
regarding the (including Tatung 3C Stores and etungo).
topic Boundary
Purpose of the Enhance the security of personal data maintenance andmanagement management to prevent personal data from being stolen,
approachaltered, damaged, lost and leaked.
Policies
Formulated personal data protection policies, and thecollection, processing and use of customer data are incompliance with the "Personal Data Protection Act" andrelated laws and regulations.
Commitments Uninterrupted service, no loss of information, personal
information not leaked, and enterprise sustainable operation.
Goals and
Ensure the conﬁdentiality, integrity, availability andtargets
compliance of each service.
Responsibilities Related business departments.

Responsibilities
Grievancemechanisms
Speciﬁcactions

Results of theevaluationof themanagement
approach
Relatedadjustments
to themanagement
approach

The advertising content is correct, legal and fair.
The advertising content is complied with regulations.
Marketing department.
Tatung Customer No.: 0800-052-666.

Resources

Tatung's advertisement and promotion are handled incompliance with the Fair Trade Act, Personal Data Protection
Act, and the requirements of the National Communications
Commission and other government laws and agencies. For
the content of the advertisement, our Legal Division will review
and conﬁrm it. Only after meeting the requirements will it bereleased.

Grievancemechanisms
Speciﬁcactions

No. of advertisements or promotions violated related
regulations in 2019: 0.

NIL.

Fair trade and anti-trust behavior

Mutual competition among enterprises helps to improve
the quality of products and provide consumers withvariety of products, improve operational capabilities andreduce cost waste to create profits. Anti-competitive
behavior will weaken the efficiency and fairness of themarket and make consumers with less choice and fail toobtain reasonable services, and eventually hurt the corevalue of the company. Therefore, Tatung manages theretailers through the control of the contract and ensures
the retailers not maliciously cut prices or intent to damage
the image of Tatung in order to achieve the goal of fairtrade. For the production, promotion and other activities
of advertising, Tatung complies with relevant laws andregulations. There is no violation in regarding to fair traderelated regulations in 2019.

In accordance to ISO 27001:2013 / BS 10012:2017 / Personal
Data Protection Act / GDPR
Tatung Customer No.: 0800-052-666.

• New employees need to sign a conﬁdentiality and noncompetition agreement.
• 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.
• 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.
• Strengthen information safety awareness: Regularly holdpersonal information and information security training
courses and implement tests after class to ensure theemployees fully understand the importance of personal
information.
• When customers join membership, they will be notiﬁed inaccordance with Articles 8 and 9 of the "Personal Data
Protection Act".
• Set up a contact window to provide the parties with the rightto exercise their personal data or ﬁle related complaints
and consultations.
Mechanisms for • Established Tatung Information Security and the Personal
Information Protection Committee and hold monthly
evaluating themeeting.
effectivenessof the• Conducts information security and personal information
management
protection education regularly.
approach• Conducts internal audit regularly.
• Introduces outsourcing consultants to counsel and improve.
• Conducts management review meeting every year.
Results of the
1. No. of incidents in regarding to violating customer privacy
evaluationin 2019: 0.
of themanagement 2. No. of complaints in regarding to violating customer privacy
in 2019: 0.
approach
Relatedadjustments
to theNIL.
management
approach▲ Energy saving appliances promotion on etungo▲ FB for Tatung fans89» 45 »▲ FB for Tatung multi-function cooker fans

FB for Tatung fans: https://www.facebook.com/tatung.tw
FB for Tatung multi-function cooker fans: https://www.facebook.com/ricecooker50»

Goals andtargets

46»

Commitments

Tatung upholds "customer first", "having only one phone call, the service is to" and aims to provide fast andexcellent services to customers. Tatung lists the service channels on the official website for all the business,
including TCPC, information (OA), commercial air conditioners, power equipment, smart grid business, systemsolution 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 156 3C Stores spreading from cities to countries, providing professional recommendations onpurchasing house appliances and repairing services. In addition, TCPC launched "etungo" online shopping website
to provide wide variety of product in 3C, house appliances, and living products. Besides, Tatung runs fan sites on
Facebook8,9 to provide instant news and living tips.

2020
TATUNG CSR

CH4Responsible supply chain,product safety,
and customer service

In order to provide a more convenient customer service, TCPC has online service that the consumers canaccess to ofﬁcial website making service request10 (Figure 4.3-1). The system will assign the service request to
the accordance service station and provide rapid and high quality services. The consumers can also check the
repairing progress11 by assessing online webpage (Figure 4.3-2). At the end of each case, customers are able toprovide any positive or negative feedbacks by ﬁlling the online survey which will be used for future improvement.
To extend the channels for listening to the customers, Tatung also provides a service phone-line and an online
feedback service12 which customers can ask questions, express their opinions and give positive feedbacks to us(Figure 4.3-3).
Tatung takes great concern of customer satisfaction. When a customer makes purchase or approaches Tatung
3C Stores to repair products, Tatung will make his/her information to phone interview list and interview about
shipping13 or repairing experience. If the feedback is unsatisﬁed, Tatung will conduct a second service and make
improvement. We set consumer satisfaction targets for shipping service to be not lower than 97%, repairing
service to be not lower than 94%. The results (Figure 4.3-4) in 2019 are 97% satisﬁed for shipping service and 95.3%
satisﬁed for repairing service. Although the results are lower than previous year, the set targets are still achieved.
Tatung will continue to listen to the voices of consumers, respect and serve customers.

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 the company's personnel, data, information systems, equipment andnetwork in accordance with the requirements of the BS 10012 personal data protection standard. To ensure the safety of thecompany's personnel, data, information systems, equipment and network, establishing an information security policy as thehighest guiding principle of the company's information security management system, achieving the goal of "uninterrupted
service, no loss of 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 discussionof the monthly meeting of the Information Security Monthly Meeting and the emergency response, the review of the newinternal 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 thisyear's implementation and the budget plan for the next year will be reported. The annual activities include semiannual
external auditor's audits, two outsourcing consultants' external counseling every year, and an annual internal audit of theaudit committee to determine the implementation status of the information security management system and whether
to achieve the information security objectives of conﬁdentiality, integrity, availability and compliance of each service. In
addition, in view of the fact that some of the company's business involves government agency information, the boardof directors of Tatung passed a shareholder proposal on May 20, 2020: to formulate a national security and government
information security code of conduct for the company's major shareholders and directors, which will be submitted to thegeneral shareholders' meeting on June 30 to discuss.
In 2019, 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 ofsuch news, we immediately went to the company's ofﬁcial website and our social group to announce warning messages toprevent consumers from being victimized.
Conveyor

for repairing progress

97.6%
97.3%
97.6%

95.3%

2018

96.2%

2017

95.3%

2016

94.3%

2015

97.1%

Shipping service

feedback form

Party’s rights
claim response
group

Training andnews group

PM / executor

IT 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

Repairing service▲ Figure 4.3-4 Results of consumer satisfaction» 47 »

Consultant /supervisor

10

http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_200.asp

12

http://www.tatung.com.tw/home/suggestion

11

Free service phoneline: 0800-052-666. For mobile phone, please dial: 02-2591-5068.

13

Restarted to commence satisfaction survey for shipping service since 2016.

▲

97.0%

2019

▲ Figure 4.3-3 Online

Internal website for Information Security
and Personal Information management»

service form

▲ Figure 4.3-2 Inquiry page48»

▲ Figure 4.3-1 Product online

2020
TATUNG CSR

TargetTarget Short-term target: Make the employees to understand the company's core values, businessphilosophy and learn all the necessary work abilities through training
courses. We have set our targets as total education and training time
more than 36,000 hours and training satisfaction higher than 90%.
Mid-term target: Each supervisor or manager personally implements the key behaviors
required by various functions in the work. Enhance the inheritance ofknowledge, technology and experience in the workplace. Continue
to strengthen courses related to business development to create
sustainable competitive advantages and increase in talent assets.
Long-term target: Make the employees to work hard and raise performance to help thecompany to achieve the strategic targets and visions.

CH5

1. Total education and training time were 36,271 hours.
2. Education and training satisfaction was 91.69%.
Performance in
2019

Labor-management relations

Target Short-term target: Harmony between labor and management,eliminating labor disputes.
Mid-term target: Working hard to sign collective bargaining
agreement.
Long-term target: Labor and management work together forthe good of the company and its workers.
No signiﬁcant labor-management relations dispute.
Performance in2019

TargetEmployee performance management:

Target Short-term target: Through performance review to ensurethat employees pay attention to correct
performance projects and review the daily
work performance to link with company
strategies.
Mid-term target: Giving rewards for outstanding personnel;
coaching personnel with poor performancefor improvement.
Long-term target: Using long-term performance review system
to identify potential talents, and link withpromotion or salary adjustment.
94.7% of employees was conducted with performance
review.
Performance in2019» 49 »

Target

Health and safety

1. Maintain occupational health and safety management systems in the factories.
Target Short-term target: Implements ISO 45001 in San-Hsia Factory and passes the certiﬁcation.
The rest of factories pass OHSAS 18001 annual certiﬁcation review.
Mid-term target: Complete the implementation of ISO 45001 in all 4 factories and pass thecertiﬁcation.
Long-term target: Continue to run occupational health and safety management systems in
the factories.
San-Hsia Factory completed the implementation of ISO 45001 and passed the certiﬁcation.
The rest of 3 factories passed OHSAS 18001 annual certiﬁcation review.
Performance in2019
2. At least 95% correction rate for non-conformities found in Accident, Prevention, Pays Program.
The correction rate for non-conformities was 100%.
Performance in
2019
3. FR and SR are reduced by 10% each year.
Both FR and SR were reduced by 10% comparing to 2018.
Performance in2019»

Target50»

Happy workplaceand social
participation

Education and training

2020

CH5

TATUNG CSR
Happy workplace andsocial participation

5.1 Building a friendly working place
An equaled working environment

6.81%

Tatung takes great concern on human rights. All employees, applicants and contract workers are treated with
dignity, fairness and respect regardless of their race, religion, skin colors, genders, marriage status, disables,
member of union, birth place, and nationalities etc. Commitments of respect and ensure the beneﬁts of labors,
fulﬁll social responsibility and comply with regulation are clearly stated in our Labor Policy. Tatung hires one
handicapped worker per every 100 workers and provides equal opportunities for minority groups. Tatung also
stipulated "Anti-sexual harassment Regulation" and published on the internal website. Sexual harassment inany forms is strictly prohibited in any working places in Tatung. There was no discrimination and anti-humanright incident in 2019. Tatung will continue to promote anti-discrimination policy in the company to prevent
discrimination.

94.82%

93.00%

93.23%

2015

2016

2017

2018

2019

226

118

1,280

497

641

183

2.21

3.98

1.20

1.11

0.09

279

112

1,342

460

670

207

1.27

4.92

1.30

0.94

0.16

2018

273

105

1,289

439

644

208

4.61
Percentage
5.80
of new
recruits (%)
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

2015

20

6

588

121

231

30

6.31

2.14

7.90

2.20

4.84

0.94

15

3

555

124

253

32

14

5

493

106

247

40

2018

8

6

448

105

225

2019

4

7

438

119

241

2017

No. ofmanagers

43

4.45
Percentageof
4.72
employeeleaving (%)
3.52

46

2.58

1.74

7.51

1.52

2.81

0.41

0.85

6.25

1.50

2.54

0.75

0.88

6.52

1.96

3.99

0.88

0.69

5.81

2.41

3.26

0.69

5|9

4|8

812

Full-time

157

755

57

655

Part-time
Manager
General staff

2015

759

159

651

General staff

2016
No. of all employees

General staff

Full-time

731

151

628

General staff

2017
No. of migrant workers

Full-time

726

683

154

568

General staff

1,488

General staff

739

26

Part-time
Manager

385

Part-time
Manager

3|11

752

48

Part-time
ManagerFull-time

1,786

4|8

779

51

Part-time
Manager

681

4|11

810

Full-timePart-time
Manager

Job title

2016

1,525

1,822

Type ofemployment

0.29

384

Job title

1.91

General staff

Full-time

2,171
Type ofemployment

1.61

754

Job title

5.96

General staff

1,537

Part-time
Manager

Type ofemployment

2.70

1,534

338

Job title

7.90

823

Full-time

1,953

194|432,206
Type ofemployment

175

309

Part-time
Manager

Job title704

Full-time

2,048

203|542,291

Type ofemployment

516

Job title

1,534

General staff

Type ofemployment

121

1,755

Part-time
Manager

Job title

356

839

428

2,166

Type ofemployment

2015

Full-time

2,357

Job title

Over 50 years
old

2,594

155|58Type ofemployment

30 ∼ 50

164|46

Job title

Younger than
30 years old

227|45

Type ofemployment

Over 50 years
oldMale Female Male Female Male Female

2016

6.77%

94.70%

Job title

30 ∼ 50

Male Female Male Female Male Female

No. ofemployees

7.00%

93.19%

Type ofemployment

Table 5.1-1 Employee compositions (by ages)

2017

5.18%

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

The recruitment policy in 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 5.12 demonstrate the employee compositions of Tatung. Tatung has more than 93% of local employees and 1.86% ofdisable employees which is more than the requirement by the regulation.

Year

Migrant worker

5.30%

Employee diversity

Younger than
30 years old

Local employee

2018

Full-time699

40

Part-time
Manager

172

567

General staff

2019

No. of disabled employees

Note: The members of senior managers (deputy plant/general manager and above) are all Taiwanese.
There were 8 disabled managers in 2019 (0.94%).

▲ Figure 5.1-2 Employee Compositions (by genders)

52

»

»

» 51 »2020

CH5

TATUNG CSR
Happy workplace andsocial participation

Human rights training

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 and human rights through common educational courses. For example, in general staff
training courses we emphasis on ethics, team work, and respect. In management level training courses weemphasis on gender equality, respect different races, colors, languages, religions and so on. 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 go smooth.

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 memberof the union. Currently Tatung has totally 5 labor unions distributed in the HQ and factories. Tatung does notinterfere with the wills of the employees to join labor unions. In 2019, 70.65% of employees are the members oflabor unions (Figure 5.1-3).

Table 5.1-2 Tatung parental leave statistics
Male Female

Male Female

Application and return to work from parental leave

Retention rate

No. of employees that took parental
leave in 2019.

1023

No. of employees that applied andreturned to work in 2018.

3

8

No. of employees that shall end
parental leave in 2019.

914

No. of employees who returned towork after parental leave ended who
were still employed 12 months after
their return to work in 2018.

2

5

No. of employees who returned to work
after parental leave ended in 2019.

6

12

67%

63%

Return to work rate

67%

Percentage of employees who
returned to work after parental leave
ended who were still employed 12months after their return to work in
2018.

86%

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

Welfare2016

79.35%

2017

77.30%

70.65%

20182019

Besides, in order to 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 psychological unnecessary 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.

▲ Figure 5.1-3 Percentage of employees who are labor union memberChild labor and forced labor

Tatung's recruiting policy is in line with the regulations. Hiring child labor is not allowed 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 theworking hours, the practice only can be implemented after getting the agreement from the labor union or theemployee. There was no force labor situation in 2019.

Parental leave

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 in accordance toregulations. The statistics on parental leave is shown in Table 5.1-2.

» 53 »

Table 5.1-3 Employees' welfare
Employees’
welfareImplementation

Stockownership

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

Subsidies

Education subsidies for employees' children in senior high school and college/university; funeralsubsidies for colleagues or their spouses and immediate relatives; ﬁnancial gifts for death ofcolleagues; subsidies for employees' birthday, travel, and retirement; cash gifts for weddings of
employees or their children as well as for birth of employees' children.

Beneﬁts

Employees can purchase Tatung products via interest-free installments and price discounts on
groceries in corporate stores. Free movie shows and special trains in Chinese New Year Festival.

Club activities

Education, recreation, physical education, languages, hiking/mountain climbing andphotography.

Health andsafety plan

Labor insurance, health insurance, group insurance, retirement pension, free annual healthcheckup.

»2015

80.39%

54»

81.59%

Tatung 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.

2020
TATUNG CSR
Happy workplace andsocial participation

5.2 Good working conditions and career development

Salary and performance review

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 her rules
and internal control to ensure the minimum salary is 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.

DMA
Labor-management relations

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

Goals and targets

Responsibilities
Resources

Grievancemechanisms

Speciﬁc actions

Tatung upholds the corporate value – employee harmony to formulate work
speciﬁcations, beneﬁts, salaries, allowances, etc., in accordance to regulations
and review employees' performances year by year. Employees can get paid withreasonable compensation, so that all the employees can feel at ease and satisﬁedwith their jobs.

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 salaryand 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.

Tatung and its subsidiaries.
Performance disclosure is limited to Tatung Co.
Provide employees and job seekers with a working environment that complies withlaws and regulations, and take appropriate preventive, corrective, disciplinary andhandling measures to protect the rights and interests of the parties, and continue to
strive towards employee harmony.
Employees are one of the company's important assets. Human rights, equality, andanti-discrimination are important core values in our labor policies.
Tatung's labor and management relation is harmony. The employees and thecompany work together, coexist and prosper. The employees contribute to theirown company and factory, and the employees and management are wellcoordinated.
Short-term target: Through performance review to ensure that employees pay
attention to correct performance projects and review the daily work performance
to link with company strategies.
Mid-term target: Giving rewards for outstanding personnel; coaching personnel
with poor performance for improvement.
Long-term target: Using long-term performance review system to identify potential
talents, and link with promotion or salary adjustment.
1. Establish and implement the protection system on the employees who makecomplaint.
2. Establish a workplace that values human rights.
Relevant measures for gender equality are clearly deﬁned within the Company
Rules.
• Tatung has "Chairman Mailbox" and "HR e-mail" for the employees tocommunicate with management level.
• Organizing Labor-management Meetings to communicate with the employees
and solve the problems.
• Tatung has "Measure of processing employees' complaints" and other practices
in place for the employees to complain about any dispute and provides achannel to deal with.
• HR is the unit responsible for re-appealing of labor incidents such as sexual
harassment and labor relations cases.
• All departments use various methods such as gatherings, e-mails, electronic
newsletters, or internal documents to deliver information in regarding tostrengthen anti-discrimination, sexual harassment related prevention measuresand appeal channels to the employees.
• Employees have the right to apply for the parental leave and return to work after
the expire of the parental leave in accordance to relevant regulations.
• When there is any major change in operation and may affect employees,
Tatung sets the minimum notice periods in "Company Rules": Shortest notice
period for work for 3 months to 1 year is 10 days; work for 1~3 years is 20 days;
work for more than 3 years is 30 days.

In average salary, the female employee to male employee is 0.85~0.90:1 in 2019
(Figure 5.2-2); the average annual salary is NT$645,975 and the median annual salary is
NT$566,890 for non-management employees (2,692 employees in total). Please refer toTable 5.2-1 for details.
Tatung takes great concern to the overall performance of individuals, departments andorganizations, 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 are assessed according to the "Performance
Management Method" regardless of gender. The purpose of the assessment is to identify
talents with high performance potential and poor performance and effectively links theperformance with bonuses, rewards or promotions. The employee ratio for performance
review in 2019 is 94.71%.

Table 5.2-1 Number of non-management employees2, average salary, andmedian salaryYear

Mechanisms for• Organizing Labor-management Meetings regularly or additional meetings whenevaluating theit is necessary.
effectiveness ofthe management• Audit by the authorities.
approachResults of theevaluation of theNo. of signiﬁcant labor-management disputes in 2019: 0.
management
approach
Related adjustments
to the management NIL.
approach1
2» 55 »

2017

2018

2019

No. of employees

2,974

2,833

2,692

Average salary (NT$)

620,570

627,213645,975

Median salary (NT$)

568,129

569,127

566,890: Employees who were in probation period, leave of absence, and short-term contract were not included.
: Directors and top level managers are not included.

»

An explanation of
why the topic ismaterial

56

»

CH5

2020

CH5

TATUNG CSR
Happy workplace andsocial participation

Post-employment beneﬁts

Tatung adopts "Defined contribution plan" and "Defined benefits plan" as its post employment benefits. For"Deﬁned contribution plan", Tatung makes monthly contributions of no less than 6% of the employees' monthly
wages to the employees' individual pension accounts in accordance with the Labor Pension Act. Expenses
under the deﬁned contribution plan for 2019 were NTD 68,473 thousand。

KPI
1.34

1.26

1.51

1.43

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 the pension fund deposited at the
Bank of Taiwan in the name of the administered pension fund committee. Before the end of each year, Tatung
assesses the balance in the designated labor pension fund. If the amount is inadequate to pay pensions
calculated for workers retiring in the same year, Tatung will make up the difference in one appropriation
before the end of March the following year. Tatung expects to contribute NTD 293,600 thousand to its deﬁned
beneﬁt plan during the 10 months beginning after 2019.12.31. For detailed post-employment beneﬁts, pleaserefer to Tatung 2019 Annual Report page 409~412.

1.00

1.05

$

$

$

$

$

$

Migrant
workers

Technicians

Staffs(bachelor)Research
staffs(bachelor)

Staffs(master)

Research
staffs(master)Labor-management relations

In order to provide employees with a working environment that complies with laws and regulations andcontinues to strive towards employee harmony. Tatung has "Measure of processing employees' complaints"
and other practices in place for the employees to complain 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 2019 however, there were 4
incidents that violated regulations and ﬁned NTD$ 550,000. All the violations have been corrected.

▲ Figure 5.2-1 Ratio between basic salary andlegal salary for different employment types

1.04

Male

1.0

1.0

1.0

1.0

1.0

Female

1.0

1.0

1.0

1.0

1.0

1.00
0.96

Tatung sets the minimum notice periods (Table 5.2-2) 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.
0.92

0.92

0.89

0.90

0.90

0.90

0.89
0.87

0.88

0.88

0.89

Table 5.2-2 The shortest notice period

0.84
Staffs0.80

Shortest notice period

0.85

2015

2016

Technicians

2017

2018

2019

2015

2016

2017

2018

2019

Work for 3 months~1 year

10 daysWork for 1~3 years

20 daysWork for more than 3 years

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

58

»

»

» 57 »2020

CH5

TATUNG CSR
Happy workplace andsocial participation

Education and career development

Unit: hours

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 education and training system which provides skill/profession oriented
training courses to the employees to help the company to cultivate the talents that fit into business andachieve sustainable development.
Tatung plans training courses by taking company's human resource policy into account and indentiﬁes theannual capacity gap of organizational functions. In November of each year, a survey of the training needsof senior managers and all employees is collected. Based on the survey results and the company'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 5.2-3 shows the structureof Tatung HR development. Tatung has formulated the "Tatung Company Education and Training Manual"
as a norm for education and training, including: education and 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 on internal website to let employees retrieve freely. We arrange classtutors for each course to be assistance and students with any questions can respond to them. After the class,
we conduct satisfaction survey and the results and responses will be feedback to the students and relevant
managers to improve the quality of education and training in the future.

24

23.14
18.11

20

Generalemployees
Managers

16
12

14.35

4

10.11
8.40

6.21

0 2015

2016

12.40
10.76

Femaleemployees

8.73

8.82

8

Male
employees

8.14

8.46

2017

2018

7.21
8.74
6.21

2019

2015

2016

8.50

11.33

12.69
11.80

7.78

2017

2018

2019

Note: The training hours including business operating lectures since 2018.

▲ Figure 5.2-4 Training hours per employee

In 2019, we organized 31 general courses which covered from new recruits training, environmental protection,
occupational health and safety, information safety, etc. For advanced courses we organized 23 specialized
courses in each ﬁeld, 11 courses for managers, 13 business courses, 14 business operating lectures, 8 healthlectures, 1 ﬁnancial lecture, 1 procurement lecture, and 5 other lectures. In total there were 36,271 training
hours and each employee was given 12.46 hours in average with the average satisfaction 91.69%.

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4, 2019▲ Leading class for mid-level ▲ Class for reserved managers

managers» 59 »▲ Class for new recruits»

4 Review

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2020
TATUNG CSR
Happy workplace andsocial participation

Health promotion and disease prevention▲

Blood donation event
First-aid training

Table 5.2-3 Health promotion and disease prevention activities in 2019Time

Activity

Location

Time

2019

Health passport rewards programThe
headquarterand thefactories

2019.06

Blood donation

2019

Health management activity

Tayuan Plant

2019.06

Blood donation

2019

Survey on muscle and skeleton
injuryTayuan Plant

2019.06

Health seminar

2019

Health risk evaluation for female
employee

Tayuan Plant

2019.07

CPR and AED training

2019

Health promotion activity

Taoyuan 1st
Plant

2019.07

Health check: irregular heartbeat Meter Factory

2019.01

Blood donation

Tayuan Plant

2019.07

Soccer camp for children

The
Headquarter2019.01

Health seminar2019.07

Blood donation

The
Headquarter2019.01

Health seminar2019.08

Health seminar and healthpromotion activity

Taoyuan 1st
Plant

2019.01

Blood donation

The
Headquarter2019.09

Health promotion activity

Meter Factory

2019.02

Health seminar-high bloodpressure

Tayuan Plant

2019.09

Pressure relief activity

Meter Factory

2019.02

Health check: noise

2019.09

Risk assessment on abnormal
Tayuan Plant
workload which triggering disease2019.03

Blood donation

2019.09

Blood donation▲▲» 61 »

Health seminar

Min-Sheng
Hospital
Ching-Kuo
CampusTaoyuan Wires
and Cables
Plant

Location
Tayuan Plant,
Taoyuan 1st
Plant
Taoyuan 1st
Plant
Taoyuan Wires
and Cables
Plant
Tayuan Plant

Taoyuan Wires
and Cables
Plant
Taoyuan Wires
and Cables
Plant

2019.05~10 Weight control activity

The
Headquarter2019.10

Health seminar2019.05~10 Weight control activity

San-Hsia
Factory

2019.10Hiking activity

Jinshan2019.10

Health check

Tayuan Plant

2019.11

Pressure relief activiy

2019.11

Blood donation

2019.12

Health check2019.12

CPR and AED training

2019.05~10 Weight control activity▲ Health examination fairTaoyuan Wires
and Cables
Plant
The
Headquarter

Activity

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

2019.05

Pressure relief activiy

2019.05

Visit the company acitivity

2019.05

Blood donation

2019.06

Health seminar-cancer prevention Tayuan Plant

San-Hsia
Factory

Taoyuan Wires
and Cables
Plant
San-Hsia
Factory
Taoyuan Wires
and Cables
Plant
The
Headquarter»

Tatung believes that the health of the employees and their families is a valuable asset to the company. Tatung organizes
numerous health speeches, seminars, health checks to let the employees understand the importance of their healthand promote to their families. The concreted measures are follows:
1. Clean air, healthy and happy workplace environment
Smoking has been proven to have negative effects to the health and smoking in workplace increases the risk of ﬁreincidents. Smoking within the boundary of the companies/factories has always been prohibited. The employees,
contractors, and visitors are not allowed to bring cigarettes, matches and lighters into the company. Tatung also
clearly posts/marks "NO SMOKING" notice 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 relievepressures in their spare time.
3. Health examination fair
Tatung works with Health Center of Zhongshan District of Taipei City to organize Health examination fair on a
yearly basis. In 2019, the specialists from Taipei City Hospital are invited to the company to do high blood pressure,
hyperlipoidemia and high blood sugar screening, oral cancer screening, cervical smear, breast cancer screening,
and lung function testing. 236 employees participated in the fair. Tatung also arranges high-quality health checkannually in order to ﬁnd out any premature diseases and treat them in advance to protect employees' health.
4. Tatung organizes health promotion seminars and also publishes information about serious diseases on the company
website and e-publications. The information contains not only about the diseases but also the preventions andtreatment channels.
5. Tatung runs ﬁrst-aid/CPR courses every year to enhance employee's ability.

62

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Happy workplace andsocial participation

DMA
Occupational health and safety
An explanation of why the topic
is material

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

Boundary for the material topic

Tatung and its subsidiaries.

Speciﬁc limitation regarding the
topic Boundary

Performance disclosure is limited to Tatung Co.

Purpose of the management
approach

Implement occupation health and safety in the workplace.

Policies

Reduce occupational disasters and achieve the goal of "zerodisasters".

Commitments

Work hard to achieve the goal of "zero disaster".

Goals and targets

Responsibilities
Resources

Speciﬁc actions

Short-term target:
1. Complete the implementation of ISO 45001 in all 4 factories andpass 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.
Mid-long term target: Zero disaster.
Factories and subsidiaries are responsible for complying withapplicable health and safety regulations during daily operations,and the Health and Safety Division is responsible for checking theimplementation results of the factories and subsidiaries.
1. Accident, Prevention, Pays Program.
2. Internal audit under Internal Control System.
1. Factories and subsidiaries operate in accordance to health andsafety regulations.
2. Health and Safety Division conducts on-site audits to review theperformances.

1. Reports non-conformities to the president at the internal control
monthly meeting.
Mechanisms for evaluating theeffectiveness of the management 2. Conducts Accident, Prevention, Pays Program on-site audit andapproachrecords down non-conformities. The factories are requested to
improve these and ESD will track the improvement results.
1. San-Hsia Factory completed the implementation of ISO 45001
and passed the certiﬁcation in2019.
2. The correction rate for non-conformities from Accident,
Results of the evaluation of thePrevention, Pays Program was 100% in 2019.
management approach
3. In 2019, both FR and SR were reduced by 10% comparing to2018.
Related adjustments to the
management approach公司
大同 作守則
工
生
衛
安全

訂

104 年

» 63 »8 月修

NIL.

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 to the 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 to the employees).
Tatung also issues "Tatung Health and Safety Guidebook"to employees in order to raise their awareness regarding
to occupational risks.
In addition, Tatung holds "Health and Safety Committee"
meetings in headquarter and factories to communicate
and review the contents and progress of health andsafety issues (Figure 5.3-1). The percentage of labor
representatives is better than the requirement ofregulation (at least 33%). The headquarter also organizes
regular health and safety committee meetings andinvites the representatives in the factories to enhance
the communications within the company.

40.00
38.10%
38.00

36.84%

36.00
34.00

34.78%
33.33%

33.33%

32.00

Occupational health and safety
management

30.00

Focusing on the issue of health and safety is
one of the long standing policies in Tatung.
With a regulated system and culture based
strategy, Tatung has aggressively participated in
education training, regulation consulting, and risk
assessing, and has established the procedures
to improve the issues of health and safety, as
well as setting objectives and reforming projects.
These are accomplished through the executionof reform projects and periodical assessments,
as well as reviewed by to management, andaided in the continued improvement of healthand safety performances, and hence assist
Tatung to achieve the goal of a disaster freeworking environment. So far, all the factories
have established OHSAS 18001 and passed thecertification. Tayuan Plant and San-Hsia Factory
have even established CNS 15506:2011 andpassed the certification. Since International
Standard Organization (ISO) published ISO 45001
Health and Safety Management System in 2018.
We are now managing to transform current
OHSAS 18001 to ISO 45001 in the factories. So
far San-Hsia Factory has established ISO 45001
and passed certification in 2019. We are aiming
to complete the transformation in the rest offactories by the end of 2021. Figure 5.3-2 shows
the status of occupational health and safety
management systems and goals in Tatung.

▲ Figure 5.3-1 Percentage of labor representatives

The
Headquarter

Tayuan
Plant

Taoyuan Wires Taoyuan
and
1st Plant
Cables Plant

San-Hsia
Factory

in Health and Safety Committees▲ San-Hsia Factory's ISO

45001 Certificate»

5.3 Health, safety, and disaster free

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TATUNG CSR
Happy workplace andsocial participation

OHSAS

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 "zero disaster" 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 health and safety experiences between
factories and subsidiaries.
3. Recommends outstanding factories or subsidiaries to compete governmental awards.

Health and safety training and regulation promotion
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, general employees, andmanagers in headquarter. The training classes introduce the related health and safety regulations such as"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 use of personal protective equipments,
workplace ventilation, management on lighting, job safety analysis, and prevention of illegal infringements inperforming duties. For professional training, Tatung opens training classes such as First-aid, Hazardous machinery or
equipment, Fork lifters, VOCs, Dusts, Designated Chemicals, etc. Please refers to Table 5.3-1 for more details.
As for regulation promotion, Tatung organizes "Tatung Corporate OHS Seminar" every year. The seminar was held inMarch 2019 and the topic was introducing ISO 45001 and case study on health and safety accident.

2010

2011

2013

2018

2019

2021

Tayuan Plant
passedCNS 15506
certification

All 4 factories
passedOHSAS 18001
certification

San-Hsia Factory
passedCNS 15506
certification

ISO 45001
released

San-Hsia Factory
passedISO 45001
certification

Target:All 4 factories
pass ISO 45001
certification

Table 5.3-1 Health and safety training results and targets▲ Figure 5.3-2 Status of occupational health and safety management systems and our targets
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 the next year's evaluation. Seventy-two non-conformities were found in 2019's Accident, Prevention,
Pays Program on-site audit. The items were mainly laid on lacking proper preventative measures for electric shock andlack of protection cover for machinery equipments. By the end of 2019, all the non-conformities have been corrected.
In 2020's Accident, Prevention, Pays Program, we will focus on compliance status, and implementation of working
environment monitoring, and conﬁned space prevention to protect employees' health and safety.

▲ Accident, Prevention, Pays Program

on-site audit (1)» 65 »

2016

2017

2018

2019

2020

No. ofparticipants

No. ofparticipants

No. ofparticipants

No. ofparticipants

No. ofparticipants3

Health and Safety Training Class (newrecruits)

168

256

507

364

40

Health and Safety Training Class (generalemployees)

773

796

589

750

332

Health and Safety Training Class(managers)

41

191

130

125

44

Emergency training class

608

1,059

1,121

1,163

562

Stationary Cranes training class

0

0

0

75

24

Stationary Cranes training class (retraining)

403

24

69

276

52

Health and Safety Training Class(construction contractors)

31

15

16

16

0

First-aid re-training

94

89

11

100

0

First-aid training

0

0

0

25

79

Forklifters training class (over 1 tons)

0

0

25

2

5

Forklifters training class (re-trainig)

192

53

85

132

95

Training class for Preventing Workplace
Violence

0

0

66

342

70

Topics▲ Accident, Prevention, Pays Program

on-site audit (2)3: Due to the impact of COVID-19, the number of training in 2020 is reduced to avoid cluster infection.

»

2007
Started toestablish
health andsafetymanagement
systems

In addition, Tatung complies with "Labor's Working Condition Monitoring Methods" and sets working environment
monitoring and conducts monitoring. The results from monitoring are available to the employees. Tatung also
educates the employees the potential hazards in the working environment and the necessary prevention measures.

66

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Happy workplace andsocial participation

Health and safety performance

Tatung continues to establish safety culture, reduce
occupational disaster risk and provide a safe working
environment. When an occupational disaster isoccurred, root-cause analysis will be conducted andcountermeasures will be implemented to prevent
such case happening again. In 2019, there was nooccupational disease case and death incident; however
there were 3 non-compliances and ﬁned NT$180,000 in
total. The non-compliances have all been corrected.
FR and SR for male employees in 2019 have declined
from 2018. No occupational accident for female
employees for 2 consecutive years. The AR for female
employees have been gradually declined since 2016.
Please refer to Figure 5.3-3, Figure 5.3-4, and Figure 5.3-5
for more details.
Tatung has reached the target of reducing the FR and SR
by 10% every year in 2019. We will continue to strengthen
traffic safety promotion and require factory managers
to strengthen the safety requirements of employees andcontinue to move towards to the goal of zero disaster.

120

5.4 Participation and beneﬁts to the society
3.00
2.50
2.00

2.00
1.50

1.30

1.25

1.29

0.50
0.00

0.00
2015

2016

2017

0.00
2018

0.00
2019

Tatung always actively gets involved in government's infrastructure projects with the spirits of serving thecountry through industry and fulfilling corporate social responsibility. Tatung has a very deep connectionin every stage of development in Taiwan. We brought Rice Cookers into market because of caring
mothers' hard work from cooking in the past. Now we are more committed to support national energy
transformation and develop smart energy technology to build a "energy security, green economy,
and environmental sustainability" with smart, energy-saving and green energy products and systems toprotect our beautiful homeland.
In 2019, we have completed a large scale of power storage system in Yong-An, Kaohsiung City; completed
the second phase of PV roofing on Kanhai Park's public buildings (the largest single PV field of 1,991.4kWp
in Hsinchu City); and cooperated with New Taipei City Government to set up two demonstration sitesof citizen power plants whose operation involves the effort from industry, government, and locals. We
will continue to uphold "Green Energy Tatung" development strategy and continue to participate in the
renewable energy industry for making an effort to the country.

Note: 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 5.3-3 Trend of FR

0.0120100

0.010096

80

0.00910.00970.00890.00800.0080▲ Power storage system in Yong-An,

Kaohsiung City

0.0060
57

40
35
20
0
2015

17
5

2016

2017

0.00300.00270.00270.00350.0032▲ PV roofing on Kanhai Park's public

0.002018

150.0040

0
2018

0
2019

0.0000buildings

2015

2016

2017

2018

2019

Note: 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

Note: The formula for AR is Total days of incapacity of any kind/Total
days scheduled to be worked▲ Figure 5.3-4 Trend of SR▲ Figure 5.3-5 Trend of AR»60» 67 »

2.08

1.98

1.00

0.01010Participation in infrastructure projects and serving the country throughindustry

2.73

68

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Happy workplace andsocial participation

Supporting in traditions, arts andraising environmental protection
awareness

Tatung charity soccer summer camp
Founded for more than a century, Tatung attaches great importance tothe inheritance value of passing the flame of remembrance onto the next
generation. Former chairman Lin Wei-shan instructed the company to run"Tatung Charity Soccer Summer Camp" in order to help the underprivilegedchildren to cultivate a proper and healthy hobby. Every summer, the Tatung
Charity Soccer Summer Camp invites social welfare organizations or children
from disadvantaged families to participate for free. In addition to professional
football training, a full set of sportswear, professional footballs, socks and gifts
are made for each student, as well as full subsidies for the transportation,
catering, and insurance expenses of the children participating in the camp.
Medical personnel are also invited to accompany the children to fully protect
the safety of the activities. We hope that the unique soccer resources of
Tatung will be used to educate all participants the spirit of teamwork andsportsmanship through the playing of soccer game and hence have the spirit
put into practice in their everyday life.

In support of preserving and promoting traditional arts,
Tatung invited native Taiwanese paper carving masterto design Tatung Boy small lanterns of 12 Chinese zodiac.
As a token of celebrating the Year of Pig in 2019, themuch-treasured small lanterns were widely utilized as apromotion gift for Tatung 3C to its customers. In supportof traditional folk arts, Tatung invited Taiwan indigenous
lantern artists to make Tatung Boy creative lanterns
to display in the Taiwan Lantern Festival in Pingtung.
To support Taiwan's performing art groups, Tatungco-created the children's drama, "Rescuing Power
Kingdom", with Eyuan Puppet Theatre in 2019. The drama
was performed to more than 5,300 students in a tour
nationwide. Concepts of energy saving, healthy living,and environmental protection were also incorporated in
the play to better inﬂuence students on their daily habits.

▲ Small lanterns of Year of Pig

A total of 340 vulnerable children of grade 1-9 from 15 orphanages were invited
to the summer camp in 2019. We hope that every child can get happiness andsatisfaction in soccer and get positive power. This is the biggest goal of running
the Tatung Charity Soccer Summer Camp every year.

▲ Taiwan Lantern Festival in Pingtung▲ Rescuing Power Kingdom drama played in

the schools▲ Children learned to play soccer in 2019 Tatung Charity

Soccer Summer Camp

70

»

»

» 69 »

2020
TATUNG CSR

Targets

Energy and GHG management

1. Energy intensity of represented products in 2023 will be 6% less than in 2018.
6 out of 7 products' energy intensities were 1% less than in 2018.
The target achieve rate was 85.71%.

Performancein 2019
2. Energy saving rate will be at least 1% in the headquarter and the factories
from 2019~2022.
The energy saving rate in the headquarter and the factories
were all more than 1%.
Performancein 2019
3. Promote ISO 50001 energy management system.
Short-termtarget

CH6

Tayuan Plant, Taoyuan Wires and Cables Plant, and San-Hsia
Factory have updated to ISO 50001:2018 and passed the
Performance certiﬁcation.
in 2019
Mid-long term Implement ISO 50001 in Taoyuan 1st Plant.
targetEnvironmental management and comply with regulations

Target1 Correction percentage over 95% for the non-conformities from
3P Program.
Correction percentage was 94.87% and the target was notachieved.
Performancein 2019
Target2 Maintain ISO 14001 in the factories.
All the factories' ISO 14001 passed annual certiﬁcation.
Performancein 2019
Target3 No. of violations against regulation are less than previous year.
One violation in 2019 which was 1 case less than in 2018.
Performancein 2019

TargetWaste reduction management

Target Reduce the amount of wastes by 5% every year.

Performancein 2019» 71 »

Compared with the amount in 2018, the amount of wastes
was 15.21% increasing which did not meet the target.

4. Carry out ISO14064-1 GHG inventory.
Short-term Complete ISO 14064-1 GHG inventory every year in Taoyuan
target Wires and Cables Plant, Taoyuan 1st Plant, and San-Hsia
Factory.
Taoyuan Wires and Cables Plant, Taoyuan 1st Plant, and SanHsia Factory completed GHG inventory for year 2018 and
Performance veriﬁed by the third parties.
in 2019
Mid-long term Implement ISO 14064-1 in Tayuan Plant and the headquarter.
target:TargetGreen product management

1. Continue to seek for solar PV system cases.
Target Aiming to have 197.15MWp capacity by the end of 2020.
The total installed capacity was 127.15MWp.
Performancein 2019
2. Continue to research and design environmental friendly, energy saving, andwater saving products.
Target Continue to apply for Green Mark, Energy Label, and Water
Label.
New applied Green Mark: 22 models, Energy Label: 98 models,
Water Label: 4 models.
Performancein 2019»

Targets

72»

Sustainable
environment

Factories with ISO 50001 update the version to ISO 50001:2018.

2020

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TATUNG CSR
Sustainable environment

6.1 Management on the environment
DMA

3P Program

Management on the environment, Comply with environmental regulations

ISO14001
ISO14064-1
1996
199
6

Product carbon footprint
2009

2010

ISO50001

2015

2018

2023

Stage 2 Energy saving target
Baseline year

201

8
201

9
202

0
202

1

Target:

202

202

3

▲ Tatung environmental management road map» 73 »

6%⇧

2

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

Immediately identify the risks of violations against regulations and make
improvement to avoid pollutions to the environment and penalties from theauthorities.
Actively promote environmental protection, energy saving and carbon
Policies
reduction to reduce the impact to the environment.
Continue to implement Pollution, Prevention, Pays (3P) Program andCommitments
ISO 14001 to fulﬁll social responsibility with a continuous improvement
management model.
Short-term:
1. Correction percentage over 95% for the non-conformities from 3P Program.
2. No. of violations against regulation are less than previous year.
Goals and targets
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."
The factories and subsidiaries are responsible for complying withenvironmental regulations for daily operations. Health & Safety Division
Responsibilities
is responsible to audit the factories and subsidiaries' conformance
performances.
1. 3P Program on-site evaluation.
Resources
2. Internal Control System on-site audit.
1. The factories and subsidiaries operate in accordance to the environmental
regulations.
Speciﬁc actions
2. Health & Safety Division conducts 3P Program on-site evaluation andInternal Control System on-site audit.
Mechanisms for
1. Report non-conformities to the president on monthly Internal Control
evaluating theMeeting.
effectiveness ofthe management 2. Identify non-conformities from the factories and track the improvement
results through 3P Program on-site evaluation.
approachResults of the
1. In 2019, 16 factories and subsidiaries were conducted with 3P Program onevaluation of thesite evaluation. The correction percentage was 94.87%.
management
2. One violation in 2019 which was 1 case less than in 2018.
approach
Relatedadjustments tothe management NIL
approach

Energy audit
2014

Tatung and its subsidiaries.

"Economic development should not create pollution to theenvironment but try to forge a marriage between corporative
development and environmental protection" is a sentence that
Tatung's employees familiar with. We set up "Pollution Prevention
Education Center" in 1988 to promote environmental educationin the factories 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.

»

1993
199
3

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

74

»

1990
199
0

An explanation of
why the topic ismaterial
Boundary for thematerial topic
Speciﬁc limitation
regarding the
topic Boundary
Purpose of the
management
approach

2020

CH6

TATUNG CSR
Sustainable environment

Pollution, Prevention, Pays (3P) Program

Tatung started to implement "Pollution Prevention Pays, 3P" program in the factories and the subsidiaries whichhave manufacturing function since 1993 to help Tatung to develop environmentally sound operations. Sixteen
factories and subsidiaries were participated in 2019 (Annex 2). The elements of 3P program are listed on Table
6.1-1.

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 thesubsidiaries. So far all 4 factories have established ISO 14001 and certiﬁed every year. We commit that we will 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.

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 yearly correction target to be 95%. For the non-conformities which can not be corrected by the endof year, we will track them and make them to be corrected next year. In 2019, 78 non-conformities wererequested to be corrected and 74 were corrected by the end of year. The correction rate was 94.87% anddid not meet the target.

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

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

Measures

Descriptions

Performances

Manufacturing Promote Clean Production
aspecttechnology, fully utilize
resources and materials
and to reduce the wastes
and the production costs

Improve the existing manufacturing
2,289.63 tons of industrial
processes and management operations to wastes (about 69.42%) were
eliminate sources of pollution. Also improve reused in 2019.
upon the recycling/reuse, and exchange/
reuse of waste materials.

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

Apply Design for the Environment,
DfE", in the design phase to produce“ recyclable, low pollution, toxicfree, resource saving, power saving,and durable" products to benefit theenvironment.

In 2019, we applied Green
Mark: 22 models; Energy
Label: 98 models; Water
Label: 4 models.

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

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

Sixteen factories andsubsidiaries were participatedin 3P program.

Conformity

Conduct internal audit.

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

Non-conformity correction
percentage was 94.87% in
2019.

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 2019. San-Hsia Factory
was ﬁned NTD$100,000 due to violating Air Pollution Control Act. The violation has been corrected in accordance tothe regulation and accepted by the authority. We will further strengthen management in the factories and enhancecompliance education to the staffs and the managers. In addition, we will continue to conduct internal control system
on-site audit and 3P Program on-site evaluation to prevent such incidents happened again. Besides, there was no
signiﬁcant spill in 2019.

Internal control audit
Authority
Health &Safety Division

Improvement

3P Program on-site evaluation

Factoryaudit▲ Figure 6.1-2 Measures practiced to ensure the compliance»» 75 »

ISO 14001

76»▲ 3P Program on-site evaluation

Audit

2020
TATUNG CSR
Sustainable environment

DMA
Energy consumption and GHG management
An explanation of
why the topic ismaterial

Greenhouse gases emitted by human activities have already caused global
warming and led to the threat 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 from running thebusiness

Boundary for thematerial topic

Tatung and its subsidiaries.

Speciﬁc limitation
regarding the topic
Boundary

Performance disclosure is limited to Tatung Co.

Purpose of the
management
approach

Reduce energy consumption and GHG emissions.

Policies

Actively promote environmental protection, energy saving and carbon reduction to
reduce the impact to the environment.

Commitments

Continue to carry out ISO 14064-1 GHG emission inventory, implement ISO 50001
energy management system, and propose energy saving projects to mitigate
global warming.

Goals and targets

Short-term:
1. Taoyuan 1st Plant, Taoyuan Wires and Cables Plant, and San-Hsia Factory carryout ISO 14064-1 GHG emission inventory and pass the third party veriﬁcation
every year.
2. Tayuan Plant, Taoyuan Wires and Cables Plant, and San-Hsia Factory maintain
ISO 50001.
3. Save 1% at least of electricity in the headquarter and the factories every year.
Mid-term:
1. Adopt ISO 14064-1:2018 (new version) before the end of 2022 (used for GHG
inventory of year 2021).
2. The energy intensities of representative products are reduced by 6% in 2023 whencompared with 2018.
Long-term:
1. Implement ISO 14064-1 in the headquarter and Tayuan Plant and pass the third
party veriﬁcation.
2. Establish ISO 50001 in Taoyuan 1st Plant and pass the certiﬁcation.

There are two types of energy that Tatung consumes – direct energy and indirect energy. Direct energy sources are fromdiesel fuel oil, LPG, and diesel. Indirect energy source is purchased electricity from Taiwan Power Company. The amountof energy consumption in 2019 is shown on Table 6.2-1, Figure 6.2-1 and Figure 6.2-2. The most consumed energy in 2019
was purchased electricity and the amount was 167,661.53 GJ (85.89%) which equaled to 46,572.65 kkw-hr; followed
by LPG with 13,561.08 GJ (6.95%) which equaled to 268.70 tons. The total amount of energy consumption in 2019 was
27,064.07 GJ less than in 2018, which was 12.18% reduction.

Table 6.2-1 Energy consumption of Tatung
2015

2017

2018

2019

3,454.31

441.83

1,044.33

642.66482.00LPG

17,599.02

14,003.49

13,462.16

13,576.72

13,561.08

Diesel

7,487.31

7,597.62

12,410.45

14,196.95

13,508.29

Purchased electricity

272,373.49

216,680.23

215,190.36

193,860.63

167,661.53

Total

300,914.13

238,723.17

242,107.28

222,276.97

195,212.89

Note: The data of purchased electricity from 2015~2018 has been re-stated due to: 1. Purchases electricity data of Meter Factory in Taoyuan Wires
and Cables Plant from 2015~2018 has newly inluded; 2. The energy data in 2018 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 2019 was collected based on thesame method however has not been veriﬁed yet. The energy data from H.Q. and Tayuan Plant was collected from power bills and otherenergy receips.

GJ
350,000
300,000

300,914.13

250,000

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

Speciﬁc actions

Annual energy audit

200,000

Mechanisms forevaluating theeffectiveness ofthe management
approach

Tracking energy intensity status through the annual energy audit.

150,000

Results of theevaluation of the
management
approach

1. In 2019, Taoyuan 1st Plant, Taoyuan Wires and Cables Plant, and San-Hsia Factorycompleted GHG inventories for year 2018 and passed the third party veriﬁcation.
2. In 2019, Tayuan Plant, Taoyuan Wires and Cables Plant, and San-Hsia Factory
updated their ISO 50001 to the latest version (2018) and passed the certiﬁcation.
3. In 2019, 85.71% of the represented products achieved the stage target of 1%
reduction in energy intensity.
4. In 2019, we have saved 1% at least of electricity in the headquarter and thefactories.
NIL.

2016

Unit: GJ

Diesel fuel oil

Responsibilities

Related adjustments
to the management
approach» 77 »

Energy consumption

238,723.17

242,107.28
222,276.97
195,212.89

Residual
fuel oil

0.25%

Diesel

6.92%

LPG

6.95%

100,000

Purchased
electricity

50,00085.89%

0
2015

2016

2017

2018

2019

▲ Figure 6.2-1 Trend of energy consumption▲ Figure 6.2-2 Energy consumption breakdown

in 2019 (by energy types)»

6.2 Energy consumption and GHG management

78

»

CH6

2020
TATUNG CSR

CH6Sustainable environment

Greenhouse gas emissions

Greenhouse gases emitted by human activities have already caused global warming and led
to the threat on the sustainable development. Corporations actively to reduce the greenhousegas emissions are not only to show a responsible image to the public but also able to reduce theoperation costs from running the business. In order to investigate the amount of GHG emissions
thoroughly and comply with the future regulations, Tatung voluntarily implements ISO140641 greenhouse gas management system into the factories. 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 headquarter and Tayuan Plant in the future. In response to the newly released version of ISO
14064-1 (2018), we are planning to adopt it when working on 2021 GHG inventory. Figure 6.23 shows the factories have done GHG inventory. For the purpose of enhancing the ability to dogreenhouse gas inventory in the factories, Tatung runs ISO14064-1 Internal Verification Class every
year. We are expecting to have more well-trained employees through these classes and they areable to do the greenhouse gas inventory well and pass the verification by the third party in the
future.

Taoyuan Wires and Cables Plant ／ San-Hsia Factory

35,000

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019
2019

Calculated but not been verified.
Calculated based on ISO 14064-1 and been verified.
Calculated based on ISO 14064-1 and will be verified (2019) by the end of 2020.

LPG

Residual fuel oil

39,721.13

30,00031,900.15

32,115.40

25,00028,702.14

24,823.22

1,057.31

1,006.03

20,00015,00010,0000

Taoyuan 1st Plant

Diesel

40,000557.58
1,112.15

565.83884.985,000 268.40

H.Q. ／ Tayuan Plant

2009

Purchased electricity

CO2e (tons)

850.77
81.15

34.33
2015

924.26

2016

858.01857.02

49.94
2017

37.45
2018

2019

Note: The data of purchased electricity from 2015~2018 has been re-stated due to: 1. Purchases electricity data of Meter Factory in Taoyuan Wires
and Cables Plant from 2015~2018 has newly inluded; 2. The energy data in 2018 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 2019 was collected based on thesame method however has not been veriﬁed yet. The energy data from H.Q. and Tayuan Plant was collected from power bills and otherenergy receips.

▲ Figure 6.2-4 GHG emissions of Tatung▲ Figure 6.2-3 Tatung GHG inventory and verification status
Residual
fuel oil

0.14%

Due to the headquarter and Tayuan Plant have not implemented ISO14064-1, the GHG emissions(CO2, CH4, N2O, and scope 3 are not included) 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 since 2016. The completed GHG emission inventory for Taoyuan
1st Plant, Taoyuan Wires and Cables Plant, and San-Hsia Factory can be found in Annex 4 or
MOP1. The total GHG emission in 2019 was 26,723.72 tons CO2e (Figure 6.2-4) which is 3,943.68 tons
CO2e (8.80%) reduction than in 2018. The emissions from diesel, LPG and diesel fuel oil were 1,900.50
tons CO2e, and from purchased electricity was 24,823.22 tons CO2e (Figure 6.2-5).

LPG

3.21%
Diesel

3.76%

Purchased
electricity

92.89%▲ Figure 6.2-5 GHG emission percentage in 2019 (by sources)»» 79 »: https://mops.twse.com.tw/mops/web/t152sb01

80

»

1

2020
TATUNG CSR

CH6Sustainable environment

Energy saving and GHG reduction

Global warming greatly increases the frequency of extreme weather events and directly causes impacts to theoperation of a business. In order to fulﬁll corporate social responsibility and reduce operating costs, followed by Stage 1energy reduction target, Tatung proposed Stage 2 energy reduction target in 2019: the energy intensity per product in2023 will be reduced by 6% than in 2018 (baseline year).
To achieve the target, we have implemented ISO 50001 in the factories to sharpen up company's energy performance.
So far San-Hsia Factory, Tayuan Plant, and Taoyuan Wires and Cables Plant have established ISO 50001 updated to
the latest version. 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 thefactories. In 2019, Tatung reduced about 2.815 million kwh of purchased electricity consumption via 4 dimensions (Table
6.2-2) which equals to 10,134.43 GJ. The saved electricity contributed as much as 1,500 tons CO2e reduction. Figure 6.2-7
shows carbon reduction results for the past 5 years.

The energy intensity achievement status of represented products in 2019, 6 of the 7 represented products reached the target of
reducing energy intensity by 1%, and the achievement rate was 85.71%. The achievement status of each represented productis listed in Table 6.2-3. Products that did not meet the target is one product of Taoyuan Wires and Cables Plant. In terms ofelectricity saving rate, the headquarter and all factories have exceeded 1%, and all of them have achieved the target. Our
energy saving plan for 2020 is summarized as follows:▓ Tayuan Plant:

Renovate and improve the existing major electricity consuming production equipments by introducing inverters andautomatic control of human-machine interface operations, and replacing manpower with automatic feeding andconveying operation to reduce the standby power consumption of re-work and non-production time caused by humanerror.
▓ Taoyuan Wires and Cables Plant:
Continue to replace 40W ﬂuorescent tubes with 20W LED tubes at the lighting area of the production line. Replace theold fixed-frequency air compressor system with variable frequency type. Improve the power quality of the 8MM wiredrawing machine and increase the power factor to 95%. Improve the efﬁciency of equipments, improve the transmission
equipments of the extruder and stranding machines used in the process, replace the old DC motors with variable frequency
motors to save electricity, and finally coordinate with the summer power offset and regional surveys to adjust and use
electricity, and reduce the contract capacity in time.
Tons CO2e▓ San-Hsia Factory:

2,000

2015

2016

Started to
implement

1,500
Tayuan Plant ISO
50001 certiﬁcate

Taoyuan Wires
and Cables
Plant ISO 50001
certiﬁcate

San-Hsia Factory
ISO 50001
certiﬁcate

1,299.50
1,090.37
1,069.32

20190▓ Headquarters:

2015

2016

Note: 1 kw-hr of electricity emits 0.533 kg CO2e.

» 81 »

2017

2018

2019

Set up a solar photovoltaic energy storage system to beneﬁt
energy creation and reduce peak electricity demand, andto introduce level 1 energy-efficient air-conditioning andmonitoring management.

▲ Figure 6.2-7 Amount of GHG emission

reduction 2

Table 6.2-3 Target achievement status of Stage 2 Energy Saving Target

Table 6.2-2 Tatung energy saving projects and results in 2019

Total

Evaluate and plan the introduction of energy storage system,
cooperate with the government to suppress peak electricity
consumption, and meet the requirements of Renewable Energy
Development Act.

500

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

Optimized manufacturing process to reduce
operation time.
Replaced with higher energy efﬁcient and energy
saving equipments.
Centralized operation areas and shut down
unnecessary air conditioners and lighting.
Increased the frequency of maintenance andinspection for major energy using equipments, as wellas control the operating time to avoid leakage or
wasting of air or cooled air.

▓ Taoyuan 1st Plant:

1,000

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

Energy saving projects (by category)

1,500.41

Amount ofelectricity saved(kw-hr)Amount ofelectricity saved(GJ)

GHG reduction( tons CO2e)219,281789.41116.882,249,530

8,098.31

1,199.00

126,433

455.16

67.39

219,792

791.25117.152,815,037

10,134.13

1,500.41

Represented products

TargetEnergy intensity in Energy intensity in 2019 achievement
statusbaseline year (2018)
in 2019 ( ↓ 1%)

Motor/generator

50.94 MJ/HP

48.45 MJ/HP√-

Electric cooker

35.22 MJ/Piece

34.03 MJ/Piece√-

Commercial air
conditioner

55.78 MJ/KW

53.05 MJ/KW√-

Transformer/switchgear

7,329.31 MJ/MVA

7,221.56 MJ/MVA√-

Watt-hour meter

7.49 MJ/Piece

7.40 MJ/Piece√-

Lan cable

1.10 MJ/Meter

1.17 MJ/Meter

X-

Power cable

15.59 MJ/Meter

11.48 MJ/Meter√-

2023 ( ↓ 6%)

Note: The baseline year is 2018. √ represents the result met the target, X represents the result did not meet the target. Wire has been removed fromthe list due to production adjustment.
2: The amount of GH reduction for year 2018 was calculated with the electricity emission factor released in 2017. In this report, we have adopted 2018's
emission factor to re-calculate.

»

2014

Tayuan Plant andTaoyuan Wires andCables Plant passed
certification

Continue to build smart air compressor systems, improve test
equipments for large motor production, install 600-ton diecasting machine IOT monitoring, and replace ofﬁce box-type air
conditioners with more energy-efﬁcient models.

82»

San-Hsia
Factory passed
certification

1,614.52

2020
TATUNG CSR

CH6Sustainable environment

6.3 Resources consumption and pollutants management

Consumption of water and management on the wastewater

The sources of water for Tatung are from tap water, ground water, and river water. Tatung consumed 661,282M3 (Figure
6.3-1) of water in 2019 which was 27,846M3 more than the consumption in 2018. We will continue to conduct water
conserving projects in order to reduce water consumption.

Policies

Actively promote environmental protection, energy saving and carbon
reduction to reduce the impact to the environment.

Commitments

Promote clean production technology in the factories and subsidiaries to utilize
resources effectively and minimize wastes.

Goals and targets

Short-term:
Reduce the amount of wastes by 5% every 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".

Responsibilities

The factories and subsidiaries well store, treat or reuse the wastes.

Speciﬁc actions

The factories and subsidiaries implement clean production to reduce the wastes
from operation, as well as enhancing the separating and recycling of thewastes.

Mechanisms forevaluating theeffectiveness of the
management approach

Through annual 3P Program on-site evaluation to conﬁrm the status of target
achievement.

Results of the evaluationof the management
approach

The target was not achieved as the amount of wastes was 3,298.41 tons in 2019
which was 15.21% increasing than in 2018.

River water3» 83 »

99.7%

Copper

11,960 tons

2.7%

Aluminum

486 tons

100%

Insulation oil

1,395 kilo-liters

98.3%: Tatung produces hundreds of different products. Some of them are OEM/ODM made. Therefore, in this report only discloses the amount of the above 4
fundamental materials.

2015

178,566

282,917292,811

2016

2017

2018

2019

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

Table 6.3-2 Wastewater treatment and efﬂuent status in 20194
Factory

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

4,815 tons

245,799

50,000

Tatung puts quality, price, supply days, and after sale service into account when selecting
suppliers. In order to ensure a good quality, Tatung requires suppliers to provide new resources.
Table 6.3-1 shows the consumption amount of main materials3 and the percentage from local
purchase.

Steel (including silicon steel)

234,117

100,000

Consumption and management on the main materials

Local purchase percentage(by purchase values)

242,003150,000

235,384

200,000

238,185

250,000

247,469

300,000

0

Amount of consumption

Tap water

M3

Related adjustments to the NIL.
management approach

Main materials

Ground water

238,196

Reduce the impact to the environment brought by the operation of Tatung.

153,696

Purpose of the
management approach

269,390

Performance disclosure is limited to Tatung Co.

211,879

Tatung and its subsidiaries.

Speciﬁc limitation
regarding the topic
Boundary

138,640

Boundary for the material
topic

As for the wastewater management, all the factories and subsidiaries have granted government approved "waterpollution prevention measures" and "permit for efﬂuent", as well as setup wastewater treatment facilities based on theprevention measures. All the wastewater treatment facilities are operated in accordance to the prevention measuresand 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 the biodiversity of the
nearby habitats and the recipient water bodies. The detailed efﬂuent information is disclosed on Table 6.3-2.

161,059

wastes are not properly stored and treated, they will cause great adverse
An explanation of why the Ifeffectto the environment. Promoting waste reduction is also one of the ways for
topic is material
companies to reduce their environmental impact.

Treatment
methodFactories
setup
wastewater
Tayuan Plant
treatment
facilities in
Taoyuan Wires
and Cables Plant accordance
to therequirements
Taoyuan 1st Plantof theregulations.
Total
San-Hsia Factory

4
5

Average COD
concentration(mg/L)

Average S.S.
concentration(mg/L)

Amount of
efﬂuent (M3)

24.69

5.13

5,740

Heng River

Recipient water Efﬂuent reusedbodyby others

5

N.D.

2.71

799

New Street
River

N.D.

3.80

51,365

New Street
River

11.24

4.86

8,075

Old Street River

None

65,978: The data is collected from EPA's declaration system. Efﬂuent standard for COD: 100, S.S.:30.
: The detection limit is 9.4 mg/L. N.D. indicates the concentration is below the detection limit.

»

Management on wastes

84

»

DMA

2020
TATUNG CSR

CH6Sustainable environment

Management on the air pollutants emissions

Waste reduction and management
6

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 emissions of VOC have
reduced gradually since 2015 and the emissions of NOx and SOx have slightly increased. The reason could be morediesels 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 and reduce the impact
to the surrounding environment around the factories, we have implemented pollutant treatment facilities with higher
removal efﬁciency, such as RTO (Regenerative Thermal Oxidizer) in the past few years.

NOx

kg
3,500

SOx

3,000

2,000

80,000

1,464
1,000

1,227

1,097

qualified waste treatment
and re-use companies
3 Entrust

46,268

1,500
1,087

the entrusted waste treatment
4 Auditand re-use companies

56,90760,000

1,351

1,500

Propertreatmentnt
docume72,920

2,109
1,666

labeled,2 Classified,stored in the factory

waste being proper treated
5 Obtaindocument from entrusted companies

89,135

2,825

2,500

design and process improvement to
1 Product
reduce waste

VOCs

kg
100,000

3,048

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 classiﬁed and stored in accordance to the relevant regulations,and eventually commissioned by domestic qualified treatment companies or reuse companies. Tatung audits thecommissioned companies from time to time to ensure that the wastes are properly cleaned up or reused.

40,000Contract

34,680

500
0

2015

2016

2017

2018

2019

▲ Figure 6.3-2 Amount of NOx and SOx

emissions

2016

2017

2018

2019

▲ Figure 6.3-3 Amount of VOC emissions▲ Wastes clean up and treatment flowchart: Data is collected from EPA's declaration system.

»» 85 »

2015

86

»

6

20,0002020
TATUNG CSR

CH6Sustainable environment

In 2019, Tatung generated 3,298.41 tons of industrial wastes 7 , of which 3,241.57 tons were generalindustrial wastes and 56.85 tons were hazardous industrial wastes (Figure 6.3-4). Compared with theamount of wastes in 2018, the amount has increased by 15.21% hence the target (5% reduction by year)
was not achieved. The main increase in waste was scrap iron. The reasons were that we demolishedpart of iron made factory structure in order to obtain land for install Rotor Concentrator (air pollution
treatment facility), we updated the exhaust and sampling platform of the existed RTO facility, and we
demolished 4 elevators. We will continue to work hard to reduce the amount of wastes in the future.

General industrial waste

Hazardous industrial waste

3,241.57

20192,832.90

20172,930.28

73.17%

76.71%

75.45%

72.47%

70.00%

56.85

69.42%

60.00%

30.08

2018

50.00%

54.26

3,392.95

2016

80.00%

56.95

3,248.25

0500

1,000 1,500 2,000 2,500 3,000 3,500

0.00%Speciﬁc actions
Mechanisms forevaluating theeffectiveness ofthe management
approach

2015

2016

2017

2018

2019

▲ Figure 6.3-5 Waste reuse status

Five methods were used for wastes treatment in 2019 (as shown on Table 6.3-3). The factories also have been working
hard to recycle and/or reuse the wastes in order to minimize the impact to the environment. In 2019, 2,289.63 tons ofwastes were reused (69.42% of total wastes).

Table 6.3-3 Waste treatment methods in 2019
Reuse

Incinerate

Solidify

Physical

Heat

Total

General industrial wastes (tons)

2,289.63

660.6513.17

242.7235.40

3,241.57

Hazardous industrial wastes (tons)

0

49.74

3.72

3.39

0

56.85

69.42%

21.54%

0.51%

7.46%

1.07%

100.00%Results of theevaluation of the
management
approach

Products are awarded with Green Mark, Energy Label, or Water Label.
• Tatung is responsible to research and produce environmental friendly, energy
saving, and water saving products.
• Tatung 3C is responsible for the promotion and sales of green products.
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.
Encourage the factories and subsidiaries to develop environmental friendly
products through 3P Program evaluation.
• In 2019, we had 22 models awarded with Green Mark, 98 models awarded with
Energy Label, and 4 models awarded with Water Label.
• In 2019, we were awarded the Certiﬁcate of Appreciation for the application ofGreen Mark for 20 consecutive years by EPA.
• Tatung 3C "Tonghai Exhibition Center" and "Kaohsiung Huaxia Store" werecommended as "Green Stores of Year 2018" by EPA in 2019.

Related adjustments
to the management NIL.
approachEstablishing solar PV systems to minimize air pollution and
GHG emissions"Green Energy Tatung" is Tatung's development strategy. We plan to promote PV
solar projects with steady paces and continue to innovate in combination with smart
technology and have achieved leading performance in PV solar system industry.
We have successfully finished PV solar systems in kinds of place, such as residentialarea, community, factory, dormitory, and commercial building. We are offering
the solutions of rooftop, ground-mounted and floating types and will move into
big ground-type systems since 2018. In 2019, Tatung Forever Energy won the "2019Enterprise Project Management Benchmarking Award". Tung Yang Energy obtained
a license for the renewable energy power generation industry and thus became
officially an investor for the first type of solar power plant. Tatung is ready to work
together for the Taiwan's electrical industry in the fields of project management,
power plant operation, green power wheeling and renewable energy certificationtransactions.

: Data is collected from EPA's declaration system.

88

»

»

» 87 »

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

Boundary for the
Tatung and its subsidiaries.
material topic
Speciﬁc limitation
regarding the topic Performance disclosure is limited to Tatung Co., and TCPC (Tatung 3C Stores)
Boundary
Purpose of the
management
Reduce the environmental impact of Tatung's products.
approach
Actively promote environmental protection, energy saving and carbon reduction
Policies
to reduce the impact to the environment.
Provide high-quality products with innovative technology, realize energy saving,
Commitments
environmental protection, and healthy life, and fulﬁll the responsibilities of global
citizens.

Responsibilities▲ Figure 6.3-4 Amount of industrial wastes

7

An explanation of
why the topic ismaterial

30.00%

10.00%

Percentage of each treatment method(by weight)

Promotion and management on environmental friendly products

Goals and targets

43.66

Tons

DMA

40.00%

20.00%
2015

6.4 Green products for a better earth

2020
TATUNG CSR

CH6Sustainable environment

By the end of 2019, Tatung and its subsidiaries have completed 127.15MWp of PV solar systems in accumulatively. The
systems can generate 148,500,000 kwh of electricity each year and cut off 80,000 tons8 CO2e which equals to the forests
carbon absorbing capability with area size of 8,080 hectares9.
Looking forward to the future, Tatung will adhere to the sustainable development strategy and actively
promote the energy transformation in line with the government's green energy policy. The goal is to complete
197.15 MWp solar PV systems accumulatively by the end of 2020. We are aiming to lead the solar powerindustry to reciprocate and innovate through various industry cooperation and to expand setup area for PV
solar systems. We will provide more opportunities for cooperation in the solar energy industry. For more details
about Tatung PV solar projects, please browse: http://www.tatung.com.tw/solution/detail/16

Devote in developing environmental friendly products

Provide high-quality products with innovative technology, realize energy saving, environmental protection, and healthy
life, and fulfill the responsibilities of global citizens is our vision. We tirelessly dedicate to the development of green
products and many of them have been awarded with Green Mark10, Energy Label11, and Water Label12. There were
22 models awarded with Green Mark, 98 models awarded with Energy Label, 4 models awarded with Water Label in
2019. The achievement has been recognized by EPA in 2019 and awarded with the Certiﬁcate of Appreciation for theapplication of Green Mark for 20 consecutive years. Please refer to Table 6.4-1 and Figure 6.4-1 for more details.

Table 6.4-1 Status of Tatung's green products
Green
Mark

Energy
Label

Water
Label

Electric fans

－

√

－

Refrigerators√√

Washing machines－

Monitors
Electric cookers▲

Product

PV roofing at Tianxiang Ranch
PV roofing at Taichung Fruitand Vegetable Market –phase 1~5▲
▲ PV roofing at Dyna

ReChi Co., Ltd.

▲PV roofing at Central
Motor Co., Ltd.
（Changhua）

Unit：Models

Green
Mark

Energy
Label

Water
Label

Dehumidiﬁers

√

√

－

－

Domestic air
conditioners

√

√

－

√

√

Amorphoustransformers

√

－

－

－

√

－

Cast resin dry typetransformers

√

－

－

－

√

－

Amorphous cast-resin
dry type transformers

√

－

－

Green Mark

Water Label

Energy Label

203

Product

Target:197.15MWp
133

127.15MWp
98

91.70MWp
74

70MWp
43MWp

24

23MWp

8

2017

2018

2019

2020

2015

9

» 89 »: The emission factor for electricity is 0.533 kg CO2e.
: Based on the research of Forestry Bureau (https://www.forest.gov.tw/research/0000630), the carbon ﬁx amount is 9.9 tons/hectare/year for afforestation at
ﬂat land.

2017

2018

22
4

2019

▲ Figure 6.4-1 Numbers of Green Mark, Energy Lable, and▲ Total PV solar systems installed and our target in 2020

8

2016

9

9

Water Label awarded▲ Certiﬁcate of Appreciation

for the applicationof Green Mark for 20
consecutive years by EPA

10: https://greenliving.epa.gov.tw/newPublic/Product/ProductQuery: https://www.energylabel.org.tw
12: https://www.waterlabel.org.tw
11

»

2016

1

4

31

90

»

2015

33

19

2020
TATUNG CSR

CH6Sustainable environment

Promotion on green consumption

Product and package recycling at the end of life

In addition to produce energy-saving, environmentally-friendly and water-saving 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 to time, Tatung also has 33 Tatung 3C Stores13 been registered as Green Store14 by
EPA. The Green Stores of Tatung 3C will announce the types of 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 the quality ofthe environment. Tatung 3C "Tonghai Exhibition Center" and "Kaohsiung Huaxia Store" were commended as "GreenStores of Year 2018" by EPA in 2019.

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 2019, the average recycling rate for electric/electronic and information
devices was 64.07%15. In addition, as a corporate who has its own retailing system, Tatung works together with TCPC to
set up battery and CD disk recycling box at each Tatung 3C Store to recycle consumers' wasted batteries and CD disk,
as well as consumers' large wasted house appliances upon request when purchasing. By doing this, the wastes can be
fully recycled under the control of regulation and avoided damage to the environment. Tatung also works hard to use
more recyclable materials through design and manufacturing stages and actively to apply for Green Mark.

Table 6.4-2 Green consumption promoting measures taken by Tatung

In regarding to the packaging materials of household appliances and consumer products, Tatung believes that the
packaging materials are well recycled. The reason behind this is the recycling channels in Taiwan are well establishedand 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 on daily operations.

Unit

Responsibility

MeasuresTatung Co.

Research and produce the environmental
Apply for Green Mark, Energy Label, or Water
friendly, energy saving, and water saving
Label.
products.

Tatung 3C Stores

Promotes and sales of green products.

▲ Tunghai Exhibition

Center awarded
with Certificate ofAppreciation• Registered as Green Store.
• Holds energy-saving and environmentallyfriendly product promotion activities from time
to time.

▲ Kaohsiung Huaxia

Store awarded
with Certificate ofAppreciation▲ Tatung 3C energy saving products

promotions in 201913

: As of 2020/3/31.
: https://greenliving.epa.gov.tw/newPublic/Application/GreenStore15: https://recycle.epa.gov.tw/epa/ShowPage2.aspx?key=6&sno=1010&subsno=293&subsubsno=252

14

92

»

»

» 91 »

ANNEXTATUNG CO., LTD. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2020
TATUNG CSR(Expressed in Thousands of New Taiwan Dollars unless otherwise Specified)Annex

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;
Annex 1 E.Tatung
andorSubsidiaries
notes
recognizesCo.
any surplus
deficit in profit or loss;
and to consolidated
F.
reclassifies thestatements
parent’s share of components previously recognized in other comprehensive
ﬁnancial
income to profit or loss.

TATUNG CO., LTD. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Expressed in Thousands of New Taiwan Dollars unless otherwise Specified)
Holding percentage
December 31, December 31,
Subsidiary

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

The Company

Main businesses

Tatung DIE Casting Co.

Manufacturing and sales of casting

Chunghwa Picture Tubes, Ltd.

Ltd. and Shan-Chih Asset Development

39.67%

Tatung System Technologies Inc.
(“TSTI”)

Software and hardware service and43.34%

Investment Co., Ltd.
The Company, SCSC, SCAD, Shan Chih
Investment Co., Ltd., and Chih Sheng

18.48%

20.16%

Taiwan Telecommunication Industry Telecommunication devices.

100.00%100.00%57.08%

57.08%

Manufacture of electrical parts and

EMCIRF testing and certification

Tatung Consumer Products (Taiwan) Sales of home appliances and digital

Note2

38.48%

Manufacture of speed reducers,100.00%100.00%Investment Co., Ltd. and Chih-Sheng

Tatung Fine Chemicals Co., Ltd.

99.10%

99.10%

Note3

85.33%

Investment Co., Ltd.

Shan-Chih Asset Development Co.

54.63%Development and leasing of real

Chunghwa Electronics

Professional investment holding

Investment Co., Ltd.

100.00%100.00%

The Company

Tatung Electric (Singapore) Pte. Ltd. Professional investment holding

100.00%100.00%

The Company

Tatung Co. of America Inc.

50.00%

50.00%

99.99%

99.99%

Sales and service of IT and household

The Company

Tatung Mexico S.A de C.V.

Manufacture of electronic products

The Company

Tatung Science and Technology, Inc. Sale and purchase of IT products

100.00%100.00%

The Company

Tatung Electric Company of

100.00%100.00%

Manufacture and sales of motor
products in the U.S.

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%

The Company

Tatung Medical Healthcare

Design and sales of medical

95.85%

95.56%

85.00%

85.00%

100.00%100.00%100.00%100.00%Technologies Co., Ltd.

instruments.

The Company

Toes Opto-Mechatronics Co.

Manufacture of data storage and

The Company

Tatung Vietnam Co., Ltd.

Manufacture and sales of home

The Company

Tatung Electric Technology (VN)

Manufacture and sales of wire andprocess equipment
100.00%100.00%estate25» 93 »

54.63%

catalyst, inkjet ink(“SCAD”)
The Company, SCAD and Chih Sheng

Industrial coatings, electrocution
coatings resistor coatings, photo-(“TFC”)

Investment Co., Ltd.
The Company

Tatung Information (Singapore) Pte. Professional investment holding

America, Inc.

speed aviators
The Company, Chunghwa Electronics

90.00%(“TMX”)

computer products

Tatung SM-Cycle Co.

90.00%

electronics products in the US

electrical materials
Central Research Technology Co.

Purchases, sales and services of raw

Ltd.

retail sales and wholesale of(“GET”)

Co., Ltd.
The Company

Tatung Electronics(S) Pte. Ltd.

semiconductors and chips

Green Energy Technology Inc.

100.00%material
The Company

Ltd.(“SCSC”)

100.00%products

services
The Company

Sales and purchase of electronic

54.40%

Forward Electronics Co., Ltd. (“FD”) Manufacture and sale of electronics

Manufacture and sales of

99.99%

parts, home appliances and IT

The Company

Investment Co., Ltd.
The Company

Tatung Co. of Japan, Inc.

system integration

San-Chih Semiconductor Co.,

99.99%

products, home appliances and AI

The Company

products

Company Ltd.
The Company and Chunghwa Electronics

Manufacturing and sales of IT

meter

Investment Co., Ltd
The Company

Tatung (Thailand) Co., Ltd.

41.16%Co.
The Company, and Chunghwa Electronics

The Company

picture tubs and TFT-LCD(“CPT”) (Note1)

Co., Ltd.
The Company, Shan-Chih Investment Co.,

Manufacture, research and sale of2018

51.00%

99.99%

99.99%

appliances

cable

Co., Ltd.
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 business99.10%

97.12%The Company

Leap High Limited

Professional investment holding

65.00%

65.00%The Company

Tungyang Energy Co., Ltd.

Solar energy related business100.00%100.00%

The Company

Chih Kuang energy Co., Ltd

Solar energy related business100.00%100.00%Investment Co., Ltd.

26»

Investment Co., Ltd., Chih Sheng Realty

2019

51.00%

94»

The Company, Chunghwa Electronics

Main businesses

2018

mold

December 31, December 31,
Subsidiary

Investor

2019

2020
TATUNG CSR
Annex

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

Subsidiary

Main businesses

Holding percentage
December 31, December 31,

2019

2018

The Company

Shanshin energy Co., Ltd.

Solar energy related business100.00%100.00%

The Company

Yau Yang Energy Co., Ltd.

Solar energy related business100.00%-

The Company

Ting Shin Engergy Co., Ltd.

Solar energy related business100.00%-

The Company

Zhi Shin Energy Co., Ltd.

Solar energy related business100.00%-CPT

Chunghwa Picture Tubes (Bermuda) Investment holding and sales of

100.00%100.00%Ltd. (“CPTB”)
CPTB

Investor

Chunghwa Picture Tubes (Malaysia) Manufacture and sale of CRT

100.00%100.00%Sdn. Bhd. (“CPTM”)
CPTB

Investigation of market information

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

Forward Development Co., Ltd.

Investment holding

Forward Electronics Co., Ltd. and Toes

Gintung Energy Co., Ltd.

Manufacture and sale of solar

Opto-Mechatronics Co.
Forward Development Co., Ltd.

100.00%100.00%Note245.82%

100.00%100.00%module and related component
Forward Electronics Equipment(Dong Guan) Co., Ltd

Manufacture and sale of tuner,
keyboard, mouse, remotecontroller, switch, socket andSuzhou Forward Electronics

Manufacture and sale of backlight

Technology Co., Ltd.

100.00%100.00%unit for TFT-LCD, driving board,

SCSC

Greater Power Limited

Investment holding

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

Investment holding

100.00%100.00%GET

Energy Well International Limited

Investment holding

Note2

100.00%GET

Green Energy Global Investment

Investment holding

Note2

100.00%Greater Power Limited and Energy Well

Ultra Energy Holdings Limited

Investment holding

Note2

100.00%International Limited
Energy Well International Limited

Golden Sunny Limited

Investment holding

Note2

100.00%Ultra Energy Holdings Limited

Ultra Energy (WEIFANG)

Solar silicon wafer slicing.

Note2

100.00%Technology Co. Ltd
Sale of solar energy related

Note2

Tatung Coatings (Kunshan) Co., Ltd. Manufacture and sale of industry

International Chemical Industry Co., Ltd.

coating and electro-deposition

Manufacture and sale of positive

Technology Materials Co., Ltd.

electrical products

Tatung Compressors

Manufacture and sales of(ZHONGSHAN) Co., Ltd.

100.00%100.00%100.00%

Tatung (Shanghai) Co., Ltd

Manufacture and sales of motors,

100.00%100.00%

generators and transformers

TMX Logistics, Inc.

Hub service

100.00%100.00%

TMX Technologies Inc.

Technologies & business100.00%100.00%Investment holding

100.00%100.00%Information software

100.00%100.00%Shan-Chih International Holding
Corporation

TSTI

Chyun Huei Business Technology

TSTI

Tisnet Technology Inc.

Software design and development

100.00%100.00%TSTI

TSTI Technologies (Shanghai) Co.,

Information software

94.00%

94.00%

Chih Sheng Investment Co., Ltd.

Chih Sheng Investment (BVI)

Investment holding

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

HEDA Biotechnology Co., Ltd.

Produce, food retail and wholesale

52.17%

52.17%

100.00%Ltd.

100.00%Serviceindustry
Chih Sheng Investment (BVI) Co., Ltd

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%-100.00%99.87%

99.87%

50.61%

50.61%

Corp.
Wu-jiang Tatung Electronics Trading Sales of information products
Co. LTD

Taipei Industry Corporation
100.00%Service

The Company and Shan-Chih Asset

Tatung Forestry and Construction
Co.

Design and construction of structural
engineering.

Taipei Industry Corporation

Manufacturing sale of construction

Development Co.

related material and property rental
business.

100.00%100.00%Shan-Chih Asset Development Co.

Chih Sheng Realty Co., Ltd.

Realty management

100.00%100.00%Shan-Chih Asset Development Co.

Shan-Chih Asset International

Investment Holding

100.00%100.00%Holding Corporation

Industry Co., Ltd.

» 95 »

100.00%TMX

Shan-Chih Asset Development Co. andmaterial of lithium battery, printerInvestment holding

100.00%

TMX

100.00%

performance coating.
Shang Chih International Chemical

100.00%reciprocating compressors.

ink, electro-deposition highTatung Fine Chemicals Co.

100.00%

Corporation

Chih Sheng Holding HK Limited

coating
Huaian Tatung Advanced

Manufacture and sales of various(Jiangsu) Co., Ltd.

Shan-Chih International Holding

100.00%products
Tatung Fine Chemicals Co. and Shang Chih

Wholesale of painting, coating andchemical products.

Tatung Information TechnologyInc.

tuner, keyboard, mouse, switch,

Ultra Energy (WEIFANG) Technology Co. Ltd Weifang Jianeng Jingmao Co., Ltd.

100.00%

Corporation
Tatung Electric (Singapore) Pte. Ltd. and

Shan Chin Investment Co. Ltd

socket and connector.

Tatung Fine Chemicals Co.

Tatung Information (Singapore) Pte. Ltd.

2018-Technology Co., Ltd

Co., Ltd.
Chih Sheng Holding HK Limited and2019

development

potentiometer.
Forward Development Co., Ltd.

Co., Ltd.

and Shan-Chih International Holding

CPTF Optronics (Shen-Zhen) Co.,

Main businesses
ABS plastic, color dyes

Shang Chih International Chemical Industry Dongguan Tongli Trading Co., Ltd.

Tatung Information (Singapore) Pte. Ltd.

TFT-LCD

Subsidiary

Shang Chih International Chemical Industry Wujiang Shanghua Material

27

28

»

Investor

Holding percentage
December 31, December 31,

96

»

ANNEX

2020
TATUNG CSR
Annex

TATUNG CO., LTD. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Annex 2 Products and services provided by Tatung

Holding percentage
December 31, December 31,
Investor
Shan-Chih Asset International Holding
Corporation

Subsidiary

Main businesses

Tatung Management Consultant

Realty and Leasing Service

2019

2018

100.00%100.00%100.00%100.00%Business
GroupsCorporation

Shan-Chih Asset International (Hong Investment HoldingKong) Holding Limited

Tatung Forever Energy Co., Ltd.

Sheng Yang Energy Co., Ltd.

Solar energy business100.00%100.00%

Tatung Information (Singapore) Pte. Ltd.,

Myanmar Tatung Co., Ltd.

Sales and customer service of solar

100.00%100.00%100.00%100.00%energy, industrial motor, homeand Tatung (Thailand) Co., Ltd.

Power BusinessGroupappliances, industrial air
conditioner
Tatung Information (Singapore) Pte. Ltd.

Tatung Myanmar JV Holding Co.,

Investment Holding

Ltd.
Tatung Medical Healthcare Technologies
Co., Ltd.

Tatung Medical & Healthcare

Investment Holding

100.00%100.00%-100.00%Technologies Inc.

Tatung Medical & Healthcare Technologies

Elite Oxygen and Healthcare Co., Ltd. Sale of Oxygen generator

Inc.
Tatung Medical Healthcare Technologies

Insured Pharmaceuticals Co., Ltd.

Pharmaceuticals and warehousing and100.00%100.00%100.00%100.00%transportation service

Co., Ltd.
Tatung (Shanghai) Co., Ltd

Tatung Xinji (Guangdong)ElectricalTechnology Co., Ltd.

engineeringsysteminstallation service

Note1: Chunghwa Picture Tubes, Ltd. filed bankruptcy to the court on September 18,
2019, however, the courts decision was pending as of December 31, 2019.
Note2: Green Energy Technology Inc. resolved at its board meeting to disclaim listedcompany role and proposal of liquidation was approved at the board meeting
held on July 15, 2019 and the provisional shareholders’ meeting held on August
30 approved the proposal while the liquidators assumed their positions. The
Group therefore lost control of Green Energy Technology Inc. and its
subsidiaries.
Note3: In the third quarter of 2019, the Group resolved to sell 36.33% of its shares of
Tatung Sm-Cyclo Co., Ltd. and completed such transaction in the fourth
quarter. The Group lost control of Tatung Sm-Cyclo Co., Ltd. and theshareholding percentage in the company decreased from 85.33% to 49%.
However, the Company still has significant influence on the company,
therefore Tatung Sm-Cyclo was recognized as investment accounted for using
the equity method following derecognition. The profits (losses) from disposingof the investment or derecognition as mentioned above was NTD266,158
thousand.

» 97 »

29

Products and services

ImportantCertiﬁcations

Industrial Appliance: Researching, developing and manufacturing all kinds oftransformers rated 345kV 1000MVA and under, all kinds of reactors rated 345kV
100MVAR and under, gas insulated switchgears and outdoor gas circuit breakers
up to 161kV class, 36kV series of switchgear, power distribution equipment, andother industrial equipment.
Power
Equipment BU Cable: 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.

(Shanghai) Co., Ltd.

Shan-Chih Asset International Holding

Business
Units

Motor BU

2306

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 variety of
special motors and applications system such as premium efﬁciency motors, hightemperature resistant motors, electric vehicle motors, explosion proof motors,
new automatic brush lifting device equipped in wound rotor motor, verticalhigh thrust pump motors, gear reducer, inverter motors, aluminum frame motors,
brake motors, oil well pump motors, water pump motors, immersible pump
motors, built-in type spindle motors, rolling mill motors, elevator motors, cranemotors, permanent magnet motors, IoT connected smart motor monitoring
sensor and system, railway traction motors, inverters, control panels etc., as wellas provides total solutions for electrical testing equipments and plant power
equipments system engineering projects to serve a variety of industries.

2613

The 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, smart & noise cancelation headsets, streaming
microphone, and entertainment accessories. The IoT product line includes IP &AdvancedElectronics BU 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 researchand development will further enhance competitiveness in features and costs ofcustomers' products.
Strengthen brand operation. We continued to enhance brand value with
innovative design, superior quality and technical services in both domestic andoverseas market. We served a wide range of products including commercial
and residential energy-saving air-conditioners; smart TFT displays, 4K UHD LED
TFT displays; Centennial Edition Steam rice cookers, Easy cooker lite (simpliﬁed
version of Fusion cooker). We launched a series of co-branding rice cookers, andConsumerdeveloped the new stylish juicer, electric teapots and other small appliances.
Business GroupWe actively participated in product design competitions globally to improvethe brand's exposure in the market. In the recent years, we have consecutively
obtained major international design awards such as the German iF Industrial
Design Award, the Reddot Design Award, the Japanese Good Design, andthe Taiwan Excellence Award. We have also obtained multinational safety
Appliance BU certiﬁcation and Taiwan MIT certiﬁcation.
To make farm-to-table a reality, we persistently promote our health food brand"In Fresh" through careful selection of smallholding farmers, and committed topromoting Tatung Intelligent Agriculture Monitoring System, we can effectively
control the greenhouse environment, provide high efﬁciency, high quality andhigh productive service.
To pursue the blooming AIoT trend, we developed smart home appliances for
smart energy saving and living applications. Through sensing and Internet ofThings 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 scenariomodes, etc. Consumers can also integrate voice-activated functional services
to enjoy digitalize life experience.

R31001
RoHS»(Expressed in Thousands of New Taiwan Dollars unless otherwise Specified)

98

»

ANNEX

2020
TATUNG CSR
AnnexBusiness
Units

Products and services

Smart Meter BU provides various types of smart meters and AMI systems. Tatung has theability of integrating the systems of smart meter infrastructure and integrating different
communication technologies such as RF, PLC, 4G and NB-IoT communications to
Smart Meter BU 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 theﬁrst case has been successfully completed in early 2020.
System Integration BU is committed to specializing in the fields of information andcommunication systems as well as electromechanical systems.
Information and Communication Systems: For more than 30 years, we have been helping
customers deal with the computerization and automation of their systems and haveendeavored to meet the needs of the information market in the era of technology.
We are already a representative manufacturer of high-quality system integration in the
country. We specialize in information system integration, network security planning &construction, and application software development. We have rich large-scale system
integration capabilities and experience. The service team has owned a wide range ofIT professional skills, certiﬁcates and services network throughout the Taiwan by 13 direct
branch ofﬁces to provide customers fast services. In the future, we will continue to devote
ourselves to deepening the ﬁelds of information and communication integration, cloud
applications, information security, outsourcing services, business intelligence and systemdevelopment, and then will become the leading manufacturer in those ﬁelds.
Electromechanical Systems: As various infrastructure projects at Taiwan started between
Systemthe 1960s and 1980s, this Company made an important contribution to the infrastructure
Integration BU construction such as power generation, power transmission as well as power supply.
Electrical and mechanical 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 wellas 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.
System BusinessWe has owned cross-disciplinary professionals, which covers various functionalities such as
Grouppower, electronics, mechanics, smart control, information, communications, transportationand project management. They are responsible for integrating cross-disciplinary
professionals, coordinating cross-organizational interfaces, providing integrated design,
project management and maintenance services.
To comply with Government Renewal Energy policy, Tatung has integrated the resourcesof three plants of the Power BG within Tatung Group and the advantage of our electricalElectrical
power products for the expanding of the business scope of electrical power system
Engineering integration and providing total solution services. Business scope: 1. PV power substation
Division
system. 2. Small scale Hydro Power Plant system. 3. Wind Mill Power substation system. 4.
Electrical Power Engineering System.
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 provides renewable energy project
development, design, construction and maintenance services.
The solar team leverages the Group's supply chain integration advantages, coupled with
Solar Energy BU rich design planning and project management experience, the project performance isspread across Taiwan. At present, it is actively expanding ground-based landﬁll sites andwater-based sites, and additionally take mechanics and electronics 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 maintenanceof power plants, provide quality maintenance services, and promote renewable energy
policy.
Micro-grid systems, regionally small power supply system integrated with the distributed
energy sources (DERs) such as solar energy, wind power, traditional generators andenergy storages systems (ESSs), can operate independently or with the main grid. Microgrid systems can immediately enter islanding operation mode while power outage occurs
Smart Energy in main grid and could keep functioning by using DERs and ESSs to perform the role ofemergent power supply for the local areas they support.
BU
With AIoT architecture, the system provides total solution for data transfer from enddevices to the cloud; edge computing, data analytics, data visualization, and predictive
maintenance by actively notifying users to perform maintenance in advance to reduce
losses due to production and operation interruptions.

ImportantCertiﬁcations

Factories owned by Tatung.

－Tayuan Plant

Tatung Die Casting Co., Ltd.

Green Energy Technology Co., Ltd.3

Taoyuan Wires and Cables Plant

Tatung SM-Cyclo Co., Ltd.

Toes Opto-Mechatronics Co., Ltd.

San-Hsia Factory

Tatung Fine Chemicals Co., Ltd.

Taoyuan 1st Plant

Shan Chih Semiconductor Co., Ltd.

Meter Factory1

Chunghwa Picture Tubes, Ltd.2
Forward Electronics Co., Ltd.

－

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

－

－

－

1

: Locates at Tayuan Plant and Taoyuan Wires and Cables Plant.
: Includes Lungtang Plant, and Yanmei Plant and already ceased tooperate due to ﬁnancial situation in 2019.

2» 99 »

Subsidiaries

3: Includes Kuanyin Plant, Kuanyin II Plant, Tayuan Plant, and ceased tooperate due to ﬁnancial situation in 2019.

»

Business
GroupsAnnex 3 Factories and subsidiaries participated in 3P programand Accident Prevention Pays Program in 2019

100

»

ANNEX

2020
TATUNG CSR

ANNEX

Annex

Annex 4 Greenhouse gas emissions veriﬁed based on ISO 14064-1

Annex 5 GRI Standards content index

The amount of GHG emissions in 2018 (veriﬁed based on ISO 14064-1)

Factory

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

Scope 2

Taoyuan Wires and Cables Plant

476.9501

10,165.0413

San-Hsia Factory

1,032.4067

8,605.5350

Taoyuan 1st Plant

34,717.0543

1,792.4321

Total

36,226.4111

20,563.0084

Note: The factories conduct GHG emission inventory and veriﬁcation for the previous year by the end of each year. Hence,
the amount of emissions for year 2019 will be disclosed on "2021 Tatung Corporate Social Responsibility Report".

GRI Content Index
GRI Standard

Disclosure

Pages/URL

Note

GRI 101：Foundation
GRI 102：General Disclosures

Organization
proﬁle102-1

Name of the organization

12

102-2

Activities, brands, products, and services

12

102-3

Location of headquarters

11

102-4

Location of operations

13

102-5

Ownership and legal form

12

102-6

Markets served

13

102-7

Scale of the organization

11

102-8

Information on employees and other workers

51、52

102-9

Supply chain

37、38、39102-10 Signiﬁcant changes to the organization and its supply
chain

Strategy102-11 Precautionary Principle or approach

30、31、32

102-12 External initiatives

15

102-13 Membership of associations

14

102-14 Statement from senior decision-maker

Top management
statement

102-15 Key impacts, risks, and opportunities

Top management
statement、17

Ethics and integrity 102-16 Values, principles, standards, and norms of behavior

No signiﬁcantchange27、28、33、34

102-18 Governance structure20102-19 Delegating authority

33

102-20 Executive-level responsibility for economic,
25
environmental, and social topics
102-21 Consulting stakeholders on economic, environmental,
3
and social topics
Governance102-22 Composition of the highest governance body and its
21、22
committees
102-23 Chair of the highest governance body22102-24 Nominating and selecting the highest governance21
body
102-25 Conﬂicts of interest

21

102-26 Role of highest governance body in setting purpose,
22
values, and strategy

102

»

»

» 101 »

2020
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Annex

GRI Content Index
Disclosure

Pages/URLNote

GRI Standard

22

GRI 103
Management
Approach102-28 Evaluating the highest governance body's
25
performance102-29 Identifying and managing economic, environmental,
25、33
and social impacts
102-32 Highest governance body’s role in sustainability
About this report, 4reporting102-35 Remuneration policies

23102-36 Process for determining remuneration

23

102-40 List of stakeholder groups

2-

Stakeholder
engagement102-42 Identifying and selecting stakeholders

1102-43 Approach to stakeholder engagement2102-44 Key topics and concerns raised3

GRI 103
Management
Approach

Reportingpractice

8102-47 List of material topics

7

102-48 Restatements of information

About this report102-49 Changes in reporting7

102-50 Reporting period

About this report102-51 Date of most recent report

About this report102-52 Reporting cycle

About this report102-53 Contact point for questions regarding the report

About this report102-54 Claims of reporting in accordance with the GRI
About this report
Standards» 103 »

102-55 GRI content index

102 ∼ 108102-56 External assurance

109 ∼ 111

103-2 The management approach and its components
103-3 Evaluation of the management approach

8、26
26

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

8、26
26

Product quality and safety
Tatung does
not have anycollective
bargaining
agreements at
the moment.

GRI 103
Management
Approach

GRI 416
Customer health andsafety102-45 Entities included in the consolidated financial
93、94、95、96
statements
102-46 Deﬁning report content and topic Boundaries

103-1 Explanation of the material topic and its Boundary

Disclosure on non-ﬁnancial information

102-31 Review of economic, environmental, and social topics 25、33

102-41 Collective bargaining agreements

Note

Corporate governance and ethical practiceGRI 102：General Disclosures

Governance

Pages/URL

Material topics

GRI 101：Foundation

102-27 Collective knowledge of highest governance body

Disclosure103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach

8、40
40

416-1 Assessment of the health and safety impacts ofproduct and service categories

41、42、43416-2 Incidents of non-compliance concerning thehealth and safety impacts of products andservices

40

Comply with social and economic regulations
103-1 Explanation of the material topic and its Boundary

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

GRI 419
Socioeconomic
compliance419-1 Non-compliance with laws and regulations in thesocial and economic area

103-3 Evaluation of the management approach

8、27
27

27

Customer privacy management103-1 Explanation of the material topic and its Boundary

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

GRI 418
Customer privacy

418-1 Substantial complaints concerning breaches ofcustomer privacy and losses of customer data103-3 Evaluation of the management approach

8、45
45
48

»

GRI Standard

GRI Content Index

104

»

ANNEX

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TATUNG CSR
Annex

GRI Content Index
Disclosure

Pages/URLNote

GRI Standard

Labor/ management relations
103-1 Explanation of the material topic and its Boundary
GRI 103
Management
Approach103-2 The management approach and its components
103-3 Evaluation of the management approach

GRI 402402-1 Minimum notice periods regarding operational
Labor/managementchanges
relations

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

GRI 417-1
Marketing andlabeling

8、55

55

58

8、40、4540、4544417-2 Incidents of non-compliance concerning productand service information and labeling44417-3 Incidents of non-compliance concerningmarketing communications

45

103-2 The management approach and its components
103-3 Evaluation of the management approach403-1 Workers representation in formal joint
management-worker health and safetycommittees

GRI 403
Occupational health403-2 Types of injury and rates of injury, occupationaland safety
diseases, lost days and absenteeism, and numberof work-related fatalities

103-2 The management approach and its components

GRI 307
Environmental
compliance307-1 Non-compliance with environmental laws andregulations

GRI 103
Management
Approach103-2 The management approach and its components
103-3 Evaluation of the management approach» 105 »

103-3 Evaluation of the management approach

8、74
74

76

103-1 Explanation of the material topic and its Boundary

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

GRI 302
Energy302-5 Reductions in energy requirements of products
and services

103-3 Evaluation of the management approach

8、88
88
89、90

Management on wastes

8、63103-1 Explanation of the material topic and its Boundary

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

GRI 306
Efﬂuents and waste

306-2 Waste by type and disposal method103-3 Evaluation of the management approach

8、83
83
87

Still using
GRI 306：2016

Management on energy and GHG emissions
63
Still using
GRI 403:2016
64
67

Management on the environment
103-1 Explanation of the material topic and its Boundary

103-1 Explanation of the material topic and its Boundary

GRI 103
Management
ApproachOccupational health and safety
GRI 103
Management
Approach

Note

Promotion and management on environmental friendly products417-1 Requirements for product and service informationand labeling103-1 Explanation of the material topic and its Boundary

Pages/URL

Comply with environmental regulations

Marketing and labeling103-1 Explanation of the material topic and its Boundary

Disclosure

GRI 103
Management
Approach

GRI 302
Energy8、7474

GRI 305
Emissions103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach

8、77
77

302-1 Energy consumption within the organization

78

302-3 Energy intensity

82

302-4 Reduction of energy consumption

81

305-1 Direct (Scope 1) GHG emissions

79、80

305-2 Energy indirect (Scope 2) GHG emissions

79、80

305-5 Reduction of GHG emissions

81、82

»

GRI Standard

GRI Content Index

106

»

ANNEX

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ANNEX

TATUNG CSR
Annex

GRI Content Index
GRI Standard

GRI Content Index

Disclosure

Pages/URLNote

GRI Standard

Other topics

201-1 Direct economic value generated and distributed

16

201-2 Financial implications and other risks andopportunities due to climate change

17201-3 Deﬁned beneﬁt plan obligations and otherretirement plans

58

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

56、57

202-2 Proportion of senior management hired from thelocal community

52

Anti-competitive behavior
GRI 206
Anti-competitive
behavior

206-1 Legal actions for anti-competitive behavior, antitrust, and monopoly practices

45

Supplier management
GRI 308
Supplier
environmental
assessment

308-1 New suppliers that were screened using
environmental criteria

37、38、39

GRI 414
Supplier social
assessment

414-1 New suppliers that were screened using social
criteria

37、38、39

GRI 401
Employment

GRI 407
Freedom of
association andcollective bargaining

21、22、51、52

405-2 Ratio and basic salary and remuneration of
women to men

56、57

412-1 Operations that have been subject to humanrights reviews or impact assessment

53

53

408-1 Operations and suppliers at signiﬁcant risk forincidents of child labor

53

GRI 409
Forced or compulsorylabor409-1 Operations and suppliers at significant
risk for incidents of forced or compulsory
labor

53

Management on water and resources301-1 Materials used by weight or volume

83

301-3 Reclaimed products and their packaging
materials

92

303-1 Water withdrawal by source

84

Still using
GRI 303：2016

Management on water and air pollutants
GRI 305
Emissions

GRI 306
Efﬂuents and waste
59、60

407-1 Operations and suppliers in which the rightto freedom of association and collective
bargaining may be at risk

GRI 408
Child labor54404-1 Average hours of training per year per employee

405-1 Diversity of governance bodies and employeesChild labor, forced or compulsory labor

51

Training and education
GRI 404
Training andeducation

GRI 412
Human rights
assessment

GRI 303
Water

401-2 Beneﬁts provided to full-time employees that are54
not provided to temporary or part-time employees
401-3 Parental leave

GRI 405
Diversity and equal
opportunity

GRI 301
Materials

Employment
401-1 New employee hires and employee turnover

Note

Freedom of association and collective bargaining

Market presenceGRI 202
Market presence

Pages/URL

Human rights, equality, and non-discriminations

Economic performanceGRI 201
Economic
performance

Disclosure305-7 NOx, SOx, and other signiﬁcant air emissions

85

306-1 Water discharge by quality and destination

84306-3 Signiﬁcant spills

76306-5 Water bodies affected by water discharges and/or runoff

84

Still using
GRI 306：2016

Performance review and career development
56404-3 Percentage of employees receiving regularperformance and career development reviews

56»» 107 »

404-2 Programs for upgrading employee skills andtransition assistance programs

108»

GRI 404
Training andeducation

2020
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ANNEX

Annex

Annex 6 Assurance statements

110

»

»

» 109 »

ANNEX

Annex

Annex 7 Feedback Survey FormThanks for reading "2020 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 understandableway, 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
一、 What is your overall impression of this report?

□Excellent□Good□Average□Poor

Opinions：

二、 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：

三、 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
Opinions：

四、 Please use the space below to express your opinions and advices.

» 111 »

Add: No.22, Sec. 3, Zhongshan N. Rd., Taipei City 10435, Taiwan
Tel: 886-2-25984566 ext. 3167
E-mail: csrreport@tatung.com

2020/9