Tatung
CSR Report

2019

Smart micro-grid system in Qimei island –Honored with 2018 Smart City Innovation Application Award.

lAbout this report l

We follow GRI Standards (Core Option) and AA1000 AS: 2018 to compose "2019 Tatung Corporate
Social Responsibility Report". 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 ina systematical manner.

Scope

The contents of this report cover Tatung's activities from the headquarter, Tayuan Plant, Taoyuan
Wires and Cables Plant, Taoyuan 1st Plant, and San-Hsia Factory. Part of TCPC's information (sales
activity and consumer data management) is also included. The disclosure boundary of somematerial topics may be beyond the scope above and will be speciﬁcally described in its DMA.

Restatements of information

1. 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 year2017 and the ﬁnancial data disclosed in this report was updated as well (page 16).
2. Due to the factories completed greenhouse gas emission veriﬁcations for year 2017 by the endof 2018 and the government ofﬁcial issued the latest GHG emission factor for 2014~2017, thus
the energy consumption data for year 2017 and greenhouse gas emission data for 2014~2017
were restated in this report (page 68, 70).

Reporting cycle and reporting period

Tatung Corporate Social Responsibility Report is published by the end of June annually. Unlessotherwise stated, the data and activities in this report are gathered from 2018.1.1~2018.12.31.

Previous reports

2019 Tatung Corporate Social Responsibility Report is our 18th non-ﬁnancial report since 2002. The
previous report was published in June 2018. All the reports are available on: http://www.tatung.
com/en/responsibility_rp.asp

Data measurement techniques

The numbers in economic performances were cited from Annual Report and presented in NTD.
The numbers in social and quality performances were gathered by related departments in thecompany. The numbers in environmental performances were provided by BUs and reviewed/
corrected by Health & Safety Division.

External assurance

The contents of this report were veriﬁed by TÜV Asia Paciﬁc Ltd. Taiwan Branch (TUV NORD) basedon AA1000AS:2018 (Type 2, high level assurance) and GRI Standards. The assurance statement is
enclosed in Annex 5.

Contact Point for questions regarding to the report
Han-sheng Chang
Health & Safety Division
Tatung Co.
Tel: +886-2-25925252 ext. 3167
E-mail: csrreport@tatung.com

The English version is translated from Chinese version. If there are any conﬂicts or any differences in the interpretation between
these two versions, the Chinese version shall prevail. Tatung has done the best to ensure the accuracy of this report. If there isany content in this report different to the content provided by the related department of Tatung. The provided contents from therelated department shall prevail.

About this report

lTop management statementl『 Resilience, Adaptability
and Sustainability』
Twouldoday's world is turbulent in such a way that extreme climate change
cause us immense damage in life and property and the edge

over the competition shortens due to swift high-tech advancement. Allof these have posed a gigantic impact upon and challenge for the
corporation. Accordingly, we believe that the corporation for the
future must possess resilience, adaptability and sustainability. Tatung
had its one-hundredth anniversaries in November, 2018. As we aremoving forward through its centennial development, we stick tosome values we have always kept and adapt ourselves to newchallenges at the same time.
The things we insist upon are:
1. The concepts of integrity, honesty, industry, andfrugality as well as a practical working attitude;
2. Innovative research and development as well as
cooperative education partnership;
3.Human resource development and interdisciplinary
collaboration in the industry.
The challenges we confront are:
1. To adapt ourselves at a faster pace tothe ever changing shifts of the market
and to cope with the devastatingconsequences of innovation for theCompany;
2. To go for the new way of thinking:from a single product to a system,from the system to the service,
and eventually culminatingin the interdisciplinary
integration;

3. To develop more software than hardware and to shift from the heavy asset
business model to the innovative business model.
A sustainable corporation must cultivate its resilience and adaptability. Our
corporate sustainability is founded on the competitiveness of our brand —to sustain
our competiveness by designing and manufacturing durable products and tocultivate our adaptability by evolving from the continual shifts in the industry andeconomy. At the turn of Tatung's one-hundredth anniversary, we are mapping out
the next centennial blueprint for the company accordingly.
While observing the challenges brought by environmental changes, we havealready transformed such challenges into our long-term development goals in the
future. We continued to expand the construction of solar power plants, and by
the end of 2018, we had accumulated more than 91.70MW of completed meters,with a target of 150MW by the end of 2019. In accordance with the amendment of
the Electricity Law, Tatung is systematically building its capabilities in smart energy
systems management with the fact that we built Taiwan's first megawatt-gradeenergy storage system by assisting ITRI in the regional energy storage project andthat we won Taiwan Smart City System Integration Output Award by designing
the project "Smart Construction of Bus Terminal in Pissek, Czech Republic." Wewill stick to the right directions we have been going with our staff and partners inorder to meet the important goals of producing better results and interests for ourshareholders from better corporate management, laying a solid foundation forsocietal and environmental sustainability so as to reach the Company's goal ofsustainable management and development.

Chairman

Top management statement

Table of ContentslTable of Contentsl

About this report
Top Management Statemen

Tatung CSR milestone and summaryof 2018 best CSR performances
Chapter 1
Identification of the
stakeholders andmaterial topics

Chapter 2
Profile of Tatung
Company

Chapter 3
Organization structureand governance2019 TATUNG CSR

1.1 Identiﬁcation of the
stakeholders andengagement channels 02
1.2 Identification of material
topics 04
1.3 UN Sustainable
Development Goals 09

2.1 Company proﬁle 12
2.2 Financial performances 16
2.3 Services and products 17

3.1 Corporate structure
3.2 Governance 27

20

Chapter 4
Supply chain
management,
product
responsibility andcustomer service

4.1 Supply chain management 34
4.2 Product responsibility 37
4.3 Sales and customer information
management 42

Chapter 5
Socialperformances

5.1 Building a friendly working
environment 47
5.2 Good working conditions andcareer development 51
5.3 Health, safety, and disaster free 57
5.4 Participates and beneﬁts to thesociety 61

Chapter 6
Environmental
performances

6.1 Environmental management 65
6.2 Energy consumption and GHG
management 68
6.3 Resources consumption andpollutants management 73
6.4 Green products for a better
earth 78

Annex

Annex 1 Subsidiaries notes to consolidated ﬁnancial
statements 81
Annex 2 Products and services provided by Tatung 88
Annex 3 Factories and subsidiaries participated in
3P program and Occupational Accident
Prevention Pays program in 2018 90
Annex 4 GRI standards content index 91
Annex 5 Third-party assurance statements 98
Annex 6 Feedback survey form 102

2019 TATUNG CSRlTatung CSR milestone –Honors in a centuryl■ Ranked No.1 in Taiwan by■ Implemented ISO

the Environmental Protection
Administration as the most
proactive corporation for thepromotion of green consumption.★

14001 environmental
management system
to continue improving
environmental
performances. ★

★

★

All the factories haveestablished and update to
ISO 14001:2015.

Establishment of
Xie Chih BusinessEnterprise, theforerunner of
Tatung Company,
built four
fundamental
values—Integrity,
Honesty, Industry,
and Frugality.

Participated in the Ten Major
Infrastructure Projects with theconstruction of a slag treatment
facility for China Steel Corp.
and provision of the turnkey
solution for the CKS International
Airport's power control station.

Mass production of
Tatung rice cookers, arevolutionary step forhousewives in Taiwan.

1918 1942 1943 1947 1952 1956 1960 1962 1963 1977 1988

Establishment of
Tatung High School.

Provided housing
loans to theemployees to help
them purchasing
their houses.

Establishment of
Tatung University.

Implemented "Stock
Ownership" program
to encourage theemployees to become
the company's
shareholders. ★

■ Established the"Industrial Sanitary
Laboratory" to provide
the company withworking environment
testing andcomplying with healthand safety regulation.

1992

1996

■ Implemented★

All the factories haveestablished and update to
ISO 9001:2015.

Established the"Pollution Prevention
Educational
Center" to promote
environmental
education and to
spread correct ideasof pollution prevention.

★

Tatung subsidizes
employees to buy
corporate stocks since
1992 as part of theirsavings.

★

Tatung became
publicly listed on
the Taiwan Stock
Exchange.

The Company
subsidized
employees to buy
corporate stocks
since 1992 as partof their savings.

ISO 9001 quality
management
system to continue
improving quality
performances. ★

■ Implemented★

Organized "Tatung
Welfare Committee"
to handle a broad
range of employee
welfare issues.

1993

Founded Tatung
Soccer Team whichis the only teamthat has long been
supported by a
private company. ★
Champions in 2017 and2018 in Taiwan Football
Premier League.

Promoted "Green Supply
Chain" to assist thecompany in establishinga green supply chain
and avoiding hazardous
substances in productdesign, procurement
and production stages
to comply with RoHS,
WEEE directives andcustomer requirements.

"Pollution, Prevention,
Pays, 3P" programin the corporation
to incorporate
the concepts ofClean Production
and Design for theEnvironment into
Tatung's culture. ★

17 factories andsubsidiaries participated in
3P program in 2018.

1. In 2018, 31 models were awarded
with Green Mark, 33 models wereawarded with Energy Label, 9 models
were award with Water Label.
2. Currently, 40 Tatung 3C Stores wereregister in EPA's Green Store Scheme.

■ Introduced its luxury condominium,"Tatung Tomorrow World", amasterpiece of green architecture,
to commemorate Tatung's 90th
anniversary.
■ Started to publish "Tatung
Corporate Sustainability Report".

2001 2002 2004 2005 2007 2008 2010

Implemented
OHSAS 18001
occupational
health and safety
management
system to continue
improving healthand safety
performances. ★

Established "Electrical andElectronic Equipments
Restriction of Hazardous
Substances (RoHS)
Laboratory" to examine
and analysis any hazardous
substances existing inelectrical and electronicmaterials, parts and products.
The analysis results are able
to help the company tomeet the requirements from
customers and EU, U.S., andJapan regulations.

★

All the factories
have established thesystem.

■ Established "Tatung

Environmental
Research Center"to provide thecompany with themost professional
environmental
analysis systems
and to comply
with environment
regulations.
■ Started to publish"Tatung Corporate
Environmental
Report" to disclose
environmental
information andact as a tool tocommunicate withthe stakeholders.

Carry out greenhousegases inventory
voluntarily in the factories
and subsidiaries basedon the requirements of
ISO14064-1. The emission
information is disclosed
in the company website
and CSR report. ★

■ Started to carry out

product carbon footprint
to disclose carbon
emission information for
products. ★

★

1 model of motors, 1 modelof amorphous transformers,
and 1 model of rice cookers
completed product carbon
footprint inventory.

■ Organized "Tatung

Charity Soccer Summer
Camp" since 2010. In
an effort to help theunderprivileged children
to cultivate a proper andhealthy hobby, and also
to gain happiness andsatisfaction as well as
positive attitude.

★

Taoyuan Wires and Cables
Plant, Taoyuan 1st Plant, and
San-Hsia Factory completed
GHG inventory for year2017 and passed third-party
veriﬁcations in 2018.

Tatung CSR milestone – Honors in a century

Tatung CSR milestone – Honors in a century &l2018 CSR Highlightsl■ New Energy BU won Taiwan

Power Company's first bid of
Low Voltage AMI Pilot Project,a revolutionary milestone forthe intelligent management
system of electricity usage forhouseholds in Taiwan.
■ Won the bid of Hualien-Taitung
Railway Electrification Projectby the Ministry of Transportation
and Communications taking
part in the national momentous
infrastructure project for thegreen transportation of the East. ★
★

Won the 2016 Excellence in Engineering
Project Award by the Chinese Institute ofEngineers.

■ Co-organizing "Smart City Summit★

Economic andgovernance dimension:

and Expo" to promote Tatung's
unique total solution for smart energy
saving system. ★

Participated for 5 consecutive years andwon 2018 Smart City Innovation Application
Award with the achievement in smart microgrid system in Qimei island.

■ Acquired the certificate of registrationof ISO / IEC 27001 by British Standards
Institution for the information security
management system of both Tatungand eTungGo, Tatung's online shop.
■ Established the social responsibility
policies and the social responsibility
practice principles.

■ No. of awards .................. 10 awards■ Percentages of external/independent directors in■ Formed a board of directors that

more than half of the members
are independent directors andexternal directors to further enhance
corporate governance.
■ Established "Tatung Shan Chih
Education Foundation" (temporarilytranslated), aiming at cultivating
professional technology talents.

Board of Directors ............. 62.5%■ Governance..................................................................................

1. Established Corporate Governance Committee.
2. Complete performance evaluation of the board of directors
and the result was "Good".
■ Ratio between company's basic salary and legal salary.......................
1.21 ～ 1.56：1■ Percentages of managers from local in high level management...................................................................................................... 100%
■ Disclosure on non-ﬁnancial information .......................
Publishes CSR report for 18 consecutive years.

Social dimension:

2012

2013

2014

2015

2016

2017

■ No. of discrimination, forced, or compulsory labor incident.......................................................................... 0

2018■ Percentage of local employees ..................... 93%■ Salary ratio between female and male employees ...... 0.89 ～ 0.90：1■ Percentage of employees who are labor union members ...... 78.03%■ Average education/training hours ........................... 12.12 hours■ Education and training satisfactory.............................. 92.09%

The Company engaged
in a multiple academiaindustrial cooperation
project with the
Soochow University
marking a new milestone
for the Company's crosscampus cooperation.

Won the bid for New Taipei
City's Green Campus Project, inwhich solar panel system andintelligent energy management
system are to be installed in 16
selected schools in New Taipei
City. ★
★

By the end of 2018, Tatung has
installed 91.7MW of solar powersystem in Taiwan which is able to cut
off 60,000 tons of CO2e.

■ Founded eTungGo, Tatung's online

shop, to involve in e-commercebusiness.

■ Started to purchase Green Power issued

by Bureau of Energy in order to support
renewable energy policy in Taiwan since2015. ★

★

By the end of 2017, Tatung has purchased
1,391,100 kw-hr of Green Power which is able tocut off 735 tons of CO2e.

■ In order to have a soundcorporate governance, Tatung
has established a corporate
governance committee tobe responsible for corporate
governance related matters.
■ After 100 years of entrepreneurship,
Tatung will uphold the core valuesof "Integrity, Honesty, Industry,
Frugality" to construct resilience,
adaptability and sustainability
in order to fulfill corporate social
responsibility, strengthening
corporate governance, andmarching towards corporate
growth ★
★

Tatung centennial celebration
https://www.youtube.com/
watch?v=mge309tjAsE

Environmental
dimension:■ Return to work percentage for parental leave.............. Male: 100%, Female: 100%

■ Correction percentage of "Occupational Accident Prevention Pays" program................................................................................................... 98.7%■ Supplier commitment letter ........................................... 100% signed back
■ Incorporate CSR related topics into Supplier Introducing Procedure ...............
■ Correction percentage of 3P program ........ 95%
Followed by Consumer BG, CSR related topics have been incorporated in■ Electricity reduced ......................... 3.02 million kw-hr
to Supplier Introducing Procedure for all the suppliers.
■ Amount of GHG emission reduced ............. 1,678 tons CO2e
■ Consumer satisfactory ....................................... Maintenance: 95.30%■ The percentage of product which achieved energy intensity....................................... Shipping: 97.6%■ No. of complaint about information leaking received fromtarget ............................................................................... 75%
the consumers .............................................. 0■ Amount of industrial waste reduced .................. 4.07% less than in 2017
■ Waste recycling percentage ....................................... 72.47%■ No. of green product which were certiﬁed.................................................... Green Mark: 31 models
Energy Label: 33 models
Water Label: 9 models■ Solar power system capacity built........................... Accumulated 91.70 MWp■ Implemented ISO 50001 energy

management system to continue
improving energy performances. ★

★

San-Hsia Factory, Taoyuan Wires and Cables
Plant, and Tayuan Plant have established thesystem.

■ Started to publish "Tatung Corporate

Social Responsibility Report". ★

★

Won Taiwan Corporate Sustainability ReportAwards for year 2008, 2013~2018.

Tatung CSR milestone – Honors in a century

2018 CSR Highlights

Chapter 1l Chapter 1l

Identification of the
stakeholders andmaterial topics

Identification of the stakeholders and material
topicsListening and responding to the topics which are concerned by the stakeholders is a key element
for a company to achieve sustainable development and carry out corporate social responsibility.
Tatung not only actively discloses information about financial performances, corporate
governance and social participation in annual report, but also discloses the performances ofsocial responsibility practices on company's ofﬁcial website1. Tatung ﬁnds out the blind spots andgains valuable opinions by communicating with the stakeholders via variety of channels.

1.1 Identiﬁcation of the stakeholders and engagement channels
Based on AA1000 standard and GRI Standards, Tatung CSR Reporting Group (members are fromthe top level departments in the headquarters and the factories) identified the stakeholders
by past operation experiences and based on the principle that any organizations or persons
impacted by the operation of the company or any organization or persons having impacts to thecompany. In this report, Tatung identiﬁed 7 stakeholder groups such as shareholders, customers,
employees, local communities and parties, authorities, suppliers and consumers.
Tatung takes great concern on stakeholders' opinions. We have direct engagement channels
for all stakeholders to collect their concerned topics in order to continue improve our CSR
performances.
▲▲

Table 1.2-1 List of stakeholders and engagement channels

Stakeholder
groupsMeaning to Tatung

Shareholders

The investors who support Tatung.

Customers
Employees

Local
communities
and parties
Authorities

1

Communication channels and frequencies-Shareholders' meeting / Once per year
-Irregular shareholders' meetings, direct phone line (+886-225925252 ext. 3258), shareholder e-mail / Irregular-Disclosure of ﬁnancial information on ofﬁcial website and
MOPS (market observation post system) / Every month
The companies having business with Customer service, PM / Irregular
Tatung.
The most valuable assets. With their -Chairman's mailbox, HR mail box, complaint mechanism,
innovated ideas and experiences,scheduled education and training, notice board / Irregular-Biweekly HR newspaper / Once per 2 weeks
Tatung is capable to counter any
challenges.
-Health and Safety Committee in the headquarter andfactories / Once per 3 months-Labor-management meeting / Once per 3 months
Tatung's good neighborhood. By-Direct phone lines / Irregularcommunicating with them, Tatung is -Social charity/donation activities / Irregularable to ﬁnd out what more we cando to carry out corporate social
responsibility.
Instructors of Tatung. Following the -Onsite audits / Irregulargovernment policies and complying -Hearings, seminars / Irregularwith regulations is the basic principleof Tatung.

：http://www.tatung.com

22019 TATUNG CSR

Chapter 1

Chapter 1

Identification of the stakeholders and material topics

Stakeholder
groupsSuppliers

Meaning to Tatung▲▲

Stakeholder
groupsShareholders

Customers

Localcommunities
and parties
Authorities
Suppliers

Consumers-Supplier complaint mailbox
supplier@tatung.com / Irregular-Supplier evaluation, annually re-evaluation /Once per year
-Supplier assessment / Once per month
TCPC phone lines (+886-800052666), Tatung 3C
Stores, ofﬁcial websites, etungo online shopping
website / Irregular-Satisfactory survey / Upon shopping or repair
service

1.2 Identiﬁcation of material topics
Tatung concluded 26 possible topics that may have impacts to the stakeholders and to thecompany based on the past operation experiences, future competitive strategies, and the latest
global trends on sustainability such as GRI Standards indicators and UN Sustainable Development
Goals (SDGs). The topics are listed on Table 1.2-1.

Futurecompetitive
strategies

Table 1.2-2 Topics concerned by the stakeholders and our responses
Concerned
topicsGovernanceand ﬁnancial
performances

Tatung's responses

Chapters

1. Seeking partner to strengthen Tatung brand and channel
2.2, 2.3
business.
2. Establishing core businesses in green energy systems andsmart energy solutions(1) Continuing to install small and big solar power plants.
(2) Combining micro grid, storage and smart meters to build
up business model of smart grid solutions.
(3) Securing substation business opportunities for renewableenergy industry players.
3. Expediting asset development or disposal for cash ﬂow andbank loan repayment needs.
4. Adjustment of investment portfolio.
1. Establishing ISO 9001, enhancing supplier quality
4.1, 4.2, 4.3
management, products that pass related veriﬁcations.
2. Establishing ISO 27001 to enhance information management.

Product quality
and customer
information
management.
Labor rights,
Complying with labor and health and safety regulations.
5.1, 5.3
welfares
Pollutant emissions, 1. Installing air pollutant and wastewater treatment facilities.
5.5, 6.3
interaction with
2. Participating in community development and charities
local communities
events through commercial activities, non-cash property
endowments, volunteer service and other free professional
services.
Compliance
Carrying out internal control and internal audit to ensure
3.2, 6.1
conformity.
The quality of parts Establishing ISO 9001, enhancing supplier quality management, 4.1
and products,
products that pass related veriﬁcations.
the requirements
regarding tohazardous
substances
Product safety and 1. Complying with product safety and labeling regulations, and 4.2, 4.3
labeling, personal
establishing feedback and anti-recurrence mechanisms.
information
2. Establishing ISO 27001 to enhance information management.
management

Latest global
trends

Topic generating process
Invite stakeholders to express theirconcerns on the topics by survey
Evaluating and prioritizing
topics based on theopinions gathered fromstakeholders and thecompany

Internal meetings,
discussions, andconfirmation

Prioritizing topics internallyMaterial topics deciding process
Responding the Material topics
in CSR report▲ Figure 1.2-1 Material topics identifying process▲▲

Employees

Communication channels and frequencies

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

Consumers

Identification of the
stakeholders andmaterial topics

Table 1.2-1 Tatung's sustainable topics

Economic andgovernance dimension
Economic performance
Corporate governanceand ethical practiceDisclosure on non-ﬁnancial
information
Market presence
Anti-competitive behavior

Social dimension
Comply with social andeconomic regulations
Supplier management
Employment

Human rights, equality,and non-discriminations
Freedom of associationand collective bargaining
Child labor, forced orcompulsory labor

Performance review andSocial participation
career development
Labor/management
Product quality and safety
relationsOccupational health andMarketing and labelingsafetyCustomer privacy
Training and education
management

Environmental
dimension
Energy and green housegases management
Environmental
management
Management on waterand air pollutants
Wastes management
Management on waterand resources
Environmental friendly
products
Comply withenvironmental regulations

4

3
2019 TATUNG CSR

2019 TATUNG CSR

Chapter 1

Chapter 1

Identification of the stakeholders and material topics

Identification of the
stakeholders andmaterial topics

High

Socialdimension

Environmental
dimension

Economic and governancedimension

High 5.000↑
Level of impact to the company↑
Level of concern

↓

↓
Low

Environmental management

4.000

3.000

Freedom of association and collective bargaining

Social participation

Child labor, forced or compulsory labor

Anti-competitive behavior

Disclosure on non-financial information

Human rights, equality, and non-discriminations

Training and education

Environmental management

Supplier management

Management on water and air pollutants

Performance review and career development

Energy and green house gases management

Wastes management

Management on water and air pollutants

Environmental friendly products

Labor/management relations

Occupational health and safety

Comply with environmental regulations

Market presence

Comply with social and economic regulations

Employment

Marketing and labeling

Product quality and safety

Corporate governance and ethical practice

Economic performance

Customer privacy management2

https://docs.google.com/forms/d/e/1FAIpQLSdqG-YDkzUR_whQzW1LGgs9NPLQau2tAKRlNpIj6LFbHG4r3Q/
viewform?c=0&w=1

5
4

7

Occupational health and safety

Marketing and labeling
Environmental
friendly products

10
9

11

Customer privacy
management

12

6

1

13

2

2.000

3.3000▲ Figure 1.2-2 The ranking of concerned topics by the stakeholders

Labor/management relations
Comply with environmental regulations

Energy and green house gases management

3

Corporate governanceand ethical practiceComply with social andeconomic regulations

Wastes management
Management on water and air pollutants

3.500

Low 1.500

Environmental
dimension

Product quality and safety

4.500

2.500

Socialdimension83.4000Low

3.50003.60003.70003.8000Level of concern by the stakeholders

3.9000↓

Economic and governancedimension

During the identiﬁcation process, CSR Reporting Group evaluated the probability, the inﬂuence,and the level of impacts that brought by the topics and graded them (grade 1~5). At the sametime, the grades from inside and outside the company were evaluated and discussed by CSR
Reporting Group and the combination grading (12 and above) for the topics that located on blue
color region on Figure 1.2-3 were identiﬁed as the material topics.

↑

In order to receive opinions from wide range of stakeholders, Tatung invited stakeholders to ﬁll insurveys which included the 26 topics mentioned above during 2018.12.28~2019.2.11. In addition,
there were also some opinions received from online survey2 on the company's ofﬁcial website.
Two hundreds and seventy-three surveys were recovered and the most concerned topics by the
stakeholders were ranked in Figure 1.2-2.

4.0000High▲ Figure 1.2-3 Matrix of the material topics

Other topics
No.

Economic andgovernancedimensionNo.

4Anti-competitive
behavior

1

7

Training and education

5

Disclosure on
non-ﬁnancial
information

Freedom of associationand collective
bargaining

2

Social participation8

Supplier management

11 Market presence

3

10

Economic
performance

Performance review andcareer development

6

Child labor, forced orcompulsory labor
Human rights, equality,and non-discriminations

13

Social dimension

No.

Environmental
dimension

9

Management on
the water andresources

12 Employment

652019 TATUNG CSR

2019 TATUNG CSR

Chapter 1

Chapter 1

Identification of the stakeholders and material topics▲▲

Material topics in2017

Material topics in2018

Material topics in 2019 and their meanings to Tatung
Corporate
governance andethical practice
Product quality andsafetyComply with socialand economic
regulations

Labor's rightLabor/management
relationsCustomer privacy
management

Labor/management
relationsCustomer relation
management

Labor/management
relations

Recruitment
Education and careerdevelopment

Occupational healthand safety
WelfareForced laborGood corporate governance and ethicalmanagement policies help the company to develop
sustainably and show its social value.
Good product quality and safety in use are thefundamental to Tatung's operation.
Comply with the laws and regulations and become
industry benchmark to avoid violating laws to damage
corporate image.
"Uninterrupted service, no loss of information, personal
information not leaked, and enterprise sustainable
operation" is our information security policy.
Labor and management are committed to working
together for the good of the employees and thecompany. Both sides operate on the principle ofpromoting a harmonious so that they employees will
be contended with their jobs.
Advertise and label our products and services
according to relevant regulations and international
standards are our corporate responsibility andcommitment.

Occupational healthand safety

Marketing andlabeling

Product quality andsafetyEnergy and green
house gases
management

Occupational health
Provide a safe working environment is our responsibility.
and safety

Product quality andsafetyWastes management

Product labelingManagement
on water and air
pollutantsMarketingcommunications

Environmental friendly
products

Global warming

Comply withenvironmental
regulations--

Environmental
management
Comply withenvironmental
regulations

These 5 topics and our operating strategy: "economic

Wastes management development should not create pollution to theenvironment but try to forge a marriage between
corporative development and environmental
Management
protection" echoing each other and are also the coreon water and air
elements of Tatung's CSR policies.
pollutants
Energy and green
house gases
management
Environmental friendly
products

Table 1.2-3 The boundaries of material topics
DMA
pages

GRI indicators

UN SDGs▲

26, 27, 31

Not Applicable

Not
Applicable△▲37, 38, 39

GRI 416-1、416-2

Not
Applicable

■

△

▲

27, 28

GRI 419-1

Not
Applicable

Customer privacy
management

■

△

▲

33, 34

GRI 418-1

Not
Applicable

Labor/
management
relations■△▲45, 52

GRI 402-1

Marketing andlabeling■△▲

33, 41, 42

GRI 417-1、4172、417-3

Occupational
health and safety

■

△

▲

46, 57, 58,
59

GRI 403-1、403-2

Environmental
management

■

△

▲

65, 66, 67

Not Applicable

Not
ApplicableComply withenvironmental
regulations

■

△

▲

28, 63, 67

GRI 307-1

Not
Applicable

Wastesmanagement

■

△

▲

63, 75, 76

GRI 306-2■△▲

63, 73, 75

GRI 305-7、3061、306-3、306-5

■

△

-

GRI 302-1、30264, 69, 71, 、3 302-4、305-1、
72
305-2、305-5

■

△

▲

67, 78, 79

Dimensions Material topics

TatungEconomic
Corporate
andgovernance andgovernance ethical practice■△

Product quality
and safety■

Comply withsocial andeconomic
regulations

Table 1.2-2 Comparison of material topics from past years

Corporate
governance andethical practiceDisclosure on nonﬁnancial information
Comply with socialand economic
regulations

Corporate
governance▲▲This year, we identiﬁed 13 material topics from total 26 topics. They are "Corporate governanceand ethical practice", "Product quality and safety", "Comply with social and economic
regulations", "Customer privacy management", "Labor/management relations", "Marketing andlabeling", "Occupational health and safety", "Comply with environmental regulations", "Wastes
management", "Management on water and air pollutants", "Energy and green house gases
management", and "Environmental friendly products". From Table 1.2-2 we can ﬁnd that the mostof labor related topics have been dealt and responded by Tatung, and the outcome have beentrusted by the employees and the public since 2018. The public and Tatung have then shift theattentions to the environment related topics. The material topics identiﬁed in 2019 are not muchdifferent to 2018. Only "Marketing and labeling" and "Environmental management" were added in.
The detailed management measures and performances in regarding to these 13 material topics
will be disclosed in next chapters. Table 1.2-3 shows the relevancy of the material topics amongst
our value chain.

Identification of the
stakeholders andmaterial topics

SocialEnvironment Management on
the water and air
pollutants
Energyand greenhouse gases
management
Environmental
friendly products

Subsidiaries1 Suppliers

GRI 302-5

Not
Applicable

Not
Applicable

Note: ■ represents that the information is disclosed in this report; △ represents that the relevant management measures areapplied to the subsidiaries but the related information is unable to retrieve; ▲ represents that the relevant management
measures are applied to the suppliers, the detailed information is disclosed in chapter 4.1.
Note 1: Part of subsidiaries with larger scale such as CPT, GET, and Elite Groups, their CSR information in regarding to thesematerial topics is disclosed in their CSR reports and/or their ofﬁcial websites.

8

72019 TATUNG CSR

2019 TATUNG CSR

Chapter 1

Chapter 1

Identification of the stakeholders and material topics

Identification of the
stakeholders andmaterial topics

1.3 UN Sustainable Development Goals

SDGs

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 tothe success of SDGs. As a local company who has been deeply plowed for a century, Tatung
supports SDGs and integrates the goals of "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. In the material topics
identiﬁed this year, "Management on water and air pollutants", "Environmental friendly products","Occupational health and safety", "Product quality and safety", "Wastes management", and"Energy and green house gases management" are also consistent with goals mentioned above.
The measures taken for SDGs are listed on Table 1.3-1.

▲▲

Table 1.3-1 Measures taken for responding UN SDGs

SDGs

Description

Ensureaccess towater andsanitation
for all►By 2030, improve water quality

Ensureaccess toaffordable,
reliable,sustainable
andmodernenergy forall►By 2030, increase substantiallyby reducing pollution, eliminating
dumping and minimizing releaseof hazardous chemicals andmaterials, halving the proportionof untreated wastewater andsubstantially increasing recycling
and safe reuse globally.

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

Description

Measures

Promoteinclusiveandsustainableeconomic
growth,employment
and decent
work for all►By 2030, achieve full and productive★ Ensuring the salary paid to employees

Reduceinequality
within andamongcountries►By 2030, empower and promote★ Complying with human rights

Ensuresustainableconsumption
andproduction
patterns►By 2020, achieve the environmentally★ Complying with RoHS and REACH

Take urgent
action tocombatclimatechange andits impacts►Integrate climate change measures★ Carrying out green house gases

Measures★ Maintain well function of thewaste water treatment facilities
in the factories to ensure thequality of the effluents arecomplied with the standards.

★ Expanding solar power system

and aim to achieve 150MWp
capacity by the end of year
2019.。
★ All motors are met with IE3standard and working hard todevelop IE4 motors★ Raising energy efficiency on
the products and continually
applying for Energy Label, Green
Mark, and Water Label.
★ Providing consumers Tatung
Smart HEMS which offers users
total management of homeenergy consumption withappliance control, energy
consumption monitoring, andself-monitoring functions.

employment and decent work for all
women and men, 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,
in particular women migrants, andthose in precarious employment.
the social, economic and politicalinclusion of all, irrespective of age,sex, disability, race, ethnicity, origin,religion or economic or other status.
►Ensure equal opportunity and reduce
inequalities of outcome, including
by eliminating discriminatory laws,
policies and practices and promoting
appropriate legislation, policies andaction in this regard.
sound management of chemicals
and all wastes throughout their life
cycle, in accordance with agreed
international frameworks, andsignificantly reduce their release toair, water and soil in order to minimize
their adverse impacts on humanhealth and the environment.
►By 2030, substantially reduce waste
generation through prevention,
reduction, recycling and reuse.
►Encourage companies, especiallylarge and transnational companies,
to adopt sustainable practices andto integrate sustainability information
into their reporting cycle.
into national policies, strategies andplanning.
►Improve education, awarenessraising and human and institutional
capacity on climate change
mitigation, adaptation, impact
reduction and early warning.

is complied with the regulations or
better.
★ Conducting "Working condition
monitoring".
★ Establishing ISO 45001 health andsafety management system toreplace current OHSAS 18001 by theend of 2021.

regulations, supporting genderequality, and banning discriminationof any form are set in the clausesof "Tatung Corporate Social
Responsibility Best-PracticePrinciples".
★ 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 thefactories and aiming the recycling
rate higher than 75%.
★ 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 Report in Juneevery year to disclose company'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
the specialties.

1092019 TATUNG CSR

2019 TATUNG CSR

Chapter 2

lChapter 2lProfile of Tatung Company

Profile of Tatung
Company
Sales revenue (Billion NTD):
NT$19.138

Capital (Billion NTD) :NT$23.395

2.1 Company ProﬁleNo. of employees:
2,958Operation 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., DayuanDist., 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

Established in 1918 and headquartered in Taipei, Tatung has evolved into a
conglomerate from its 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 and services with three business groups
working on smart grids, smart communities and smart households to produce a numberof energy-saving and highly efﬁcient electronic products, household appliances, highefficiency smart motors, power supply facilities and automatic control products. They
are fully integrated with information and communication systems as well as well-rounded
and instant services in relation to their products and solutions.
Our smart grids rely upon our system solutions and power business groups for the supplyof smart electricity meters, communication modules, concentrators, FTU/FRTU, highefficiency and energy-saving 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.
Insofar as our smart community is concerned, our business groups of system solutions
have integrated solar power systems, energy-saving systems, other recyclable micro-gridsystems, the SHMS system (for household energy saving, security, and health care), andthe SBMS system (for corporate smart buildings to manage energy saving) into our wellrounded solutions and technological services.
For smart homes, we have integrated the Company's manufactured appliances andsystem solutions into an advanced solution for smart home applications which can beused on cell phones or tablets. Together with our cloud services, in order to provide anenergy-saving, convenient, safe and healthy smart life, we offer smart, energy-saving
and environment-friendly household appliances, IP cameras, surveillance systems, smart
gateways, energy-saving sensors, environmental sensors, etc.
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), and Tatung System Technologies (8099). Pleaserefer to Annex 1 for the list of consolidated entities. Tatung received many awards andcertifications on operations and products in 2018 (Table 2.1-3). Tatung also endorses
initiatives in regarding care disadvantaged groups and employee's health (Table 2.1-4).
All these acknowledgements from all sides are certainly the drive behind the growth of
Tatung.

12
2019 TATUNG CSR

Chapter 2

Chapter 2

Profile of Tatung Company

Profile of Tatung
Company

U.S.A.

Czech

Japan

MexicoChina
MyanmarThailandSingapore

Taiwan Tatung Co.
Headquarter

Power BG

Power Equipment BU

Motor BU

San-Hsia Factory

Consumer BG

Advanced Electronics BU

Appliance BU

Tayuan Plant

System BG

Smart Meter BU

Solar Energy BU

Tayuan Wires and Cables Plant

INVESTMENTS

Tayuan 1st Plant

Power Engineering Division System Integration BU

Chunghwa Picture Tubes, Forward Electronics, Tatung System Technologies,
Green Energy Technology, Shan Chih Semiconductor, Tatung Fine Chemicals
and other investment company Global layout please refer to its annual report.

▲▲

Figure 2.1-2 Tatung Co. global network▲▲

Table 2.1-1 Membership status in the associations

Association/organization
The Third Wednesday Club
Chinese International Economic Cooperation
Association
Chinese National Association of Industry andCommerce, Taiwan
CNS Certiﬁcation Mark Association, R.O.C.

MemberManaging
role

■
■
■
■

Information Service Industry Association of
R.O.C.

■ROC-USA Business Council■

Industrial Association of Taipei City■

Taipei Electrical Commercial Association

■

■
■

■

Association/organization
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
Association of Taiwan
Taiwan Institute for Climate Change andEnergyTaiwan Motor Industry Association
Taiwan Environmental Engineering
Association

MemberManaging
role

■

■

■

■
■
■
■
■
■
■

■

MemberManagingrole

Taiwan Smart Grid Industry Association■■

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

■

Taiwan Digital Television Committee■

Chinese Institute of Engineers■

Association/organization

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

■■

SINOCON Industrial Standards Foundation■■

Importers and Exporters Association of Taipei■

Taiwan Electrical Contractors Association■

Association/organization
Taiwan Electric Wire & Cable Industries
Association
Taiwan Association of Machinery Industry
Taiwan Water Pipe Engineering Industries
Association
Taiwan Metal Industry Association

MemberManaging
role

■

■

■

■

■
■

BELLWETHER International Group■

European Chamber of Commerce Taiwan
The American Chamber of Commerce inTaipeiTaiwan & Myanmar Economic Cooperation
Association for the Advancement■■■

Note : Managing role includes director and supervisor.

14

13
2019 TATUNG CSR

2019 TATUNG CSR

Chapter 2

Chapter 2

Profile of Tatung Company

Optoelectronics

Energy Solutions
Business*Chunghwa Picture Tubes,
Ltd.
*Forward Electronics Co. ,Ltd.
*Shan Chih Semiconductor
Co. , Ltd.
*Green Energy Technology
Inc.
Tatung Forever Energy Co.,Ltd.
Tung Yang Energy Co., Ltd.
Chih Kuang Energy Co., Ltd.

▲
▲

▲
▲

Table 2.1-2 The main domestic
subsidiaries of Tatung

Profile of Tatung
Company

Table 2.1-3 Awards received in 2018
Award

Taiwan Excellence Award 2018

Excellence Award:
Tatung smart home
cloud service, Tatung
fusion skillet (waterlesscooker TRC-M61A),
and stainless steel ricecooker2018 Taichung City Renewable Energy
Promotion Contribution Award

Tatung Company

Energy Conserving Award by Bureau ofEnergyTaoyuan 1st Plant

2018 Taiwan Real Estate Excellence Awards

The Hill of Energy in
Taipei city, the ﬁrst
landﬁll solar power
plant in Taiwan

Shang Shin Energy Co., Ltd.
Retail Channel BusinessElectronics &Information BusinessIndustrial ApplianceBusiness and System

OthersTatung SM-Cyclo 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 2018/12/31 Listed/OTC and Emerging companies.

▲▲

Table 2.1-4 Initiatives endorsed by
Tatung Co.

Organization

Chinese Blood Donation
Association
Health Promotion
Administration
Health Promotion
Administration

Achievement in smart
2018 Smart City Innovation Application Award micro-grid system in
Qimei island"Top Solar System Awards" by Bureau ofEnergy, Ministry of Economic Affairs.

No. 12-14 Ponds of
Taoyuan Canal, the ﬁrst
Floating Solar PV plantin Taiwan

Taiwan Corporate Sustainability Award –Corporate Sustainability Report Gold Award

2018 Tatung Corporate
Social Responsibility
ReportAward for Create a Friendly Workplace from
Taipei City

Tatung Company

Year 2018 stands for the 100th anniversary of the founding of Tatung Company. Corporatetransformations are still ongoing and the business operating results are gradually seen. However,
Chunghwa Picture Tubes, Ltd., and Green Energy Technology, two of our investment companies,
faced ﬁerce competition in their respective industries. Although we persisted in the concept ofsustainable management, it was difﬁcult to meet the challenges of the environment. The huge
losses of the two investment companies in 2018 in turn pressed Tatung to recognize its hugeinvestment losses and made the overall operating results turn into losses. Tatung had a revenue of
NT$19.14 billion, with a loss of NT$0.39 billion from its primary sector. After adding non-operating net
earnings, this term we saw a net loss of NT$10.64 billion after tax and the loss per share was NT$4.75.
Tatung's 2018 revenue compared with that of 2017 had 9.5% growth. Consumer Group had
slight decline due to mature home appliance market. Smart meters, solar systems and power
infrastructure equipment had various growth rates. This resulted in almost 10% sales growth.
Among the subsidiaries, CPT applied for restructuring and GET applied for debt negotiations in Dec.
2018 due to ﬁnancial difﬁculties resulting from over supply market and price declines. The huge
losses forced the two companies' net worth to turn negative, henceforth; Tatung recognized hugeinvestment losses according to the accounting principles. Other subsidiaries continue to improvetheir operations or down sized their operations to increase proﬁts or reduce losses but Tatung still
incurred net investment losses for NT$9.56 Billion in 2018.
Tatung operates normally on a daily basis and accepts no ﬁnancial support from the government.
For more detailed ﬁnancial performances, please refer to "Tatung 2018 Annual Report " which canbe downloaded at:
http://www.tatung.com.tw/Content/annual-report.asp▲▲

Chemical Engineering
Business
Asset Development
Business

Tatung Consumer Products(Taiwan) Co. , Ltd.
*Tatung System Technologies
Inc.
Central ResearchTechnology Co. , Ltd.
Toes Opto-Mechatronics Co.
, Ltd.

Description

2.2 Financial performances

Table 2.2-1 Financial income and expense of Tatung Co.

Item

2014

2015

2016

2017 1

2018

Operating revenue

21,295,466

18,151,104

17,259,632

17,482,835

19,138,488

1,846,739

1,581,503

2,404,376

2,164,903

2,064,017

Personnel expenses
2,700,133
Unit: NT$
Income fromThousand(874,725)
operations( )represents
Non-operating income
1,209,308
negativeand expenses
valuesIncome tax beneﬁt
28,9562,518,948

2,403,307

2,379,086

2,329,118(966,334)(51,462)(177,326)(391,692)(2,107,282)(2,363,313)

280,968(10,313,757)(1,399)70,83036,67562,543(3,075,015)(2,343,945)

140,317(10,642,906)

Earnings per share (NT$) 0.16

(1.35)(1.03)

0.06(4.75)

Dividends per share (NT$) 0

0

0

0

0

Realized gross proﬁt
2

Net loss attribute toequity attributable toowners of parents

Item

Corporate blood
donation
Smoke-free work place

363,539

1

Healthy work place

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.
2
Personnel expenses include salaries, staff labor and health insurance, pension, and others.

16

15
2019 TATUNG CSR

2019 TATUNG CSR

Chapter 2

Chapter 2

Profile of Tatung Company

Profile of Tatung
Company

2015

2016

2017

2018

2014

2015

2016

21,990,047

2017

Consumer products sector

5,840,615

9,057,769

19,084,084

17,995,465

13,660,197

13,032,806

19,932,691

13,035,113

23,041,902

978,10333,567,544

1,172,276

32,655,577

414,068

NT$
Thousand2014

36,964,275

System Business Group0330,267

20,000,000

53,993,039

30,000,000

10,000,000

2018

Others

50,000,000

0

2014

2015

2016

2017

2018

2014

2015

2016

2017

292,065

5,079,247

326,537

3,821,659

3,582,593

406,978

600,017

5,308,973

292,846

11,271,423

4,837,812

12,573,065

3,577,037

13,432,551

3,115,095

10,000,000

14,543,661

20,000,000

4,248,993

30,000,000

14,987,003

40,000,000

Power Business GroupThe sales values are shown on Figure 2.3-1.

23,615,727

40,000,000

We strengthen brand management by providing superior products and expand sales domesticallyand overseas. We actively participate in international design award competitions to enhance theexposure of the brand in the international market. We hope to integrate different home appliancethrough IoT technology to form smart homes for energy saving and personalized smart living.

We continued to adjust their product portfolio to be smart, energy saving and eco-friendly. We
put emphasis on high technology in special applications to increase gross margin rates. Tai Power
has released plans to improve its transmission and distribution systems in the grid. This represents
sales opportunities in transformers and power cables. Our transformer products have been
accredited with KEMA certiﬁcation. This is beneﬁcial to our business in the international market.

Machinery andenergy sector

50,000,000

Consumer Business GroupFor solar systems, we will move from small rooftop systems into big ground-type systems. We haveacquired some land in Chi-Ku, Tainan, and expect to secure all related licenses and permits
to start installations in 2019 and complete grid integrations in 2020. Tatung has long years ofexperience in building substations to support big scale solar system installations. For smart meters,other than continuing to win bids for Tai Power in Taiwan, we also won projects in Japan, Thailand,
Malaysia and Middle East. We have completed the first 1MW storage system in Taiwan in Dec.
2018 to pave way for storage businesses in the future. We expect to become leading systemcompany on smart and green energy in Taiwan and overseas. They will become the mainstreamsof our revenue and proﬁts in the future.

Export60,000,000

5,221,136

Tatung holds three business groups. To sustain strong and long-term growth, Tatung focusesparticularly on the development of advanced technologies and global network of operation.
With her overseas branches, Tatung is in a solid position to deliver products more efﬁciently andrender customer services more effectively.
Tatung is dedicated to manufacturing energy-saving products, systems and services with threebusiness groups working on smart grids, smart communities and smart households to produce anumber of energy-saving and highly efficient electronic products, household appliances, highefficiency smart motors, power supply facilities and automatic control products. They are fully
integrated with information and communication systems as well as well-rounded and instantservices in relation to their products and solutions. (please see Annex II for product information).
Tatung's future development priorities as follows:

Optical sector

2,398,338

Service and product scope

DomesticNT$
Thousand

15,662,725

2.3 Services and products

2018

Note: The above data are subject before consolidation.

▲ Figure 2.3-1 Tatung's domestic and export sales values

18

172019 TATUNG CSR

2019 TATUNG CSR

Chapter 3l Chapter 3lOrganization structureand governance

Organization structure and governanceTargetShort-term target

1. Appointing Corporate Governance officer to be
responsible for governance related matters.
2. Conducting performance evaluation for the board of
directors and the functional committees.
3. Drafting principles regarding to corporate
governance and modify them when receiving new
request from authorities.

Performances in 2018

Mid-term target

Long-term target

Governance

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

1. Established Corporate Governance Committee
and operated 3 meetings.
2. Complete performance evaluation of the boardof directors and the result was "Good".

Adopted GRI Standards
on 2018 Tatung Corporate
Social Responsibility Reportand published in June
2018. The report can be
downloaded on Tatungofﬁcial website and MOPS.

Board ofDirectors

ChairmanSolar Energy BUPower Engineering Division

PresidentInternal Audit Committee

Performances in 2018

Shareholders'Meeting

Corporate Governance Committee

Publish CSR report every year.

3

Appliance BU

System BG

Remuneration Committee

Disclosure on nonﬁnancial information

Advanced Electronics BU

Smart Meter BU

Audit Committee

Target2

Motor BU

Consumer BG

All the operations follow related governance principles
and indicators in Corporate Governance Evaluation.
Managers and employees of Tatung follow ethicalprinciple to avoid breaching regulations and ensuring
company´s sustainable operation and performance,
as well as concerns about social issues and practices
corporate social responsibility.

Power Equipment BUPower BG

System Integration BU
Human Resources Division

Human
Resources &GeneralAdministration
Division

Administration Division
Central Research InstitutePublic Relation Department
Finance Division

Finance &Accounting
Division

Accounting Division
Investment Division

Stock Affairs Division
Procurement Division
Management Information System Division
Legal Division
Health & Safety Division

Note: The chart is updated to June, 2019.
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.

Product Verification and Customs Department
Domestic Subsidiaries
Overseas Subsidiaries▲ Figure 3.1-1 Tatung Co. operation structure

202019 TATUNG CSR

Chapter 3

Chapter 3

Organization structure and governance

Organization structureand governance

The shareholders' meeting is consisted with all shareholders. The annual shareholders' meeting is held regularly
and the extraordinary shareholders' meeting is held irregularly according to relevant regulations. In order toimprove the information disclosure and fully communicate with the shareholders, during the shareholders'meeting each case will be voted each by each. In order to provide shareholders a more convenient way
to exercise their rights, Tatung has implemented the electronic voting system for the ﬁrst time since the 2007
shareholders' meeting. As of 2018, the number of electronic voting attendances in the shareholder's meeting
has reached 52.75%.
Tatung has Spokesman and Stock Affairs Division which is responsible for gathering/disclosing company's
information and responding to shareholders. Tatung also setups company's ofﬁcial site in both Chinese andEnglish to disclose the related governance news and company activities and to act as a communication
channel between the company and shareholders1.

Board of directors
Tatung has 8 directors2 which consisted with three independent directors and two external directors. All the
directors have professional qualiﬁcations in many ﬁelds and continuously to take trainings to enhance theirability to run a company. In order to take into account the company's operational and development need,
we have stipulated diversity in the composition of the board of directors in Tatung Corporate GovernanceBest Practice Principles. Basic requirements and values, professional background, knowledge and skills of
nominators are taken into account. As outcome, the proportion of directors with employees status is 12.5%,
while the proportion of female directors in 12.5%, and has included directors with diverse 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 10 meetings in 2018. The status for the attendance of directors is list on Table
3.1-2. When there is event of conﬂicts of interest during board of directors' meeting, Tatung follows related
regulations to resolve it. The cases with motion due to conﬂict of interest in 2018 were: Board meeting on May
17 with proposal submitted by the shareholder of Tatung's 2018 Annual General Shareholders' Meeting, Wenyen K. Lin took interest avoidance; Board meeting on August 14 with the remuneration system for directors
and managers of Tatung will not be amended for the time being, Wen-yen K. Lin, Shou-Huang Chen, ShengWen Tsai, and I-hua Chang took interest avoidance; Board meeting on August with amendments to the
remuneration system for independent directors, Peng-fei Su, Tzong-der Liou, and Chi-Ming Wu. Table 3.1-3
shows the major resolutions of the board of directors.
In order to strengthen corporate governance and enhance the functions of the board of directors andvarious functional committees, the board of directors passed the "Board and Functional Committee
Performance Evaluation Guidelines'. The board of directors and functional committees of Tatung shallperform at least one internal performance evaluation each year. In addition, the board of directors shallperform at least one external performance evaluation every two years. The results of evaluation shall becompleted before the board of directors held within 3 months after the start of the 2nd year and submitted
to the board of directors.

▲▲

Shareholders' meeting

Table 3.1-1 The policy to diversify the membership of the board

Basicrequirements andvaluesProfessional background

Gender Nationalit

Educational background

Name / Title

Wen-Yen K. Lin
Chairman

FemaleRepresentative of
Tatung University
Male
I-Hua Chang
DirectorShou-Huang
Chen
Male
Director

Professional knowledge and skills
Ability to
Ability
perform
Ability to
Ability toAnKnowledge
to make accounting conduct
conduct
international Ability toof theoperationalandmanagement
crisismarketlead
industry
judgments financial administration management
perspective.
analysis.

Ability
to makepolicydecisions

R.O.C.

Master of Economics, Maryland
University

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

R.O.C.

Bachelor of MechanicalEngineering, Tatung University

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

R.O.C.

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

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Sheng-Wen Tsai
Director

Male

R.O.C.

Bachelor of Accounting Fu-Jen
University

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Lung-Ta Lee
Director

Male

R.O.C.

Ph.D. of Chemical Engineering,
Tatung University

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Male

R.O.C.

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Male

R.O.C.

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Male

R.O.C.

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Ⅴ

Peng-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.

25%
Under 50

50%

25%
50~60

Over 60

The procedures for the establishment of directors' remuneration of Tatung, in addition to the provisions of
the Articles of Association, are based on the above criteria and the relevant measures of the functional
committees. The relevant performance appraisal and remuneration rationality are reviewed by the functional
committees and the board of directors. At any time, the directors' remuneration system will be reviewed in atimely manner depending on the actual operation conditions and relevant laws and regulations.
1
2

Shareholder's contact information: http://www.tatung.com/home/contactus
Elected in 2017 with 3 years term of ofﬁce.

▲ Figure 3.1-1 Age distribution of the board members

22

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▲
▲

Name

Organization structureand governanceInternal audit committee

Table 3.1-2 Status of board of directors' meeting
Attendance by proxy

Attendance rate (%)

Wei-Shan Lin3

1

0

100

Wen-Yen K. Lin
Tatung University/I-Hua
Chang
Shou-Huang Chen

10

0

100

10

0

100

10

0

100

Sheng-Wen Tsai

10

0

100

Lung-Ta Lee

9

1

90

Peng-Fei Su

10

0

100

Tzong-Der Liou

10

0

100

Chi-Ming Wu

10

0

100

Tatung has Internal Audit Committee (which is responsible to Board of Directors) to review andassess the qualitative aspects of financial reports, the registered accounting firm's selection,
independence and qualiﬁcations, the effectiveness of the systems of internal control system.

Audit Committee
The Audit Committee of the Board of Directors assists the board in fulfilling its responsibility andduty for oversight of the Company Act, Securities and Exchange Act, and such other related
laws and regulations. The committee's purpose is to review and assess the qualitative aspects offinancial reports, the registered accounting firm's selection, independence and qualifications,the effectiveness of the systems of internal control, the company's compliance with significant
applicable legal and regulatory requirements and Tatung's exiting or potential risk management.
Table 3.1-4 shows the status for the attendance of Audit Committee members.
▲▲

Attendance in person

Table 3.1-4 Status for the attendance of Audit Committee members

Title & Name▲▲

Attendance in person

Attendance by proxy

Attendance rate (%)

Chair, Peng-Fei Su

14

0

100

Major resolutions

Member, Tzong-Der Liou

14

0

100

Chairman Wei-Shan Lin regisned and the board elected director Wen-Yen
K. Lin to take up chairmanship.
The board resolution of the investment into a Joint-Venture Company forholding solar power plant.
The board approved to invest and install the second stage of Tainan ChiGu solar plant project.
The board of directors resolved to convene the 2018 Regular Shareholder'sMeeting.
The board of directors' resolved no dividend distribution in year 2018.
Tatung Co. set up the Corporate Governance Committee and appointed
members of Committee.
The board resolution to adjust the issuance of new common shares forcash in public offering.
Supplementary information on Tatung's 2018 Annual General Shareholder'sMeeting.
Tatung Co. on behalf of Tatung Co. of Japan, Inc. for endorsements/
Guarantees.
The board approved to invest and install the Tainan Chi-Gu San Gu Chi
section solar plant preject.
Tatung Co. resolved to dispose 100% shares of Tatung Vietnam Co., Ltd.

Member, Chi-Ming Wu

14

0

100

Table 3.1-3 Major resolutions of the board of directors

Date2018/02/01

2018/03/15

2018/04/19
2018/05/17
2018/08/14

2018/12/27

3

Change in accounting policy.

Wei-Shan Lin had resigned on February 1, 2018.

The Remuneration committee is responsible for approving the Remuneration Committee Charterfor intensifying corporate governance and consolidating the director and executive remuneration
programs. Table 3.1-5 shows the status for the attendance of Remuneration Committee members.
The Board of Directors is authorized to determine the transportation allowance and remuneration
to directors of Tatung 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 (please refer toTable 3.1-6). Presidents and vice presidents manage the company's business on the order of theBoard of Directors. The appointment, dismissal and remuneration of presidents and vice presidents
shall be subject to the Company Law. Furthermore, remuneration will also be allocated from thecompany's earnings, if any, in accordance with Company Regulations.
▲▲

2018/10/11

Remuneration Committee

Table 3.1-5 Status for the attendance of Remuneration Committee members

Title & Name

Attendance in person

Attendance by proxy

Attendance rate (%)

Chair, Chi-Ming Wu

2

0

100

Member, Tzong-Der Liou

2

0

100

Member, Peng-Fei Su

2

0

100

24

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Table 3.1-6 Remuneration paid to directors in 2018

Remuneration

TatungRetirement pensions

Allcompanies
includedin ﬁnancial
statements

TatungAll
companies
includedin ﬁnancial
statements

Remuneration
allocated from
earnings
Allcompanies
Tatungincludedin ﬁnancial
statements

▲
▲

▲
▲

Name

Organization structureand governance

Unit: NT$ Thousand
Title & NameBusiness execution
expenses

TatungAll
companies
includedin ﬁnancial
statements

Wen-Yen K. Lin

-

9,160

-

-

-

277

120

1,360

Wei-Shan Lin

9,504

9,584

-

-

-

43

-

220

I-Hua Chang

-

-

-

-

-

10

120

420

Shou-Huang
Chen

1,250

1,250

-

-

-

-

120

120

Sheng-Wen Tsai

1,150

1,150

-

-

-

-

120

120

Lung-Ta Lee

-

120

-

-

-

-

120

600

Peng-Fei Su

3,800

4,232

-

-

-

-

-

-

Tzong-Der Liou

3,620

3,620

-

-

-

-

-

-

Chi-Ming Wu

3,290

3,290

-

-

-

-

-

-

Note: This Table is cited from 2018 Tatung Annual Report page 19-20, please refer to it for completed data.
Note 1: Wei-Shan Lin had resigned on February 1, 2018.

Corporate Governance Committee

Table 3.1-7 Status for the attendance of Corporate Governance Committee members
Attendance by proxy

Attendance rate (%)

Chair, Tzong-Der Liou

3

0

100

Member, Peng-Fei Su

3

0

100

Member, Chi-Ming Wu

3

0

100

Member, Shou-Huang
Chen

3

0

100

Member, Sheng-Wen Tsai

3

0

100

Board and Functional Committee Performance Evaluation
In order to strengthen corporate governance and enhance the functions of the board of directors andvarious functional committees of Tatung, the board of directors passed the "Board and Functional Committee
Performance Evaluation Guidelines" in 2018. The board of directors and functional committees of Tatung shallperform at least one internal performance evaluation each year. The results of internal performance evaluationfor 2018 were passed to the board of directors' meeting on Jan 29, 2019 for review.
The evaluation items are list on Table 3.1-8. The evaluation results of the board of directors and various
functional committees and the performance of members were "Good"4 during 2018.

▲▲

In order to have a sound corporate governance, Tatung has established a corporate governance committeewith 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 for corporate governance related matters. In 2019, the head of Legal Division was appointed
as Corporate Governance ofﬁcer. The Corporate Governance Committee meetings are held at least once
every quarter and the duties are:1.To give considerations to experience, expertise and independence to formulate selection criteria for
independent directors and members of various functional committees and submit to the board of directors
for resolution.
2.Responsible for planning and evaluating the potential candidates for independent directors and functional
committee members.
3.Give recommendations to Tatung's board of directors regarding the candidates for directors (including
independent directors), functional committee members, and candidates for subsidiaries' directors andindependent directors.
4.Plan to review the implementation of the duties of the chairman, directors, independent directors andmembers of various functional committees.
5.Responsible for the research and analysis, implementation, planning proposals and regulations of thecorporate governance system, the rules and regulations of the board of directors, and the review andrevision of the relevant rules, regulations and procedures for corporate governance, and submit to theresolution of the board of directors.
6.To review the next year's annual plan and to assess the implementation of the current year's annual plan of
the board of directors and to submit separately to the board of directors for resolutions and reporting.
7.Review the implementation of the information disclosure.
8.Review the governance relationship between Tatung and its subsidiaries and other related companies.
9.Responsible for reviewing the effectiveness of the implementation of the corporate governance.
10.Other duties in accordance with the regulations and board resolutions.

Attendance in person

Item

4

Table 3.1-8 Board and functional committee performance evaluation items
Board of directors

Item

Functional committees

1Participation in the operation of thecompany.

1Participation in the operation of thecompany.

2

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

2

Awareness of the duties of thefunctional committee.

3Composition and structure of the boardof directors.

3

Improvement of quality of decision
made by the functional committee.

4Election and continuing education of
the board of directors.

4

Makeup of the functional committee
and election of its members.

5Internal control

5Internal control.

6

Participation in sustainability(Environment, Social, Governance,
ESG).

The evaluation period: 2018.1.1~2018.12.31; The grading over 80% is “Good＂, 60%~80% is “Standard＂, below 60% is “Poor＂.

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3.2 GovernanceGood corporate governance and ethical management are the keystones for a corporate to achievesustainable development. Since 1918, we have taken "Integrity, Honesty, Industry, Frugality" as our corporate
values and stipulated "Corporate Governance Best Practice Principles", "Ethical Corporate Management
Best Practice Principles", "Procedures for Ethical Management 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 the implementationof the internal control system, the company's policies and regulations are ensured. In addition to playing therole of a product and service provider, we also combine environmental sustainability with the managementof the company. It is expected to not only achieve sustainable business, but also fulfill our responsibility forenvironmental sustainability and corporate social responsibility.

Corporate Governance Best Practice Principles
In order to establish sound corporate governance system, Tatung adopted the principles of Taiwan Stock
Exchange Corporation (TWSE) and the GreTai Securities Market (GTSM) and published "Corporate GovernanceBest Practice Principles". The principles are agreed by board of directors and aiming to achieve the followings:
1.Protect the rights and interests of shareholders.
2.Strengthen the powers of the board of directors.
3.Fulﬁll the function of supervisors.
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 unethicalbehavior. Ethical training 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 thecommitment made by Tatung.

Ethical Conduct Principles
In order to guide the directors and managers of ethical conduct, for example, prevent conﬂicts of interest, toavoid the chance of personal interests and fulﬁll the duty of conﬁdentiality, fair dealing, protection and properuse of company assets, to follow the laws and regulations, to encourage the reporting of any violations of law
or ethical behavior and conduct of disciplinary measures, Tatung has published "Ethical Conduct Principles"and agreed by the board of directors.

Organization structureand governanceprocurement, ﬁnance and human resources departments to reduce the risk of corruption. We also announcethe "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.

Internal control system and internal control committee
In order to promote the effective operation and ethical management of the company, Tatung established"Internal Control System".
The mission is to:
1. Ensure the enforcement of company policies and rules.
2. Avoid the waste, lost and non-efﬁcient use of assets.
3. Ensure the accuracy of accounting and operating information.
4. Evaluate the performances for each division.
Internal control system covers all operations of Tatung, including accounting, ﬁnance, planning, organization,
control and management, and information about sales, production, purchasing, materials, engineering,
personnel and research and development. 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, healthand safety issue included), Labor and wage cycle, Finance cycle, Fixed asset cycle, Investment cycle, andResearch and development cycle, as well as setting out the management controls for data access and otheractivities. 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 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 have different audit frequencies.
In addition to internal control system, Tatung has introduced and maintained various of management systems
in the factories for speciﬁc topics, such as ISO14001 (environment), OHSAS18001 (health and safety), ISO9001(quality) and others. The factories follow the procedures of the management systems to review and update therelated laws and regulations. At the same time, the factories conduct internal audit and management review
to ensure the operations can comply with the laws and regulations. The administrative in headquarter alsoannounce the latest and related regulations to the employees by publishing on the internal website and/or
through e-mails. In this way, the employees will gain the knowledge of regulations and avoid breaching themat work.

Tatung upholds the principles of "integrity, honesty, industry, and frugality" and prohibits any improper behavior
and ﬁnancial dealings. Tatung has established "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 requests the employees not to take advantages in any form atwork, nor make external leakage of the technical and business content in the Company Rules. Tatung alsoestablished internal control measures such as internal control system, scheduled and unscheduled audits of theInternal Control Committee and Internal Audit Committee. The contracts signed with the suppliers are added
the requirements such as shall not bribe or provide improper beneﬁts to Tatung employees. Work rotations for▲

Employees' code of ethics

Figure 3.2-1 Tatung internal control system
statement

28

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Organization structure and governance

Organization structureand governanceRisk 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.
▲
▲

Risks

Bodies in charge

Responsibilities

Strategy andoperation risk

1. Stipulation and implementation of management
policies.
2. Assessment and analysis of operation performance.

Market risk

Sales unit of each factory and division.

Business and sales promotion as well as market
research and evaluation.

Financial andliquidity risk

Finance & Accounting Division.

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

Legal risk

Legal Division

Process of litigation and non-litigation cases

Operation▲▲

Table 3.2-2 Risks and counter measures of Tatung.

Item

Countermeasures

Change inmanagement of thecompany

Tatung has a strong and stable management team, and there is no risk from the change in the
management of the company.
■ The shareholdings of Tatung's directors have been stable during the past years, and there wasno major transfer or swap of stocks.

■ Financial Supervisory Commission (FSC) has repeatedly imposed penalties on violations

Major transfer or swapof stocks

Governanceby 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 to check into the loopholes in theenforcement 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 Exchange Act. We will engage alaw firm to claim for the disgorgement of any profits realized from the buy and sale.
(2). Regarding false statements damaging the reputation and credit of our company, we will
engage a law firm to initiate private prosecutions against the target individuals.

■ Tatung adopted and made public "Ethical Corporate Management Best Practice Principles"

Non-ethical behavior

and "Procedures for Ethical Management and Guidelines for Conduct" at its ofﬁcial website,
issued and announced internally the Company Rules and "Corporate Ethics Statement forGroup Employees." Tatung continues to enhance core corporate philosophy – "Integrity,
Honesty, Industry, and Frugality," and states that the employees are prohibited to perform
malpractices or accept gifts of others in regarding to their jobs.
■ Tatung has established effective accounting and internal control systems for ensuring theimplementation 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' unethicalconducts. The company maintains secrecy and inspects the reported contents as well asprotects informants' rights and interest.

Item

Countermeasures■ With the mass demand for energy efﬁciency & carbon reduction technique to cope with global

Table 3.2-1 Structure of risk management

1. Board of directors.
2. High-level management (chairman, president).
3. Management of each factory and division(general manager, director, and center
manager).

Category

Category

Finance

Legal

Marketwarming, Power Equipment Business Unit and System Business Group of Tatung have developed
deep technical foundation, kept putting efforts on research & development, and expanded thebusiness of key products as well as system aggressively in smart grid to ensure its technology andmarket leading position in domestic electricity generation, power transmission & distribution andenergy management. Tatung marches into oversea market and aims at the energy technology
industry leader.
Changes in■ With the trend of energy efﬁciency and carbon reduction, Home Appliance Business Unit has
technologies on the
strived to carry on ﬁne tradition, and reinforced to develop high-quality green home appliances
ﬁnancial position
with health, environment protection, energy-saving and high efﬁciency concepts to increase theand operation of thesales performance and proﬁt.
company■ With the advent of the digital era, the Company is aggressively pursuing R&D, production
and marketing of products that integrate information, communications and home appliancefunctions to cater to the demand of the digital-age family.
■ Tatung'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.
■ Tatung established the Information Security and the Personal Information Protection Committee
in 2014 and passed ISO 27001 veriﬁcation, and ensured the security of the company's personnel,
data, information systems, equipment and network in accordance with the requirements of BS
10012. To ensure the safety of the company's personnel, data, information systems, equipment
and network, Tatung established an information security policy as the highest guiding principle
to achieve the goal of "uninterrupted service, no loss of information, personal information notleaked, and enterprise sustainable operation".
■ The actual implementation method is based on the pre-emptive and risk reduction pre-existing
Information security
issues. Through the discussion of the monthly meeting and the emergency response, the reviewof the new internal and external security issues will be carried out to the annual plan. In theactivities 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 implementationand 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 the audit 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.
■ Derivatives can be used as a hedge against interest rate ﬂuctuations for Tatung's long-term debts.
■ When considering mid to long-term bond issues, Tatung carefully sets its target interest rate toInterest rate
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 bondoffers 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 foreign exchange position that is exposed to
Exchange ratecurrency exchange risks. The management of risks involving such derivatives are set forth in Tatung's"Operational Procedures for Derivatives Treading." Tatung also has an internal control system tosupervise the loss limit of foreign currency transactions.
Tatung carefully monitors any changes in local and foreign policies and makes appropriate
Changes in policies and adjustments in Tatung's internal control system and operations when necessary. Tatung's R&D units
laws
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 Tatung will diversify its customer base in order to reduce the concentration of sales.
Concentration ofpurchase
Environment

Environment/
health andsafetyClimatechangeHealth and safety
Carbon emission
Water resource

Tatung will arrange for alternative sources for purchase in order to reduce the concentration ofpurchase.
■ Continue to run environmental management system to elevate environmental performance.
■ Conduct "Pollution Prevention Pays" program and internal control system to prevent the violationsof regulation.
■ Continue to run occupational health and safety management system to elevate health andsafety performance.
■ Conduct "Disaster Prevention Pays" program and internal control system to prevent the violationsof regulation.
■ Conduct monitoring on operation site, job safety analysis and establish safety S.O.P.
Conduct GHG emission inventory, establish energy management system, and carry out energy
saving projects.
Promote water saving projects.

30

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Organization structureand governance

On December 21, 2017, the board of directors passed a resolution on the loans of funds of the wholly
owned subsidiary - Tatung Vietnam Co., Ltd., the balance of US$16,655,000 and the interest receivableof US$1,622,000. The total amount of US$17,717,000 was transferred to the capital amount. Since theamount of credit to the capital has reached NT$300 million, the accountant has not been consulted
on the reasonableness of the transaction price before the factual date, and there is a violation ofthe "Regulations Governing the Acquisition and Disposal of Assets by Public Companies" and fined
NT$240,000. Tatung has subsequently provided Financial Supervisory Commission with a written opinion
on the reasonableness of the equity price issued by the independent auditor on September 25, 2018.

Industry-educationcooperation
To cultivate young
engineering talent andto lend efforts to researchand development throughcooperation between thecompany and Tatung HighSchool as well as Tatung
University. Realizing theimportance of education ina society with a knowledgebased 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 a manifestation of longterm commitment to social
well being.

As for Tong-Da Case with respect to the Former Chairman Lin (Lin hereafter), The Supreme Court revoked
Taiwan High Court's decision on Dec 7, 2015, and the case was remanded to Taiwan High Court. Taiwan
High Court has sentenced Lin to imprisonment and ﬁne, Lin has ﬁled an appeal to the Supreme Court,
the High Court has afﬁrmed the referral of the case. The Securities and Futures Investors Protection Center(SFIPC hereafter) ﬁled suit against Lin seeking compensation for the loss in Taiwan High Court. According
to the court decision, Lin has to pay back the company 1.9 billion NT dollars plus interest. Lin authorized
his lawyer to appeal to the Supreme Court, the Supreme Court reversed the original judgment andremanded the case to the original court for retrial. As for SFIPC ﬁling suit to remove Lin from the board,
the original district court and high court ruled that the SFIPC's lawsuit was groundless, and decided
against the SFIPC. Whereas, on Jul. 10, 2017, the Supreme Court rescinded the original judgment andremanded the case to the original court for retrial. On Feb. 21, 2018, SFIPC ﬁled for permission of Taiwan
High Court to withdraw the suit. The litigation procedure of this case ended, for Lin had resigned from theboard of the Company on Feb. 1, 2018. Tatung remains in normal operation, and is not affected by thelitigation.

Shareholder
responsibility

Employee harmony

To pursue maximum
returns for ourshareholders and tomaintain a stabledividend policy.

To encourage selfmotivation andcooperation amongst
employees throughthe organization of
proﬁt centers to ensure
fair compensation,
incentives, welfare
beneﬁts, as well as toprovide on-the-job
training.

Customersatisfaction
To re-invest proﬁts inpursuit of better productquality so as to create
value for our customers.

Corporate social responsibility
Policy and management

Established in 1918, the foundation of the company is built on four fundamental values – integrity,honesty, industry, and frugality. They are represented as the essence of the company's commitments toour stakeholders. Mr. T. S. Lin, Chairman Emeritus of the company further extended the precepts behindthese core values to serve as the guidelines for the company's continued success and prosperity.
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 practiceprinciples" 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 and performances will be reported to board of directors every year.

公
▲
▲

Topic

Table 3.2-3 Tatung CSR responsible units

Responsible unit

Corporate social
responsibility

Legal Division

Environmental
management

Healtht & Safety Division

Ethicalmanagement

Human Resources & General
Administration Division, Legal
Division

Reporting issue
Tatung has reported to the board of directors theimplementation of CSR for 2018 on 2019.2.14.
Tatung has reported to the board of directors theimplementation of environmental management for 2018 on
2019.2.14.
Tatung has reported to the board of directors theimplementation of ethical management for 2018 on
2018.12.27.

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 andstarted to publish "Tatung Corporate Environmental Report" since 2002. Starting from 2008, theenvironmental report was renamed to "Tatung Corporate Sustainability Report" due to the balanceof disclosed information. From 2015, with the request from the authority, we once again changed
its name to "Tatung Corporate Social Responsibility Report". In order to implement CSR policies andactivities and disclose such information to the stakeholders, we promise to issue a CSR Report5 after
approval by the Chairman in June each year.
In response to the release of the GRI Standards and in line with the international trend, with theefforts of all departments, we adopted the GRI Standards (previous version: G4) since the previous
version: 2018 Tatung Corporate Social Responsibility Report which was one year in advance.

5

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

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Chapter 4l Chapter 4l

Supply chain management,
product responsibility andcustomer service

Supply chain management, productresponsibility and customer service
TargetTargetSupply chain
management

1. 100% of new supplier signs back the
supplier commitment letter.
2. Incorporate CSR related topics into
Supplier Introducing Procedure from 2018.

TargetPerformance in 2018
1. 100% of new supplier signed back the
supplier commitment letter.
2. Followed by Consumer BG, CSR related
topics have been incorporated in to
Supplier Introducing Procedure for all the
suppliers since 2018.

TargetShort-term target

Customermanagement

Target

1. Continue to manage
customer information inaccordance to regulation.
2. Satisfaction for shipping
service: 97% and repair
service: 94%.

Performance in 2018
1. No. of complaints in regarding
to violating customer privacy orlosing customer information: 0.
2. Satisfaction for shipping service:
97.6%; repair service: 96.2%

Product responsibility
1. Meet annual quality target.
2. All the products are complied with productinspection and labeling regulations.

Performance in 2018

No. of products violated product inspection
and labeling regulations: 2.

Mid-long term target

1. Continue to run ISO 17025 intesting labs and pass certification.
2. Continue to run ISO 9001 in thefactories and pass certification.
3. Zero defection in quality.

4.1 Supply chain management
Tatung believes that with good relationship with decent suppliers can make sure getting highquality parts/products to raise productivity to share the beneﬁts to the customers around the world.
Hence, Tatung conducts internal control and related management procedures to manage andintroduce new suppliers. Regular auditing is conducted in BUs and subsidiaries.
Good quality, competitive price, on time delivery, and service are the first consideration when
Tatung purchases raw materials, parts and products. Tatung also prefers purchase from local
suppliers in Taiwan in order to support local business and fulfill social responsibility. The main
suppliers are from Taiwan, followed by China. The details are list in Figure 4.1-1. Meanwhile, in orderto maintain excellent product quality, Tatung requests suppliers to use brand new materials inproviding main materials, parts, and products.
On the other hand, Tatung requests suppliers to fulfill corporate social responsibility together byadding anti-corruption and human rights (human rights, freedom of association, child labor, andforced labor) clauses in the contract. Also from 2015, we started to request suppliers to sign acommitment letter, which includes health and safety, environmental protection, human rights
topics. The commitment letter is a must have document to become Tatung's supplier. In responseto the attention to conflict minerals internationally, Tatung has issued "Declaration of Minerals
Conﬂict-Free from Tatung Company" this year and started to carry out a supplier survey.
0.54%

Taiwan

0.61%

China

1.30%
2.88%
2.93%

Hong Kong
Japen
South Korea

91.73%

OthersTargetTargetSales

Performance in 2018
No. of advertisements or promotions
violated related regulations: 1.

▲ Figure 4.1-1 Suppliers' geographic distribution in2018 (by numbers)▲▲

1. Aware of change in regulation
and avoid violation upon sales.
2. Maintain online shopping platformand establish auto correction
measure.

Table 4.1-1 CSR contents in the commitment letter

Category
Non-corruption
Human rights andlabor conditions
Environmental
protection
Corporate social
responsibility

Tatung anti conﬂict mineral policy

Commitment
Refuse to offer or accept any improper advantages.
Comply with national and international regulations, policies or guidance in regarding tohuman rights.
Comply with environmental protection regulations.
Comply with Tatung's and the supplier's ethical and CSR policies.

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Chapter 4

Chapter 4

Supply chain management, product responsibility and customer service

Introduction and management on suppliers

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 onsite assessment by evaluation team. The assessment content mainly includes design, technicalcapabilities, 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 business units. In addition,
Tatung also evaluates the management of hazardous substances (RoHS and REACH), conducting
safety measures for hazardous job, and implementation of environmental management system as
an extra evaluation for introduction of a new supplier. The detailed management measures areshown on Table 4.1-2 and Figure 4.1-2. The supplier with assessment result above B grade can thenbe 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 4.13). Any non-conformity will be requested to correct. An annually re-evaluation is periodically
implemented for main components suppliers, listed component suppliers, and outsourcing
suppliers. The annually-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 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 makesure all this type of suppliers can follow it to reduce the risk from accidents.
▲▲

Category

Table 4.1-2 Category of suppliers and introducing/management measures
Classiﬁcation criteria

Introducing
procedure

Introducing
procedure

1. Important materials (parts, components, half-ready ☆ On-site assessment 1. Monthly☆ Sign procurement
products, and products).
assessment1
2. ODM/OEM
2. Annually recontract
Category I 3. Outsourcing (including full case, manufacture only, ☆ Sign commitment
evaluation2
product only).
letter
4. Signiﬁcant to product quality that need intensive
management and tutoring.
Monthly
1. Suppliers, who provide raw materials, ready to sale ☆ Document review☆ Sign procurement
assessment
products, imported components, with less quality
Category II
risks.
contract
2. Suppliers who are world famous company with top ☆ Sign commitment
lettercapability in product and QA/QC.
Suppliers who build factory, apartment, ofﬁce building, ☆ On-site assessment Evaluation after thesystem installation, or repair project.
or document review case is completed
for existed cases☆ Sign procurement
Construction
contract☆ Sign commitment
letter☆ Sign procurement
Monthly
1. Suppliers who provide ofﬁce appliances, hard
assessment
contract
wares, software, waste disposal, veriﬁcation, etc.
Others☆ Sign commitment
2. Suppliers who provide instruments or equipments.
letter
3. Technical maintenance service.
Note 1: Increase or decrease procurement amount based on the result of monthly assessment.
Note 2: Maintain business or search for second source based on the result of re-evaluation.

Supply chain management,
product responsibility andcustomer serviceTopmanager
in BU

Supplier

Providesamples forinspectionPass

On-siteassessment

Evaluation
based ondocument review
and on-site
assessment

Procurement
division

Pass

Input into
supplier databaseand under
management

BUs

YearlyMonthly re-evaluationassessment (including
CSR topics)

Fail

Removingfromsupplier
database

Fail
Re-examing

Pass
R&D

Procurement QA/QC Manufacturing

Pass(including CSR (including CSR
topics)
topics)▲ Figure 4.1-2 Supplier introducing and managing procedure

0.35%

Grade: A
Grade: B

1.21%

Grade: C/D

98.45%
Grade: A

1.49%
Note: Grade A and B are qualified suppliers; Grade C/D isfailed from monthly assessment and requested to be
improved within limited time.

▲ Figure 4.1-3 Result of supplier monthly

assessment in 2018

Grade: B
Grade: C

7.46%

91.04%

Note 1: Grade A and B are qualiﬁed suppliers; Grade C is failed from
Yearly re-evaluation. If BU managers require them to be reexamined, the failed suppliers have to be improved withlimited time and to be re-examined again.
Note 2: Grade C disqualiﬁed suppliers was 1.49% in 2018. The main
reason was due to the suppliers reduced their businessscales and being disqualiﬁed from our supplier list.

▲ Figure 4.1-4 Result of supplier annually re-evaluation in 201836

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Chapter 4

Supply chain management, product responsibility and customer service

Supply chain management,
product responsibility andcustomer service

4.2 Product responsibility
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 createhigh-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 shownin Table 4.2-1) in the factories. The system can implement standardization, deviation reduction,
as well as a tool to pass down the knowledge and experiences internally. In addition, they system
can enhance the management capability, product quality stability, reduce product defect rate
and reduce complain. The system can also enhance conﬁdence of customers, thus expanding themarket and enhancing competitiveness.

Q
1993

1994

Taoyuan 1st Plant
San- Hsia Factory
established ISO 9001 andpassed certification.

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: increasing/decreasing 10% target per year; Long-term: zero
disadvantages). The detailed process of management and implementation is shown in Figure 4.2-2.
Each BU proposes a speciﬁc target for the project whose annual target is not up to standard. After
review and conﬁrmation, the HQ conducts on-site audit to effectively improve product quality andachieve annual quality objectives.
Other than the management systems in the factories, Tatung has its own Calibration Lab andTatung Environmental Research Center in headquarter. These two laboratories provide accurate
measuring and calibration testing services and hazardous substances testing service. In addition,
Tatung has Transformer Testing Lab, Switchgear Testing Lab, Air Condition Facility Testing Lab, andMotor Testing Lab in the factories (as shown in Table 4.2-2) to provide the assurance of excellent
quality.
▲▲

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

2017.12.28

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

2017.10.20

Oil-immersed transformers (below and including 345KV), Oil-immersed reactors (below
and including 345KV), Oil-immersed potential & current transformers (below andincluding 69KV), Dry type transformers (below and including 36KV), Dry type reactors(below and including 36KV), Cast resin dry type transformers (below and including
36KV), Cast resin dry type potential & current transformers (below and including 36KV),
Tayuan Plant High voltage & low voltage metal-enclosed switchgear & control gear (below and2017.06.30
including 72.5KV), Metal-clad switchgear (below and including 36KV), Motor control
center (below and including 15KV), Metal-enclosed low voltage power circuit breakerswitchgear(below and including 600V), Distribution board (panel) (below and including
600V), Rectiﬁer (below and including 600V), Amorphous metal transformers (below andincluding 36KV), Gas insulated switchgear, Capacitors, Watt-hour meters.
TaoyuanPower wires and cables (including cross-linked polyethylene insulated shielded power
Wires andcable rated 161 KV and below), bus-way, electronic wires, telecommunication wires
2017.12.05
Cables Plant and cables, optical ﬁber cables, bare copper wire.

Quality
performance
review

Taoyuan 1st Plant, Taoyan Wires andCables Plant, Tayuan Plant and
San-Hsia Factory update the system to
ISO 9001:2015 and passed certification.

Confirm quality
improvement
activities

Measure annual
quality results▲ Figure 4.2-2 Quality KPI management flowchart

Table 4.2-2 TAF certiﬁed laboratories in Tatung▲▲

Taoyuan 1st
Plant
San-Hsia
Factory

Settingannual quality
targetRegisterdate

Registered productTaoyuan Wires and Cables
Plant and Tayuan Plant
established ISO 9001 andpassed certification.

▲ Figure 4.2-1 Status of ISO 9001

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

Factory

2017

Name of laboratory and certiﬁcation number
Calibration Lab

L0003

Tatung Environmental Research Center
Tatung Transformer Testing Lab

L1697

L2306

Air Conditioning Facility Testing Lab

L2270

Date ofcertiﬁcation

Testing item
Measuring and calibrating of products

1990.06.01

Waster quantities and quality, hazardous
substances of electric and electrical products

2007.10.24

Transformer testing

2010.12.27

Cooling capacity and EER of air conditioners

2011.01.20

Tatung Switchgear Testing Lab

L2308

Switchgear testing

2011.03.23

Tatung Generator Testing Lab

L2442

Generator testing

2011.10.12

Motor testing

2012.07.01

Tatung Motor Testing Lab

L2613

Tatung Taoyuan Wire and Cable Testing

L2964 Wires and cables testing2015.04.29

38

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Chapter 4

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Supply chain management, product responsibility and customer service

ISO 17025 certificates

Supply chain management,
product responsibility andcustomer service

ISO 9001 certificates

Product safety and labeling

TWD-500B

TWD-510B

TWD-511B

TWD-711B

Product safety光觸媒
抑菌

Most of the countries make the laws and regulations in regarding to product's quality and safety inorder to protect their citizens. Brand owners must pass all the tests and acquire certiﬁcations thencan 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 the test results have met the requirements, bulk production
and sales then can be made. Table 4.2-3 lists the relevant regulation requirements, standards andveriﬁcation internationally adopted by Tatung.

TWD-660B

In addition, for the defected products from the design or manufacture stage, Tatung makes recall
on BSMI official website1, medias and TCPC website2 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
2018, we had a refrigerator (TR-150HT) that did not attach the inspection label according to theregulations which violated the regulation. The violation has been improved and listed as an internalcase example for a new product management mechanism and recurrence prevention measures.

1

https://safety.bsmi.gov.tw/wSite/ct?xItem=70813&ctNode=4735&mp=652
http://tcpc.tatung.com

TWD-200HB

TWD-1400B

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

Some dehumidiﬁers (Models: TWD-500B, TWD-510B, TWD-511B, TWD-711B, TWD-710B, TWD-660B, TDH200HB, TWD-1400B, and TWD-1400BL) have been recalled since 2007 due to one defected partprovided by a supplier. Such defected part will cause unexpected accident while the machine
is running. Consumer who has these particular models can make a phone call to Tatung or TCPC
and the specialist will visit your place for service free of charge. Tatung 3C also launched thedehumidiﬁer replacement campaign to provide preferential repurchase programs for the abovementioned models to attract consumers to review the models of dehumidiﬁers in order to increase
the number of recalls.

TWD-710B

Figure 4.2-3 Dehumidifier
replacement campaign
posterTable 4.2-3 Standards, certiﬁcations and veriﬁcations adopted by Tatung

Business group

Standards, certiﬁcations, and veriﬁcations

Power BGCNS Standards, China Compulsory Certiﬁcation, Canadian Standards, American Safety
Standards, ETL Veriﬁcation, EU Network System Veriﬁcation, Japan PSE Certiﬁcation.

System BG

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

Consumer BG

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

40

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Chapter 4

Supply chain management, product responsibility and customer service

Supply chain management,
product responsibility andcustomer service

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, Tatunglabels required information on the products or on the package or on the instruction manual.
In addition, Tatung also includes the instruction guide, maintenance guide and notice in the
packages (as shown on Figure 4.2-4).
Tatung has responsible department in each BU for the management, review, and monitor of
product labeling issue, as well as takes part in BSMI market survey to ensure the correct labeling. In
2018, we had a dehumidiﬁer (TDH-121MB) that not being labeled in accordance to the regulations.
The violation has been improved and listed as an internal case example for a new productmanagement mechanism and recurrence prevention measures.

4.3 Sales and customer information management
Fair trade and anti-trust behavior
Mutual competition among enterprises helps to improve the quality of products and provide
consumers with variety of products, improve operational capabilities and reduce cost waste tocreate profits. Anti-competitive behavior will weaken the efficiency and fairness of the market
and make consumers with less choice and fail to obtain reasonable services, and eventually hurt
the core value of the company. Therefore, Tatung manages the retailers through the control of
the contract and ensure the detailers not maliciously cut prices or intent to damage the imageof Tatung in order to achieve the goal of fair trade. For the production, promotion and otheractivities of advertising, Tatung complies with relevant laws and regulations. However, after
the implementation of the new energy efﬁciency standards in 2018, we have not corrected theinformation on the dehumidifiers (models: TDH-121MB and TDH-460B) on the official website intime and been ﬁned NT$200,000. We have corrected the information on the website immediately
when we received the ruling. We will strengthen the control of advertising and propaganda, andcontinue to encourage employees to participate in anti-trust law, fair trade law related seminars
to raise awareness of relevant laws and regulations and avoid similar situations.

Wide-spread service locations and convenient shopping experiences
Tatung upholds "customer ﬁrst", "having only one phone call, the service is to" and aims to provide
fast and excellent services to customers. Tatung lists the service channels on the ofﬁcial website
for all the business, including TCPC, information (OA), large-size air conditioners, power equipment,
smart grid business, and system solution business. Tatung entrusts her subsidiary company "TCPC" toprovide a comfortable shopping environment as well as excellent after-sale services to consumers.
TCPC currently has 176 3C Stores spreading from cities to countries, providing professional
recommendations on purchasing house appliances and repairing services. In addition, TCPC
launched "etungo" online shopping website to provide wide variety of product in kitchen, 3C, livingroom and make up. Besides, Tatung runs a fan site on Facebook and LINE group to provide instantnews and living tips.

▲ Figure 4.2-4 Product labeling and instruction (e.g. rice cooker)▲ Figure 4.2-5 Hazardous substances

containing information (e.g. ricecooker)

FB for Tatung fans

★ Label of sustainability on products and services ★

Yes

No

Manufacturer, ODM/OEM, importer＊－

Hazardous substances

＊

－

Yes

No

Safety instruction＊－

Disposal treatment＊－

FB for Tatung multi-function cooker fansetungo online shopping mall

42

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Chapter 4

Supply chain management, product responsibility and customer service

In order to provide a more convenient customer service, TCPC has online service that theconsumers can access to ofﬁcial website3 make service request (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 progress by assessing online webpage4 (Figure 4.32). At the end of each case, customers are able to provide any positive or negative feedbacks
by ﬁlling the online survey which will be used for future improvement. To extend the channels forlistening to the customers, Tatung also provides an online feedback service5 which customers can
ask questions, express their opinions and give positive feedbacks to us (Figure 4.3-3).
Tatung takes great concern about the customer satisfaction. When a customer makes purchaseor approaches Tatung 3C Stores to repair products, Tatung will make his/her information to phoneinterview list and interview about shipping or repairing experience. If the feedback is unsatisﬁed,
Tatung will conduct a second service and make improvement. We set consumer satisfaction
targets for shipping service to be not lower than 97%, repairing service6 to be not lower than 94%.
The results in 2018 were 97.6% satisﬁed for shipping service and 96.2% satisﬁed for repairing service.
Both results were met our targets.

Supply chain management,
product responsibility andcustomer service

Information security management▲ ISO 27001 certificate

In response to personal information protection and information security needs, Tatung established theInformation 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 and network in accordance with the requirements of the BS
10012 personal data protection standard. To ensure the safety of the company's personnel, data, information
systems, equipment and network, establishing an information security policy as the highest guiding principleof the company's information security management system, achieving the goal of "uninterrupted service, noloss 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 discussion of the monthly meeting of the Information Security Monthly Meeting and theemergency 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 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 anannual internal audit of the audit 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 2018, there were no complaints 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 forfraudulent use. When we were informed of such news, we immediately went to the company's official
website and our social group to announce warning messages to prevent consumers from being victimized.
Conveyor▲ Figure 4.3-1 Product online service from

Shipping service▲ Figure 4.3-2 Inquiry page forrepairing progress

97.60%

98.00%
97.00% 96.81%

Repairing service

97.09%▲ Figure 4.3-3 Online feedback form

Consultant /supervisor

97.30%

97.60%

PM /executor

96.20%

96.00%

Party’s rights
claim response
group95.30%

95.00%
94.00%

Training andnews groupIT support andAudit andincident reaction management flowgroup
optimizing group

Operation
sustaining
group

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

94.34%

93.00%
92.00%

2014

2015

2016

2017

2018

▲ Figure 4.3-4 Results of consumer satisfaction
3

http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_100.asp
http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_200.asp
5
http://www.tatung.com.tw/home/suggestion
6
Restarted to commence satisfaction survey for shipping service since 2016.
4▲ Internal website for Information

Security and Personal
Information management▲ Tatung reminds its consumers to pay attention to fraud news on theofficial website and social network sites.

44

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Chapter 5l Chapter 5l

Social performances

Social performance

TargetEmployee performance management

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.

Performance in 2018

94.5% of employees were conducted with performance
review.

TargetLabor-management
relationsShort-term target

Continue to put efforts
towards the harmonious
between employees and thecompany.

Mid-term target

Sign collective bargain.

Long-term target

Labor and management
cooperate and coexist to
share common prosperity.

Performance in 2018

No signiﬁcant labor
relation dispute in 2018.

TargetShort-term target

Education and training
Make the employees to understand the company's corevalues, business philosophy and learn all the necessary
work abilities through training courses.

Target for 2018

1. Total education and training hours reach 35,000 hours.
2. Degree of education and training satisfactory higher than 90%.
Performance in 2018 1. Total education and training time were 35,856 hours.
2. 92.09% satisfaction for education and training.

Mid-term target

Make the employees to practice the key behavior on
daily basis by learning from their managers.

Long-term Target

Make the employees to work hard and raise performanceto help the company to achieve the strategic targets andvisions.

Target

Health and safety

1. Maintain health and safety management systems in the factories.
Short-term target

1. San-Hsia Factory is aiming to complete theestablishment of ISO 45001 and pass the certiﬁcation in2019.
2. Rest of factories pass OHSAS 18001 annual certiﬁcation.

Target for 2018

All four factories pass health and safety management systems
annual certiﬁcation.
Performance in 2018 All 4 factories passed OHSAS 18001 and/or CNS 15506
certiﬁcation.

Mid-term target

Implement ISO 45001 in all 4 factories and passcertiﬁcation before 2021.

Long-term target

Continue to run occupational health and safety systems
in the factories.

2. At least 95% correction rate for non-conformities found in Accident
Prevention Pays Program.
Performance in 2018

The correction rate for non-conformities was 98.70%.

3. 10% lower each year for FR and SR.
Performance in 2018

Did not meet the target: FR and SR for male employees
were higher than in 2017.

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Social performance

Social performances

5.1 Building a friendly working environment
An equaled working environment
Tatung takes great concern on human rights. All employees, applicants and contract workers aretreated 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 ofrespect 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 andprovides equal opportunities for minority groups.

93.75%

5.30%

6.81%

6.25%
93.19%

94.82%

94.70%

2015

2014

5.18%

Local employee

93.00%

2017

2016

7.00%

2018

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

Tatung also stipulated "Anti-sexual harassment Regulation" and published on the internal website.
Sexual harassment in any forms is strictly prohibited in any working places in Tatung. There wasno discrimination and anti-human right incident in 2018. Tatung will continue to promote antidiscrimination policy in the company to prevent discrimination.

219|49

Employee diversity

356

121

1,534

516

704

175

2015

7.90

2.70

5.96

1.61

1.91

0.29

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

2018

5.38

1.12

5.85

1.25

1.39

0.14

2014

26

0

610

123

242

28

2014

5.77

2.18

9.00

2.29

4.02

1.05

2015

20

6

588

121

231

30

2.14

7.90

2.20

4.84

0.94

15

3

555

124

253

32

1.74

7.51

1.52

2.81

0.41

14

5

493

106

247

40

Percentage 2015 6.31
of2016 4.45
employeeleaving (%) 2017 4.72

0.85

6.25

1.50

2.54

0.75

8

6

448

105

225

43

0.88

6.52

1.96

3.99

0.88

Percentage
2016 4.61
of new
recruits (%)
2017 5.80

2018

3.52

Full-time785

43

Part-time
Manager

151

677

812

Full-time755

57

Part-time
Manager

157

655

810

Full-time759

51

Part-time
Manager

159

651

779

Full-time731

48

Part-time
Manager

151

628

752

Title

2015

2018

4|8

Type ofemployment

0.03

Title

0.57

Type ofemployment

1.27

1,525

4|11

Title

5.04

681

4|8

Type ofemployment

1.24

Title

3.93

1,537

5|9

Title

2014

754

384

Part-time
Manager

2|6Type ofemployment

176

1,534

Part-time
Manager

1,822

General staff

Title

739

823

338

Full-time

General staff

Type ofemployment

530

Title

1,606

1,755

Part-time
Manager

1,953

General staff

828

Type ofemployment

122

839

309

Full-time

General staff

Male Female Male Female Male Female

362

1,829

Part-time
Manager

2,048

2,206

General staff

Over 50
years old2014

No. of2016
managers
2017

878

428

Full-time203|542,291
Type ofemployment

30~50

Part-time
Manager

2,166

Title

Year

Youngerthan 30
years old368

Full-time155|582,357Type ofemployment

Over 50
years old

2,339

Title

30~50

Full-time164|462,594Type ofemployment

Table 5.1-1 Employee compositions (by ages)

Male Female Male Female Male Female

No. of2016
employees
2017

Title

▲
▲

Year

Youngerthan 30
years old

2,707
Type ofemployment

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 equitablemanner. Table 5.1-1, Figure 5.1-1, Figure 5.1-2 demonstrate the employee compositions of Tatung.
Tatung has more than 93% of local employees and 2.10% of disable employees which is more than
the requirement by the regulation.

227|45Full-time726

26

Part-time
Manager

154

568

General staff

General staff

General staff

General staff

General staff

2014

2015

2016

2017

2018

No. of all employees

No. of migrant workers

No. of disabled employees

Note: The members of senior managers (deputy plant/general manager and above) are all Taiwanese. There were 7
disabled managers in 2018 (0.841%) in Tatung.

▲ Figure 5.1-2 Employee compositions (by genders)48

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Chapter 5

Social performance

Social performancesTrainings on human rightChild labor and forced labor

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 andconcepts, 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 we emphasis on gender equality, respect different races, colors,
languages, religions and so on. As for security personnel, education in regarding to respect theemployees' emotion and wills is given before carrying out their duties. This is not only ensuring theemployees' human rights but also making security duties go smooth.

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 the working hours, the practice only can be implemented after getting theagreement from the labor union or the employee. There was no force labor situation in 2018.

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 inaccordance to regulations. The statistics on parental leave is shown in Table 5.1-2.
▲▲

Freedom of association
Tatung Labor Union was founded in 1959 for the purposes of taking care of labors' rights, improving
labors' living standard, conducting collective bargaining, etc. Each employee has freedom choice
to be the member of the union. Currently Tatung has totally 5 labor unions distributed in the HQ
and factories. Tatung does not interfere with the wills of the employees to join labor unions. In 2018,77.30% of employees are the members of labor unions (Figure 5.1-3).

Table 5.1-2 Tatung parental leave statistics
Male Female

Application for parental leave
Total number of employees that took parental
leave in 2018.

923

Total number of employees that shall end
parental leave in 2018.

5

11

Total number of employees who returned towork after parental leave ended1 in 2018.

3

8

60%

73%

Return to work rate

Male Female
Retention rate
Total number of employees that applied and2
4
returned to work in 2017.
Total number of employees who returned towork after parental leave ended who were still
2
4
employed 12 months after their return to workin 2017.
Percentage of employees who returned towork after parental leave ended who were still
100% 100%
employed 12 months after their return to workin 2017.

Note: Changed job due to personal career planning.
84.00

82.29

83.00
82.00
81.00

2018
81.59
80.39

2017

79.35

80.00
79.00

77.30

2016

WelfareTatung Welfare Committee handles a broad range of employee welfare issues including: daily
activities, ﬁnancial assistance for education, funeral assistance, and interest free installment loans.
Table 5.1-3 shows employees' welfare implemented in the factories and subsidiaries.
Besides, in order to provide female employees a more comfortable and more convenient way tonurture the next generation without having to sacriﬁce their own work, or to increase their physicalor 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.
▲
▲

78.00
77.00

2015

Implementation

Stock ownership

76.00
75.00

Employees' welfare

Table 5.1-3 Employees' welfare

2014▲ Figure 5.1-3 Percentage of employees who are labor union member

Tatung subsidized employees to buy corporate stocks since 1992 as part of their savings.
Education subsidies for employees' children in senior high school and college/university; funeral
Subsidies
subsidies for colleagues or their spouses and immediate relatives; cash gifts for weddings and birthdaysof employees and their children's birth, subsides for employee tour.
Employees can purchase Tatung products with interest-free installments and price discounts on
Beneﬁts
groceries in corporate stores, free movies, train service on Chinese New Year.
Tatung organizes education, recreation, physical education, languages, hiking/mountain climbing andClub activities
photography clubs to provide variety of social activities after work.
Labor insurance, health insurance, group insurance, retirement pension, free annual health check-up,
Health and safety planoversea business trip insurance.

50

492019 TATUNG CSR

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Chapter 5

Social performance

Social performances▲▲

5.2 Good working conditionand career development

Year

2017

2018

No. of employees

2,974

2,833

Research staffs (master)

Average salary (NT$)

620,570

627,213

Staffs (master)Median salary (NT$)

568,129

569,127

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 nearly 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 withregulation. Tatung discloses the structure of the salaryand methods of payment on "Company Rules", so that
all the employees understand their rights and interests.
Based on the concept of equality among genders, thebasic salary between female employees and male
employees is 1:1. For different employment types,
the ratio of basic salary and legal salary for migrant
workers and technicians are 1:1 and 1:1.04; for staffs isfrom 1.21~1.56:1 (Figure 5.2-1) based on different job
types, specialty and qualiﬁcations.

2.00

1.56
1.50

Research staffs (bachelor)

1.47

Staffs (bachelor)

1.30
1.21
1.04

1.00

Senior high schoolor under1.00

Migrant workers

0.50

0.00

In average salary, the female employee to male
employee is 0.89~0.90:1 in 2018 (Figure 5.2-2); theaverage annual salary is NT$627,213 and the medianannual salary is NT$569,127 for non-management
employees (2,833 employees). Please refer to Table
5.2-1 for detail.

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

1.0

0.90

1.0
0.92

1.0

1.0

1.0

0.89

0.90

0.90

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 accordancewith the Labor Pension Act. Expenses under the deﬁned contribution plan for 2018 were NTD 69,311
thousand.
For "Deﬁned beneﬁts plan", Tatung contributes an amount equivalent to 4% of the employees' totalsalaries and wages on a monthly basis in accordance to Labor Standard Act to the pension funddeposited 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 theamount 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. Pension
costs recognized in proﬁt or loss for 2018 were NTD 35,677 thousand. For detailed post-employment
beneﬁts, please refer to Tatung 2018 Annual Report2 page 404~406.

1.0

1.0

1.0

1.0

1.0

0.89

0.87

0.88

0.89

Male

Tatung has "Measure of processing employees' complaints" and other practices in place for theemployees to complain about any dispute and provides a channel to deal with. 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 in2018.
Tatung sets the minimum notice periods (Table 5.2-2) regarding to operational changes on"Company Rules". When there is any major change in operation and may affect employees, Tatungshall notify the employees according to it and give severance pay.

Female

0.82

▲
▲

0.8

1.0

Post-employment beneﬁts

Labor/management relationship

Tatung takes great concern to the overall performance of individuals, departments and organizations,and encourages employees to perform better. Through the performance review counseling mechanism
and career development, it helps to enhance and affirm the performance of employees. Employees areassessed according to the "Performance Management Method" regardless of gender. The purpose of theassessment is to identify talents with high performance potential and poor performance and effectively links
the performance with bonuses, rewards or promotions. The employee ratio for performance review in 2018 is
94.5%1.
1.2

Table 5.2-1 No. of non-management employees, average salary, and median salary

Table 5.2-2 The shortest notice period

0.6

Shortest notice period

0.4
0.2
0.0

Staffs

2014

2015

2016

Technicians

2017

2018

2014

2015

2016

2017

2018

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 Ratio between salary for female and male employees (by employment type)1

Employees who are in probation period, leave of absence, and short-term contract are not reviewed.

2

http://www.tatung.com.tw/Content/annual-report.asp

52

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Chapter 5

Social performance

Social performances

Education and career development
Business' success is relied on talented employees. Tatung believes that only each employee fully shows "Tatung
DNA" in their work can help the company to achieve goals and vision. Therefore, Tatung takes "Tatung DNA"as basic to develop an education and training system which provides skill/profession oriented training courses
to the employees to help the company to achieve sustainable development.
Tatung plans training courses by taking company's human resource policy into account and indentiﬁes theannual capacity gap of organizational functions. The training target is to capacity building of employee
management, professional skills, and performance improvement. Figure 5.2-3 shows the structure of Tatung
HR development. Tatung has formulated the "Tatung Company Education and Training Manual" as a norm foreducation 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 class tutors for eachcourse to be assistance and students with any questions can respond to them. After the class, we conductsatisfaction 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.

In 2018, we organized 32 general courses which covered from recruits training, environmental
protection, occupational health and safety, information safety, etc. For advanced courses weorganized 15 specialized courses in each field, 13 courses for managers, 11 business courses, 31
business operating lectures, 6 health lectures, 2 law lectures, 2 ﬁnancial lectures, 1 sales lecture, 1
procurement lecture, and one environment and safety lecture. In total there were 35,856 training
hours and each employee was given 12.12 hours in average with the average satisfaction 92.09%.
The detailed training statistics are shown in Figure 5.2-4. Tatung's education and training system also
won TTQS (Taiwan TrainQuali System) Silver Medal in 2018.
Lecture for junior managers

Lecture for reserved managers
Performance management class

Tatung DNA
Honesty

Presentation skill class

Tatung awarded
with TTQS Silver Medal

General employees

25

15

Operation plan

Defining unsatisfied performances

Professional learning

Input

OutputAnalysis on
insufficientworkingability

Input

Output4 Review
Reaction

1 Plan
Review /Monitor2 Design
OutputInput

Output3 Implement

Male

Female20

Strategy / Target

Training performances

Behavior modification

Managers

23.14

Vision / Destiny

Performance elevation

Fire prevention and ﬁrst-aid class

Education courses in season 4,
2018

Input

▲ Figure 5.2-3 Tatung strategic human resource development system

14.35

0

Hours

8.40

6.50

6.21

2014

2015

10.76

8.73

8.82

10
5

12.40

12.06

2016

8.25

8.14

8.46

2017

2018

7.27
2014

7.21
8.74
6.21
2015

2016

8.50

11.33

7.78

2017

2018

Note: The training hours including business operating lectures since 2018.
▲ Figure 5.2-4 Training hours per employee

54

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Chapter 5

Social performance

Social performances▲▲

Health promotion and disease prevention
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 theimportance of their health and 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 therisk of ﬁre incidents. 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 thecompany. Tatung also clearly posts/marks "NO SMOKING" notice in the meeting room, at entrances andexits. 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 tostretch and relieve pressures 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. The specialists from Taipei City Hospital are invited to the company to do high bloodpressure, hyperlipoidemia and high blood sugar screening, oral cancer screening, and cervical smear,breast cancer screening for women. Tatung also arranges high-quality health check annually in order toﬁnd 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 thecompany website and e-publications. The information contains not only about the diseases but also thepreventions and treatment channels.
5. Tatung runs ﬁrst-aid/CPR courses every year to enhance employee's ability.

Inﬂuenza vaccination andThree-Hypers screening
Health fair in H.Q.

Time
2018/1
2018/1 -12
2018/1 -12
2018/3
2018/4 -7
2018/62018/7
2018/8
2018/92018/10
2018/112018/122018/1-12
2018/3、7
2018/7-10
2018/9-11
2018/10
2018/122018/2

Table 5.2-3 Health promotion and disease prevention activities in 2018

Activity
Blood donation, health seminar: irregular heartbeat.
Health management.
Health risk evaluation for female employee.
Health fair.
Weight losing class.
Health seminars: heart disease prevention, skeleton muscle injury survey,
pressure due to heavy loading workload evaluation.
Health seminars: ofﬁce aerobatic, liver protection.
Blood donation, health seminar: pressure relief activities.
CPR and AED training class.
Blood donation, inﬂuenza vaccination.
Three-Hypers screening, inﬂuenza vaccination.
Health seminars: digesting disease, special health check.
Health promoting activity.
Blood donation.
HRV testing.
Weight losing class.
Annual health check for employees.
Inﬂuenza vaccination.
Noise tracking.

Location
H.Q.
H.Q.
H.Q.
H.Q.
H.Q.
H.Q.

H.Q.
H.Q.
H.Q.
H.Q.
H.Q.
H.Q.
Taoyuan 1st Plant
Taoyuan 1st Plant
Taoyuan 1st Plant
Taoyuan 1st Plant
Taoyuan 1st Plant
Taoyuan 1st Plant
Min-Sheng Hospital
Taoyuan Wires and2018/3、9 Blood donations.
Cables Plant
TaoyuanWires and2018/4、9 Health seminars.
Cables Plant
Taoyuan Wires and2018/5、11 Pressure relief activities.
Cables Plant
Taoyuan Wires and2018/12
Health check for employees.
Cables Plant
2018/1-12 Health management.
Tayuan Plant
2018/3
Blood donation, CPR and AED training.
Tayuan Plant
2018/5Cancer screening.
Tayuan Plant
2018/6
Health promotion.
Tayuan Plant
2018/6-7
Skeleton muscle injury survey.
Tayuan Plant
Tayuan Plant
2018/7-12 Health care activities (HRV、Baby Bot）.
2018/7-8
Pressure due to heavy loading workload evaluation.
Tayuan Plant
2018/9-11 Weight losing activity, CPR and AED training.
Tayuan Plant
2018/9Blood donation, health risk evaluation for female employee.
Tayuan Plant
2018/11
Inﬂuenza vaccination, health seminars: pressure relief, lung cancer.
Tayuan Plant
2018/12
Health check for employees, CPR and AED training.
Tayuan Plant
San-Hsia Factory
2018/2、8 Blood donation.
2018/3
Health seminar: eyes protection.
San-Hsia Factory
2018/5
Health seminar: common diseases and prevention for elders.
San-Hsia Factory
2018/8Cancer screening activities.
San-Hsia Factory
Pressure due to heavy loading workload evaluation, skeleton muscle injury survey. San-Hsia Factory
2018/8
2018/8Annual health check for employees.
San-Hsia Factory
2018/12
Health seminar: hyper blood pressure.
San-Hsia Factory

56

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Social performance

5.3 Health, safety, and disaster freeIn the case that recognition of dangerous materials
is unsatisfactory, or that safety management has notbeen satisfactorily accomplished in the factories,
there may be effects of varying degree to the healthand safety work, and as a result, causing frequentdisasters. This will not only threaten the safety of
employees, but also the safety of the publics, as wellas adversely impact the surrounding environment.
Therefore, Tatung stipulates that the company should
be in accordance with relevant health and safety
regulations in "Company Rules" and holds
employees' health examination (freeof charge to the employees). Tatungalso issues "Tatung Health and Safety
司公
大同 作守則工Guidebook" to employees in order to衛生
全安raise their awareness regarding to
occupational risks.

38.00%

38.10%

38.00%
37.00%

36.36%

36.00%
35.00%

35.00%
34.00%

33.33%

33.33%

33.00%

2007

2010

2011

2013

2018

2019

2021

32.00%Started toestablish
health andsafetymanagement
systems

Tayuan Plant
passedCNS 15506
certification

All 4 factories
passedOHSAS 18001
certification

San-Hsia Factory
passedCNS 15506
certification

ISO 45001
released

Target:San-Hsia Factory
pass ISO 45001
certification

Target:All 4 factories
pass ISO 45001
certification

31.00%
30.00%

H.Q.

TayuanPlant

TayuanWires and
Cables Plant

Tayuan
1st Plant

San-Hsia
Factory▲ Figure 5.3-1 Percentage of labor representatives

in Health and Safety Committees
In addition, Tatung holds "Healthand Safety Committee" meetings in headquarter and factories to communicate
and review the contents and progress of health and safety issues (Figure 5.31). The percentage of labor representatives is better than the requirementof regulation (at least 33%). The headquarter also organizes regular health andsafety committee meetings and invites the representatives in the factories to enhance thecommunications within the company.
訂

104 年

OHSAS

Social performances

8 月修

Occupational health and safety management
Focusing on the issue of health and safety is one of the long standing policies in Tatung. With aregulated 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 areaccomplished through the execution of reform projects and periodical assessments, as well as
reviewed by to management, and aided in the continued improvement of health and safety
performances, and hence assist Tatung to achieve the goal of a disaster free working environment.
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 thefactories. The goals are ﬁrstly establish ISO 45001 in San-Hsia Factory and pass certiﬁcation by the endof 2019 and the rests are set before the end of 2021. Figure 5.3-2 shows the status of occupational
health and safety management systems and goals in Tatung.
Other than relying on the management systems, Tatung also carries out "Occupational Accident
Prevention Pays" program every year and works hard to achieve the ﬁnal target "disaster free in thefactories and subsidiaries". The contents of the program are summarized below:
1. The factories and subsidiaries implement the projects which can improve or prevent health andsafety 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.

▲ Figure 5.3-2 Status of occupational health and safety management systems and goals

Seventy-seven non-compliances against company rules were found in 2018's Occupational
Accident Prevention Pays on-site audit. The incidents were mainly laid on lacking proper
preventative measures for electric shock and lack of protection cover for machinery equipments.
By the end of 2018, 76 non-compliances were corrected (98.7%) which met our target. For that had
not been corrected, we will follow up the correction status.
In 2019's Occupational Accident Prevention Pays program, we will focus on compliance status ,implementation of working environment monitoring, and confined space prevention to protect
employees' health and safety.

Occupational Accident Prevention Pays
on-site audit (1)Occupational Accident Prevention Pays
on-site audit (2)58572019 TATUNG CSR

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Chapter 5

Chapter 5

Social performance

Social performances

Health and safety training andregulation promoting

Health and safety performances
Tatung continues to establish safety culture, reduce
occupational disaster risk and provide a safe working
environment. When an occupational disaster is occurred,
root-cause analysis will be conducted and countermeasures will be implemented to prevent such casehappening again. In 2018, there was no occupational
disease case and death incident; however there were 5
non-compliances and ﬁned NT$360,000 in total. The noncompliances have all been corrected.

In order to raise the awareness of occupational health andsafety among the employees and prevent occupational
accidents, Tatung opens health and safety related trainingclasses for new recruits, general employees, and managers
in headquarter. The training classes introduce the related
health and safety regulations such as "Occupational Safety
and Health Act" and demonstrate the prevention measuresof the occupational disasters.
The factories and subsidiaries also organize training courses
for the needs of the business operations such as VOCs &Designated Chemicals class, Job Safety Analysis class, Fork
lifters and Stationary Cranes training class, etc.

TATUNG Corporate OHS Seminar

As for regulation promotion, Tatung organizes "Tatung
Corporate OHS Seminar" every year. The seminar was heldin March 2018 and the topic was introducing labor healthprotection act amendment and case study on occupational
accidents.
In addition, Tatung complies with "Labor's Working Condition
Monitoring Methods" and sets working environment
monitoring and conducts monitoring. The results frommonitoring are available to the employees. Tatung also
educates the employees the potential hazards in the working
environment and the necessary prevention measures.

Health and safety notice board in the factories▲▲

Table 5.3-1 Health and safety training results and targets

Training topics
Health and Safety Training Class(new recruits)
Health and Safety Training Class(general employees)
Health and Safety Training Class(managers)
Emergency training classFire ﬁghting class
Stationary Cranes training class(over 3 tons)
Forklifters training class (over 1 tons)
Health and Safety Training Class(construction contractors)
First-aid re-training
First-aid training
Fork-lifter training
Training class for Preventing
Workplace Violence

FR and SR for male employees in 2018 were both higher
than in 2017. The main reasons were the employees had
traffic accident during office hour and injured at thecompany's 100th Anniversary Sport Fair. There was nooccupational accident for female employees in 2018.
As for AR, there was no signiﬁcant change between 2018and 2017. Please refer to Figure 5.3-3 and Figure 5.3-4 fordetails.

3.2
2.73

2.8
2.4
2.00

2.0
1.6
1.2

1.98

1.81
1.30

1.29

1.25

0.92

0.8
0.4
0

0.00
2014

2015

0.00
2016

2017

2018

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

Tatung has set a target to lower 10% for FR and SR year
by year. From the statistics in the past 5 years, Tatung
did not meet the target. The main reason was theemployees in the factories having injury due to having
traffic accidents during office work and having injuries
at the company's sports fair. We have enhanced thepromotion of traffic safety awareness and requested
supervisors on-site to audit more frequently to reduce theaccidents.

2015
No. ofparticipants

2016
No. ofparticipants

2017
No. ofparticipants

2018
No. ofparticipants

2019
Targeting No.
of participants

256

168

256

507

205

687

773

796

589

594

213

41

191

130

184

41
365

436
172

927
132

864
257

880
294

30

48

403

24

69

319

20

55

192

53

85

144

10

26

31

15

16

20

-

94
-

89
-

11
25

77
25
-

-

-

-

66

120

100

96

0.01209050

0.01010.00910.00970.00890.008040

00.01050.010035

0.0060
22 24
15

17

2015

0.0040
5

0
2014

18

2016

2017

0.00300.00270.00270.00350.002002018

Note: SR is one of the indicators selected by MOL foroccupational disaster statistic purpose. The formula is (Total
lost days/Total working hours) x 1,000,000▲ Figure 5.3-4 Trend of SR

0.0024

0

2014

2015

2016

2017

2018

Note: The formula for AR is Total days of incapacity of any kind/Total
days scheduled to be worked▲ Figure 5.4-5 Trend of AR

60

592019 TATUNG CSR

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Chapter 5

Chapter 5

Social performance

Social performances

5.4 Participates and beneﬁts to the society

Rescuing Power Kingdom dramaRoad running activity in Taipei

Participation in infrastructure projects, serving the country through industry
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, andenvironmental sustainability" with smart, energy-saving and green energy products and systems to protect
our beautiful homeland. In 2018, our major achievements of solar PV system reached 21.76MWp include
Energy Hill 2.0 SanSuiLu Restoration Park landfill ground type PV system, Changhua Farm oceanfront
ground type PV system, Taoyuan private factory PV system, LEXUS Group PV system, and Evergreen Airline
Service Corp. PV system. We will continue to uphold "Green Energy Tatung" development strategy andcontinue to participate in the renewable energy industry for making an effort to the country.

Supporting in traditions, arts and raising environmental protection awarenessIn support of preserving and innovation of traditional arts, Tatung invited Taiwan indigenous paper carving
master to design Tatung Boy small lanterns of 12 Chinese zodiac. As a token of celebrating the Year of
Dog in 2018, the small lanterns served as a promotion gift for Tatung 3C to its customer. To support ofthe inheritance of traditional lantern art, Tatung invited local lantern artists to make Tatung Boy creative
lanterns, which were exhibited in Chiayi, Nantou, and Jiji. Tatung supported local performing arts groups
by co-creating children's drama, "Rescuing Power Kingdom", that was performed to more than 2,400
students in a tour nationwide. Concepts of energy saving, healthy living, and environmental protection
were incorporated in the play to better inﬂuence students on their daily habits.

Trash collection activity on Mt. Jade

Missions of Tatung's 100th anniversary
In 2018, Tatung celebrated the 100th anniversary. In order to promote the company's vision of "energy
saving, environmental protection and healthy living", we have organized a series of activities to give backto the society. We climbed to the peak of Mt. Jade and clean the left over trashes; we recycled 31kg
of waste batteries to support the recycling policy; we responded to the government's national sports
promotion and organized a 100-year celebration Sports Day; we organized blood donation marathonin the factories and subsidiaries and collected a total of 3,037 bags of blood; we held two road running
activities with the theme of "love" and the income was also donated to charity groups to care formore disadvantaged groups; we organized Family Day activities to promote employees' parent-childrelationship and family relationships.

Energy Hill 2.0

LEXUS factory

Evergreen Airline Service Corp

Sports day for 100th anniversary

Family day for 100th anniversary

Sports day for 100th anniversary

Sports day for 100th anniversary

62

61
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Chapter 6

l Chapter 6l

Environmental
performances

Environmental performances

Target

1. Correction rate over 95% for the non-conformities from 3P Program.
Performance in 2018

Correction rate was 95%.

2. Maintain ISO 14001 in the factories.
Target for 2018

Updating ISO 14001 to 2015 version and passed certiﬁcationin Taoyuan 1st Plant.

Performance in 2018

TargetTargetTargetEnvironmental management

Completed the updating and passed certiﬁcation. So
far all 4 factories' environmental management systems
are ISO 14001:2015.

Energy and GHG management

1. Energy intensity of represented products in 2023 will be 6% less than in 2018.
Target for 2018 Energy intensity of represented products is 6% less than in 2013.
Performance in 2018 Electric cookers, commercial air conditioners, electric meters,
LAN cables, power cables and wires met the target. The percentage
of meeting the target was 75%.

2. Energy saving rate will be at least 1% in the headquarter and the factories in
2019~2022.
3. Establish ISO 50001
Short-term target
Target for 2018

Factories have ISO 50001:2011 update to ISO 50001:2018by the end of 2019.

Factories with ISO 50001 pass re-certiﬁcation.

Waste reduction management

Performance in 2018

Reduce the amount of wastes by 5% every year.

Mid-long term target

Performance in 2018

TargetTarget

4.07% waste reduction in 2018 which did notmeet the target.

Pollutant management
Efﬂuent and air emission are below
national standards.

Target for 2018

Complete the installation of a RTO
facility in Tayuan Plant.

Performance in 2018

RTO facility was installed andobtained operating permit
from the authority.

TargetCompliance
Numbers of violation
against regulation areless than previous year.

Performance in 2018
Did not meet the target due tothere were 2 violations which was
1 violation more than in 2017.

Implement ISO 50001 in Taoyuan 1st Plant.

4. Carry out GHG inventory with ISO 14064-1
Short-term target

Complete ISO 14064-1 GHG inventory every year in
Taoyuan Wires and Cables Plant, Taoyuan 1st Plant, and
San-Hsia Factory.

Performance in 2018
Mid-long term target

TargetTaoyuan Wires and Cables Plant, Taoyuan 1st Plant, and
San-Hsia Factory completed GHG inventories for year 2017and veriﬁed by the third parties.

Implement ISO 14064-1 in Tayuan Plant and headquarter.

Green product management

1. Continue to seek for solar PV system cases.
TargetTargetTayuan Plant, Taoyuan Wires and Cables Plant, and Taoyuan 1st
Plant passed annual re-certiﬁcation.

Aiming to install 150MWp capacity by the end of 2019.

Target for 2018

The total installed capacity will reach 100 MWp by
the end of 2018.
Performance in 2018 The total installed capacity was 91.7 MWp
which was 21.7 MWp more than in previous year.

2. Continue to research and design environmental friendly, energy
saving, water saving products.
Short-term target

Continue to apply for Green Mark, Energy
Label, and Water Label.

Performance in 2018
Mid-long term target

New applied Energy Label – 33 models, GreenMark – 31 models, Water Label – 9 models.

Research and design IE4 industrial use motors.

64
2019 TATUNG CSR

Chapter 6

Chapter 6

Environmental performances

Environmental
performances

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

When there any incidents 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 incidents which can not be corrected by theend of year, we will track them and make them to be corrected next year. In 2018, 99 incidents wererequested to be corrected and 94 were corrected by the end of year. The correction rate was 95%
and met target.

ISO50001
Energy audit
Product carbon footprint
ISO14064-1
ISO14001
3P Program

1990

1993

1996

2009

2010

2014

2015

2018

3P Program on-site audit(1)2023

3P Program on-site audit(2)Stage 2 Energy saving target
Baseline year

Target 6%⇧

2018 2019 20202021 2022 2023

▲ Tatung environmental management road map

Pollution Prevention Pays (3P) Program
Tatung started to implement "Pollution Prevention Pays, 3P" program in the factories andthe subsidiaries which have manufacturing function since 1993 to help Tatung to develop
environmentally sound operations. Seven-teen factories and subsidiaries were participated in 2018
(Annex 2). The elements of 3P program are listed as follows:
Aspects

Measures

Descriptions

Promote Clean Production
technology, fully utilize
Manufacturing resources and materials andaspectto reduce the wastes and the
production costs.

Improve the existing manufacturing
processes and management
operations to eliminate sources ofpollution. Also improve upon therecycling/reuse, and exchange/reuseof waste materials.
Encourage to develop green
Apply Design for the Environment,
products to create additional DfE", in the design phase to produce
Product
values for products.
"recyclable, low pollution, toxicaspect
free, resource saving, power saving,and durable" products to beneﬁt theenvironment.
Perform 3P Program on-site
The results can beneﬁt management
Management evaluation in the factories and in their review of environmental
subsidiaries regularly.
performances and draft of new policy
aspectand objectives.
Conformity

Conduct internal audit.

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

ISO 14001 environmental management system
Tatung believes that by implementing ISO14001 is able to continue improve environmental
performances, and improve export competitively and company images. Thus, in 1996, Tatungstarted to implement ISO14001 among the factories and the subsidiaries. So far all 4 factories haveestablished ISO 14001 and certified every year. ISO published ISO 14001:2015 in 2015, we haveupdated the management system to new version for Tayuan Plant, Taoyuan Wires and Cables Plant,
and San-Hsia Factory in 2017, and Taoyuan 1st Plant in 2018. We will continue to run ISO 14001 in thefactories and subsidiaries to improve environmental performances in the future. Table 6.1-1 shows
the factories which have been certiﬁed with ISO14001 certiﬁcation.

Performances
Amount of industrial wastes in 2018
reduced 4.07% than in 2017. 72.47% of
the wastes were reused in 2018.

In 2018, we applied Green Mark: 31
models; Energy Label: 33 models;
Water Label: 9 models.

Seven-teen factories and subsidiaries
were participated in 3P program.

1996

1998

1999

Started to
implement

Taoyuan 1st
Plant, Tayuan
Plant passed
certification

San-hsia
Factory
passedcertification

2000

2017

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

2018
Taoyuan 1st Plant
updated to ISO
14001:2015 andpassed certification

Taoyuan 1st Plant ISO
14001 certiﬁcate

Non-conformity correction percentage
was 95% in 2018.

▲ Figure 6.1-1 ISO14001 certification status

66

65
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Chapter 6

Chapter 6

Environmental performancesInternal and external issues

Environmental
performances

Context of the organization

6.2 Energy consumption and GHG management

Needs and expectations ofinterested parties

Energy consumption

Scope of theenvironmental management system

There are two types of energy that Tatung consumes – direct energy and indirect energy. Directenergy sources are from diesel fuel oil, LPG, and diesel. Indirect energy source is purchased
electricity from Taiwan Power Company. The amount of energy consumption in 2018 is shownon Table 6.2-1, Figure 6.2-1 and Figure 6.2-2. The most consumed energy in 2018 was purchased
electricity and the amount was 193,792 GJ (87.54%) which equaled to 53,831.11 kkw-hr; followedby diesel with 14,092.20 GJ (6.37) which equaled to 401.35 kilo-liters. The total amount of energy
consumption in 2018 was 19,594.72 GJ less than in 2017, which was 8.13% decreased.

P

Planning

SupportandA Improvement Leadership Operation
D

0.29%

Performance
evaluation

Diesel fuel oil

5.81%

C

6.37%
87.54%

Intended outcomes

GJ
400,000

LPG

350,000

Diesel

300,000

Purchased
electricity▲ Tatung environmental management system framework▲ Figure 6.2-1 Energy consumption breakdown

Authority

221,385.40

2014

2015

2016

2017

2018

▲ Figure 6.2-2 Trend of energy consumption

in 2018 (by category)▲▲

Table 6.2-1 Tatung energy consumption
Unit:GJ

Audit

2014

2015

2016

2017

2018

Diesel fuel oil

3,655.14

3,454.31

441.83

1,044.33

642.66

LPG

21,323.74

17,599.02

14003.49

13,462.16

12,858.54

ISO 14001

Diesel

7,927.32

7,487.31

7597.62

12,410.45

14,092.20

Purchased electricity

353,742.74

271,953.74

215834.96

214,063.20

193,792.00

Factory
audit

Total

386,648.95

300,494.38

237,877.90

240,980.12

221,385.40

Internal control audit
Improvement

3P Program onsite audit

240,980.12
237,877.90

Compliance and major leaks

Health &Safety Division

300,494.38

250,000
200,000

Tatung takes great concern on the developmentof environmental protection regulations. When
there are public hearings or seminars for new
regulations, Tatung assigns professions to receive
the latest information. In spite of environmental
management system and internal audit havebeen implemented in the company, there still
were 2 incidents which breached the regulationsin 2018. San-Hsia Factory was ﬁned NTD$200,000
due to violating Air Pollution Control Act. The
violations have been corrected in accordance
to the regulation and accepted by the authority.
We will further strengthen management in thefactories and enhance compliance education
to the staffs and the managers. In addition, we
will continue to conduct internal audit and 3P
Program evaluation to prevent such incidents
happened again. Besides, there was no
signiﬁcant spill in 2018.

386,648.95▲ Figure 6.1-2 Conformance measures in Tatung

Note: The data from San-Hsia Factory, Taoyuan Wires and Cables Plant, Taoyuan 1st Plant in 2014~2017 was colleted
based on ISO14064-1 and have been certiﬁed. Therefore, the numbers in 2017 were re-edited when compared tolast year's version. The data in 2018 was collected based on ISO14064-1 but have not been certiﬁed yet. The datafrom H.Q. and Tayuan Plant was collected from power bills and energy receips.

68

672019 TATUNG CSR

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Chapter 6

Chapter 6

Environmental performances

Greenhouse gas emission
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 emission
thoroughly and comply with the regulation, Tatung actively implements ISO14064-1 greenhousegas 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 onreasonable level of assurance every year. Figure 6.2-3 shows the factories have done GHG inventory.
For the purpose of enhancing the ability to do greenhouse gas inventory in the factories, Tatungruns ISO14064-1 Internal Veriﬁcation Class every year. We are expecting to have more well-trained
employees through these classes and they are able to do the greenhouse gas inventory well andpass the veriﬁcation by the third party in the future.

Environmental
performances

Tons
CO2e

Purchased
electricity

60,000

Diesel

LPG

Diesel fuel oil

31,775.70

32,941.95

29,822.43

565.83884.9834.33

924.26805.7781.15

1,049.51
812.6249.94

50,00040,00030,00050,899.65

39,659.92

20,00010,0000590.35
1,347.54
284.01557.58
1,112.15
268.40

2014

2015

2016

2017

2018

Note 1: The data from San-Hsia Factory, Taoyuan Wires and Cables Plant, Taoyuan 1st Plant in 2014~2017 was colleted basedon ISO14064-1 and have been certiﬁed. Therefore, the numbers in 2017 were re-edited when compared to last year's
version. The data in 2018 was collected based on ISO14064-1 but have not been certiﬁed yet. The data from H.Q. andTayuan Plant was collected from power bills and energy receips.
Note 2: The greenhouse gases are CO2, CH4, N2O. The GWP for 2014~2015 was based on IPCC 1995, the GWP for 2016
onward was based on IPCC 2007.

▲ Figure 6.2-4 Amount of GHG emissions

0.16%▲ Figure 6.2-3 Tatung GHG inventory and verification status

Due to Tayuan Plant and H.Q. are still undergoing the establishment of ISO14064-1, the GHG
emissions (scope 3 is not included) disclosed in this report are calculated as follows: the amount ofenergy sources disclosed in previous paragraph multiplied by each emission factor. The total GHG
emissions in 2018 were 31,734.51 tons CO2e (Figure 6.2-4) which was 3,063.62 tons CO2e (8.80%) lessthan in 2017. The emissions from diesel, LPG and diesel fuel oil were 1,912.07 tons CO2e, and frompurchased electricity was 29,822.43 tons CO2e (Figure 6.2-5).

Diesel fuel oil

2.56%

LPG

3.31%

Diesel93.97%

Purchased
electricity▲ Figure 6.2-5 GHG emission percentage by source in 201870

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Chapter 6

Chapter 6

Environmental performances

Environmental
performances

Energy saving and GHG reduction
Global warming greatly increases the frequency of extreme weather events and directly causes
impacts to the operation of a business. In order to fulﬁll corporate social responsibility and reduce
operating costs, Tatung proposed Stage 1 energy reduction target in 2014: the energy intensity per
product in 2018 is reduced by 6% than in 2013 (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 and passed certification. As ISO 50001:2018 was published in 2018,
we are aiming to adopt the new version of ISO 50001 in the factories by the end of 2019. Pleaserefer to Figure 6.2-6 for more details. In addition, we conduct annual energy audit and report theenergy consumption information to the government as well as implements energy saving projects
in H.Q. and the factories. In 2018, Tatung reduced about 3.03 million kwh of purchased electricity
consumption via 4 dimensions (Table 6.2-2) which equaled to 1,678 tons of GHG emission reduction(4.3 Daan Forest Park's carbon reduction amount1). Figure 6.2-7 shows carbon reduction results forthe past 5 years.

Tons
CO2e

Amount of carbon reduction
increases for 4 consecutive years

1,800

1,678.13

1,600
1,400

1,299.50

1,200
1,000
800
600

1,069.32

1,090.37

2015

2016

614.00

400
200
0

2014

2017

2018

▲ Figure 6.2-7 Amount of carbon emission reduction

2014

2015

Started to
implement

San-hsia Factory
passed certification

2016
Tayuan Plant andTaoyuan Wires and Cables
Plant passed certification

2019

Tayuan Plant
ISO 50001
certiﬁcate

Target: Tayuan Plant,
Taoyuan Wires and Cables
Plant, and San-Hsia Factory
update to ISO 50001:2018

Tayuan Wires
and Cables
ISO 50001
certiﬁcate

San-Hsia
Factory
ISO 50001
certiﬁcate▲ Figure 6.2-6 Status of Tatung's ISO 50001▲▲

Table 6.2-2 Tatung energy saving projects and results in 2018

Energy saving projects (by category)
Utilized manufacturing process to reduce operation time.
Replaced with high energy efﬁcient and energy saving
equipments
Centralized operation areas and shut down unnecessary
air conditioners and lightings.
Increased the frequency of maintenance for majoredenergy using equipments and installed curtains to avoid
leakage of cooled air.
OthersTotal
Note: 1 kw-hr of electricity emits 0.554 kg CO2e.
1

One Daan Forest Park can absorb 389 tons of GHG every year.

Amount of electricity
saved (kw-hr)
129,855

GHG reduction (ton CO2e)
71.94

1,229,919

681.37903,272500.41

752,464416.87

13,601
3,029,112

7.53
1,678

In 2018, we examined the results of our Stage 1 energy reduction target, 6 out of the 8 major products
achieved the goal of reducing energy intensity by 6%, and the achievement rate was 75% (shown as in
Table 6.2-3). The products failed to achieve the target are the motor/generator of San-Hsia Factory and thetransformer/distributor of Tayuan Plant. The main reasons were:
1. In order to improve air quality and match production line adjustments, San-Hsia Factory has newly
installed RTO air pollution control equipment at the end of 2016 and a new 600T die-casting machine in2018, which resulting in a signiﬁcant increase in electricity consumption and diesel consumption.
2. The increase in the number of returned transformers for repairing (still in warranty period) has led to anincrease in purchase electricity consumption in Tayuan Plant.
The future improvement in San-Hsia Factory, we will focus on the air compressor system. We will shut down
the air valve or modify the pipeline in the area where the compressed air is not needed. The small air
compressor will be used in the area where the air pressure system is too far and the amount required is notlarge in order to prevent the pressure drop and air leakage. We will also regularly repair broken pipeline
and replace old joint parts (estimated to save 10% of the air pressure system loading). In addition, theair pressure system will be installed smart meter and the ﬂow meter will be integrated with Tatung EMS toestablish air pressure system energy performance indicators, and through the government energy-saving
diagnostic resources to ﬁnd out that the air compressors with poor efﬁciency and gradually replaced withhigher energy efﬁciency ones. We will check the power consumption from the factory maintenance for thetransformers still in warranty period in Tayuan Plant, and use the air-cushion truck to assist the handling ofproducts into the oven to reduce the power consumption from the operation of the large cranes.
In order to continue to carry out energy-saving measures, we have set a Stage 2 energy saving target thisyear: to achieve the goal of further reduction of 6% in 2023 based on the energy intensity of each major
product in 2018.
All the factories will simultaneously carry out the second phase of "Major Energy Equipment Monitoringand Management" project in order to reduce energy consumption. The energy conservation team will beformed by the headquarter and the factory energy managers. The team will carry out power consumption
monitoring of major power-consuming equipments and establish a historical database of electricity
consumption to identify future energy-saving potentials.

72

712019 TATUNG CSR

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Chapter 6

Chapter 6

Environmental performances

Environmental
performances▲▲

Table 6.2-3 Status of energy saving target for major products

Main product (Unit)

M3

800,0002014 ( ↓ 1%) 2015 ( ↓ 2%) 2016 ( ↓ 3%) 2017 ( ↓ 4.5%) 2018 ( ↓ 6%)

Motor/generator (HP)
Electric cooker (piece)
Commercial air conditioner (KW)
Transformer/switchgear (MVA)
Mechanical meter (piece)
Lan cable (M)Power cable (M)Wire (kg)

X

X
X

X
X

X
X

◎

◎

◎

◎

◎
◎

X
X
X
X
X

X

X

X

X

◎
◎
◎
◎

◎
◎
◎
◎

◎
◎
◎

◎
◎
◎
◎

◎

X

X

700,000
600,000

275,181

238,185

242,003292,811

282,917

197,944

186,109170,500

146,131

138,640

500,000
400,000

Note: The baseline year is 2013. ◎ represents it meet the goal, X represents it does not meet the goal. Domestic air conditioner
was removed from the list since 2018 due to production adjustment.

300,000

Ground water

200,000

6.3 Resources consumption and pollutants management

100,000

Consumption and management on main materials

0

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

253,008

235,384

245,799

161,059

211,879

2014

2015

2016

2017

2018

▲
▲

Amount of consumption

Local purchase percentage

6,127 tons
15,932 tons
340 tons
1,626 KL

99%
2%
100%
100%

Note: 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.

Consumption and management of water resource
The sources of water for Tatung are from tap water, ground water, and river water. Tatung consumed
633,436M3 (Figure 6.3-1) of water in 2018 which was 33,435M3 more than the consumption in 2017.
We will continue to conduct water conserving projects in order to reduce water consumption.
As for the wastewater management, all the factories and subsidiaries have granted government
approved "water pollution prevention measures" and "permit for effluent", as well as setup
wastewater treatment facilities based on the prevention measures. All the wastewater treatment
facilities are operated in accordance to the prevention measures and the amount and quality of theefﬂuent are regularly tested and reported to the authorities. The rest results are all below the efﬂuent
standard. In addition, the factories are located in industrial area and/or industrial zone where do nothave bio-sensitive sites nearby. Therefore the efﬂuent from Tatung will not have signiﬁcant impacts tothe biodiversity of the recipient water bodies. The detailed efﬂuent information is disclosed on Table
6.3-2.

▲▲

Main materials

Tap water▲ Figure 6.3-1 Tatung water consumption by sources

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

Steel (silicon steel ncluded)
CopperAluminum
Insulation oil

River water

Factory

Table 6.3-2 Wastewater treatment and efﬂuent status in 20182

Treatment
methodSan-Hsia
Factory
Factory owned
wastewater
treatment plant
Taoyuan Wires in accordance toand Cables
the requirement
Plant
by the regulation
Taoyuan 1st
Plant

Tayuan Plant

Total
2
3

Average COD Average SS
concentration concentration(mg/L)(mg/L)

Amount of
efﬂuent (M3)

Recipient
water body

17.32

8.59

7,967

Heng River

N.D.3

2.50

2,865

New Street
River

N.D.

2.65

52,145

New Street
River

11.14

5.25

10,590

Old Street RiverEfﬂuent reusedby others

None73,567The data is collected from EPA's declaration system. Efﬂuent standard COD: 100, SS: 30.
The detection limit is 9.5 mg/L. N.D. represents the concentration is below the detection limit.

74

73
2019 TATUNG CSR

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Chapter 6

Chapter 6

Environmental performances

Environmental
performances

Air pollutant emissions and management
The main air pollutants from the factories are NOx, SOx, and VOC. Tatung declares the amount ofemissions and pays air pollution control fee to the authority. From Figure 6.3-2 and Figure 6.3-3 wecan see the emissions of VOC have reduced gradually since 2015. The emissions for NOx have slightly
increased. The reason could be more diesel were consumed by RTO.
Tatung sets up and operates air pollutant treatment facilities in the factories in accordance to theregulation. Pollutant concentration is regularly tested and met the standard. In addition to meetemission standards, we are committed to optimize the air quality around the factories. In the past
few years, we have implemented pollutant removal facilities with higher removal efﬁciency, such
as RTO (Regenerative Thermal Oxidizer). We have added a set of RTO at Tayuan Plant in 2018
and obtained operation permit from local authority. In 2019, we are going to change the part oftreatment process from activated carbon adsorption to existing RTO in San-Hsia Factory to reducethe impact on the surrounding environment.
NOx

kg

SOx

廢棄物處理

the factory

廢棄物處理

1

Product design
and process
improvement to
reduce waste

一般垃圾

廢鐵

廢油

4 Audit the entrusted廢棄物處理

waste treatment andre-use companies▲ Tatung wastes clean up and treatment ﬂowchart

100,000

89,1352,825

In 2018, Tatung produced 2,862.98 tons of industrial wastes, of which 2,832.90 tons were generalindustrial wastes and 30.08 tons were hazardous industrial wastes (Figure 6.3-4). Although the amountof wastes have been reduced by 32% in the past 5 years. However, compared with year 2017, theamount of wastes produced in 2018 was only 4.07% less which did not meet our waste reduction
target of 5% per year. We will continue to work hard through green design to reduce the amount ofwastes in the future.

72,92080,000

2,266
2,109

2,000

1,666

60,00056,90767,09846,268

1,351

1,323

1,227

1,464
1,000
500

ent
Proper treatm
document

環保公司

120,000

3,000

1,500

Contract

2 Classified,labeled, stored in

3,500

2,500

document from
entrusted companies

re-use companies

VOCs

kg

4,000

waste being
5 Obtainproper treatedqualified
3 Entrustwaste treatment and

1,097

1,087
2014

2015

2016

General industrial waste

Tons
4,500.00

40,0002017

2018

Note: Data is from EPA declaration system▲ Figure 6.3-2 Air pollutant emission (NOx, SOx)

20,000

2014

2015

2016

2017

2018

Note: Data is from EPA declaration system▲ Figure 6.3-3 Air pollutant emission (VOCs)

Wastes reduced 32% in the past 5 years.

27.63

4,000.00

Hazardous industrial waste

3,500.00

56.95

43.66

3,000.00

54.26

30.08

2,930.28

2,832.896

2,500.00
4,176.07

2,000.00

3,248.25

3,392.95

1,500.00
1,000.00

Waste reduction and management
Tatung's waste reduction concept is mostly from product design and process improvement to
reduce the amount of industrial wastes. The wastes produced are properly classified and storedaccording to relevant regulations, and finally commissioned by domestic qualified treatmentcompanies or reuse companies. Tatung audit the entrusted companies from time to time to ensurethat the wastes are properly cleaned up.

500.00
0.00
2014

2015

2016

2017

2018

Note: The data was from governmental declaration system and entrusted receipts in the factories.

▲ Figure 6.3-4 Amount of industrial wastes

76752019 TATUNG CSR

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Chapter 6

Chapter 6

Environmental performances

Environmental
performances

Six methods were used for wastes treatment in 2018 (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 theenvironment. In 2018, 2,074.85 tons of wastes were reused (72.47% of total wastes). The reuse rates in
the past 4 years were all above 70%.
▲▲

Treatment method

Table 6.3-3 Waste treatment methods and amount in 2018
Reuse

Incinerate

Solidify

Landﬁll

Physical

Heat

Total

General industrial
waste (tons)

Total

494.0726.77

115.17103.3818.66

2,832.90

Hazardous industrial
waste (tons)

0

16.24

7.56

0

0

6.28

30.08

Treatment method
percentages (byweight)72.47%

17.82%

1.20%

4.02%

3.61%

0.87%

100.00%Note: The data was cited from EPA's waste declaration system or entrusted receipts in the factories.

80.00%

76.71%
73.17%

75.45%

72.47%

70.00%

6.4 Green products for a better earth
Establishing solar PV systems to minimize air pollution and greenhouse gases"Green Energy Tatung" is Tatung's development strategy. We plan to promote PV solar projects withsteady 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 inkinds of place, such as residential area, 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.
We cooperated with Taipower Company and the NEPII to build a smart micro-grid system in Qimei
island, Peng-hu County. We firstly built the smart micro-grid demonstration system and verification
platform. In early 2018, we completed the integration of the island's 400kW solar photovoltaic
power generation system and the 300kWhr energy storage system. During the off-peak period, theproportion of renewable energy reached more than 50% of the system load. The case won the "2018
Smart City Innovation Application Award" for its achievement in smart micro-grid system.
By the end of 2018, we have completed 91.70 MWp of PV solar systems in accumulatively. The systems
can generate 107,000,000 kwh of electricity each year and cut off 60,000 tons4 CO2e which equals to
the forests carbon absorbing capability with area size of 5,400 international standard soccer ﬁelds5.
Looking forward to the future, Tatung will adhere to the sustainable development strategy andactively promote the energy transformation of non-nuclear homes in line with the government's green
energy policy. The goal is to complete 150 MWp solar PV systems accumulatively by the end of 2019.
We are aiming to lead the solar power industry to reciprocate and innovate through various industry
cooperation and to expand setup area for PV solar systems. We will provide more opportunities forcooperation in the solar energy industry. For more details about Tatung PV solar projects, pleasebrowse:http://www.tatung.com/solution/detail/16

150MWp60.00%
50.00%

91.70MWp

40.00%
70MWp

30.00%
43MWp

20.00%
13MWp

10.00%
0.00%

2014

2015

2016

2017

2018

▲ Figure 6.3-5 Waste reuse percentages in the past 4 years

23MWp

2015

2016

2017

2018

2019

▲ Total PV solar systems installed and our target
4
5

1 kw-hr electricity emits 0.554 kg CO2e.
According to Forest Bureau (http://lifetree.forest.gov.tw/cp05.asp), the carbon absorbing capability is 14.9 tons CO2e/hectare/year. The area of one international standard soccer ﬁeld is approximately 7,350 m2.

78

77
2019 TATUNG CSR

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Chapter 6

Chapter 6

Environmental performances

Environmental
performances

LEXUS Changhua Factory

250

Taoyuan Wires and Cables Plant

Unit：Models

Energy Label

203

190

Green Mark

200

Water Label
133

150

100

50

0

Taichung Municipal TaichungIndustrial High School

Qimei Island

74

19

24
7

2014

8

2015

33 31

19
1
2016

4

2017

9

9

2018

▲ Figure 6.4-1 Numbers of Green Mark, Energy Label, and Water Label awarded

Product and package recycling at the end of life

Devote in developing environmental friendly products
Tatung tirelessly dedicates to the development of green products and many of them have been
awarded with "Green Mark", "Energy Label", and "Water Label". There were 31 models awarded
with Green Mark, 33 models awarded with Energy Label, 9 models awarded with Water Label in
2018. Please refer to Table 6.4-1 and Figure 6.4-1 for more details. As for toxic free products, Tatung
has followed EU RoHS directive and REACH regulation, through supply chain management andmanufacturing management to ensure there is no hazardous substance in the products shipped toEU.
▲▲

Table 6.4-1 Lists of green products

Products

Green Mark6

Energy Label7

Water Label

Electric fans
Refrigerators
Washing machines
Monitors
Air puriﬁers
Electric ovens
Dehumidiﬁers
Domestic air conditioners
Amorphous transformers
Cast resin dry type transformer
Amorphous cast-resin dry type transformers

－
◎
－
－
－
－
◎
◎
◎
◎
◎

◎
◎
◎
◎
◎
◎
◎
◎
－

－
－

◎ (all series)
－
－
－
－
－
－

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 statistics8 in 2017, the average recycling rate for electric andelectronic devices was 62.14%, the average recycling rate for information devices is 57.83%. In addition,
as a corporate who has her own retailing system, Tatung works together with TCPC to set up battery andfluorescent lamp recycling box at each Tatung 3C Store to recycle consumers' wasted batteries andﬂuorescent lamps, 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 theenvironment. Apart from paying the fees and fulﬁlling producer responsibility, Tatung also works hard to use
more recyclable materials through design and manufacturing stages and actively to apply for Green Mark.
In regarding to the packaging materials of household appliances and consumer products, Tatung believes
that the packaging materials are fully recycled. The reason behind this is the recycling channels in Taiwan
are well established and residences 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. Tatung commits
herself to continue designing and producing more energy efﬁcient and environmental friendly products tobe consistent with her vision.

6

Taiwan EPA established "Green Mark" program in order to encourage manufacturers to reduce pollution emissions, consumptionof energies and resources during the life cycle of a product as well as to awake the consumers to choose resource saving, lowpollution, recyclable products. The products with "Green Mark" represent the environmental performances ranked from top
20~30% in their product category.
7
Bureau of Energy, Ministry of Economic Affairs, Taiwan initiated the voluntary "Energy Label" program. The products with "Energy
Label" indicate that the energy efﬁciency of the product is 10~50% higher than national energy efﬁciency standard.

Publishing wasted household
appliances recycling information on
etungo online shopping site.
8

Publishing wasted household appliances recycling information on
products ﬂiers.

https://recycle.epa.gov.tw/epa/ShowPage2.aspx?key=6&sno=1010&subsno=293&subsubsno=252

80

792019 TATUNG CSR

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ANNEXll

Annex 1 Subsidiaries notes to consolidated ﬁnancial stateentsThe consolidated entitles are listed as follows

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

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

Subsidiaries are fully consolidated from the acquisition date, being the date on which theCompany obtains control, and continue to be consolidated until the date that such control
ceases. The financial statements of the subsidiaries are prepared for the same reporting
period as the parent company, using uniform accounting policies. All intra-group balances,income and expenses, unrealized gains and losses and dividends resulting from intra-grouptransactions are eliminated in full.

December 31, December 31,
Investor
The Company and Chunghwa Electronics
Investment Co., Ltd.
The Company, SCSC, SCAD, Shan Chih
Investment Co., Ltd., and Chih Sheng

Subsidiary

Main businesses

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

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

Green Energy Technology Inc.
(“GET”)The Company, Chunghwa Electronics
Investment Co., Ltd., Green Energy

Main businesses

Chunghwa Picture Tubes, Ltd.
(“CPT”)

Manufacture, research and sale of

2018

2017

41.16%

41.25%

picture tubs and TFT-LCD

Technology Inc., Chih Sheng Realty Co.,

Ltd. and Shan-Chih Asset Development

products

Tatung System Technologies Inc.
(“TSTI”)

99.10%

85.33%

85.33%

54.63%

54.63%

100.00%100.00%Professional investment holding

100.00%100.00%

Manufacturing and sales of casting

51.00%

51.00%

99.99%

100.00%100.00%100.00%90.00%

90.00%-

100.00%100.00%100.00%100.00%100.00%50.00%

50.00%

100.00%100.00%

The Company

Tatung SM-Cycle Co.

Co., Ltd.

computer products
Manufacture of speed reducers,
speed aviators

Tatung Fine Chemicals Co., Ltd.
(“TFC”)The Company

catalyst, inkjet ink
Shan-Chih Asset Development Co.
(“SCAD”)

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

Industrial coatings, electrocution
coatings resistor coatings, photo-

Investment Co., Ltd.

Development and leasing of realestateChunghwa Electronics
Investment Co., Ltd.
Tatung DIE Casting Co.

mold
The Company and Tatung Wire & Cable Tatung (Thailand) Co., Ltd.

Software and hardware service and

The Company

Manufacturing and sales of IT
products, home appliances and AI

Tatung Co. of Japan, Inc.

Sales and purchase of electronicparts, home appliances and IT
products

The Company

The Company
54.40%

Tatung Electronics(S) Pte. Ltd.

Purchases, sales and services of raw

Tatung Wire & Cable (Thailand) Co., Manufacture and sales of wire andLtd.

54.40%The Company

system integration

cable

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

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

20.16%

40.75%

Electronics Investment Co., Ltd
The Company

99.10%

Tatung Consumer Products (Taiwan) Sales of home appliances and digitalCo.
The Company, CPT, SCSC and Chunghwa

100.00%EMCIRF testing and certificationmaterialLtd.
The Company, Shan-Chih Investment Co.,

100.00%electrical materials
Central Research Technology Co.

meter
December 31, December 31,

Subsidiary

39.04%

retail sales and wholesale of(Thailand) Co., Ltd.

(a) The consolidated entities are listed as follows:

38.48%

Manufacture of electrical parts and

The Company

Investment Co., Ltd. and Chih-Sheng

A. derecognizes the assets (including goodwill) and liabilities of the subsidiary;B. derecognizes the carrying amount of any non-controlling interest;
C. recognizes the fair value of the consideration received;
D. recognizes the fair value of any investment retained;
E. recognizes any surplus or deficit in profit or loss; andF. reclassifies the parent’s share of components previously recognized in other comprehensive
income to profit or loss.

58.20%

services

The Company, Chunghwa Electronics

If the Company loses control of a subsidiary, it:

Investor

The Company

201757.08%

semiconductors and chips

Investment Co., Ltd.

A change in the ownership interest of a subsidiary, without a change of control, is accounted
for as an equity transaction.

2018

Manufacture and sales of

Taiwan Telecommunication Industry Telecommunication devices.

100.00%

The Company

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

The Company

Tatung Co. of America Inc.

electronics products in the US

100.00%
The Company

Company Ltd.

29

Sales and service of IT and household

Tatung Mexico S.A de C.V.

Manufacture of electronic products

30

82

81
2019 TATUNG CSR

2019 TATUNG CSR

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

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

December 31, December 31,
Investor

Subsidiary

Main businesses

2018

December 31, December 31,

2017

Investor

The Company

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

Manufacture and sales of motor

America, Inc.

100.00%100.00%100.00%

2018

2017

Tatung Netherlands B.V.

Sales of electronic products

100.00%100.00%TATUNG CZECH s.r.o

Manufacture of IT products

100.00%100.00%Design and sales of medical

Technologies Co., Ltd.

95.56%

95.33%

85.00%

85.00%

100.00%100.00%100.00%100.00%Professional investment holding

100.00%100.00%Professional investment holding

100.00%100.00%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 and

The Company

Chih Sheng Investment Co., Ltd.

The Company and Chunghwa Electronics

Shan Chih Investment Co., Ltd.

process equipment

appliances

Co., Ltd.

(Labuan) Ltd.("CPTTG(L)”) and CPTTG

Investigation of market information

100.00%100.00%cable

Chunghwa Picture Tubes (Wujiang)

Assembly final module of TFT-LCD

Note

100.00%Ltd. (“CPTW”)

CPTW, FDT and CPTTG

CPTF Optronics Co., Ltd.

Assembly final module of TFT-LCD

Note

100.00%

CPTF Optronics Co., Ltd., NKEL, and

CPTF Visual Display (Fuzhou)

Manufacture components of TFT-

Note

100.00%Note

51.00%

Note

100.00%Note

100.00%Note

100.00%Note

80.00%

Note

100.00%Note

55.00%

Forward Development Co., Ltd.

instruments.

The Company

CPTF Optronics (Shen-Zhen) Co.,Ltd.

Chunghwa Picture Tubes Technology

The Company

Tatung Medical Healthcare

CPTB

100.00%products in the U.S.

The Company

The Company

Main businesses

Sdn. Bhd. (“CPTM”)(“TMX”)The Company

Subsidiary

CPTF Optronics Co., Ltd.

Ltd.(“FVD”)

LCD

Hwallar Optronics (Fuzhou) Co. Ltd. Manufacture components of TFTLCD

CPTTG

Chunghwa Picture Tubes Technology Investment holding and sales of(Labuan) Ltd.("CPTTG(L)”)

CPTTG

TFT-LCD

Fuzhou YingYuan Equity Investment Professional investment holding
Management Co., Ltd.

CPTTG

Vibrant Display Technology CO.,Ltd.

CPTB and CPTTG

R&D, design and manufacturecomponents of TFT-LCD

CPT TPV Optical (Fujian) Co., Ltd.

Investment Co., Ltd.

Manufacture components of TFTLCDThe Company

Absolute Alpha Limited

Professional investment holding

100.00%100.00%

The Company

Tatung Forever Energy Co., Ltd.

Solar energy related business97.12%

98.55%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

Zhiguang energy Co., Ltd

Solar energy related business100.00%-

CPTF Optronics Co., Ltd

CPTF Optronics (HK) Co., Ltd.

Sales of TFT-LCD

Note

100.00%

The Company

Shanshin energy Co., Ltd.

Solar energy related business100.00%-Vibrant Display Technology CO., Ltd.

Huajiayuan Co., Ltd.

Development, investment, sale,Note

100.00%

The Company and Shan-Chih Asset

Taipei Industry Corporation

Manufacuring, sales of construction

50.61%

50.61%

Investment holding

100.00%100.00%

Manufacture and sale of solar

45.82%

45.82%

100.00%100.00%100.00%100.00%Chunghwa Picture Tubes (Labuan)Ltd. (“CPTL”)

Investment holding and sales of

Chunghwa Picture Tubes (Bermuda) Investment holding and sales of-

100.00%Chunghwa Picture Tubes Technology Research, design, manufacturing,

100.00%100.00%

Manufacture, research and sales of
optical glass

leasing of real estate; estate

Forward Development Co., Ltd.

Forward Electronics Co., Ltd., Green Energy Gintung Energy Co., Ltd.

Note

module and related component

Mechatronics Co.
Forward Development Co., Ltd.

Forward Electronics Equipment(Dong Guan) Co., Ltd

26.37%

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

model and components
Professional investment holding-

100.00%100.00%100.00%Suzhou Forward Electronics

Manufacture and sale of backlight

Technology Co., Ltd.

unit for TFT-LCD, driving board,
tuner, keyboard, mouse, switch,(“NKEL”)
CPTB

Chunghwa Picture Tubes (Malaysia) Manufacture and sale of CRT

31

Manufacture and sale of tuner,
keyboard, mouse, remotesales and service of flat-panel
display device, monitor display

New Kingston Enterprises Limited

R&D, design and manufacture andsale of panel components

Technology Inc. and Toes Opto-

TFT-LCD(Group) Co., Ltd. (“CPTTG”)

CPTBCo. Ltd.

management and lodging

TFT-LCD

Ltd. (“CPTB”)
CPTB

Kornerstone Materials Technology

Kornerstone Materials Technology Co. Ltd. DDD3Empire

Forward Electronics Co., Ltd.

business

CPT

Goldmax Asia Pacific Ltd

related materials and property rental

Development Co.

The Company and CPTB

CPTTG, CPTF Optronics Co., Ltd., andsocket and connector.

32

84

83
2019 TATUNG CSR

2019 TATUNG CSR

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

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

December 31, December 31,
Investor

Subsidiary

Main businesses

2018

2017

December 31, December 31,
2018

2017

SCSC

Greater Power Limited

Investment holding

100.00%100.00%TMX

TMX Logistics, Inc.

Hub service

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

Investment holding

100.00%100.00%TMX

TMX Technologies Inc.

Technologies & business100.00%100.00%Investment holding

100.00%100.00%Information software

100.00%100.00%-100.00%GET

Energy Well International Limited

Investment holding

100.00%100.00%GET

Green Energy Global Investment

Investment holding

100.00%100.00%Greater Power Limited and Energy Well

Ultra Energy Holdings Limited

Investment holding

100.00%100.00%International Limited
Energy Well International Limited

Golden Sunny Limited

Investment holding

100.00%100.00%Ultra Energy Holdings Limited

Ultra Energy (WEIFANG)

Solar silicon wafer slicing.

100.00%100.00%

Sale of solar energy related

100.00%-Technology Co. Ltd
Ultra Energy (WEIFANG) Technology Co. Ltd Weifang Jianeng Jingmao Co., Ltd.

Investor

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

Shan Chin Investment Co. Ltd

TSTI

Manufacture and sale of positive

Technology Materials Co., Ltd.

100.00%100.00%

Inc.
TSTI

100.00%100.00%Ltd.
TSTI

Tisnet Technology Inc.

Software design and development

100.00%100.00%TSTI

TSTI Technologies (Shanghai) Co.,

Information software

94.00%--

94.00%

Tatung System Technologies Holding Ltd.

Wujiang Shang Huah Plastic Co.,

Investment holding

100.00%100.00%

Manufacture and sale of ABS plastic.

-

100.00%Ltd.
ABS plastic, color dyes

Tatung Information Technology

Wholesale of painting, coating and100.00%100.00%

Manufacture and sales of various

100.00%Investment holding

100.00%100.00%HEDA Biotechnology Co., Ltd.

Produce, food retail and wholesale

52.17%

52.17%

100.00%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%100.00%99.87%

99.87%Corp.
Chih Sheng Holding HK Limited

Shan-Chih Asset Development Co. andWu-jiang Tatung Electronics Trading Sales of information products

Tatung Wire And Cable Technology Manufacture and sales of wire and-100.00%

Tatung Compressors

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

100.00%100.00%100.00%100.00%reciprocating compressors.

Tatung (Shanghai) Co., Ltd

Manufacture and sales of motors,
generators and transformers

Shan-Chih International Holding

Co.

Design and construction of structural
engineering.

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%Realty and Leasing Service

100.00%100.00%100.00%100.00%Holding Corporation

Corporation
Shan-Chih Asset International Holding

cable

Tatung Forestry and Construction

Shan-Chih Asset Development Co.

Shan-Chih Asset International Holding

Corporation
Tatung Electric (Singapore) Pte. Ltd. andChih Sheng Investment (BVI)

Chih Sheng Investment Co., Ltd.

100.00%electrical products(Wujiang) Co., Ltd.

and Shan-Chih International Holding

100.00%chemical products.

(Jiangsu) Co., Ltd.

Tatung Information (Singapore) Pte. Ltd.

Information software
Service

Chih Sheng Investment Co., Ltd.

Taipei Industry Corporation

Co., Ltd.

Tatung Information (Singapore) Pte. Ltd.

100.00%Technology Co., Ltd

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

Tatung Information (Singapore) Pte. Ltd.

TSTI Technologies (Shanghai) Co.,

Co. LTD

Shang Chih International Chemical Industry Wujiang Shanghua MaterialCo., Ltd.

Serviceindustry

Industry Co., Ltd.
TFC

Tatung System Technologies Holding Investment holding

material of lithium battery, printerperformance coating.
Shang Chih International Chemical

ServiceLtd.

ink, electro-deposition highTFC

Chyun Huei Business Technology

Ltd.

coating.
Huaian Tatung Advanced

Shan-Chih International Holding
Corporation

coating and electro-deposition

TFC

Main businesses

development

products
TFC

Subsidiary

Corporation

Tatung Management Consultant(Shanghai) Co., Ltd.

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%and Tatung (Thailand) Co., Ltd.

energy, industrial motor, home
appliances, industrial air

Corporation

conditioner

33

34

86

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ANNEX

Annex 2 Products and services provided by Tatung
Products and services provided by Tatung
Business
Business
Products and services
GroupsUnits

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

December 31, December 31,
Investor

Subsidiary

Main businesses

Tatung Information (Singapore) Pte. Ltd.

Tatung Myanmar JV Holding Co.,

Tatung Medical Healthcare Technologies

Tatung Medical & Healthcare

2018

2017

Investment Holding

100.00%100.00%Investment Holding

100.00%100.00%

Pharmaceuticals and warehousing and100.00%100.00%100.00%100.00%100.00%100.00%Power
Equipment
BU

Industrial Appliance: Researching, developing and manufacturing all kindsof transformers 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, and other industrial equipment.
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, and distribution system, industrial equipment, home appliance andIT network & electronic device etc.

Motor BU

With more than 70 years of techniques and experience in R&D and producing
for all kinds of energy saving high-efﬁciency, single-phase, and three phasehigh-low-voltage motor from 1/8 － 50,000 HP, full speciﬁcation included avariety of special motor and application of the system such as premium highefﬁciency motors, high temperature resistant motors, electric vehicle motors,
explosion proof motor, new automatic brush lifting device equipped woundrotor motor, vertical high thrust pump motor, gear reducer, inverter motor,
aluminum frame motor, brake motor, oil well motor, water pump motor,
immersible pump motor, built-in type spindle motor, rolling mill motor, elevator
motors, crane motors, permanent magnet motors, IoT connected smart
electric motor surveillance component and system; railway traction motors,
inverters, control panel etc., as well as providing total solutions to supply forelectrical machine testing equipment and plant power equipment based uponsystematic engineering consideration for serving a variety of industries.

Ltd.

Co., Ltd.

Technologies Inc.

Tatung Medical Healthcare Technologies

Insured Pharmaceuticals Co., Ltd.

Co., Ltd.

transportation service

Tatung Medical & Healthcare Technologies
Inc.

Elite Oxygen And Healthcare Co.,

Sale of Oxygen generator

Power
Business
Group

Ltd.

Tatung (Shanghai) Co., Ltd

Electrical

Tatung Xinji (Guangdong)

engineeringsysteminstallation service

Technology Co., Ltd.

The Company signed contract to sell stocks in the fourth quarter 2018, expecting tosell all of the stocks of Tatung Electric Technology (VN) Co., Ltd. and Tatung Vietnam
Co., Ltd. Such transaction is expected to be completed within a year. The Company
recognized assets and liabilities of Tatung Electric Technology (VN) Co., Ltd. andTatung Vietnam Co., Ltd. as non-current assets and liabilities held for sale as at
December 31, 2018 according to IFRS 5 — Non-current Assets Held for Sale andDiscontinued Operations.
Chunghwa Picture Tubes (Labuan) Ltd. (“CPTL”), subsidiary of the Group, hascompleted the liquidation procedures on December 23, 2018. Tatung Wire And Cable
Technology (Wujiang) Co., Ltd., subsidiary of the Group, has completed theliquidation procedures on September 28, 2018. Tatung Wire & Cable (Thailand) Co.,
Ltd., subsidiary of the Group, has completed the liquidation procedures on June 13,
2018. Wujiang Shang Huah Plastic Co., Ltd., subsidiary of the Group, has completed
the liquidation procedures on June 30, 2018. Tatung System Technologies Holding
Ltd., subsidiary of the Group, has applied for cancellation on May 15, 2018 and hascompleted the cancellation procedures on June 20, 2018. New Kingston Enterprises
Limited (“NKEL”), subsidiary of the Group, has completed the liquidation proceduresin April 2018 and hence the Group’s direct and indirect holding percentage of thesubsidiaries decreased from 100% to 0%.
San Chih Semiconductor Co., Ltd.(“SCSC”), Chunghwa Picture Tubes, Ltd. (“CPT”),
and Chunghwa Electronics Development Co., Ltd., subsidiaries of the Company, soldstocks of FD during the second half of the year 2018 and hence the Group’s direct andindirect holding percentage of FD decreased from 40.75% to 20.16%.

AdvancedElectronics
BU

ConsumerBusinessGroup

ImportantCertiﬁcations

2306

2613

AEBU focuses on providing global ODM customers with design andmanufacturing products & solutions. The product lines include 2 main lines:
digital entertainment and Internet-of-Things (IoT) products. The digitalentertainment line includes gaming headsets, smart noise cancelation
headsets, streaming microphone, and entertainment accessories.
The IoT products include IP camera, smart energy management and sensing&-control products. Tatung's customers can beneﬁt from Tatung's fast reaction
to accommodate market needs and ﬂexibility in design customization. The
on-going research and development will further enhance the customers'competitiveness in their products.

To boost sales in both domestic and overseas markets, apart from improving
brand operations, we enhance brand value with innovative design, quality
products, and technology integration. Our wide variety of products includes
eco-friendly air-conditioning systems for business and home; 4K smart LCD
displays; smart DC fans; slim fashionable refrigerators; and top-loading highlevel inverter washers. In addition, we have won awards worldwide for a great
number of products awards due to our persistence in technology innovationand esthetic design.
We have also launched healthy cooking gadgets including Multi-Functional
Cooker, Fusion Cooker and Steam Oven. As a title sponsor of the 55th Golden
Horse Awards, we have successfully promoted Tatung X Golden Horsecollection, limited multifunctional cookers and vintage fans to the world andAppliance BU enhance the brand value. To make farm-to-table a reality, we persistently
promote our health food brand "In Fresh" through careful selection ofsmallholding farmers.
With the rise of the Internet of Things (IoT), we integrate resources to develop awide variety of smart and energy-efﬁcient appliances equipped with touch/sensing and internet technologies to provide consumers with total smart
life solutions. With the smart appliance system and smart appliance app,consumers can control various Tatung smart appliances wirelessly to achieve
electricity management, remote control, schedule management, and scenario
personalization to save energy and protect the Earth smartly.

R31001
RoHS

35

88

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ANNEX

ANNEXBusiness
GroupsSystemBusiness
Group

Business
Units

Products and services

Smart Meter BU provides various types of smart meters and AMI systems. Tatung
has the ability of integrating the systems of smart meter infrastructure andintegrating different communication technologies such as RF, PLC, 4G andcommunications to develop smart meter application functions to meet
Smart Meter NBIoT
customer needs and improve system performance. It also became the sole
BU
aggregator of demand response in Taiwan. Furthermore, cooperating with thedesign and development of solar energy systems to become the developmentof micro-grid system integrators, and serve the global power companies,
governments and households.
Tatung Solar Energy BU owns hundreds of solar project in Roof / Ground /Floating types, from north to south in Taiwan, including offshore islands. We
can provide professional energy creation management and construction
services via Tatung's high-performance solar energy products. The main services
Solar Energy are electricity grid systems, stand-alone solar energy systems and related
applications. With rich experiences in Taiwan, the establishment of various types
BU
of solar power plants has been extended from public building roofs to groundbased landﬁll sites and water-based photoelectric ponds.
With electromechanical integration capabilities and high monitoring technology,
Tatung deeply develops in power plants and maintenance business.
To comply with Government Renewal Energy policy, Tatung Company has
integrated the resources of three plants of the Power BG within Tatung Groupand the advantage of our electrical power products for the expanding ofPowerthe business scope of electrical power system integration and providing total
Engineering solution services.
Division
Business scope: 1. PV power substation system. 2. Small scale Hydro Power Plant
system. 3. Wind Mill Power substation system. 4. Electrical Power Engineering
System.
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 havebeen helping customers deal with the computerization and automation of theirsystems and have endeavored to meet the needs of the information market in
the era of technology. We are already a representative manufacturer of highquality system integration in the country. We specialize in information system
integration, network security planning & construction, and application softwaredevelopment. We have rich large-scale system integration capabilities andexperience. The service team has owned a wide range of IT professional skills,
certiﬁcates and services network throughout the Taiwan by 13 direct branchofﬁces to provide customers fast services. In the future, we will continue todevote ourselves to deepening the ﬁelds of information and communication
integration, cloud applications, information security, outsourcing services,business intelligence and system development, and then will become theleading manufacturer in those ﬁelds.
SystemElectromechanical Systems: As various infrastructure projects at Taiwan started
Integration between the 1960s and 1980s, this Company made an important contribution to
the infrastructure construction such as power generation, power transmission as
BU
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 well as construction for smart building.
3. Sewage (waste water) treatment, which has reached the industrial waste
water Zero Discharge standard.
4. Trafﬁc mechanical and electrical engineering for Rails and roads as well assign control systems.
We has owned cross-disciplinary professionals, which covers various
functionalities such as power, electronics, mechanics, smart control, information,communications, transportation and project management. They are responsiblefor integrating cross-disciplinary professionals, coordinating cross-organizational
interfaces, providing integrated design, project management and maintenanceservices.

ImportantCertiﬁcations

Annex 3 Factories and subsidiaries participated in 3P programand Occupational Accident Prevention Pays programin 2018.
Factories and subsidiaries participated in 3P program and Occupational Accident Prevention Pays
program in 2018.

－

－

－

Factories owned by Tatung.

Subsidiaries

Tayuan Plant

Tatung Die Casting Co., Ltd.

Chunghwa Picture Tubes, Ltd.2

Taoyuan Wires and Cables Plant

Tatung SM-Cyclo Co., Ltd.

Forward Electronics Co., Ltd.

San-Hsia Factory

Tatung Fine Chemicals Co., Ltd.

Green Energy Technology Co., Ltd.3

Taoyuan 1st Plant

Shan Chih Semiconductor Co., Ltd.

Electrical Meters Center1

Toes Opto-Mechatronics Co., Ltd.

Note: Only factories and subsidiaries with manufacturing function are participated in 3P program and Occupational Accident
Prevention Pays program. The information disclosed in this report is from Tatung's Factories (with green background).
Note 1: Locates at Tayuan Plant.
Note 2: Includes Lungtang Plant, and Yanmei Plant.
Note 3: Includes Kuanyin Plant, Kuanyin II Plant, Tayuan Plant, and Green Energy Technology Inc. Branch of Southern Taiwan
Science Park.

－

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Annex 4 GRI Standards content index
GRI Content Index
GRI Standard

Disclosure

GRI Content Index
Page numbers/
UR

Note

GRI Standard

Disclosure

GRI 101: Foundation

GRI 101: Foundation

GRI 102: General Disclosures

GRI 102: General Disclosures

Organization
proﬁle102-1 Name of the organization

12102-24 Nominating and selecting the highest
governance body

21102-2 Activities, brands, products, and services

12102-25 Conﬂicts of interest

22102-3 Location of headquarters

11

102-4 Location of operations

11, 13, 14

102-5 Ownership and legal form

12102-6 Markets served

13, 14

102-7 Scale of the organization

11

102-8 Information on employees and other workers

47, 48102-9 Supply chain

34, 35, 36

102-26 Role of highest governance body in setting
22
purpose, values, and strategy
102-27 Collective knowledge of highest governance26
body
102-28 Evaluating the highest governance body´s26, 31
performance102-29 Identifying and managing economic,
26, 31environmental, and social impacts
102-31 Review of economic, environmental, and social
26, 31
topics´
102-32 Highest governance body s role in24
sustainability reporting

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

102-11 Precautionary Principle or approach

29, 30102-12 External initiatives

15

102-13 Membership of associations

13, 14102-14 Statement from senior decision-maker

Strategy102-15 Key impacts, risks, and opportunities

Ethics andintegrity

Governance

Page numbers/UR

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

Top management
statement
Top management
statement, 17

No signiﬁcantchangeStakeholder
engagement27, 31

102-18 Governance structure

21, 22102-19 Delegating authority

31

102-20 Executive-level responsibility for economic,
environmental, and social topics
102-21 Consulting stakeholders on economic,
environmental, and social topics
102-22 Composition of the highest governance bodyand its committees

Governance

26
3, 4
22

102-23 Chair of the highest governance body22102-24 Nominating and selecting the highest
governance body21

Reportingpractice

102-35 Remuneration policies

24102-40 List of stakeholder groups

2, 3

Note

Tatung does nothave any collective
bargaining
agreements at the
moment.

102-41 Collective bargaining agreements-

102-42 Identifying and selecting stakeholders

2, 3

102-43 Approach to stakeholder engagement

2, 3

102-44 Key topics and concerns raised

2, 3

102-45 Entities included in the consolidated ﬁnancial
statements

Annex 1

102-46 Deﬁning report content and topic Boundaries

8102-47 List of material topics

7

102-48 Restatements of information

About this report102-49 Changes in reporting

16, 68, 70

102-50 Reporting period

About this report102-51 Date of most recent report

About this report102-52 Reporting cycle

About this report92

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GRI Content Index
GRI Standard

Disclosure

Page numbers/
UR

Note

GRI Standard

GRI 102: General Disclosures102-53 Contact point for questions regarding the report About this report102-54 Claims of reporting in accordance with the GRI
About this report
Standards
102-55 GRI content index

Annex 4102-56 External assurance

Annex 5Material topics
Corporate governance and ethical practiceGRI 103:
Management
Approach103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its components
103-3 Evaluation of the management approach826, 27, 28, 31

GRI 103:
Management
Approach
GRI 418:
Customer
privacyGRI 416:
Customer healthand safety

GRI 103:
Management
Approach
GRI 402:
Labor/
management
relations103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its components
103-3 Evaluation of the management approach
416-1 Assessment of the health and safety impacts ofproduct and service categories

837, 38, 39
37, 38
39

GRI 419:
Socioeconomic
compliance103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its components
103-3 Evaluation of the management approach419-1 Non-compliance with laws and regulations inthe social and economic area

103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its components
103-3 Evaluation of the management approach418-1 Substantial complaints concerning breaches ofcustomer privacy and losses of customer data

8
33, 4444

103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its components
103-3 Evaluation of the management approach402-1 Minimum notice periods regarding operationalchanges8
45, 5252

Marketing and labeling
GRI 103:
Management
Approach

GRI 417:
Marketing andlabeling

Comply with social and economic regulations
GRI 103:
Management
Approach

Note

Labor/management relations

Product quality and safety
GRI 103:
Management
Approach

Page numbers/
URL

Customer privacy management

GRI 101: Foundation

Reportingpractice

Disclosure

31, 60103-2 The management approach and its components
103-3 Evaluation of the management approach
417-1 Requirements for product and service
information and labeling417-2 Incidents of non-compliance concerning
product and service information and labeling8
33, 41, 42
41
41
42

Occupational health and safety

827, 28103-1 Explanation of the material topic and its
Boundary

GRI 103:
Management
Approach

GRI 403
Occupational
health andsafety103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its components
103-3 Evaluation of the management approach403-1 Workers representation in formal joint
management-worker health and safetycommittees
403-2 Types of injury and rates of injury, occupational
diseases, lost days and absenteeism, andnumber of work-related fatalities8
46, 57, 58, 59

57
60

Still using GRI
403:2016

94

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GRI Standard

Disclosure

GRI Content Index
Page numbers/
URL

Environmental management
GRI 103:
Management
Approach103-1 Explanation of the material topic and its Boundary 8103-2 The management approach and its components
103-3 Evaluation of the management approach

65, 66, 67

Comply with environmental regulations
GRI 103:
Management
Approach
GRI 307:
Environmental
compliance

GRI 302: Energy103-2 The management approach and its components
103-3 Evaluation of the management approach307-1 Non-compliance with environmental laws andregulations

28, 63, 67

GRI 305：

Emissions

GRI 306:
Efﬂuents andwaste

GRI 103:
Management
Approach

GRI 302:
Energy103-1 Explanation of the material topic and its Boundary 8103-2 The management approach and its components
103-3 Evaluation of the management approach302-5 Reductions in energy requirements of products
and services

103-1 Explanation of the material topic and its Boundary 8103-2 The management approach and its components
103-3 Evaluation of the management approach

75

306-1 Water discharge by quality and destination

74306-3 Signiﬁcant spills

67306-5 Water bodies affected by water discharges
and/or runoff

73

103-1 Explanation of the material topic and its Boundary 8103-2 The management approach and its components
103-3 Evaluation of the management approach

63, 75, 76

Note

77

103-1 Explanation of the material topic and its Boundary 8103-2 The management approach and its components
103-3 Evaluation of the management approach64, 69, 71, 72

302-1 Energy consumption within the organization

68

302-3 Energy intensity

72, 73302-4 Reduction of energy consumption

71

305-1 Direct (Scope 1) GHG emissions

69, 70305-2 Energy indirect (Scope 2) GHG emissions

69, 70305-5 Reduction of GHG emissions

69, 70

Economic performanceGRI 201:
Economic
performance

201-1 Direct economic value generated and distributed 16
201-2 Financial implications and other risks andopportunities due to climate change
201-3 Deﬁned beneﬁt plan obligations and otherretirement plans

1752

Disclosure on non-ﬁnancial information

63, 73, 75

305-7 NOx, SOx, and other signiﬁcant air emissions

306-2 Waste by type and disposal method

Page numbers/
URL

Other topics

64, 78, 79
78, 79Disclosure

Energy and green house gases management

GRI 305:
Emissions

Wastes management
GRI 103:
Management
Approach

GRI 306:
Efﬂuents and
waste

67

Management on water and air pollutants
GRI 103:
Management
ApproachGRI Standard

103-1 Explanation of the material topic and its Boundary 8

Environmental friendly products
GRI 103:
Management
Approach

Note

GRI 103:
Management
Approach103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components 19, 32
103-3 Evaluation of the management approach

Market presence
202-1 Ratios of standard entry level wage by gender51, 52compared to local minimum wage
GRI 202:
Market presence 202-2 Proportion of senior management hired from the48
local community

Anti-competitive behavior
GRI 206:
206-1 Legal actions for anti-competitive behavior, antiAnti-competitive
42
trust, and monopoly practices
behavior

96

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Annex 5 Third-party assurance statements
GRI Content Index
GRI Standard

Disclosure

Page numbers/
URL

Note

Supplier management
GRI 308: Supplier308-1 New suppliers that were screened using
environmental
environmental criteria
assessment
GRI 414: Supplier 414-1 New suppliers that were screened using socialsocial assessment
criteria

34, 3534, 35

Employment
401-1 New employee hires and employee turnover
GRI 401:
Employment47

401-2 Beneﬁts provided to full-time employees that are50
not provided to temporary or part-time employees
401-3 Parental leave

50

Training and education
GRI 404: Training
and education

404-1 Average hours of training per year per employee 54

GRI 404:
Training andeducation

404-2 Programs for upgrading employee skills andtransition assistance programs
404-3 Percentage of employees receiving regularperformance and career development reviews

Performance review and career development
51
51

Human rights, equality, and non-discriminations
GRI 405: Diversity 405-1 Diversity of governance bodies and employees
and equal405-2 Ratio and basic salary and remuneration ofopportunity
women to men
GRI 412: Human 412-1 Operations that have been subject to humanrights assessment
rights reviews or impact assessment

22, 4751
49

Freedom of association and collective bargaining
GRI 407:
Freedom of
associationand collective
bargaining

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

49

Child labor, forced or compulsory labor
GRI 408:
Child labor
GRI 409: Forced
or compulsorylabor408-1 Operations and suppliers at signiﬁcant risk forincidents of child labor50409-1 Operations and suppliers at signiﬁcant risk forincidents of forced or compulsory labor

50

Management on water and resources
GRI 301:
Materials

301-1 Materials used by weight or volume

GRI 303: Water

303-1 Water withdrawal by source

73

301-3 Reclaimed products and their packaging materials 80
74

Still using GRI
303:2016

98

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Annex 6 Feedback Survey FormThank you for reading "2019 Tatung Corporate Social Responsibility Report", and sharing
Tatung's achievements toward sustainable development. Tatung welcomes your opinions andbelieves that communication should be a dialogue. In order to present the next edition in clearer
and understandable way, please take a few minutes to ﬁll in your opinions or advices and return it
to us.
Mailing address: Health & Safety Division, Tatung Co.,
No. 22, Chungshan North road. 3rd sec., Taipei, Taiwan
E-mail：csrreport@tatung.com

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 of the stakeholders and material topics□Proﬁle of Tatung Company□Organization structure and governance□Supply chain management, product responsibility and customer services□Social performances□Environmental performances
Opinions：

三、 In what chapters do you think needed to be improved in this report?

□Top Management Statement □Identiﬁcation of the stakeholders and material topics□Proﬁle of Tatung Compan□Organization structure and governance□Supply chain management, product responsibility and customer services□Social performances□Environmental performances
Opinions：

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

102

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2019 TATUNG CSR

2019 TATUNG CSRHealth & Safety Division
Tatung Co.

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

2019/10