2016
TatungCSR ReportAbout this report

We follow GRI G4 to produce 2016 Tatung Corporate Social
Responsibility Report to present a more focused content to theneeds of the stakeholders, as well as sharing the achievements doneby Tatung in a systematical manner.

Scope

Tatung's economic, quality and service, social, and environmental
performances in Taiwan are disclosed in this report.

Reporting year

The time frame of this report is one year period. All the activities anddata disclosed are from 2015/01/01~ 2015/12/31 unless otherwise stated.

Previous reports

Tatung started to publish non-ﬁnancial report since 2002. The previous
report was published in June 2015. Previous reports can be downloadedvia:
http://www.tatung.com/en/responsibility_rp.asp

Schedule for the next report2017 Tatung Corporate Social Responsibility Report will be published inJune 2017.

Subsidiaries

The scope of this report includes the activities and performances of
Tatung in Taiwan. The sites include the headquarter, Tayuan Plant,
Taoyuan Wires and Cables Plant, Taoyuan 1st Plant and San-Hsia
Factory. The activities and performances from subsidiaries are notdisclosed in this report except for TCPC1.

Contact information
Han-sheng Chang
Environment & 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 is any
conﬂict between these two versions
or any difference in the interpretation
between these two versions, theChinese version shall prevail. Tatung
has done the best to ensure theaccuracy of this report. If there isany content in this report different tothe content provided by the related
department of Tatung The provided
content shall prevail.

Note: Part of TCPC's information is disclosed in Chapter 4.

Data measurement techniques

The numbers in economic performances were calculated with IFRSs(cited from Annual Report and presented in NTD). The numbers in socialand quality performances were gathered by related departments inthe company. The numbers (presented in international indicators) inenvironmental performances were provided by BUs and reviewed/
corrected by ESD.

GRI guidelines and veriﬁcation
The contents of this report follow the requirements of AA1000AS:2008
and Global Reporting Initiative (GRI) guidelines (G4) and have been
veriﬁed by TÜV Asia Paciﬁc Ltd. Taiwan Branch (TUV NORD). The
disclosure of this report follows "CORE" in accordance. The assurance
statement is enclosed in Annex 6.

2016

Top management statement

Corporate sustainable development and social responsibility are the two issues
that the stakeholders concern most and also are the commitments Tatung
follows since founded. We disclose our commitment and performance ofbusiness operation, product quality, service, environmental protection, andsocial participation by publishing Tatung Corporate Social Responsibility Report
every year and to communicate with stakeholders as well as to record thedevelopment of the company.
After COP 21 convention held at Paris in 2015, energy saving and carbon
reduction has become the top priority issues to deal with globally. Tatung's
CSR strategy has been set to promotion of energy saving, low carbon, watersaving products and systems and to built a sustainable environment together
with global citizens. Building up smart cities has become a global trend, fromindividual, home, enterprise, building, community to even a country all can be
optimized by IOT technology.
Hence, Tatung has been an electric equipments and household appliances
provider for the past 60 years. From 30 years ago, we also started toaccumulate information, communication and system integration experiences.
Five years ago, we and our subsidiaries have spent tremendous resources todevelop various smart solutions by using IOT, cloud computing, and big data
analysis in order to achieve goals of smart city, smart industry, health and safe
environment, smart energy management, and energy storage and monitor
system for high efﬁcient energy use. We deeply understand a goal with such
scale can not be made by a single company nor a corporation, so we expect
to follow national policies and cooperate with other partners.

TATUNG CSR

The new government's energy policy is to promote grid efficiency, reducecarbon emissions and increase the proportion of green energy. Our various
smart solutions are fully fit the energy policy. Tatung is a long live local
enterprise, should cooperate with the government to build a green energy
efﬁciency, energy saving and carbon reducing Taiwan, as well as provide theseenvironment sustainable programs to the world.
Serving the country through industry, contributing to the community, and caring
disadvantages are always our core values since founded. In past years, wehave organized many public charities and assisted disadvantaged groups. We
will keep carrying out industry-education cooperation with Tatung University
and Tatung Senior High School as well as arrange blood donation event
regularly, donate to charity groups and care about disadvantaged families.
Tatung takes great concern on corporate governance issue, we haveissued code of ethics, ethical principle, CSR best practice principles
and reported the achievements to board of directors regularly.
Tatung will be a hundred year enterprise in 2018, we are actively
involved in the building of intelligence system, acquiring ofcertifications and awards, which displays our business strategy
is on the right track. This is not only acted as the foundation ofbusiness expansion, but also benefited our country. We lookforward to the future business of this hundred year enterpriseis the benchmark of smart energy solution, is a model ofsustainable development for the environment.

Chairman

Top management statement

2016

TATUNG CSR

Table of Contents

About this report
Top management statement

CH1
CH2
CH3
Table of Contents

Chapter 1 Identification of the
stakeholders and significant
topics1.1 Identification on the stakeholders andcommunication channels
1.2 Identification of significant topics

Chapter 2 Profile of Tatung

2.1 Company profile
2.2 Financial performances
2.3 Services and products

Chapter 3 Structure andgovernance
3.1 Corporate structure
3.2 Governance

CH4

Chapter 4 Supply chain
management, productresponsibility and customer
service
4.1 Supply chain management
4.2 Product responsibility
4.3 Sales and customer service

CH5
CH6
ANNEX

Chapter 5 Social performance

5.1 Human rights and anti-discrimination
5.2 Employees' code of ethics
5.3 Employee composition, careerdevelopment and benefits
5.4 Health, safety, and disaster free
5.5 Participation and beneﬁts to the society

Chapter 6 Environmental
performances

6.1 Environment management
6.2 Energy consumption and GHG management
6.3 Resources consumption and pollutants management
6.4 Green products for a better earth
6.5 Environmental costs and conformity of regulation

Annex 3Annex 1 Subsidiaries notes toAnnex 4
Annex 5Annex 2Annex 6
Annex 7

consolidated ﬁnancial
statements
Products and services
provided by Tatung

Factories and subsidiaries participated in
3P program and Occupational Accident
Prevention Pays program in 2015
List of GRI indicators
List of UN Global Compact – The Ten
Principles
Third-party assurance statements
Feedback survey form

CH1

2016

Identiﬁcation of the stakeholders andsigniﬁcant topics

TATUNG CSR

Listening and responding to the topics that are concerned by the stakeholders is a key element for acompany to achieve sustainable development and carry out corporate social responsibility. Tatung ﬁnds
out the blind spots and gains valuable opinions by communicating with the stakeholders. The contents of thisreport are to disclose the identiﬁed signiﬁcant topics to the stakeholders.

1.1 Identiﬁcation on the stakeholders and communication channels
Tatung formed CSR Reporting Group in 2012. The members are from the top level departments in theheadquarters and the factories. The main jobs of the group are to identify the stakeholders and thesigniﬁcant topics. Tatung identiﬁes her stakeholders by her operation experiences and based on the principlethat any organizations or persons impacted by the operation of the company or any organization or persons
having impacts to the company. The process identiﬁes 7 stakeholders and forms communication channels(Table 1.1-1).
▲▲

Table1.1-1 List of stakeholders and the communication channels

Stakeholder

Governanceand ﬁnancial
performance

The investors who
support Tatung

Customers

The companies having
Product quality
business with Tatung

The most valuableassetsLabor rights, welfares

Communication channel• Regular shareholders' meeting

Communication
frequency• Once per year

• Irregular shareholders' meetings, • Irregular
direct phone line, e-mail• Customer service, PM• Irregular• Chairman's mailbox, Complaint
mechanism, schedulededucation and training, noticeboard• Irregular• Biweekly HR newspaper•Once per 2 weeks• Health and Safety Committee inthe headquarter and factories• Once per 3 months• Labor-management meeting• Once per 3 months

Local
Tatung goodcommunities
neighborhoodand parties

Pollutant emissions,interactive with local
community• Direct phone lines, social
charity/donation activities• Irregular

Authorities

Instructors of Tatung

Compliance• Audits• Irregular

Suppliers• Supplier complaint mailbox
The quality of parts
supplier@tatung.com
and products,
Partners grow together the requirements• Supplier evaluation, annuallyregarding to
re-evaluation
hazardous substances• Supplier assessment

Consumers

Chapter 1 Identification of the stakeholders and significant topics

Interested issue

Shareholders

Employees

1

Meaning to Tatung

Supporters of Tatung
products

Product safety andlabeling, leakage of
personal information• TCPC phone lines, Tatung
3C Stores, ofﬁcial websites,
satisfactory survey• Irregular• Once per year
• Once per month• Irregular

2

2016

TATUNG CSR▲▲

1.2 Identiﬁcation of signiﬁcant topics
Tatung concluded 31 possible topics that may have impacts to the stakeholders and the company basedon the operation experiences and the latest trends. The comparison between the topics and aspects listed
in GRI G4 is shown on Table 1.2-1. During the identiﬁcation process, CSR Reporting Group ﬁrstly evaluatedthe probability, the inﬂuence, and the level of impacts that brought by the topics and graded them (grade
1~5). At the same time, Tatung invited her stakeholders to complete a survey which includes the contents ofthe topics. At last, the grading from inside and outside the company were evaluated and discussed by CSR
Reporting Group and the combination grading for the topics that located on blue color region in Figure 1.2-1
were identiﬁed as the signiﬁcant topics. In order to receive opinions from wider range of stakeholders, Tatungsets up questionnaire on the company's ofﬁcial website. The data collected will be used and analyzed tothe content of 2017 Tatung Corporate Social Responsibility Report.
This year Tatung identified 14 significant topics and they covered product, social and governance, andenvironment categories. The three most signiﬁcant topics are "Marketing communication", "Governance",and "Product quality and safety". Marketing communication was identified as significant due to
Tatung opens online shopping website and runs few community web sites, therefore the way to makeadvertisement and consumer information protection becomes important this year. Energy management
has become a signiﬁcant topic, too. The reason for this is due to Tatung has made "Green Energy Tatung"as company strategy; therefore energy management has become an important topic. In addition, as a
responsible company, topics such as product, employee, and capability for proﬁt are long term concerned
topic as well. The 14 signiﬁcant topics are responded in detail in the following chapters. The relevancy of thesigniﬁcant topics in the value chain is expressed on Table 1.2-2.

Table 1.2-1 The topics and correspondent to G4 standard disclosures or aspects

TopicsCorresponds to GRI G4 standard disclosures or aspects

Financial performance

Risk management

Economic performance
Indirect economic impacts
G4-34 Report the governance structure of the organization,
including committees of the highest governance body. Identify
any committees responsible for decision-making on economic,
environmental and social impacts.
G4-56 Describe the organization’s values, principles, standards
and norms of behavior such as codes of conduct and code of
ethics.
G4-2Provide a description of key impacts, risks, and opportunities.

Global warming

Emissions

Environmental management

Overall environmental management

Energy management

EnergyAir and water emission

Emissions

Wastes management

Efﬂuents and wastes

Water and resources management

Water, materials

Environmental products

Products and services
Supplier assessment for labor practices, human rights, andenvironment

Governance
Code of ethics

Suppliers management
Compliance on environmental
regulation

Latest trends
in the world

Topic generating process
We will conduct online survey
to expand our stakeholder
groups.
Analyze thesignificance of each
topic and rank it

Invitestakeholders to fillin survey

Internal meetings,
discussion,confirmation

Identification onsustainability andsignificant topics

Significant topic decision process

Respond the topic in CSR reportsignificant topics Identification process3

Chapter 1 Identification of the stakeholders and significant topics

Compliance on environmental regulations

WelfareTraining and education, equal remuneration for women andmen
Employment

Labor-management relations

Labor-management relations

Occupational health and safety

Occupational health and safety

Education and career development

Training and education

Recruitment

Employment

Human rights and non-discrimination
Freedom of association and collective
bargaining
Forced labor

Diversity and equal opportunity, Non-discrimination

Help disadvantage groups

Local communities

Interactive with local communities

Local communities

Anti-competitive behavior
Product labeling

Anti-competitive behavior
Customer health and safety
regulations
Product and service labelingManagement of hazardous substances

Customer health and safety

Marketing communications

Marketing communications

Management of customer relations

Customer privacy

Disclosure on non-ﬁnancial information

Website, non-ﬁnancial report

Labor’s rightPast
operation
experiences

Efﬂuents and wastes

Product quality and safety

Freedom of association and collective bargaining
Forced or compulsory labor

Compliance on product

4

2016

TATUNG CSR▲▲

Level of impact to the company
5.00
4.50

Global warming

4.00
Occupational healthand safety

3.50

Compliance on environmental regulation
Energy management
Labor’s right

2

8
4

5

6

3

1

Management ofcustomer relations

Environmental products

10Social(Product
responsibility)

11
15

13

2.00

Product labeling

Air and water emission

9

7

2.50

12

1.50
1.00

Product quality
and safety
Management of hazardous
substances

Recruitment

3.00

Boundary

Marketing and communications

Governance

17

14
16

3.20

3.30

3.40

3.50

3.60

3.70

3.80

3.90

4.00

Level of concern to the stakeholders▲ Figure 1.2-1 Demonstration of significant topics

Non-signiﬁcant topics

Category
Economic

No.

Topics11

Economic
performance

13

Social(Labor practices anddecent work)

5

No.

3
5

Interactive with local
communities

6

Forced labor
Human rights and nondiscrimination
Help disadvantagegroupsAnti-competitive
behavior
Suppliers management
Disclosure on nonﬁnancial information

8
10

Wastes management

129Welfare15

16

Education and careerdevelopment

Social (Productresponsibility)

4

17

Labor-management
relations

Other

Social (Human rights)

Chapter 1 Identification of the stakeholders and significant topics

TopicsFreedom of associationand collective
bargaining
Code of ethics

1

Risk management
Environmental
management
Water and resourcesmanagement

7
Environment

Category

14
2

Table 1.2-2 The boundaries of signiﬁcant topics

Social (Labor
practicesand decent
work)

Governance

Environment

Outsideorganization

Within organization

Signiﬁcant topics

TatungSubsidiaries/
re-investmentcompanies

Suppliers

Product quality
and safety

■

■

■

Product labeling

■

–

■

■

■

–

■

–

□

■

–

–

Management ofcustomer relations

■

–

–

Recruitment

■

■

–

Labor's right

■

■

□

Occupational
health and safety

■

■

□

Governance

■

■

–

Global warming

■

□

–

Energymanagement

■

□

–

■

■

–

■

■

□

Environmental
products
Managementof hazardous
substances
Marketingcommunications

Air and water
emission
Compliance on
environmental
regulation

Note: ■ represents that Tatung having inﬂuence on all the subsidiaries and suppliers;□ represents that Tatung having inﬂuence on part of subsidiaries and suppliers;– represents not affecting subsidiaries and suppliers yet.

6

2016

CH2 Profile of Tatung Co.

TATUNG CSR

Performance summary
Capital: NTD$ 23.395 billions
Revenue: NTD$ 18.151 billions
EPS: -1.35 dollars
No. of employees: 3,406
4 Taiwan Excellence Awards
Participates in 41 associations

大同的願景
VisionInnovation for quality
以創新科技提供優質產品，Products
for energy saving,environmental
friendly, and healthy life
實現節能、環保、健康之生活，
Fulﬁllment of social responsibility as a
善盡世界公民責任
corporate
citizen7

Chapter 2 Profile of Tatung Co.

2.1 Company proﬁleTatung Company (Tatung Co. ) was funded in 1918
and formerly known as Xie Chih Business Enterprise.
The total capital at that time was Taiwan Yuan
$180,000. In 1968, the company changed her nameto Tatung Co. based on the Company Act andreleased the shares to public. As of December 2015,
the issued capital and registered was NT$23.395
billion. Tatung is listed on the Taiwan Stock Exchange(TSE) under the trading code of 2371. The brandname is TATUNG. For more details, please refer toFigure 2.1-1.
Tatung holds 3 business groups and Real Estate
Asset Management Division. To sustain strong andlong-term growth, Tatung focuses particularly on
the development of advanced technologies andglobal network of operation. With its overseas
branches expanding into 12 countries, Tatung is ina solid position to deliver products more efﬁciently
and render customer services more effectively(as shown in Figure 2.1-2). Tatung offers customers
tremendous advantages on cost, speed, andseamless backend support to stay ahead in today's
dynamic business world. Tatung specializes in the
ODM/OEM business and serves branded customers
on a global basis. In addition, Tatung takes part inmany associations and organizations (Table 2.1-1)
which related to her industries to gather the latest
information and trends.
As a conglomerate, Tatung Co's investees involvein some major industries such as optoelectronics,
energy, telecommunication, system integration,industrial system, branding channel, and asset
development. Those that are public listed on the
Taiwan Stock Exchange include Chunghwa Picture
Tubes (2475), Forward Electronics (8085), Shan Chih
Semiconductor (3579), Green Energy Technology(3519), Tatung Fine Chemicals (4738: Emerging
stock market), Elitegroup Computer Systems (2331),
and Tatung System Technologies (8099). Table 2.12 shows the main domestic subsidiaries of Tatung
Please refer to Annex 1 for the list of consolidated
entities.

Tatung received many awards and certifications
on operations and products in 2015 (Table 2.1-3).
Tatung also endorses initiatives in regarding caredisadvantaged groups and employee's health(Table 2.1-4). All these acknowledgements fromall sides are certainly the driving force behind thegrowth of Tatung.
Sales revenue (Billion NTD):
NT$18.151
Capital (Billion NTD) :NT$23.395

No. of employees:
3,406
Operation sites:• Headquarter: No.22, Sec. 3, Zhongshan N. Rd., Zhongshan Dist.,
Taipei City

• Tayuan Plant: No.102, Minsheng Rd., Dayuan Dist., Taoyuan City
• Taoyuan Wires and Cables Plant: No.106, Minsheng Rd., 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

▲ Figure 2.1-1 Information of Tatung Co.

8

2016

TATUNG CSRAssociation/organization

Member

ROC-USA Business Council
The Third Wednesday Club
Chinese International Economic
Cooperation Association
Chinese National Association ofIndustry and Commerce, Taiwan
CNS Certiﬁcation Mark Association,
R.O.C.
Information Service Industry Associationof R.O.C.
Advanced Industrial Cooperation
Association
Taipei Electrical Commercial Association
Industrial Association of Taipei City
Taiwan Telematics Industry Association
Taiwan Packaging Association
Taiwan Wind Energy Association■■

Managing
role1

■
■

■
■

■
■
■
■
■
■
■
■

■
■

▲
▲

▲
▲

Table 2.1-1 Membership status in associations and organizations
Managing
role1

Association/organization

MemberTaiwan Smart Grid Industry Association
Taiwan Information Storage Association
Taiwan Motor Industry Association
Taiwan Electrical and Electronic
Manufacturers' Association
Taiwan Environmental Engineering
Association
Monte Jade Science & Technology
Association of Taiwan
Taiwan Smart Energy Industry Association
Taiwan & Myanmar Friendship
Association Economic Cooperation
Association for the Advancement
Taiwan Institute for Climate Change
and Energy
Good Design Association, Taiwan

■
■
■

■

■

■

■

■
■

■

■
■
■
■

Note1: Managing role includes director and supervisor.

Table 2.1-1 Membership status in associations and organizations(cont.)

Association/organization

MemberIndustrial Safety and Health Associationof the R.O.C.
Chinese Institute of Engineers
Taiwan Digital Television Committee
Taiwan Industrial Technology
Association
Chinese Foundation For Digitization
Technology
Taiwan Accreditation Foundation
The Business Development Foundationof the Chinese Straits
SINOCON Industrial Standards
Foundation
Electric-Electrionic & Environmental
Technology Development Associationof R.O.C.
Importers and Exporters Association of
TaipeiManaging
role1

■
■
■
■

■

■
■
■

■

■

■

■

■

■

Association/organization

MemberTaipei Measuring Instrument
Association
Taiwan Association of Machinery
Industry
Taiwan Digital Television Committee
Taiwan Water Pipe Engineering
Industries Association
Taiwan Refrigeration and AirConditioning Engineering Association
R.O.C.
Taiwan Metal Industry Association
Taiwan Electrical Contractors
Association
Taiwan Association of Machinery
Industry
Taiwan Electric Wire & Cable Industries
Association

Taiwan Tatung Co.
Headquarter
San-Hsia Factory
Tayuan Plant
Tayuan Wires and Cables Plant

Japan

Tayuan 1st Plant(The new investmentcompany in Dubai issetting up.)Czech

U.S.A.

China

Dubai
Myanmar

MexicoThailandSingapore

Power BG

Power Equipment BU

Motor BU

Consumer BG

Advanced Electronics BU

Appliance BU

System BG

Smart Solution BU

System Integration BU

Real Estate Asset Management Division▲ Figure 2.1-2 Tatung global network

9

Chapter 2 Profile of Tatung Co.

INVESTMENTS

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.

Managing
role1

■
■
■
■
■
■
■
■
■

■

10

2016

TATUNG CSR▲▲

Optoelectronics

Table 2.1-2 The main domestic subsidiaries of Tatung

Chunghwa Picture Tubes, Ltd.
Forward Electronics Co. , Ltd.
Shan Chih Semiconductor Co. , Ltd.

Energy Solutions
Business

Green Energy Technology Inc.

Retail Channel
Business

Tatung Consumer Products (Taiwan)
Co. , Ltd.

Tatung System Technologies Inc.
Central Research Technology Co. ,Ltd.
Toes Opto-Mechatronics Co. , Ltd.
Industrial Appliance
Tatung-Okuma Co. , Ltd.
Business and System
Tatung SM-Cyclo Co. , Ltd.
Electronics &Information Business

ChemicalTatung Fine Chemicals Co. , Ltd.
Engineering Business
Asset Development
Business

Shan Chih Asset Development Co. ,Ltd.

OthersChunghwa Electronics Development
Co. , Ltd.
TISNet Technology Inc.
Shan Chih Investment Co. , Ltd.
Tatung Medical & Healthcare
Technologies Co. , Ltd.
Tatung Die Casting Co. , Ltd.
Chih Sheng Investment Co. , Ltd.

Note: The data in this report does not include subsidiaries.

2.2 Financial performances
Affected by the volatile global economy in 2015, while the management team of Tatung continues toengage in corporate and operational transformations, the overall operation failed to make proﬁts due tolosses in core businesses and investments. Regardless of the declination in industrial appliance and systemgroup businesses, crediting the efforts to reduction of costs and low-gross proﬁt production lines, the overall
gross margin remained close to that of the year before, although recognition of one-off loss was madeduring the process of adjusting the low-gross proﬁt production which led to losses in core businesses. Despite
GET's reduction of losses compared to year 2014, the recognition of proﬁts of several overseas investment
businesses from asset mobilization, and the proﬁts earned by Elitegroup Computer Systems along with otherinvestments, the losses in CPT increased compared to year 2014 which led to net loss in investments in 2015.
For more details, please refer to Table 2.2-1.
Tatung operates normally on a daily basis and accepts no ﬁnancial support from the government. For moredetailed ﬁnancial performances, please look into "Tatung 2015 Annual Report "which can be downloaded
at: http://www.tatung.com/en/f_report_year.asp
▲
▲

▲
▲

Table 2.1-3 Awards received in 2015

Award

Description

Taiwan Excellence Award 2015

DC Floor Fan, Instant hot water dispenser, JEMIC Single
Phase Smart Meter, Xper Wound Dressing,2015 Taiwan Corporate Sustainability Report Awards –Bronze Medal

Awarded for three consecutive years

2014 Brands 100 – ranked 4th in electronic industry,ranked 24 in total, ranked 8th in local brands

The survey was from consumers’ point of view to evaluate
how much inﬂuence that a brand has in daily life.

Purchased Green Power 800 thousands kw-hr

Headquarter, Tayuan Plant, Taoyuan Wires and Cables
Plant

2015 Taipei Energy Conservation Leadership Awards –Improvement Award

Headquarter2015 Taiwan Intelligent Building Association Award –Design Category Gold Award

Tatung Smart Manor

Table 2.2-1 Financial income and expense of Tatung

Item

2012

2013

2014

2015

Operating income
Realized gross proﬁt1
Personnel expenses

32,185,089
2,960,479
2,966,312
160,055

24,087,818
2,394,002
2,810,058(257,408)

21,295,466
1,846,739
2,700,133(874,725)

18,151,104
1,581,503
2,518,949(966,334)(4,200,912)(1,490,473)

1,209,308(2,107,282)

22,226(4,415,092)(1.74)
0

136,473(1,364,192)(0.70)
028,956
1,288,947
0.16
0(1,399)(3,750,958)(1.35)
0

Net income
Non-operating income
and expenses
Income tax beneﬁts
Net income after tax
Earnings per share (NT$)
Dividends per share (NT$)

Unit: NT$ Thousand / ( )represents negative values
Note 1: Personnel expenses include salaries, staff labor and health insurance, pension, and others.

2.3 Services and products
Service and product scope

▲
▲

11

Table 2.1-4 Initiatives endorsed by Tatung

Organization

Item

Chinese Blood Donation Association

Corporate blood donation

Health Promotion Administration

Smoke-free work place

Health Promotion Administration

Healthy work place

Chapter 2 Profile of Tatung Co.

Tatung holds three business groups. To sustain strong and long-term growth, Tatung focuses particularly on
the development of advanced technologies and global network of operation. With her overseas branches
expanding into 12 countries, Tatung is in a solid position to deliver products more efficiently and rendercustomer services more effectively. Global warming caused by climate change has brought risks to theoperation of the business, but also created opportunities. In view of energy saving and carbon reduction has
become the subject of global attention; Tatung is committed to the introduction of energy-saving related
products, systems and services. The three business groups offers a variety of high efﬁciency of consumer
electronics and home appliances, motors, electrical equipment and automation products, system tosmart grid, smart community and smart home (Please see Annex II for product information). Tatung's future
development priorities as follows:

12

2016

TATUNG CSR

The production values and sells information are shown on Figure 2.3-2~3.

NT$ Thousand

Optical sector

Consumer products sector

Machinery and energy sector

Others60,000,000
54,464,666
50,909,666

50,000,000

46,565,138

40,000,000

30,000,000
21,117,249
20,000,000

17,367,687
14,466,940

10,000,000
4,150,419
05,573,671

3,188,671

484,033

399,245406,645

2013

2014

2015

Note: Data from consolidate report▲ Figure 2.3-2 Tatung’s production amountPower BG
System BG
Tatung will strongly focus
on promoting systemsolutions on energy saving,
smart grid, mechatronics
systems, water treatment
projects and publicconstruction projects.

Consumer BG
Tatung will focus on developing
smart appliances integrated withenergy-saving, IoT technology
to provide better service.
Other than existing channels,
the Company will continue
to broaden partnership withon-line shopping players withdifferentiated and well-designed
products to strengthen our brand.
We will march into international
market starting with China andSoutheast Asia ﬁrst.

Power BG contributes the
majority of the Tatung's
revenue and proﬁt. For
motors and transformers,
we will focus on promoting
high efﬁciency and energy
saving models. For thosewhich the cost structures
are not competitive, we will
move manufacturing to our
subsidiaries in China andThailand. Export sales are themajor focus for continued
growth.

NT$ Thousand
60,000,000

Optical sector

Consumer products sector

Machinery and energy sector

Others57,553,252
53,993,039

50,000,000

45,336,659

40,000,000

30,000,000
24,421,043

23,615,727

20,000,000
11,129,715
10,054,574

18,898,573

15,662,725

11,942,798
11,290,607

11,271,423

10,000,000

13,035,113

12,167,691

1,107,232

296,077

2,398,338

292,846

1,983,052

599,512

Domestic

2013

ExportDomestic

2014

ExportDomestic▲ Figure 2.3-3 Tatung’s domestic and overseas sales information

Chapter 2 Profile of Tatung Co.

3,449,685
459,0360Note: Data from consolidate report

13

11,203,096

5,221,136

2015

Export14

2016

CH3 Structure and governance

TATUNG CSR

Performance summary
100% Attendance rate for Board of Directors
100% Attendance rate for
Audit Committee
100% Attendance rate forCompensation Committee

3.1 Corporate structure
The governance structure of Tatung is shown on Figure 3.1-1. The top manager is Chairman, Wei-shan Lin,and he does not have any other administrative position. Apart from the administrative divisions, Tatungis also consisted with Power BG, Consumer BG, System BG, Real estate asset management division, anddomestic/overseas subsidiaries.

Rate of independent directors 33%

Shareholders’ Meeting
Board of Directors

Training 18 times in total for membersof the board
Published CSR report for 15 consecutive years

Audit Committee
Chairman
Domestic subsidiaries

President

Overseas subsidiaries

Power BG

Consumer BG

System BG

Real Estate
GeneralFinance &AssetAdministration Accounting
Management Division
Division
Division* Power
Equipemnt
BU1* Advanced
Electronics
BU* SmartSolution BU4* Administration
Division* Finance
Division* Motor BU2* Appliance
BU3* SystemIntegration
BU* Central
Research
Institute* Accounting
Division* Public
Relation
Department

Short term
Establish principles
regarding to corporate
governance andmodify them when
receiving new requestfrom authorities.

Mid term
All the operations
follow related
governance principles.

＞＞ P17, 23

15

Chapter 3 Structure and governanceTargetLong termManagers andemployees of
Tatung Co. follow
ethical principle to
avoid breachingregulations andensuring company's
sustainable operationand performance,
as well as concerns
about social issues andpractices corporatesocial responsibility.

Operation
SupportDivision

Human
Resources
Division

Legal
DivisionManagement Environment
Information& Safety
SystemDivision
Division* Investment
Division

Note: The chart is updated to April, 2016.
Note 1: Owns Tayuan Plant and Taoyuan Wires and Cables Plant at Dayuan Industrial Park in Taoyuan City.
Note 2: Owns San-Hsia Factory in Sanxia district, New Taipei City.
Note 3: Owns Taoyuan 1st Plant in Dayuan district, Taoyuan City.
Note 4: Owns Electrical Meters Center at Tayuan Plant▲ Figure 3.1-1 Tatung organization chart

16

2016

TATUNG CSR

Tatung works closely with changing regulations
and observes the world current events to theconstruction of a sound corporate governanceframework. In recent years, we have faced serious
challenges on business; we not continue withongoing organizational and physical adjustment,
the focus of operations and integration of group
resources, but also review and revise the relevant
corporate governance approach to enhance theoperational efﬁciency of corporate governance.

Tatung governance best practiceprinciples

In order to establish sound corporate governancesystem, Tatung adopted the principles of Taiwan
Stock Exchange Corporation (TWSE) and the GreTai
Securities Market (GTSM) and published "Tatung
governance best practice principles" in 2014. The
principles are agreed by board of directors andaiming to achieve the followings:
1.Protect the rights in 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.

Tatung code of ethics

In order to guide the directors and managers of
ethical conduct, for example, prevent conﬂicts ofinterest, to avoid the chance of personal interestsand fulfill the duty of confidentiality, fair dealing,protection and proper use of company assets,
to follow the laws and regulations, to encourage
the reporting of any violations of law or ethicalbehavior and conduct of disciplinary measures,
Tatung has developed "Tatung code of ethics" andagreed by the board of directors.

Tatung ethical principle

In order to establish an ethical and soundmanagement of corporate culture development
to build up a good business mode of operation,risk control mechanism and sustainable businessenvironment, Tatung published "Tatung ethicalprinciple". The principle prohibits director,
supervisor, manager, employees, and mandataries

or persons having substantial control shall not
conduct unethical behavior. Ethical training andeducation are conducted among the mentioned
personnel regularly. Persons and companies who
have business with Tatung are invited to attend
the education to fully understand the commitment
made by Tatung.

Shareholders' meeting

Shareholders' meeting is consisted with eachshareholder and held once per year. Extraordinary
shareholders' meetings are held under exceptional
circumstances. Each shareholder has right toexpress his/her opinions to the company andinvolves in decision making with votes. Tatung
has the group which is responsible for gathering/
disclosing company's information and responding
to shareholders. Tatung also setup company's
official site to disclose the related governancenews and company activities and to act as acommunication channel between the company
and shareholders1.
Note 1: Contact window for shareholders
http://www.tatung.com/en/stock_contact.asp

Board of directors

The highest governance authority of Tatung isboard of directors. The members of the board
are listed on Table 3.2-1. Tatung Company Act
lists that the company shall have 5 to 9 membersin the board and shall be appointed for aperiod of 3 years. The shareholders shall votefrom the director candidate list at shareholder'smeeting. The number of the directors elected to
not less than 3 and not less than one fifth of thenumber of directors of independent directors.
The professional qualifications, number ofshares owned, part-time constraints, nominatedand elected way and others of independent
directors should be according to regulation andCompany Act. The information for each director
and training record is shown on Table 3.2-1 andTable 3.2-2. The board of directors manages thecompany operation performances, works hard
to maximize the benefits for the shareholders.
When there is event of conflicts of interest duringboard of directors' meeting, Tatung follows related
regulations to resolve it. Figure 3.2-1 and Figure 3.22 demonstrates age and gender distribution ofboard of directors. Five meetings were held for theboard in 2015, the detail is shown on Table 3.2.3.
Table 3.2-4 shows major resolutions of the board of
directors.

Name

Nationalityor
corporate
seat

Mr. Wei-shan
Lin

Republicof China(Taiwan)Ms. Wen-yen
K. LinRepublicof China(Taiwan)Mr. Wei-tungLin

Republicof China(Taiwan)Mr. I-hua
Chang

Mr. Lung-ta
Lee

Representativeof TatungUnviersity
Representativeof Tatung
University
Mr. Huo-yen
Chen

Republicof China(Taiwan)Republicof China(Taiwan)▲▲

3.2 Governance

Table 3.2-1 List of board of directors and functional committees

Title

Audit Compensationcommittee committee

Job title assumed in the Company and any other company

Chairman

Chairman of Chunghwa Picture Tubes, Ltd. Chairman of Forward Electronics Co., Ltd. Chairman of
Shan Chih Semiconductor Co., Ltd. Chairman of Green Energy Technology Inc., Chairman of Tatung
Consumer Products (Taiwan) Co., Ltd. Chairman of Shan Chih Asset Development Co., Ltd. Chairmanof Tatung Fine Chemicals Co., Ltd. Chairman of Toes Opto-Mechatronics Co., Ltd. Chairman of Tatung
SM-Cyclo Co., Ltd. Chairman of Chunghwa Electronics Development Co., Ltd. Chairman of Tatung
Die Casting Co., Ltd. Chairman of Tatung Medical & Healthcare Technologies Co., Ltd. Chairman of
Shan Chih Investment Co., Ltd. Chairman of Tatung Company of Japan, Inc. Chairman of TatungElectronics (Singapore) Ptd. Ltd. Chairman of Tatung Electric (Singapore) Pte. Ltd. Chairman of Taiwan
Telecommunication Industry Co., Ltd.

Director

President of Tatung Company, Chairman of Tatung System Technologies Inc. Chairman of Tatung
Information (Singapore) Pte. Ltd. Chairman of Tatung Mexico S.A. de C.V., Chairman of Tatung Czech
s.r.o. Chairman of Elitegroup Computer Systems Co., Ltd.

Director

Direct of Tatung Industry Company.
Chairman & President of Shan Chih Asset Development Co., Ltd. Director of Tatung Industry Company
Director of Cheng Sheng Broadcasting Corp. Director of Chunghwa Electronics Development Co., Ltd.
Chairman & President of Chih Sheng Realty Co., Ltd. Director of Kuender Co., Ltd.
Director & President of Shan Chih Semiconductor Co., Ltd. Director of Tatung Fine Chemicals Co., Ltd.,
Director of Green Energy Technology Inc., Chairman of Greater Power Ltd. Director of Tatung Companyof Japan, Inc. Director of Phecda Technology Co., Ltd. Chairman & President of Chih De Investment
Co., Ltd. Chairman of Ultra Energy Holdings Ltd. Chairman of Ultra Energy (Weifang) Technology Co.
Ltd. Chairman of Shang Chih International Chemical Industry Co., Ltd. Chairman of Huaian Tatung
Advanced Technology Materials Co., Ltd. Chairman of Wujiang Shanghua Material Technology Co.,
Ltd. Chairman of Wujiang Shang Huah Plastic Co., Ltd. Chairman of Dongguan Tongli Trading Co., Ltd.
Director of Chih Sheng Investment Co., Ltd. Director of Chunghwa Electronics Development Co., Ltd.

Director

Director

Republicof China(Taiwan)Director–

Republicof China(Taiwan)Director

President of Tatung High School

Republic
Independentof China
Direct(Taiwan)Republic
Mr. Tzong-der
Independentof China
Liou
Direct(Taiwan)Republic Independent
Mr. Chi-ming
Directorof China
Wu(Taiwan)Mr. Peng-fei
Su

○

○

Senior Vice General Manager in Investment Department, Cheng Ye Assets Management Co., Ltd.
Independent Director, San Chih Semiconductor Co., Ltd. Independent Director, Vectorite Biomedical
Inc.

○

○

Professor, College of Law, National Chengchi University, Director of Taiwan Administrative Law
Association○○

Associate Professor, Department of Finance, National Chengchi University, Independent Director, TSC
Auto ID Technology Independent Director, Ennoconn Corporation

Male
1

6

Chapter 3 Structure and governance

50~60
Over 60

2

8▲ Figure 3.2-1 Genders

distribution of the board of directors

17

Under 50

1

Female▲ Figure 3.2-2 Age distribution of

the board of directors

18

2016

TATUNG CSR▲▲

Audit committee

Table 3.2-2 Training record of board of directors

Directors

Training category

Hours

Wei-shan Lin

CSR

6

Wen-yen K. Lin

CSR

6

Wei-tung Lin

CSR, Management

6

I-hua Chang

Law, CSR

6

Lung-ta Lee

CSR, Law6

Huo-yen Chen

CSR

6

Peng-fei Su

Law, Management

6

Tzong-der Liou

CSR, Governance6

Chi-ming Wu

CSR, Management

6

▲
▲

Name

Attendance Attendance Attendancein personby proxyrate (%)

Notes

Wei-shan Lin

5

0

100

Director

Wen-yen K. Lin

5

0

100

DirectorI-hua Chang

4

1

80

Actual attendance rate:100%

Director

Wei-tung Lin

4

1

80

Actual attendance rate:100%

Director

Lung-ta Lee

4

1

80

Actual attendance rate:100%

Director

Tatung University /Huo-yen Chen

5

0

100

Independent Director Peng-fei Su

5

0

100

Independent Director Tzong-der Liou

5

0

100

Independent Director Chi-ming Wu

5

0

100

The board of directors also has Audit Committee(functional) which is responsible for oversight of theCompany Act, Securities and Exchange Act, and suchother related laws and regulations. Table 3.2-5 shows
the status for the attendance of Audit Committee
members.

Compensation committee

The Compensation Committee is responsible forapproving the Compensation Committee Charter for
intensifying corporate governance and consolidating
the director and executive compensation programs.

Table 3.2-5 Status for the attendance of Audit Committee (functional) members

Title
Independent Director
Independent Director
Independent Director▲▲

ChairmanName
Peng-fei Su
Tzong-der Liou
Chi-ming Wu

▲
▲

▲
▲

The board of directors resolved to convene the 2015 Regular Shareholder's Meeting.

2015.05.05

Directors' resolved no dividend distribution in year 2015.

Job title/ Name

Attendance by proxy000

Attendance rate (%)

100
100
100

Attendance in person222

Attendance by proxy000

Attendance rate (%)

100
100
100

Table 3.2-7 Remuneration paid to directors in 2015

Remuneration to directors
Remuneration allocatedBusiness execution expenses
Remuneration
Retirement pension
from earnings
All companies
All companiesAllcompaniesAllcompanies
The
The
The
The
included in Financial
in Financial Company included in Financial Company included in Financial Company
Company included
statements
statements
statements
statements

13,559-14,459
600
60

-

-

-

100
-

120
120
120
120

2,494
2,970
270
270
600

-

-

-

-

-

-

120

120

Independent-Director
Peng-fei Su

3,200

3,632

-

-

-

-

-

-

Independent-Director
Tzong-der Liou

2,620

2,620

-

-

-

-

-

-

Independent-Director
Chi-ming Wu

2,400

2,400

-

-

-

-

-

-

Director/ Wen-yen K. Lin
Director/ I-hua Chang
Director/ Wei-tung Lin
Director/ Lung-ta Lee
Director/ Huo-yen Chen
(Representative of Tatung
University)

Chapter 3 Structure and governance66
6

Unit: NT$ Thousand

Major resolutions

2015.03.24

Attendance in person

Table 3.2-6 status for the attendance of Compensation Committee members

Title
Independent Director
Independent Director
Independent Director

Chairman / Wei-shan Lin

19

Name
Peng-fei Su
Tzong-der Liou
Chi-ming Wu

Table 3.2-4 Major resolutions of the board of directors

Date

In regarding to the Board's performances, Tatung
evaluates the performances in accordance to"Corporate governance self-evaluation indicators"
and reports the results to Audit Committee (functional).
Tatung authorizes the board of directors to determine
the directors' traveling expenses and remuneration
based on the contribution to the operations of theCompany with reference to the domestic and outside
the industry standards agreed (shown on Table 3.2-7).
The president, vice president and associate adhere
to the orders of the Board to deal with the company's
business. The appointment, dismissal and remuneration
are following the Companies Act. Allocation of
rewards such as the company has a surplus, and theother in accordance with the provisions of Company
Article 24.

Audit Committee (functional)

▲
▲

Title

Table 3.2-3 The status for the attendance of directors

Table 3.2-6 shows the status for the attendance ofCompensation Committee members.

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

Note: Please refer to 2015 Tatung Annual Report page 17-18 for completed data. 錄結果，詳細情形請見大同公司 104 年年報第 17-18 頁。

20

2016

TATUNG CSRInternal control system and internal
control committee

The mission is to:
1. Ensure the enforcement of company policies andrules.
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 aboutsales, production, purchasing, materials, engineering,
personnel and research and development. Tatung
follows "Regulations Governing Establishment ofInternal Control Systems by Public Companies"
proclaimed by Financial Supervisory Commission,
dividing the business operations to Sale and receipt
cycle, Purchase and payment cycle, Production cycle(environment, health and safety issue included), Labor
and wage cycle, Finance cycle, Fixed asset cycle,
Investment cycle, and Research and development
cycle, as well as setting out the management controls
for data access and other activities. Tatung monitorsand controls the system and operation procedures

Risk management

Internal control system is not only practiced in Tatung
but also practiced among Tatung's subsidiaries. The
subsidiaries are graded into different levels according
to their scales. Different levels have different audit
frequencies.

Category

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 andsafety), ISO9001 (quality) and others. The factories
follow the procedures of the management systems toreview and update the related 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 also announce thelatest and related regulations to the employees by
publishing on the internal website and/or throughe-mails. In this way, the employees will gain theknowledge of regulations and avoid breaching themat work.

When facing on rapid changing business environment and climate change, Tatung assigns responsible
departments to process risk assessment on signiﬁcant topics. Table 3.2-8 shows Tatung's risk and counter measures.
▲▲

In order to promote the effective operation andethical management of the company, Tatung
established "Internal Control System".

continuously by carrying out the internal auditing andreview meetings of Internal Control Committee. Such
practice can enhance the internal control systemand optimize the efﬁciency of corporate governance.
Figure 3.2-3 shows the organization of Tatung internal
control committee, Figure 3.2-4 shows Tatung internal
control system statement.

Marketinternal control committee▲ Figure 3.2-4 Tatung internal

control system statement▲ Figure 3.2-5 Regulation promotions on internal

website

Chapter 3 Structure and governance

MeasureChanges inpolicies andlaws• The Company carefully monitors any changes in local and foreign policies and makes appropriate
adjustments in the Company's internal control system and operations when necessary. The Company's
R&D units and ﬁnancial department continues to avail of and seek various investment incentives, such as
tax credit, granted by the Ministry of Economic Affairs and other government agencies.

Concentration The company will diversify its customer base in order to reduce the concentration of sales.
of salesConcentration The company will arrange for alternative sources for purchase in order to reduce the concentration ofof purchasepurchase.
• Continue to run environmental management system to elevate environmental performance.
Environment• Conduct "Pollution Prevention Pays" program and internal control system to prevent the violations ofregulation.
Environment/• Continue to run occupational health and safety management system to elevate health and safety
health andperformance.
safetyHealth and• Conduct "Disaster Prevention Pays" program and internal control system to prevent the violations ofsafetyregulation.
• Conduct monitoring on operation site, job safety analysis and establish safety S.O.P.
CarbonConduct GHG emission inventory and energy saving projects.
emission
Climatechange21

Item• Tatung states that the employees are prohibited to perform malpractices or accept gifts of others inregarding to their jobs on company rules, ethical corporate management best practice principles,and business ethics statement for group employees. Tatung also establishes rigorous and effective
accounting system and internal control system to prevent bribery and acceptance of bribes, illegal
campaign contributions.
EthicalNon-ethical• The Company has established effective accounting and internal control systems for ensuring themanagement behavior
implementation of policies, and the internal auditors formulate annual audit plans based on the results of
the risk assessment and report to the Board its audit report.
• The company has a mechanism of processing employees' complaints for employees' unethical conducts.
The company maintains secrecy and inspects the reported contents as well as protects informants' rights
and interest.
• With the mass demand for energy efficiency & carbon reduction technique to cope with global
warming, Tatung has developed deep technical foundation, kept putting efforts on research &development, and expanded the business of key products as well as system aggressively in smart grid toensure its technology and market leading position in domestic electricity generation, power transmission
Changes in& distribution and energy management.
techologies on• Tatung has strived to develop high-quality green home appliances with health, environment protection,
Operation
the ﬁnancial
energy saving and high efﬁciency concepts to increase the sales performance and proﬁt.
position and• With the advent of the digital era, Tatung focuses on developing visual products, such as LCD TVs andoperation
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.
• Derivatives can be used as a hedge against interest rate ﬂuctuations for the Company's long-term debts.
• When considering mid to long-term bond issues, the Company carefully sets its target interest rate toInterest rate
lower its interest rate risks as much as possible. For example, the Company's offshore exchangeable
corporate bond issue offers a ﬁxed interest rate, while its domestic secured convertible bond offers a zero
coupon rate. secured convertible bond offers a zero coupon rate.
The Company has a natural hedge against currency fluctuation as its business involves imports andFinance
exports. It also utilizes derivatives to hedge the remainder of its foreign exchange position that is exposed to
Exchange rate currency exchange risks. The management of risks involving such derivatives are set forth in the Company's"Operational Procedures for Derivatives Treading." The Company also has an internal control system tosupervise the loss limit of foreign currency transactions.
The Company engages in derivative trades, such as operational hedging of foreign exchange, for the
Derivatives
sole purpose of lowering its ﬁnancial risk and conducts all transactions in accordance with the Company's
treading
internal control procedure.
Legal▲ Figure 3.2-3 Structure of

Table 3.2-8 Risks and counter measures of Tatung

Water resource Promote water saving projects.
Loss fromdisasters

Tatung makes property insurance (all risk type) to transfer the risks. Tatung also requests engineers toprovide improvement recommendation for the potential ﬂooding areas. The factories then enhance theirpreventing plans to reduce the level of losses.

22

2016

TATUNG CSR

Corporate social responsibility
CSR policy and management

司

大同公

『企

FR

UG

IN

AL

DU

E
NT

ITY

I

Y
R
T
S

HO

NE

G

所
為本，
勤儉』 準則』
誠
正
以『
行為
履
經營應
『道德
責任之
公司之 遵守本公司
● 本
社
保 會
須
確
均
，
有人員
守則』
信經營
與『誠
謀利
為股東
所託， 善之公司
行。
東
股
記
完
員應謹
。經由
。
公司人 司永續經營
續價值
● 本
永
司
公
公
利
升
以
提
益，
積極
減碳，
構，以
、節能
治理架
境保護
環
動
擊。
積極推
態之衝
公司應
，並
● 本
環境生
然
自
勢家庭
對
體與弱
以降低
任。
團
責
福
業社會
關懷社
企
續
盡
持
善
以
司應
人
● 本公
活動，
育公司
與公益
作，培
合
積極參
學
行產
持續進
公司應
● 本
。
植產業
才與扶

TY
I
R

ST

Y

Tatung yet to be established "CSR Committee",
General Administration Division is responsible forpromoting and managing the current issues related
to corporate social responsibility. The results andperformances will be reported to board of directors
regularly.

Disclose on non-ﬁnancial information

In order to actively and effectively disclose company
information and show the achievements in sustainable
development, Tatung followed GRI (Global Reporting
Initiative) framework and started to publish "Tatung
Corporate Environmental Report" since 2002. Startingfrom 2008, the environmental report was renamed to"Tatung Corporate Sustainability Report" due to thebalance of disclosed information. From 2015, with therequest from the authority, we once again changed
its name to "Tatung Corporate Social responsibility
Report".
Tatung will publish corporate social responsibility reportin June every year to be in accordance with our CSR
best practice principles and the request by authority
to disclose Tatung's performance in the economic,
social and environment. The report works as a toolfor communicating with stakeholders. Tatung also
encourages her subsidiaries to issue corporate social
responsibility report. Currently CPT and GET also issue
their corporate social responsibility report every year.

◎ Renamed to Corporate◎ Rename to Corporate Social

Sustainability Report2002◎ First time published non-financial report (Corporate
Environmental Report)

2008

Responsibility Report

2012

2015

◎ First time introduced

third-party to verify thecontents

Note: Previous reports can be downloaded here:
http://www.tatung.com.tw/Content/csr-report.asp?ids=2▲ Figure 3.2-6 Evolution of CSR report

23

Chapter 3 Structure and governance

政策』

責任
業社會

Established in 1918, the foundation of the company isbuilt on four fundamental values – integrity, honesty,
industry, and frugality. They are represented as
the essence of the company's commitments to ourstakeholders. Mr. T. S. Lin, Chairman Emeritus of thecompany further extended the precepts behindthese core values to serve as the guidelines for thecompany's continued success and prosperity. To
be able to fulfill corporate social responsibility andcontribute to the progress of economy, environment
and the community, Tatung set "Tatung corporatesocial responsibility best practice principles" tomanage the economy, environment and social risks
and impacts in 2014. The principles act as guidance
for implementing corporate governance, sustainable
development and the environment, the maintenanceof social welfare, strengthening CSR disclosure.

Industry-educationcooperation

Shareholder
responsibility

To cultivate young engineering
talent and to lend efforts toresearch and development
through cooperation between
the company and TatungHigh School 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 theteaching. As a responsible
corporate citizen, Tatung
regards its dedication toeducation as a manifestationof long-term commitment tosocial well being.

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

Employeeharmony

Customersatisfaction

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.

To re-invest proﬁts
in pursuit of better
product quality so as
to create value for ourcustomers.

24

CH4

2016

Supply chain management, productresponsibility and customer service

TATUNG CSR

Performance summary

Suppliers sign back commitment letter 99.90%
Suppliers monthly assessment A grade 95.58%
Suppliers annual re-evaluation A grade 95.16%
100% of factories with ISO 9001

6 TAF certiﬁed laboratories

2 violations againsted product labeling regulation

0 violation againsted productregistration regulation

Repair satisfaction 97.09%
0 violation from advertisement or
promotion activities
0 complaint about information
leaking from the customers

Supply chain management

100% new suppliers sign back supplier commitment letter.

Product responsibility

1. Continue to run

ISO 9001：2008 in thefactories and passcertiﬁcation.

2. Continue to run

ISO/IEC 17025 intesting labs and passcertiﬁcation.

>> P304. All products willpass tests then can
produce and sale.

5. Strengthen quality

control in supply
chain, also conduct
DFMEA/PFMEA andincorporated into
Design Guideline
Check List.

Product labeling

1. Label the products with regulation>> P33

Sales

avoid againsting violation upon sales>> P35

Customer management

1. Continue to manage customer
information in accordance toregualation>> P36

Chapter 4 Supply chain management, product responsibility and customer service>> P27

3. Design andmanufacturewith national andinternational standard
and pass certiﬁcation.

>> P30

1. Aware of change in regulation and

25

Target

6. Upholds customer ﬁrst,
total participation,
the six fundamental
powers to raise
product quality.

2. Establish feedback and anti-recurrence
mechanisms

2. Maintain online shopping platform andestablish auto correction measure>> P35

2. Satisfaction above 92% for repair
service>> P3626

2016

TATUNG CSRManagement

Tatung believes that with good relationship withdecent suppliers can make sure getting highquality parts/products to raise productivity to share
the benefits to the customers around the world.
Hence, Tatung has "Supply Chain Management
Method" to select and manage suppliers. As for the
management of suppliers in the subsidiaries, Tatung
conducts internal control to audit the management
performance on suppliers in the subsidiaries.
Good quality, competitive price, on time delivery,and service are the ﬁrst consideration when Tatung
purchases raw materials, parts and products. Tatungalso 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 4.1-4.
Meanwhile, in order to maintain excellent productquality, Tatung requests suppliers to use brand newmaterials in providing main materials, parts, andproducts.
In addition, Tatung requests suppliers to fulfill
corporate social responsibility together by asking
suppliers to sign a commitment letter, which includes
health and safety, environmental protection, humanrights, freedom of association, child labor, forcedlabor topics. The commitment letter is a must havedocument to become Tatung's supplier. Tatungstarted to enforce this policy in 2015 and 99.9% ofsuppliers had signed back the commitment letter.
Only 0.1% did not sign back the commitment letter
due to they are military authorities. Tatung willcontinue this policy and expect all the suppliers
signing back the commitment letter.

supplier audit process. Tatung will consider fully into
each business group.

Supplier introduction and evaluation

Tatung groups her suppliers into four categories;
each category has its own evaluation standard.
The introduction of the new supplier in Category
I requires on site assessment by evaluation team.
The assessment content mainly includes design,technical capabilities, quality management,
manufacturing capabilities and management
capacity. The introduction of the new supplierin Category II requires only document review.
For construction category, the introduction of
the new supplier requires on site assessment. In
addition, Tatung also evaluates the managementof hazardous substances (RoHS and REACH),
conducting safety measures for hazardous job, andimplementation of environmental management
system as an extra evaluation for introduction of a
new supplier. The detailed management measures
are shown on Table 4.1-1 and Figure 4.1-2. The
supplier with assessment result above B grade canthen be introduced. All suppliers are requested tosign procurement contract and commitment letter.

0.79%

0.58%

▲
▲

4.1 Supply chain management

Table 4.1-1 Category of suppliers and introducing procedures

Category

Classiﬁcation criteria

Category I

1. Important materials (parts, components, halfready products, and products).
2. ODM/OEM
3. Outsourcing (including full case, manufacture
only, product only).
4. Signiﬁcant to product quality that need intensive
management and tutoring.

Category II

1. Suppliers, who provide raw materials, ready to sale 1. Document review
Monthly assessment1
products, imported components, with less quality 2. Sign procurement contract
risks.
3. Sign commitment letter
2. Suppliers who are world famous company with
top capability in product and QA/QC.

Management

1. On-site assessment
1. Monthly assessment1
2. Sign procurement contract 2. Annually re-evaluation2
3. Sign commitment letter

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

1. On-site assessment or
Evaluation after the casedocument review foris completed
existed cases
2. Sign procurement contract
3. Sign commitment letter

Others

1. Sign procurement contract Monthly assessment1
3. Sign commitment letter

1. Suppliers who provide ofﬁce appliances, hardwares, software, waste disposal, veriﬁcation, etc.
2. Suppliers who provide instruments or equipments.
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.

2.70%

1.43%

Taiwan

2.23%

China

Supplier

R&D

Providesample forinspection

Qualified

QA/QC
Procurement (CSR issues
included)

BU top
Manufacture management

SCMD

SCMD

Hong Kong(by numbers)
92.27%U.S.
Japan

Qualified
On-siteassessment

OthersTatung as well as includes honest terms and humanrights issues in suppliers' contract. At the moment,
Consumer BG has included CSR-related issues into

Evaluation
based ondocument
review andon-siteassessment

Include into
file andmanagement

Note: The management process of Consumer BG▲ Figure 4.1-1 Sources of suppliers in 201527

Introducing procedure

Chapter 4 Supply chain management, product responsibility and customer service▲ Figure 4.1-2 Supplier management process

Monthlyassessment

Annually
re-evaluation

28

2016

TATUNG CSR

3.18%

1.24%
Grade A
Grade B
Grade C and D
95.58%▲ Figure 4.1-3 Result of supplier monthly assessment in 2015

Quality management
Product quality and safety is the keystone ofsustainable operation for a company. By providing
high quality and safe products can build the brandimage, enhance competitiveness and create highproﬁt, low-risk business model, and achieve a winwin situation for consumers and company. Basedon this philosophy, the products and factories of
Tatung have established ISO 9001 and passed theveriﬁcation, as shown in Table 4.2-1. The system can
implement standardization, deviation reduction,
as well as a tool to pass down the knowledge andexperiences internally. In addition, they system canenhance the management capability, productquality stability, reduce product defect rate andreduce complain. The system can also enhance
confidence of customers, thus expanding themarket and enhancing competitiveness.
Other than the management system, Tatung
has Calibration Lab and Tatung Environmental
Research Center in headquarter. These twolaboratories provide accurate measuring andcalibration test services and hazardous substances
testing service. Other than these, Tatung has
Transformer Testing Lab, Switchgear Testing Lab, Air
Condition Facility Testing Lab, and Motor TestingLab in the factories (as shown in Table 4.2-2) toprovide the assurance of excellent quality.

Taoyuan 1st Plant
San-Hsia Factory

Tayuan Plant

TaoyuanWires and Cables
Plant

Grade B
Grade C
95.16%▲ Figure 4.1-4 Result of supplier annually re-evaluation in 2015

Chapter 4 Supply chain management, product responsibility and customer service

TAF certificates

Table 4.2-1 Tatung product acquired ISO 9001

Factory

Registered productISO 9001:2008 → Window mounted air conditioners, separated type air conditioners, dehumidiﬁers,
box shaped air conditioners, water cooling central air conditioning systems, rice cookers, electric
fans, refrigerators.
ISO 9001:2008 → Generators (less than 10,560KVA), electrical motors (500HP and above),electrical motors (less than 500HP).
ISO 9001:2008 → Oil-immersed transformers (below and including 345KV), Oil-immersed reactors(below and including 345KV), Oil-immersed potential & current transformers (below
and including 69KV), Dry type transformers (below and including 36KV), Dry type reactors (below
and including 36KV), Cast resin dry type transformers (below and including 36KV), Cast resin dry
type potential & current transformers (below and including 36KV), High voltage & low voltage
metal-enclosed switchgear & control gear (below and including 72.5KV), Metal-clad switchgear(below and including 36KV), Motor control center (below and including 15KV), Metal-enclosed
low voltage power circuit breaker switchgear(below and including 600V), Distribution board(panel) (below and including 600V), Rectiﬁer (below and including 600V), Amorphous metaltransformers (below and including 36KV), Gas insulated switchgear, Capacitors, Watt-hourmeters.
ISO 9001:2008 → Power wires and cables (including cross-linked polyethylene insulated shielded
power cable rated 161 KV and below), bus-way, electronic wires, telecommunication wires
and cables, optical ﬁber cables, bare copper wire, enameled copper wires, tinned single solid
copper wire.

0.00%
Grade A

29

ISO9001 certificates

▲
▲

4.84%

4.2 Product responsibility▲▲

For suppliers who already cooperate with Tatung
are implemented monthly assessment in aspect of
quality, delivery, price, and service (Figure 4.1-3).
Any non-conformity will be requested to correct.
Another annually re-evaluation is periodically
implemented for main components suppliers, listed
component suppliers, and outsourcing suppliers.
Tatung wishes the suppliers who collaborate withus can grow together. As for the safety of theservice-providing suppliers(construction, waste
disposal, repairing) who operate in the factories
and subsidiaries, Tatung implements "Tatung Healthand Safety Management Method for Contract
Suppliers" to reduce the risk from accidents.

Name of laboratory andcertiﬁcation number

Register date
1993.12.09
1993.12.14

1994.08.03

1994.07.23

Table 4.2-2 TAF certiﬁed laboratories in Tatung
Testing item

Calibration Lab
Measuring and calibrating of products
L0003-120207
Tatung Environmental Research Center Waster quantities and quality, hazardous substances of electric and electrical
L1697-131009
products
Tatung Transformer Testing Lab
Transformer testingL2306-130411
Air Conditioning Facility Testing Lab
Cooling capacity and EER of air conditioners
L2270-140417
Tatung Switchgear Testing Lab
Switchgear testingL2308-140316
Tatung Motor Testing Lab
Motor testing
L2613-120701

Date ofcertiﬁcation
1990.06.01
2007.10.24
2010.12.27
2011.01.20
2011.03.23
2012.07.01

30

2016

TATUNG CSR

Product safety and labeling
Product safety

Most of the countries make the laws and regulations
in regarding to product's quality and safety in orderto protect their citizens. Brand owners must pass
all the tests and acquire certifications then can
put their products into markets. In order to comply
with related regulations among the world, Tatung
designs and manufactures the products (including
ODM/OEM products and accessories) to meetthe requirements of the regulations. Before bulk
production, the samples must pass the tests andmanaged 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 and veriﬁcation internationally adopted
by TatungIn addition, for the defected products from thedesign 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 2015, noviolation occurred against Regulations Governing
Registration of Product Certiﬁcation.
▲▲

Business
groupStandards, certiﬁcations, andveriﬁcations acquired
CNS Standards, China Compulsory
Certiﬁcation, Canadian Standards, American
Power BG Safety Standards, ETL Veriﬁcation, EU Network
System Veriﬁcation, Japan PSE Certiﬁcation,
Green Mark, etc.
ANSI International Certiﬁcation, IEC
System BG International Certiﬁcation, DLMS/COSEM
Conformance, etc.
CNS Standards, China Compulsory
Certiﬁcation, American Safety Standards,
U.S. Federal Communications Commission
Consumerfor Telecommunications, Product Inspection
BG
Label from BSMI, Japanese Emissions Control
Standards, Green Mark, Energy Label, Water
Label, etc.

31

NG

Product researchand develop

Sample making
and testing

Review thetest result fromsampleNG
Pass

Review
before mass
production

Sample making
for certiﬁcationand veriﬁcation
before mass
production

Mass production
and release onto
marketMonitor the qualityof product on themarketPass

Research stage
trial-run,veriﬁcation andcertiﬁcation offunction andreliability

NG
Pass

Review for preproduction

Note 1: BSIM ofﬁcial website
http://www.bsmi.gov.tw/wSite/xslgip/chinese/index.html
Note 2: TCPC ofﬁcial website
http://tcpc.tatung.com▲▲

Table 4.2-3 Standards, certiﬁcations andveriﬁcations acquired by Tatung

Tatung has 4 types of re-called products, thedetails are in follows：★ The pc board is likely to be damaged forwindow type air conditioner with model number
TW-252DCN due to water could go into air
conditioner along power cord. TCPC has maderecall on ofﬁcial site and offered free inspection
service;★ Dehumidifiers (with model numbers TWD-500B,
TWD-510B, TWD-511B, TWD-711B, TWD-710B,
TWD-660B, TDH-200HB, TWD-1400B, and TWD1400BL, as shown in Figure 4.2-1) are recalledsince 2007 due to one defected part provided
by a supplier. Such defected part will cause
unexpected accident while the machine isrunning. Consumer who has these particularmodels, please make a phone call to Tatung or
TCPC and the specialist will visit your place forservice free of charge;★ One of the fluoresced lamps (Model: LS3U21WD) (Figure 4.2-2), batch number 0904,
0905 and, 0906, is recalled due to parts problem.
All the consumers will have the defected lamp
replaced with a new one when they bring thedefected one to any of Tatung 3C Stores;★ Two models of electric water boilers (TLK-52Y
and TLK-56Y) with the production number liston Table 4.2-4, some parts has quality issue andthe customers can take the boiler to TCPC toreplace the part for free of charge.

Table 4.2-4 The water boilers that need to beinspected and replaced part

Model No.

TLK-52Y

TLK-56Y

Production No.

3AY7094*****

3AY8094*****

Production No.

3AY7097*****

3AY8097*****

Production No.

3AY7098*****

3AY8098*****

Chapter 4 Supply chain management, product responsibility and customer service

Correct thedefected partand prevent reoccurrence

32

2016

TATUNG CSR

TWD-500B

TWD-510B

TWD-511B

TWD-711B

TWD-710B
光觸媒
抑菌

TWD-660B

TWD-200HB

TWD-1400B

TWD-1400BL▲ Figure 4.2-1 Dehumidifiers that need to be recalled▲ Figure 4.2-2 Fluoresced lamp that

▲ Figure 4.2-4 TCPC provides product information and manual on the official website

need to be recalled

Tatung has responsible department in each BU for the management, review, and monitor of productlabeling issue, as well as takes part in BSMI market survey to ensure the correct labeling.

Product labeling

In order to let consumers use products safely, correctly, and avoiding safety issue due to incorrect
operations, BSMI announced guidelines for electrical product labeling. Tatung follows the guideline andlabel 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 4.2-3). Such information is also provided on TCPC ofﬁcial website (as shown on Figure 4.2-4).

Label of sustainability on products and services
Yes

No

Manufacturer, ODM/OEM, importer√—

Hazardous substances√—

Safety instruction√—

Disposal treatment√—

Although Tatung has put lot of efforts on product labeling, unfortunately, there were still two violations (hairdrier and BBQ griller, see Table 4.2-5) in 2015. The violation for hair drier was the size of "caution water" label
did not meet standard. The violation for BBQ griller was due to Tatung labeled importer/manufacturer as"Tatung" instead of separately label them. Tatung immediately corrected these mistakes after informed by
BSMI, as well as made these violations as case study to avoid re-occurrences.
▲▲▲ Figure 4.2-3 Product labeling and instruction (e.g. hair drier)

33

Chapter 4 Supply chain management, product responsibility and customer service

Table 4.2-5 Violations against labeling regulation in 2015

Product

Violation

Fine NTD$

Corrective measure

Hair drier TFS-D1000S

The size of "caution water" label
was smaller than standard.

0

BBQ griller THP-100S

Did not label manufacturer/
importer.

0

1. Correct label immediately.
2. Make these violations as case study to avoid
re-occurrences

34

2016

TATUNG CSR

4.3 Sales and customer service
Anticompetitive behavior

The commercial advertisements and promotionthat made by Tatung are all complied with theregulations. There was no violation against theregulations regarding to advertisements and onsale promotion in 2015. Besides, Tatung requests
her dealers to avoid malicious price competition
behavior or intent to harm the image of Tatung
Tatung also encourages the employees toparticipate in seminars regarding to anti-trust andfair trade topics.

Management on customer informationand satisfaction

survey which will be used for future improvement.
Figure 4.3-2 shows the flowchart of Tatung online
service. To extend the channels for listening to
the customers, Tatung also provides an online
feedback service 3 which customers can ask
questions, express their opinions and give positive
feedbacks to Tatung and TCPC (Figure 4.3-3).

Tatung follows regulations to protect the
information that customers provided during
purchasing or servicing. The information will not
be delivered to other organizations without having
consent from the customers. In order to enhance
information security, Tatung established associatedmanagement system and passed ISO/IEC 27001.
There was no complaint about information leaking
from the customers in 2015.

註 1：http://www.tatung.com/Customer/Index?langCN=TW
註 2：http://tcpc.tatung.com/Service/Repair01
註 3：http://tcpc.tatung.com/Contact/Create▲ Figure 4.3-1 Product online service form

Wide-spread service locations andconvenient 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 forall 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" to provide
a comfortable shopping environment as well as
excellent after-sale services to consumers. TCPC
has 238 Tatung 3C Store spreading from cities tocountries, 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, living room and makeup. Besides, Tatung runs a fan site on Facebook toprovide instant news and living tips.

各門市

小家電

原送件門市／
大同服務中心通知取回

各地大同服務中心專人聯繫服務時間

線上叫修

大家電

到府維修

客服中心 0800-052-666 全台大同3C門市 也可代為叫修▲ Figure 4.3-2 Flowchart for online service

98.00%
96.00%
94.00%

etungo official website

In order to provide a more convenient customer
service, TCPC provides online service. Consumers
can access Tatung official website 1 or TCPC
official web site2 to 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. At the end ofeach case, customers are able to provide any
positive or negative feedbacks by ﬁlling the online

35

各地大同服務中心

Tatung takes great concern about the customer
satisfaction. When a customer makes purchase orapproaches Tatung 3C Stores to repair products,
Tatung will make his/her information to phoneinterview list and interview about repairingexperience. If the feedback is unsatisfied,
Tatung will conduct a second service and make
improvement. TCPC sets targets for repairing
satisfaction (for consumers) not lower than 92%.
The result was 97.09% satisﬁed in 2015. Tatung willcontinue to listen to the customers.

Chapter 4 Supply chain management, product responsibility and customer service

96.80%

93.39%

92.00%

97.09%

Satisfaction
target: above 92%

90.00%
88.00%

96.81%

87.65%

86.00%
84.00%
82.00%▲ Figure 4.3-3 Online feedback form

2011

2012

2013

2014

2015

▲ Figure 4.3-4 Results of customer satisfaction

36

2016

CH5 Social performance

TATUNG CSR

Performance summary

81.59% of employees joined labor union
Labor representatives' percentage in Healthand Safety Committees higher than 33%

0 discrimination incident
0 incidents against human right0 corruptions
0 losses from labor disputation

Senior managers are
No. of male employees: 2,594
all from local No. of female employees: 812
93.19% employees are from local

Ratio between basic salary and legal salary: 1.40~1.80:1 (staff), 1:1 (technician)Ratio between female and male employees: 0.92:1 (staff), 0.89:1 (technician)No. of training hours: 7.21 hrs (male),
6.21 hrs (female)
FR: 1.30 (male), 0 (female)
SR: 34.79 (male), 0 (female)
AR: 0.0030 (male), 0.0091 (female)

No. of occupational disease: 050% of factories acquired CNS 15506 certiﬁcation

100% of factories acquired
OHSAS 18001 certiﬁcation

400 children participated Tatung Charity Soccer Camp

37

Chapter 5 Social performance

TargetHuman right

Build up a non-discrimination working environment.

>> P39Gender equity

The differences of salary are from ability, not from genders.

>> P42

Occupational health and safety

1.Continue to maintain OHSAS 18001 and
CNS 15506 management systems.
>> P523."Occupational Accident Prevention

Pays" program correction rate higher
than 95%.
>> P51

2.Organizing regulation promotion atleast once a year and organizing healthand safety trainings.
>> P52

4.Making FR and SR lower 10% each year.
>> P5438

2016

TATUNG CSR

5.1 Human rights and antidiscrimination

the truth, respect for individual differences and81.39% 2012

An equaled working environment

equality, justice, empathy heart, affinity, and toshow the principles of the company staff from top

82.03% 2013

Tatung takes great concern on human rights. All

to bottom to understand and practice the true

employees, applicants and contract workers aremeaning of human rights. As for security personnel,

treated with dignity, fairness and respect regardlesseducation in regarding to respect the employees'of their race, religion, skin colors, genders, marriage

emotion and wills is given before carrying out theirstatus, disables, member of union, birth place,duties. This is not only ensuring the employees'

and nationalities etc. Commitments of respecthuman rights but also making security duties go

and ensure the benefits of labors, fulfill social

smooth.

responsibility and comply with regulation are
clearly stated in our Labor Policy. Tatung hires one
handicapped worker per every 100 workers andOn the recruiting network and the human resource

improving labors' living standard, conducting

banks Tatung also makes the announcement

collective bargaining, etc. Each employeeof "Handicapped and aborigines are sincerely

has freedom choice to be the member of thewelcome" to declare our determination on anti-

union. Currently Tatung has totally 5 labor union

discrimination. Tatung also established "Anti-sexual

distributed in the HQ and factories. Tatung

harassment Regulation" and published on thedoes not interfere the wills of the employeesinternal website. Sexual harassment in any forms is

to join labor union; hence the percentages ofstrictly prohibited in any working places in Tatung.

employees joining labor union are always over

There was no discrimination and anti-human right

80%. In 2015, 81.59% of employees are theincident in 2014. Tatung will continue to promotemembers of labor union (Figure 5.1-1).

Trainings on human right

39

Child labor and forced labor

Tatung's hiring policy is complied with the related
regulations. Hiring child labor is not allowed

The vision of Tatung is to fulfill the social

by Tatung. In "Company Rules" defined the

responsibility. Tatung actively involves in social

working hours for a day and for a week. If there iswelfare activities, respects and cares for life.

necessary to adjust or prolong the working hours,

Although there is no particular human rights

the practice only can be implemented after

education and training courses for the employees

getting the agreement from the labor union or thecurrently, but the lecturers will be stressed in

employee. There is no force laboring situation in

the course of new employees to treat people

Tatung.

Chapter 5 Social performance

81.59% 2015

Tatung Labor Union was founded in 1959 forthe purposes of taking care of labors' rights,

prevent discrimination.

82.29% 2014

Freedom of association

provides equal opportunities for minority groups.

anti-discrimination policy in the company to

81.43% 2011

avoid prejudice and discrimination and abide by▲ Figure 5.1-1 Percentage of employees who

are labor union member

San-Hsia Factory
Labor Union

Tatung Co.
Labor Union

TatungLabor Union

Tayuan 1st Plant
Labor Union

Tayuan Plant
Labor Union

5.2 Employees' code of ethics
Tatung upholds the principles of "integrity,honesty, industry, and frugality" and prohibits
any improper behavior and financial dealings.
Tatung has established "Tatung ethical corporate
management best practice principles" to prohibit
every member in the company from doing nonethic behaviors. Tatung requests the employees
not to take advantages in any form at work,
nor make external leakage of the technicaland business content in the Company Rules.
Tatung also established internal control measures
such as internal control system, scheduled
and unscheduled audits of the internal control
committee and audit committee. The contracts
signed with the suppliers are added therequirements such as shall not bribe or provide
improper benefits to Tatung employees. If there
is any corruption case, Tatung will pursue its legal
responsibility to put an end to the corruption. No
corruption case was happened in 2015.
In 2015, media reported Tatung employees wereinvolved in Taipower Company procurement
corruption case. Tatung thought the company
having nothing to do with it and will fully cooperatewith judicial investigation. At the meantime,
Chairman and President of Tatung made adeclaration to the managers and employees tofollow ethical code of conducts of the company.
In addition, Chairman of Tatung suffered adverse
judgment due to violation of Security andExchange Act in 2014. After appeal in 2015, theSupreme Court withdrew the judgment in regarding
to violation of Security and Exchange Act andthe case will be heard by High Court. Company
operations are not affected by this case.
Tatung organizes series of legal trainings andencourages employees to participate. In addition,
Tatung has set up S.O.P. for internal dealingof matters of significance and passed to theemployees, directors and managers.

40

2016

TATUNG CSR▲▲

5.3 Employee composition, careerdevelopment and beneﬁts

Basic salary and performance review

Table 5.3-1 Employee compositions of Tatung(by ages)
Younger than 30

30~50

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 and discloses the structure of thesalary and methods of payment on "Company Rules",so that all the employees understand their rights andinterests. Based on the concept of equality among
genders, the basic salary and allowance between
female employees and male employees is 1:1. For
different employment types, the ratio of basic salaryand legal salary for technicians is 1:1; for staffs is from
1.40~1.80:1 based on different job types, specialty
and qualifications. For average salary, the female
employee to male employee is 0.89~0.92:1 in 2015
which is higher than the ratio in 2014.

Over 50

Male Female Male Female Male Female

Employee diversity

The recruitment policy of Tatung holds equality as
the central concept; only capability is taken into
account when recruiting an employee. Everydivision/factory evaluates the potential developed
situation to propose a human resource budget
and authorized by the president. When there isan empty position, the division/factory proposesa request to HR department based on the humanresource budgets. HR department will then start
to process the recruiting procedure from different
channels. Every recruiting procedure is compliedwith the regulations. Table 5.3-1, Figure 5.3-1, Figure
5.3-2 demonstrate the employee compositions of
Tatung. Tatung recruited more than 93% of local
employees and more disable employees than
the requirement by the regulation which protects
disables' right to work.

2012

550

123

1773

587

833

192

2013
No. ofemployees 2014

456

141

1727

574

813

191

362

122

1606

530

739

176

2015

356

121

1534

516

704

175

2012

45

0

623

123

264

17

2013
No. ofmanagers 2014

23

3

611

127

263

27

26

0

610

123

242

28

2015

20

6

588

121

231

30

2012
Percentageof new 2013
employee 2014
hires (%)
2015

7.34

1.40

5.79

1.21

0.86

0.00

3.49

1.05

4.10

1.18

0.21

0.03

3.93

1.24

5.04

1.27

0.57

0.03

7.90

2.70

5.96

1.61

1.91

0.29

2012

4.71

0.79

7.27

1.87

2.51

0.39

4.20

0.56

7.38

1.69

2.51

0.67

5.77

2.18

9.00

2.29

4.02

1.05

6.31

2.14

7.90

2.20

4.84

0.94

Percentage
2013
ofemployee 2014
leaving (%)
2015

42

promoting, salary adjusting, bonus earning, andhiring. The method ensures reasonable alignment
between employees' salary and labor contributed.

Research staffs (master)Staffs (master)

2.00 1.80
1.70 1.50
1.80
1.40
1.60
1.40
1.00 1.00
1.20
1.00
0.80

Research staffs(bachelor)
Staffs (bachelor)
Senior high school and
under

0.60
0.40
0.20
0.00

Foreign employees

Every employee's performance is reviewed regularly
based on "Performance management method".
The reviewed result is used as the base for training,▲ Figure 5.3-3 Ratio between basic salary and legal salary

No. ofmanagers

932

No. ofSorted byposition non-manager
employees
type

2,224

No. ofNo. ofSorted by
full-time employment part-time
employees
employees
type

6.73%

6.82%

6.25%

6.81%

2,662

2012
2013

2014

932
2,099

2,224

878

494

4

2,099

2,538

2,662
458

494

2,339

2,538
368

93.19%

46

262

2013

2012

6

4

52

6

269

219

46

2014
4

2013

6

2

49
6

2,166

Domestic employees

No. ofmanagers

140

31

No. ofSorted by non-manager
employees
position
type

762

867

No. ofmanagers

157

87139

31

785

No. ofNo. ofNo. ofNo. ofnon-manager
Sorted by managers
Sorted by non-manager managers
employees
position employees position
type
type

140
749

762

151

No. of foreign employees

No. of employees No. of foreign employees
No. of disabled employees▲ Figure 5.3-1 Percentages of local and foreign employees▲ Figure 5.3-2 Employee compositions of Tatung (by genders)

86743

52

2015
4

6

39

157
677

749

1,755
878

2,339
428

227

2014

5

45
9

368

219

2,166

49

2

157

78557

6

43

No. ofNo. ofNo.
ofnon-manager
Sorted bymanagers
Sorted by non-manager
position employeesposition employees
type
type

151655677

839

No. ofSorted byposition non-manager
employees
type

for different employment types

1,755

No. ofNo. ofSorted by
full-time employment part-time
employees
employees
type

No. ofNo. ofNo. ofNo. offull-time
Sorted by full-timepart-timeSorted by part-time
employees employment
employees
employment employees
employees
type
type

755

No. ofmanagers

1,829

2,594
812

No. ofNo. ofNo. ofNo. ofnon-manager
Sorted bymanagers
Sorted by non-manager managers
position employeesposition employees
type
type

No. of disabled
No. employeesof employees

No. ofSorted by No. ofNo. of Sorted bynon-manager
positionmanagers
position non-manager
employees type
employees
type

No. ofNo. of Sorted by
No. ofSorted by No. offull-time employmentfull-timepart-time
employment part-time
employees
employees type
employees
type employees

262

No. ofNo.No.
of of
No. ofNo. No.
of of
No. ofNo. offull-time
full-time
Sorted by full-time
Sorted by full-timepart-time Sorted by part-timepart-time Sorted by part-time
employees employment
employees
employees
employment employees employees employment
employment employees
employees
employees
type
type
type
type

No. of employees

Chapter 5 Social performance

839

458

2015
871

41

897
1,829

No. ofof of Sorted by
No. ofNo. ofof of Sorted by
No. ofSorted by No.No.
Sorted by No. No.
full-time employment full-timepart-timeemployment part-timefull-time employmentfull-timepart-timeemployment part-time
employees
employees type
employees employees
employees type
employees
type employees
type employees

No. ofNo. offull-time
Sorted by part-time
employees employment employees
type

93.27% 93.18% 93.75%

897

of Sorted by
No. ofSorted by No. No.
of
No. ofnon-manager
position managers
position non-manager managers
employees type
employees
type

Foreign employees
269

2012

No. ofmanagersof Sorted by
No. ofSorted by No.No.
of
No. ofnon-manager
position managers
position non-manager managers
employees type
employees
type

428

2,594
812
227

2015

5

45

1.0

9

0.8

No. ofNo. offull-time
Sorted by part-time
employees employment employees
type

755

No. ofmanagers

157

1.2

57

No. ofSorted by non-manager
position employees
type

655

No. of Note:foreign employees
No. of disabled
employeesmanagers (deputy plant/general
The membersof seniormanager and above) are all Taiwanese. There were 8 disabledmanagers in 2015 (0.8%) in Tatung.

1.0

1.0

1.0

Male
Female

0.92

0.9

1.0

0.82

0.89

0.6
0.4
0.2
0.0

Staffs2014

Technicians
2015

2014

2015

▲ Figure 5.3-4 Ratio between female and male employees(by employment type)

2016

TATUNG CSRParental 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 leavein accordance to regulations. The statistics onparental leave is shown in Table 5.3-2.

Post-employment beneﬁts

Procedure for complaints and shortest
notice period

Tatung has "Measure of processing employees'
complaints" and other practices (Table 5.3-3) inplace for the employees to complain about any
dispute and provides a channel to deal with.
Table 5.3-4 shows the amount of losses due to labor
relation disputes in recent 4 years. Tatung sets theminimum notice periods (Table 5.3-5) regarding tooperational changes on "Company Rules".
▲▲Tatung adopts "Defined contribution plan" and"Defined benefits plan" as her post employment
benefits. For "Defined contribution plan", Tatungmakes monthly contributions of no less than 6% of
the employees' monthly wages to the employees'
individual pension accounts in accordance with
the Labor Pension Act. For "Defined benefits plan",
Tatung contributes an amount equivalent to 2%of the employees' total salaries and wages on amonthly basis in accordance to Labor Standard
Act to the pension fund deposited at the Bank of
Taiwan in the name of the administered pension
fund committee. For detailed post-employment
beneﬁts, please refer to Tatung 2015 Annual Report1
page 300~302.

Table 5.3-3 Labor relation measures

Management oflabor relations

Measure of processing employees'
complaints

Note 1: http://www.tatung.com/b5/f_report_year.asp?langCN=TW▲▲

Table 5.3-2 Tatung parental leave statistics

Male
Application for parental leave
Total number of employees that tookparental leave in 2015.

FemaleMale

Female19

Total number of employees thatapplied and returned to work in 2014.

1

3

1

3

100%

100%

Retention rate

9

4

9

Total number of employees who
returned to work after parental leave
ended who were still employed 12months after their return to work in2014.

Total number of employees who
returned to work after parental leave
ended1.

1

6

Retention rate

Return to work rate

25%

66.67%

Employees' mail box
Channels for
employees to
Voice out opinions in training courses
voice dissent orcommunicate with Present proposals during Q.C. activities
management
Communication during regular/
special meetings between
management and the labor unions

Note 1: Changed job due to personal career planning.
NTD$ Thousand
80,22280,000Defined contribution plan
78,281
66,210Defined benefits plan

76,49473,40441,50520,000

2013

2014

2015

▲ Figure 5.3-5 Expenses under the post-employment benefits

Chapter 5 Social performance▲▲

43,67840,00043

YearAmount of losses(NTD: dollars)

2012

0

2013

0

2014

0

2015

0

57,19760,0002012

Tatung pays enormous attention on employee's
professional development and encourages selflearning. Tatung takes TTQS (Taiwan TrainQuali
System) as guidance to develop her strategy andtarget as well as combine internal and external
resources to provide high quality of operation andspecialized training programs to the employees.
Such training and education system can assist
career development of the employees to create
advantages on business competition. Tatung has
established and published "Manual for educationand training" as guidance to run education systemon daily basis. The manual incorporates Tatung's
management philosophy, human resource policy,
and indicators of TTQS to establish educationand training plan, design, implement, review,
and outcome to improve the performances
continuously of the organization. Tatung awarded
TTQS Bronze Medal in 2013. Figure 5.3-6 shows
Tatung's human resource development system.

Table 5.3-4 The amount of losses due tolabor relation disputes▲▲

Total number of employees that shallend parental leave in 2015.

Measures

Education and career development
Education and training target

Table 5.3-5 The shortest notice period

Employee

Shortest notice period

Work for 3 months~1 year

10 daysWork for 1~3 years

20 daysWork for more than 3 years

30 days

Tatung awarded with
TTQS bronze medal

44

2016

TATUNG CSR

Tatung Co. Eduction and training system
Common courses

Health and safety training

Strategy / Target

Middle manager working ability training

Defining unsatisfied performances

Professional learning

Input

1 PlanOutputProcurement

Information and computer
Quality management

OutputOutput3 Implement

Finance and accounting
Human recource planning

Input▲ Figure 5.3-6 TTQS strategic human resource development system

Tatung has established employee education andtraining management system in accordance tocompany's strategy development and humanresource policy. The system sets up the training andeducation scope, personnel, and education steps inorder to enhance the professions of the employees
and improve the performances. The system is also
adjusted with the change of company strategy(shown as Figure 5.3-7). HR division incorporates
with human resource departments in the businessgroups to provide various education and training
resources to the new recruits and employees. The
courses across from the area of human resourcesmanagement, information and communication, tax
and audit, technology management, environmental
protection, health and safety, sales skills, quality
management, and other specialized working skills(Figure 5.3-8). The education/training practicecreates a win-win situation for the company andher employees. Figure 5.3-9 shows the number of
employees and the hours spent on education andtraining.

Planning
Presenting
Supervisor feedback

Extended learning
On
Job
Training

Improving
Practice
Training via:
internal training,
TKM online courses,
external training.

Job shifting Overseas experince
Project assign
SubstituteJob expanding
Mentoring
Coaching

Training for
key talented
emplayees▲ Figure 5.3-8 Tatung education and training system

25

Hours

Employees

Managers

TechniciansEngineers

Female

20.14

15

12.6

12.06

11.05

10

▲ Figure 5.3-7 Training courses change with company's

strategy

8.98

8.82
9.35
7.68

5

6.5

6.21

2014

2015

4.61

2011

2012

2013

9.13

10.85
8.43

8.19

6.28
▲ 圖 5.3-8
7.62
7.15
7.06 員工教育訓練時數
6.11

2011

5.01

2012

2013

2014

9.16

9.52

8.42

2015

▲ Figure 5.3-9 Training hours per employee

Chapter 5 Social performance

Male

20

0

45

Engineering and technology

2 Design

Input

Education and training system

Sales and service

Profession skill
training

Input

4 Review
Reaction

Analysis on
insufficientworkingability

Off
Job
Training

Production management

OutputReview /Monitor

Employees

Senior manager business operation training

Operation plan

Behavior modification

Juniormanagers

Middle manager business training

Training performances
Performance elevation

Middlemanagers

Junior manager training

Operation andmanagement
training

Vision / Destiny

Seniormanagers

New recruit training

2011

6.48

6.04

2012

2013

8.25
7.27

2014

7.21
6.21

2015

46

2016

TATUNG CSR

WelfaresManagers
training classes

Tatung Welfare Committee handles a broad
range of employee welfare issues including: daily
activities, financial assistance for education,
funeral assistance, and interest free installment
loans. Table 5.3-6 shows employees' welfare
implemented in the factories and subsidiaries.
Besides, in order to provide female employees
a more comfortable and more convenient way
to nurture the next generation without having
to sacrifice their own work, or to increase their
physical or psychological unnecessary burden,
Tatung set up a nursery room for postnatal
breast-feeding employees. It is also thecompany's most intimate birth gift for female
employees.

Health promotion and disease
prevention

Tatung believes that the health of the employees
and their families is a kind of assets to the company.
Tatung organizes numerous health speeches,seminars, health checks to let the employees
understand the importance of their health andpromote to their families. The concreted measures
are follows:

1. Clean air, healthy andhappy workplaceenvironment

Smoking has been proven to have negative
effects to the health and smoking in workplaceincreases the risk of ﬁre incidents. Smoking
within the boundary of the companies/
factories has always been prohibited. The
employees, contractors, and visitors are notallowed to bring cigarettes, matches andlighters into the company. Tatung also clearly
posts/marks "NO SMOKING" notice in themeeting room, at entrances and exits. The
reason for Tatung doing this is to build a clean
air and healthy workplace for everyone.

are

2. WCeolfmmittee

gularlyittee re
Comm
and
l
a
c
Welfaresiyhge
es the pncouraorganiz
ies to ealthyl activit
e
h
ra
u
g
lt
in
u
c
s hav
ployeelishesthe emo estab
ls
vide
a
It
.
b to prolivinglu
cﬁtnesstivities tocalaaerobicc
ysi
ees phures in
employve pressnd relie
a
h
tc
stre
e.
are timtheir sp48

Tatung's factories also care about employees'
physical and mental health hence organized
numbers of events each year, the details for 2015
can be found on Table 5.3-7.
3. Health examination fair
Tatung works with Health Center ofZhongshan District of Taipei City toorganize
Health examination fair on a yearlybasis.
The specialists from Taipei City Hospi
tal areinvited to the company to do highbloodpressure, hyperlipoidemia and highblood
sugar screening, oral cancer screening, andcervical smear, breast cancer screening forwomen. Tatung also arranges highquality
health check annually in order toﬁnd out
any premature diseases and treat
them inadvance to protect employees' health.

5. First aid training courses
Tatung runs ﬁrst-aid/CPR
courses every year to enhance
employee's ability.

4. Health prTatun
omot
ion sesemin g organiz
e
a
mina
s
rs
healt
and
informrshaon th ation ab lso publis promotio
n
h
e co
o
e-pu
mpa ut seriou esbncont lications y website s disease.
sa
but a ins not o The inform andntreat lso the pre ly about ationment cha ventions the disea
ses
nnels
and
.

Health and serious disease seminars took place in HQ in 2015:

Nursery room in the headquarter▲▲

Implementation

Stock ownership

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

Subsidies

Education subsidies for employees’ children in senior high school and college/university; funeral subsidies forcolleagues or their spouses and immediate relatives; ﬁnancial subsidies for death of employees; cash gifts for weddings
and birthdays of employees and their children’s birth, subsides for employee tour, subsides for retirement pensions.

Restaurants

Restaurants, noodle stands, fruits shops and grocery stores are provided in Headquarter and factories/subsidiaries.

Beneﬁts

Employees can purchase Tatung products via zero-interest installments and price discounts on groceries in corporate
storesClub activities

Tatung organizes education, recreation, physical education, computer, languages, hiking/mountain climbing andphotography clubs to provide variety of social activities after work.

Health and safety
planLabor insurance, health insurance, group insurance, retirement pension, free annual health check-up, oversea businesstrip insurance.

Retirement plan

Equal or better than regulation.

Chapter 5 Social performance3

Table 5.3-6 Employees’ welfare

Employees'
welfare47

1

Fist aid training was held in May,
2015

2

Employees regular health check
By carrying out regular health check can ﬁnd
out potential diseases in advance to heal early.
415 managers and 1,580 employees (including
part of subsidiaries) were given health check in
2015.

4

Health Fair
Tatung works with Zhongshan district HealthService Center to organize Health Fair in thecompany to provide free health check items forthe employees.

Organized health speech for theemployees' health knowledge andawareness in the headquarter.

2016

▲

TATUNG CSRFirst aid training

Health seminars held in 2015
Topic category

Organizers

No. of participants

Ergonomics

Tatung/School of Nursing, NTU

20

2015/6/1

Mental health

Tatung/John Tung Foundation

250

2015/6/29

Mental health

Tatung/John Tung Foundation

250

2015/7/13

Physical health

Tatung/John Tung Foundation

250

2015/9/18

Mental health

Tatung/John Tung Foundation

250

2015/12/28

Physical health

Tatung/CH clinic

250

▲
▲

Table 5.3-7 Health activities held in the factories in 2015

Month

Topic category

Location2015.04

Physical health

Taoyuan 1st Plant

2015.05

Physical health

Taoyuan 1st Plant

2015.08~11

Physical health

Taoyuan 1st Plant

2015.09

Physical health

Taoyuan 1st Plant

2015.10

Mental health

Taoyuan 1st Plant

2015.07

Physical healthTayuan Plant

2015.09

Gender equity and non-discrimination

Tayuan Plant

2015.09

Ergonomics

Tayuan Plant

2015.01

Hearing check

Min-Sheng General Hospital

2015.01 ∼ 06

Physical health

Taoyuan Wires and Cables Plant

2015.01 ∼ 06

Muscle and bone check

Taoyuan Wires and Cables Plant

2015.02 ∼ 03

Hearing evaluation

Taoyuan Wires and Cables Plant

2015.02 ∼ 05

Physical health

Taoyuan Wires and Cables Plant

2015.03

Physical health

Taoyuan Wires and Cables Plant

2015.05

Mental health

Taoyuan Wires and Cables Plant

2015.08

Female health evaluation

Taoyuan Wires and Cables Plant

2015.09 ∼ 10

Physical health

Taoyuan Wires and Cables Plant

2015.12

Mental health

Taoyuan Wires and Cables Plant

2015.12HikingTa-shi2015.12

Health check

Taoyuan Wires and Cables Plant

2015.12Cancer check

Taoyuan Wires and Cables Plant

2015.02

AED training

San-Hsia Factory

2015.05

Physical health

San-Hsia Factory

2015.05、11

Blood donation

San-Hsia Factory

2015.08

Health check

San-Hsia Factory

2015.11

Physical health

San-Hsia Factory
San-Hsia Factory

2015.11 ∼ 12

Physical health2015.12

Physical health

San-Hsia Factory

2015.12Flu vaccination

San-Hsia Factory

Every year

Cancer check

San-Hsia Factory

Irregular

A bottle of milk for pregnant employees everyday.

San-Hsia Factory▲ Health fair

▲ Health seminar▲

Date
2015/4/21

Pressure-release activity▲ Health seminar

49

Chapter 5 Social performance▲ Ergonomic seminar

50

2016

TATUNG CSR

5.4 Health, safety, and disaster free
Health and safety guidebook

訂

8 月修

40.00%
39.00%
38.00%

38.89%

38.46%

37.00%

35.71%

36.00%
35.00%
34.00%

33.33%

36.36%

33.00%
32.00%
31.00%
30.00%

Headquarter Tayuan
Plant

Taoyuan Taoyuan
Wires and 1st Plant
Cables Plant

San-Hsia
Factory▲ Figure 5.4-1 Percentage of labor representatives in

Health and Safety Committees

51

Chapter 5 Social performance

The results from Occupational Accident Prevention
Pays program in 2015, fifty (subsidiaries notincluded) incidents against company rules were
found. The incidents were major focused on healthand safety protection measures were not enforced
thoroughly. By the end of 2015, 48 incidents werecorrected (96%) which met our target. For those
have not been corrected, we will follow up thecorrection status.
In Occupational Accident Prevention Pays
program in 2016, we will focus on checking
hazardous chemical exposure evaluation andgrading plan, working environmental monitoringplan to protect employees' health and safety.

In order to raise the awareness of occupational
health and safety among the employees and tocomply with current regulations, ESD opens "Healthand Safety Training Class" for new recruits, generalemployees, and managers in headquarter. The
training classes introduce the related health andsafety regulations such as "Occupational Safety
and Health Act" and demonstrate the preventionof 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, Forklifters and Stationary
Cranes training class, etc. As for regulation
promotion, Tatung organizes "Tatung Corporate
OHS Seminar" every year. The seminar was held inMarch 2015 and the topic was physical and mental
health protection measures and ranking system forchemicals with health hazards.
In addition, Tatung complies with "Labor's Working
Condition Monitoring Methods" and sets working
environment monitoring and conducts monitoring.
The results from monitoring are available to theemployees. Tatung also educates the employees
the potential hazards in the working environment
and the necessary prevention measures.

Table 5.4-1 Factories with OHSAS 18001 and CNS 15506

FactoryOHSAS18001 certiﬁed since

CNS15506 certiﬁed since

Tayuan Plant

2008.072010.07

Taoyuan Wires and Cables Plant

2009.06-

Taoyuan 1st Plant

2010.03-

San-Hsia Plant

2011.012013.01

▲
▲

104 年

Focusing on the issue of health and safety is oneof 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 reformprojects and periodical assessments, as well as
reviewed by to management, and aided in thecontinued improvement of health and safety
performances, and hence assist Tatung to achieve
the goal of a disaster free working environment.
Table 5.4-1 shows the status of occupational
health and safety management systems in Tatung
Other than relying on the management systems,
ESD also carries out "Occupational Accident
Prevention Pays" program every year and works
hard to achieve the final target "disaster free inthe factories and subsidiaries". The contents of the
program are summarized below:
1. The factories and subsidiaries implement
the projects which can improve or prevent
health and safety issues, and ESD reviews theperformances and provides feedbacks.
2. An annual Accident Prevention Pays seminar isorganized to exchange the health and safety
experiences between factories and subsidiaries.
3. Recommends outstanding factories or
subsidiaries to compete governmental awards.

Health and safety training andregulation promoting:▲▲In the case that recognition of dangerous materials
is unsatisfactory, or that safety management
has not been satisfactorily accomplished in
the factories, there may be effects of varying
degree to the health and safety work, and as
a result, causing frequent disasters. This will not
only threaten the safety of employees, but also
the safety of the publics, as well as adversely
impact the surrounding environment. Therefore,
Tatung stipulates that the company should
be in accordance with relevant health andsafety regulations in "Company Rules" and holds
employees' health examination (free of charge tothe employees). Tatung also issues "Tatung Healthand Safety Guidebook" to employees in order toraise their awareness regarding to occupational risks.
In addition, Tatung holds "Health and Safety
Committee" meetings in headquarterand factories to communicate
and review the contents and司
大同公 守則progress of health and safety
作
工
生
安全衛
issues. The percentage of labor
representatives is better than therequirement of regulation (atleast 33%).

Occupational health and safety
management

Table 5.4-2 Health and safety training results and target for 2016
2015

Training item
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 training

2016
No. of participants
256
687
213
41
365
48
55
26
-

Training item
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 training

Targeting No. ofparticipants
303
688
42
82
546
230
149
24
103

52

2016

TATUNG CSR

Performances of health and safety

Tatung continues to establish safety culture, reduce occupational disaster risk and provide asafe working environment. When an occupational disaster is occurred, root-cause analysis will
be conducted and counter-measures will be implemented to prevent such case happening
again. Table 5.4-3 demonstrates Frequency of Disability Rate (FR), Severity of Disability Rate (SR),Occupational Disease Rate, No. of death incidents, and Absentee Rate (AR) in 2015. There wasno occupational disease case and death incident in 2015. From Figure 5.4-2, FR and SR for male
employees are higher than in 2014, the main reason was from trafﬁc accident at work. Tatung has
promote trafﬁc safety concept to the employees and continued to enhance the managementof health and safety issues to minimize the accidents during operation.
Tatung has made a target for FR/SR decreases 10% each year. From the statistics in the past 4
years, Tatung did not meet the target. The main reason was the employees (sales, ﬁnance, R&D)
from headquarter having trafﬁc accident at work. FR/SR target was met in the factories instead(Figure 5.4-3). In spite of it is difficult to prevent traffic accident; Tatung will still promote traffic
safety awareness to the employees to reduce such accident.

3.2

80

2.8
2.4

70
60

2.11

2.0

1.75
1.57

1.6

40

1.2

▲
▲

SR2

Occupational
disease rate3

No. of death
incidents

AR4

Male

1.30

34.79

0

0

0.0030Female00000.0091

2014

18.40

20

0.53

10

3.14

0.00

FR

0.00

▲ Figure 5.4-2 Trends of FR and SR (Headquarter and factories)

3.2
2.8

90

84.81

80

2.88

2012

70

2.43

66.75
2013

2.4

60

2.0

50

2014

40

2015

1.25

1.2
0.8

30.13

30
0.67

0.4

20
10

8.25

0
FR

SR

▲ Figure 5.4-3 Trends of FR and SR (factories only)

Chapter 5 Social performance

5.28

SR

1.6

53

2015

23.00

20.93

0.88

3.6
Note 1: FR is one of the indicators selected by CLA for occupational disaster statistic purpose. The formula is (No. of
disability/Total working hours) x 1,000,000
Note 2: SR is one of the indicators selected by CLA for occupational disaster statistic purpose. The formula is (Total lostdays/Total working hours) x 1,000,000
Note 3: Occupational disease rate's formula is (No. of occupational diseases/Total working hours) x 1,000,000
Note 4: The formula for AR is (Total days of incapacity of any kind/Total days scheduled to be worked)

34.79

30

1.05

0.8

2012
2013

1.30

0

FR1

58.52

2011

61.67

50

1.73

0.4

Table 5.4-3 Health and safety performance in 2015

72.88

2.87

54

2016

TATUNG CSR

lectures. Tatung will continue to cooperate withthe schools and provide intern opportunities every
year.

Participation in infrastructure projects,
serving the country through industry

Tatung charity soccer summer camp

Tatung always actively gets involved ingovernment's infrastructure projects with thespirits of serving the country through industry
and fulfilling corporate social responsibility. In
recent 3 years, Tatung supports government's
policy to development green energy puts lotsof efforts in to solar PV systems and has become
the biggest solar PV system provider with themost experiences on government owned roof. In
2015, Tatung get Kinmen County solar PV systemcase. The case through smart meters and energy
monitoring system, using the cloud to make big
data analysis to let Kinmen County government
grasp the trend of electricity consumption trend,
reduce electricity losses, and improve power
generation efficiency. In addition, Tatung bid for
Pratas Island solar PV system case. The case bind
40kWp solar energy and firstly used domestic fuelcontrol system to monitor the operation of thegenerator and the load status, thereby controlling
the photovoltaic output to stabilize power supply
system. Besides, Tatung cooperated with ITRI andToshiba to promote Penghu smart grid ﬁeld microgrid system. It is not only the implementation ofregional-based micro-grid applications in the
ground, but also able to increase the proportionof renewable energy and to maintain a stablelocal power supply. Tatung uphold "Green Energy
Tatung" development strategy, and will continue
to participate in the renewable energy industry formaking an effort to the country.

Tatung is the only local private company that owns
a soccer team. Tatung used to organize "Tatung
Soccer Camp" as welfare to her employees atthe beginning and expanding to invite the public.
Chairman, Lin Wei-shan, feels that welfare groups
and children from disadvantaged families havingrare opportunity to participate in camp activities.
Therefore, he instructs Tatung to organize "Tatung
Charity Soccer Summer Camp" since 2010. In
an effort to help the underprivileged children to
cultivate a proper and healthy hobby, Tatungstarted to visit orphanages and welfare groups
around Taiwan to experience the joy of playing
football. Tatung provides all necessities for football
playing and travels to each children's places tointroduce international football game and teachthe children proper skills of football. The children
are also divided into teams to happily experience
the game on the field. The main purpose oforganizing "Tatung Charity Summer Soccer Camp"is hoping every child can gain happiness andsatisfaction as well as positive attitude.
Tatung invited 400 underprivileged children from19 charitable foundations to participate in "Tatung
Charity Soccer Summer Camp" in 2015. Children
were taught skill and knowledge of soccer inthe field by Tatung's professional team. Tatungorganizes this charitable event annually with anintention to inspire the disadvantaged children withsport playing hoping to help them to cultivate spiritof team work and sportsmanship.

Supporting in traditions and arts

Tatung has always been supporting in traditionalart and innovation and invited paper carving
artists for five consecutive years to design Tatung
Boy small lanterns whose design was based upon
the animals representing Chinese zodiac. Tatungalso supports the inheritance and innovation offolk art and invited local lantern artists to create
Tatung Boy lanterns which were exhibited in the2015 Taiwan Lantern Festival in Taichung City andTaipei Lantern Festival. To encourage originalityof creation, Tatung invited performing art groupfor three consecutive years to work together
producing a children drama, "Tatung Boy Loves
the Earth", and toured at the elementary schools
around the island. By infusing in the ideas of savingenergy, health and environmental protection in
the story, children can learn good habits from theplay. In addition, Tatung Boy participated in the2015 Happy Halloween in Tianmu organized by the
Tianmu Marketplace
Development Association
and New Taipei City
International Environmental
Arts Festival to support
the development oflocal commercial
district.

▲ Tatung Boy lanterns in Lantern Festival▲

5.5 Participation and beneﬁts tothe society

Tatung Boy Loves the Earth
drama in schools

55

Chapter 5 Social performance▲

Integration of education and industry
for fostering of talents

The founder of Tatung ended his private businessin 1942 and donated his assets to create the"Integrated Research and Development" school
and company which is the former of current
Tatung High School and Tatung University. The spiritof operating the education in Tatung shows thatthe company is an annex company factory of theschools and provides the intern opportunities forstudents to practice their theories learnt from the56

2015 Happy Halloween in Tianmu

2016

CH6 Environmental performances

TATUNG CSR

Performance summary

San-hsia Factory acquired
ISO 50001 certiﬁcation 75% of factories
acquired ISO 14064-1 veriﬁcation

100% of factories acquired ISO 14001 certiﬁcation

60% of represented products achieved goal ofenergy intensity

3P program correction rate 95.16%

New applications of Green Mark,piecesEnergyLabel,
Water
Label
235
Electricity saved 2,036,805 kw-hr

3P program correction rate above 95%.

Environmental protection expenses
NTD$ 16,693,374 dollars

Fines for violations against
regulation NTD$ 200,000

2 products undergoing productcarbon footprint inventory

Greenhouse gas emission 41,818.79 tons CO2e
Waste water efﬂuent 71,089.30 M3
COD emissions 904.86 kg
S.S. emissions 276.66 kg
Wastes generated 3,265.15 tons
NOx emissions 1,666 kg
SOx emissions 1,464 kg
VOC emissions 86,142 kg

57

Chapter 6 Environmental performances>> P61

Energy and Greenhouse gases management

1. Energy intensity ofrepresented products
in 2018 will be 6% lessthan in 2013.

2016 : 3% less2017 : 4.5% less2018 : 6% less>> P64

2. Establish ISO 50001.

Short term:
Establish ISO 50001
and pass certiﬁcationin Tayuan Plant andTaoyuan Wires andCables Plant in 2016.
Mid-long term:
All the factories
establish ISO 50001.

Greenhouse gases cut off 1,075 tons CO2e

Energy consumption 300,004.25 GJ
Water consumption 659,678 M3
Steel (silicon steel included) consumption 7,390 tons
Copper consumption 17,714 tons
Aluminum consumption 768 tons
Insulation oil consumption 836 kL

TargetEnvironmental management>> P65

3. Carry out GHG inventorywith ISO 14064-1.
Short term:
Complete ISO 14064-1
GHG inventory for
Taoyuan Wires andCables Plant, Taoyuan
1st Plant, and San-hsia
Factory (2015).
Mid-long term:
Implement ISO 14064-1
in Tayuan Plant andcomplete GHG inventory.
>> P65

Pollutant emission management

Ensure waste water and air pollutants meet standards.

>> P67, 68

Green product management

1.Continue to 2.Continue to 3.Work hardseek for solar
PV system
cases.

install solar
PV systems in
the group.

>> P70>> P71

Conformity

in smartbuilding
and greenbuilding.
>> P72

4. Continue to apply for Green Mark,energy label, and water label.
Short term:
New designed inverter air
conditioners (DYHN) and ﬁxed
frequency air conditioner (DIN) apply
for Green Mark.
Mid term:
New designed DDSN series inverter air
conditioner apply for Green Mark.
Long term:
New design 1 VS 2 split type air
conditioner applay for Green Mark.
＞＞ P70

Numbers of violation against regulation in 2016 is less than in 2015.

>> P7558

2016

TATUNG CSR

6.1 Environment management

ISO50001
Energy Saving Audit
Product Carbon Footprint
ISO14064-1
ISO14001
3P Program

1993

1996

2009

2010

2013

2014

2015

2018

★ Energy saving target
1%

2013

1%

1.5%

1.5%

⇧

⇧

⇧

⇧

2014

2015

2016

2017

2018

Target 6%

Tatung environmental management roadmap

Environmental
PolicyContinual
ImprovementCh
eck PlanActi
o n DoManagement
Review

Plan

Implementation& Operation
Checking &Corrective Action

EMS establishing and implementing procedure

59

1%

⇧

Tatung believes that by implementing ISO14001 is able to continue to improve environmental performances,and improve export competitively and company images. Thus, in May, 1996, Tatung, started to implement
ISO14001 among the factories and the subsidiaries. Table 6.1-1 shows the factories which have been certiﬁed
with ISO14001 certiﬁcation.

Base year⇧

ISO 14001 environmental management system

6%
⇧

1990

Chapter 6 Environmental performances

1996

1998

1999

Implement

Taoyuan 1st
Plant
Tayuan Plant

San- Hsia
Factory

2000

TaoyuanWires and Cables
Plant▲ Figure 6.1-1 ISO14001 certification status

2016
Start toupdate to
new version
Tayuan Plant ISO 14001
certification

60

2016

TATUNG CSR

6.2 Energy consumption and
GHG management

Pollution Prevention Pays (3P) Program

Tatung started to implement"Pollution
Prevention Pays, 3P" program in the factories
and the subsidiaries which have manufacturingfunction since 1993 to help Tatung to develop
environmentally sound operations. The elements of
3P program are listed as follows:
I. Promote Clean Production technology, fully
utilize resources and materials and to reduce thewastes and the production costs. One aspectof this is to improve the existing manufacturing
processes and management operations, withthe objective of eliminating sources for pollution.
Also improve upon raw materials, and improveupon the recycling/reuse, and exchange/
reuse of waste materials. Another aspect of thisis to develop and choose zero pollution or low
pollution manufacturing processes to reduce
the amount of wastes.
II. Develop green products to create additional
values for products. The objective is to apply theconcept of "Design for the Environment, DfE", inthe design phase to produce "recyclable, lowpollution, toxic-free, resource saving, powersaving, and durable" products to benefit theenvironment.
III. ESD conducts yearly on-site auditing andevaluation in each factory and subsidiary
to benefit management in their review ofenvironmental performances and draft of newpolicy and objectives.
IV. Conduct internal audit on regulation compliancein order to find out problem at first place andmitigate it.

▲ 3P program on site audit （1）There are two types of energies that Tatung
consumes – direct energy and indirect energy.
Direct energy sources are from diesel fuel oil, LPG,
and diesel. Indirect energy source is purchased
electricity from Taiwan Power Company. The
amount of energy consumption is shown on
Table 6.2-1, Figure 6.2-1 and Figure 6.2-2. The mostconsumed energy in 2015 is purchased electricity
and the amount is 272,332.19 GJ (90.78%) whichequals to 75,647.83 kw-hr, followed by LPG with
17,308.41 GJ (5.77%) which equals to 342.95 tons.
The total amount of energy consumption in 2015is 86.644.69 GJ lesser than in 2014, which is 22.40%
reduction. When compares to 5 years ago, there is
31.86% reduction.
90.78%
5.77%
2.30%
1.15%

Purchased
electricity

GJ

500,000
450,000

440,290.37

31.86% reduction
426,271.39
398,383.26

400,000

386,648.95

350,000
300,004.25

300,000
250,000
200,000
150,000
100,000
50,0000

LPG
Diesel

2011

2012

2013

2014

2015

▲ Figure 6.2-2 Trend of energy consumption

Diesel fuel oil▲ 3P program on site audit （2）▲ Figure 6.2-1 Energy consumption percentages in 2015(by category)▲▲

When there any incidents found against company
rules or with potential to cause environmental
pollution, ESD will list such incidents and request
the factories and the subsidiaries to correct them.
ESD also set yearly correction target to be 95%. For
the incidents which can not be corrected by theend of year, ESD will track them and make them
to be corrected next year. 62 incidents (without
subsidiaries) were requested to be corrected and
59 were completed in 2015. The correction rate is
95.16% and met target.

Energy consumption

Table6.2-1 Tatung energy consumption

2011

2012

2013

2014

2015

Diesel fuel oil

4,378.14

3,695.31

5,181.47

3,655.14

3,454.31

LPG

18,992.57

24,776.34

22,727.29

21,323.74

17,308.41

Diesel

9,292.43

7,053.35

7,445.85

7,927.32

6,909.34

407,627.23

390,746.39

363,028.65

353,742.74

272,332.19

Purchased
electricity
Unit: GJ

Note: The data from San-Hsia Factory, Taoyuan Wires and Cables Plant, Taoyuan 1st Plant in 2011~2014 is colleted based on ISO14064-1
and have been certiﬁed. The data in 2015 is collected based on ISO14064-1 but have not been certiﬁed yet. The data from H.Q. andTayuan Plant is collected from power bills.

61

Chapter 6 Environmental performances

62

2016

TATUNG CSRGreenhouse gas emission

95.51%

Due to Tayuan Plant is still undergoing theestablishment of GHG emission inventory, the GHG
emissions (scope 3 is not included) in this report
are calculated as follows: the amount of energy
sources disclosed in previous paragraph multipliedby each emission factor. The total GHG emission
in 2015 is 41,818.79 ton CO2e (Figure 6.2-3), 95.51%of the emission is from purchased electricity. The
second largest portion is from LPG which is 2.62%(Figure 6.2-4).

2.62%
1.23%
0.64%

Purchased
electricity

LPG
DieselDiesel fuel oil▲ Figure 6.2-4 GHG emission percentage by source in 2015

Energy saving and GHG management

Due to the fact that the most of energies areimported from overseas and the price of energy
grows up gradually. It is expected that the cost ofenergy will rise by years and contribute to operating
costs. In order to fulﬁll corporate social responsibility
and reduce operating costs, Tatung set short andmedium term goals which are based on energy
intensity per product or unit and the baseline year is
2013. The goals are: Short term – reduce 3% in 2016,
Medium term – reduce 6% in 2018. The result foreach year is listed on Table 6.2-2. For the products
have not reached the target, Tatung will introduce
professions to do energy diagnose and provide
training programs as well as implement ISO50001
in 2016. For the products have reached the target,
Tatung will recommend the factory to compete forgovernment prizes to raise company image andreward responsible persons, as well as sharing theexperience within corporation.
▲
▲

Tons
CO2e

Purchased Diesel
electricity

70,000

LPG

Diesel fuel oil

60,00050,00040,00060,691.17

30,00052,639.15

51,194.44

39,942.05

525.26
1,565.72
287.13554.491,436.23
402.60590.35
1,347.54
284.01514.54
1,093.79
268.4020,00010,0000692.01
1,200.22
340.19

2011

2012

2013

2014

2015

Note 1: The data from San-Hsia Factory, Taoyuan Wires and Cables Plant, Taoyuan 1st Plant in 2011~2014 is colleted based on ISO14064-1
and have been certiﬁed. The data in 2015 is collected based on ISO14064-1 but have not been certiﬁed yet. The data from H.Q.
and Tayuan Plant is collected from power bills.
Note 2: The greenhouse gases are CO2, CH4, N2O and calculated with GWP (IPCC, 1995)▲ Figure 6.2-3 Amount of GHG emissions

Table 6.2-2 Energy saving target status of
Tatung main products

Chapter 6 Environmental performances

1,800

Main product

2014

2015

2016

1,600

◎
◎
◎

◎
◎

−
−
−
−
−
−
−
−
−
−

1,400

X

X
X

X
◎

X
X
X
X

X

−1
◎
◎
◎
◎

Note: ◎ represents it meet the target, Xrepresents it does notmeet the target.
Note1: The result was not completed by the publish date of thisreport. We will report it in next CSR report.

Amount of GHG
reduction increases fortwo consecutive years

1,610.73

1,200

1,075.43
927.451,000
800

617.55600
400
164.47

200
0

2011

2012

2013

2014

2015

▲ Figure 6.2-5 Amount of GHG emission reduction

Table 6.2-3 Tatung energy saving projects and results
Energy saving projects

Utilized manufacturing process to reduce operation time.
Replaced with high energy efﬁcient and energy saving equipments
Installed controllers or inverters on air conditioners and motors.
Centralized operation areas and shut down unnecessary air conditioners andlightings.
Increased the frequency of maintenance for air conditioners and installedcurtains to avoid leakage of cooled air.
Total
Note: GHG are CO2, CH4, N2O and calculated with GWP (IPCC, 1995)

63

Tons
CO2e

Motors/generators
Rice cookers
Domestic air conditioners
Business air conditioners
Transformers
Switch gears
Mechanical meters
LAN cables
Power cables
Wires

▲
▲

57,743.63

To achieve the goal, Tatung conducts annual
energy audit and reports the energy consumption
information to the government as well as implements
energy saving projects in the headquarter and thefactories. In the subsidiaries, Tatung checks theenergy saving performances during 3P program onsite audit to ensure the energy saving target can beachieved. In 2015, Tatung reduced about 2 million
kwh of purchased electricity consumption via 6
dimensions (Table 6.2-3) which equaled to 1,075 tonsof GHG emission reduction. Figure 6.2-5 indicatesthat the amount of GHG emission increases in two
consecutive years since 2013. In addition, SanHsia Factory has implemented ISO 50001 energy
management system and passed certification in
2015. In this year, Tayuan Plant and Taoyuan Wires
and Cables Plant is going to implement ISO 50001
and targeting to pass certification by the end of
the year. 2015. The company's ISO50001 information
can be found in Figure 6.2-6.
Greenhouse gas emitted by human activities

Amount of electricity
saved (kw-hr)

142,408
237,157
295,352

GHG reduction(ton CO2e)75.19
125.22155.95

1,050,965

554.91

310,923164.172,036,805

1,075.43

64

2016

TATUNG CSR

6.3 Resources consumption andpollutants management
Consumption and management on
main materials
2014

2015

2016

Started to
implement

San-Hsia Factory
passed certiﬁcation

Tayuan Plant and Taoyuan
Wires and Cables Plant
under implementation

Tatung put quality, price, supply days, and after
sale service into account when selecting a supplier.
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 of local purchase.

▲ Figure 6.2-6 Tatung ISO 50001 information

the factories have done GHG inventory andveriﬁed by third party.

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. The
stakeholders and publics nowadays are expecting
corporations to disclose their greenhouse gas
emissions information, too. In order to investigate
the amount of GHG emission thoroughly andcomply with the regulation, Tatung actively
implements ISO14064-1 greenhouse gas
management system into the factories. Oncethe factory completes GHG inventory, veriﬁcation
will be conducted by the third party based onreasonable level of assurance. Figure 6.2-7 shows
Head quarter

For the purpose of enhancing the ability to
do greenhouse gas inventory in the factories,
ESD runs two training courses: ISO14064-1 GHG
Management Class and ISO14064-1 Internal
Veriﬁcation Class every year. We are expecting tohave more well-trained employees through theseclasses and they are able to do the greenhousegas inventory well and pass the veriﬁcation by thethird party in the future. At the same time, thefactories will continue to reduce GHG emissions by
any possible measures.

▲▲

San-Hsia Factory
ISO 50001 certiﬁcation

Table 6.3-1 The consumption of main materials
and the percentage of local purchase

Main materials

Amount ofconsumption

Steel(silicon steel included)

Localpurchase
percentage

7,390 tons

67%

Copper

17,714 tons

0%

Aluminum

768 tons

49%

Insulation oil

836 kL100%

Note: Tatung produces hundreds of different products.
Some of them are OEM/ODM made. Therefore, themain materials are only selected from the above four
fundamental materials and disclosed in this report.

Consumption and management ofwater resource

The sources of water for Tatung are from tap water,
ground water, and river water. Tatung consumed
659,678 M3 (Figure 6.3-1) of water in 2015 which was
66,455 M3 less than the consumption in 2014 due to
production was less. In 2015, 19.66% of waste water
was recycled (equaled to 129,704 M3). Tatung willcontinue to conduct water conserving project inorder to reduce water consumption.
As for the waste water management, all thefactories and subsidiaries have granted government
approved "water pollution prevention measures"and "permit for effluent", as well as setup waste
water treatment facilities based on the prevention
measures. All the waste water treatment facilities
are operated in accordance to the prevention
measures and the amount and quality of theeffluent are regularly tested and reported to theauthorities. The rest results are all below the efﬂuent
standard in 2015. In addition, the factories arelocated in industrial area and/or industrial zone
where do not have bio-sensitive sites nearby.
Therefore the effluent from Tatung will not havesigniﬁcant impacts to the biodiversity of the recipientwater bodies. The detailed effluent information isdisclosed on Table 6.3-2.

300,000

Groundwater

256,166

San-Hsia Factory

253,008

230,583

Taoyuan 1st Plant

238,185

243,461

250,000

235,384

229,321

2009

2010

2011

2012

2013

2014

2015 2016

197,944

200,000

203,603

Carry out GHG inventory without ISO14064-1

186,109

GHG inventory based on ISO14064-1 and veriﬁed by the third party.
GHG inventory based on ISO14064-1 and scheduled to be veriﬁed by
the third party by the end of 2016.
▲ Figure 6.2-7 The status of GHG inventory in the factories

65

Chapter 6 Environmental performances

River
water

275,181

270,626

Tayuan Plant

Taoyuan Wires and Cables Plant

Tap
water

M3

150,000

San Hsia Factory GHG
verification statement

Taoyuan 1st Plant GHG
verification statement

Taoyuan Wires and Cables
Plant GHG verification
statement

2012

2013

2014

2015

▲ Figure 6.3-1 Tatung water consumption

66

2016

TATUNG CSR▲▲

Factory
San-Hsia
Factory

Table 6.3-2 Waste water treatment and efﬂuent description in 2015

Treatment
methodFactory owned
waste water
Tayuan Plant
treatment plant
Taoyuan Wires in accordance
to theand Cables
requirement by
Plant
the regulation
Taoyuan 1st
Plant
Total

Average COD Average SS
Amount ofconcentration concentration
efﬂuent (m3)(mg/L)(mg/L)

Recipient
water body

29.11

15.26

2,832

Heng River

N.D.

1.45

2,903

New Street River

N.D.

3.14

46,505

New Street River

9.56

4.41

18,849Tianxinzhi River

904.86kg1

276.66kg

71,089.30

Efﬂuent reusedby others

None

Air pollutant emissions andmanagement

Emission of ozone-depleting substances

Tatung sets up and operates air pollutant
treatment facilities in the factories in accordance
to the regulation. Pollutant concentration isregularly tested and met the standard. The
main air pollutants from the factories are NOx,
SOx, and VOC. Tatung declares the amount ofemissions and pays air pollution control fee to theauthority. The amount of air pollutants in recently
5 years is shown in Figure 6.3-2 and Figure 6.33. In 2015, VOC emission was more than in 2014
due to more varnish was consumed.

In order to reduce the usage of ozone-depleting
substances, Tatung started to use R-410A coolant
in some of the air conditioners which is the first
Taiwan company to do so. In addition, Tatung
actively applies Green Mark for the air conditioners
and the basic requirement is using zero ozonedepleting substances. The authority regulates thatthe air conditioners with cooling capability lessthan 7.1kw is forbidden to use R-22 as coolant since2011. Therefore, Tatung stopped using R-22 coolant
on the air conditioners with cooling capability lessthan 7.1kw from 2011.

Note: Efﬂuent standard COD: 100, SS: 30. N.D. represents that pollutant concentration is lower than detecting limit(2015: 13mg/L).
Note 1: 13mg/L was used for N.D. parts to calculate weight of COD.
NOx emission

Kg
4,000
3,500

SOx emission

3,718
3,493

3,320

Kg
120,000

VOC emission
109,515

3,000
2,500

100,000

2,435
2,266

2,000

1,752

1,666

80,00085,201
79,431

1,323

1,500

Taoyuan 1st Plant waste water treatment Plant

86,142

1,932

1,464

67,09860,0001,000
500

Taoyuan Wires and Cables Plant waste water
treatment facility

40,000
2011

2012

2013

2014

2015

Note: Calculated with EPA requirement▲ Figure 6.3-2 Air pollutant emission (1)67Chapter 6 Environmental performances

2011

2012

2013

2014

2015

Note: Calculated with EPA requirement▲ Figure 6.3-3 Air pollutant emission (2)

68

2016

TATUNG CSR

6.4 Green products for a better
earth

Waste reduction and management

Tatung has already implemented plenty ofpollution reduction measures in the factories,
mostly resulting from green product design phaseand improvement of manufacturing process.
Tatung generated 3,265.15 tons of industrial
wastes, including 3,221.49 tons of generalindustrial wastes and 43.66 tons of hazardous
industrial wastes in 2015. From Figure 6.3-4, theamount of industrial wastes generated in recent
years gradually decreases besides in 2012 whichis due to clean up event in the factory.

Tons
9,000.00

Establishing Solar PV systems

8,240.47

8,000.00
7,000.00
6,000.00
4,782.55

5,000.00

5,043.69
4,176.07

4,000.00

3,221.49

3,000.00

The industrial wastes are stored in the way
accordance to the regulation and then entrusted
by licensed treatment agencies in Taiwan fortreatment. None of the hazardous industrial
waste is exported to overseas. Table 6.3-3 shows
the methods used for waste treatment. The
factories also have been working hard to recycle
and/or reuse the wastes in order to minimize theimpact to the environment. In 2015, 2,408.84 tonsof wastes were reused (73.77% of total wastes).

2,000.00
1,000.00
0.00

55.41 66.62

66.73

27.63 43.66

2011 2012 2013 2014 20152011 2012 2013 2014 2015

Hazardous industrial waste

General industrial waste"Green Energy Tatung" is Tatung's development
strategy. Tatung actively transforms the existed
business to smart energy and energy saving
provider in recent years. Whether in renewableenergy field, smart building field, and green
building field, Tatung has made lots of efforts inthem. In recent years, Tatung sets up solar PV
system in various places in Taiwan. The capacity
reached 23MWp by the end of 2015. Our goal is
to expand the capacity to 42 MWp. The solar PV
system generated 23,081,267 kw-hr electricity intotal in 2015, which equaled to 12,186.911 tons of
CO2 reduction.

National Penghu University of
Science and Technology

Note 1: 1 kw-hr emits 0.528 kg CO2.

▲ Figure 6.3-4 Amount of industrial wastes by Tatung▲▲

Table 6.3-3 Waste treatment methods

Treatment method

Reuse

Incinerate

Solidify

Landﬁll

PhysicalChemical

Total

General industrial
waste (tons)

2,408.84

668.75

21.02

56.23

66.27

0.38

3,221.49

Hazardous industrial
waste (tons)

0

12.02

30.38

0

1.26

0

Treatment method
percentages(by weight)

73.77%

20.85%

1.57%

1.72%

2.07%

0.01%

Taichung Wu Chuan Junior High School
43.66

Taichung Municipal Ssu Chang Li
Junior High School

42MWp

23MWp
13MWp

2014

2015

2016

2017

▲ Figure 6.2-6 Tatung solar PV system set up capacity and target

69

70

Chapter 6 Environmental performances

New Taipei Municipal Lin-Kou
Junior High School

2016

TATUNG CSRWithin the group, Tatung responses to thegovernment policy to develop green power,
and combines "Green Energy Tatung" strategy
to subscribe 800,000 of green power in 2015.
Besides Tatung also actively taking action to utilize
factory roof (Taoyuan 1st Plant, Taoyuan Wires
and Cables Plant, Forward Electronics Co., Ltd.
Kaohsiung Plant) within the group to build solar PV
systems, the systems were completed by the endof 2015 with total capacity of 1,030 kWp. Tatung
will continue to utilize the plant buildings to build
solar PV systems and make contribution to thedevelopment of Taiwan's green power and reducegreenhouse gas emissions. For more details about
Tatung solar PV system, please visit
http://www.tatung.com/Solution/
detail/574?langCN=TW.

with local farmers to run a ground type solar PV
system. Tatung considers serious subsidence areas
have been unable to effectively grow the crops
with economic value and farmers' livelihoods
have adversely affected. Tatung erects solar PV
systems through leased land from farmers, after
20 years the solar PV systems removed, the farmland will also be recovered and can be continued
agricultural planting, which creating a farmers,company, government triple win situation.

In response to the policy in regarding to turnthe farm land which is unable to farm due tosubsidence to solar PV area made by Council ofAgriculture for Yunlin county, Tatung cooperates
Solar PV system installed in Taoyuan
Wires and Cables Plant

Kinmen County
44 PV systems

Taoyuan City
150 PV systems

5MWp
Penghu County
30 PV systems

Taichung City
43 PV systems

15.1MWp

3.3MWp

New Taipei City
46 PV systems

3.5MWp5.3MWpTainan City and
Kaohsiung City
13 PV systems

0.7MWpHsinchu County 37
PV systems

6MWp
Nantou County
126 PV systems

11MWp

Solar PV system installed in
Taoyuan 1st Plant

71

Chapter 6 Environmental performances

72

Smart buildings and green buildings

In the growing problem of global warming,
advanced countries have incorporated energy
conservation and carbon reduction into thebuild projects. Buildings will combine technology
transforming from automation to smart type.
Through the automatic monitoring equipments,
towarding safety, health, comfort, andenergy saving, green building and sustainable
management has become a trend. The purposeof a smart commercial building is to provide
energy-efficient operation and staff comfortable
to improve working efficiency. Since 2014,
Tatung implemented smart building solutions into
ECS headquarter. The solutions included ECS's
gateways (Quark) and Tatung's smart building
management system (SBMS). After implementing
SBMS, the building achieved 8% power saving
target in 2015, and is expected to reach 20-30% of
the power saving target in 2016. For more details
about Tatung smart buildings, please visit
http://www.tatung.com/Solution/detail/576?langCN=TW.
For this, Tatung Group pools its R&D strengths
together to introduce smart systems and green
energy efficiency into this smart building project,
and utilizes the design ideas of smart and green
building to create a sustainable smart community.
This will connect Taiwan to the world and makeTatung one of the pioneers in smart innovatedapplications. Tatung brings together the entire
group, as Shan-Chih Development works on thedevelopment of "Tatung Smart Manor," Tatung,
Tatung System Technologies and Tatung Medicaland Healthcare Technologies join force forthe smart system and apply for a "smart green
community" of smart building at the diamondlevel and green building at the gold level. This
will be the first demonstrational community in
Taiwan that is moving toward a smart city. This
smart green community project consists of 5Ss,
Smart Community, Smart Property Management,
Smart Safety and Security, Smart Living and Smart
HealthCare and Smart Energy Saving. We aretrying to achieve not only 30% of saving in waterand power and reduction of 40% of CO2 emission,
but also create new energy as renewable source.
On basis of the latest intelligent system platform of
Tatung, all building facilities are connected andall the tenants have to do is to move a finger toexploit the public facilities of community or smart
home appliances through cloud information APP
while staying on top of the information of what
they need for everyday life. For more details about
Tatung's smart green building, please visit
http://www.tatung.com/Solution/detail/10679?langCN=TW.

Tatung smart building-ECS Headquarter building

5S
Smart energy saving
Smart living andsmart health care
Smart property
management

Smart safety
and Security

Smart community

Tatung Manor "5S"2016

TATUNG CSR

Tatung tirelessly dedicates to the developmentof green products and many of them have been
awarded with "Green Mark", "Energy Label", and"Water Label". The new models of ﬁxed-frequency
air conditioners in 2015 have all been awarded
with Green Mark. 90% of new models of inverter
air conditioners in 2015 have been awarded with
Green Mark. In general, 3 types and totally 90
models of Tatung products have been awarded
with Green Mark. For Energy Label, 7 types andtotally 379 models of Tatung products have been
awarded with Energy Label. For Water Label, 21
models of washing machines have been awarded.
The details on green products are shown on Table
6.4-1 and Figure 6.4-1.
Note: The above data was collected on 2016/03/29.

As for toxic free products, Tatung has followed EU
RoHS directive and REACH regulation, throughsupply chain management and manufacturing
management to ensure there is no hazardous
substance in the products shipped to EU.
As increasing awareness on the global warming
issue, Tatung expects the customers andconsumers choosing the products which havelower environmental impacts. Hence, Tatungstarted to carry out product carbon footprintproject to disclose product's GHG information. In
2010, San-Hsia Factory cooperated with China
Steel Company to carry out carbon footprint
inventory on A.C. motor (3hp) and veriﬁed by DNV.
Tatung also assisted the subsidiaries such as CPT
and GET to carry out product carbon footprint
since 2011. Starting from 2012, Tatung has carriedout product carbon footprint inventory on Tatung's
signature product – Rice Cooker. So far Tatung
has completed the establishment of Taiwan EPA
carbon footprint PCRs for "Rice Cooker" and"Electronic Cookers" and followed the PCR to carryout product carbon footprint inventory for Rice
Cookers. Tatung sets the schedule to complete by
the end of 2016. In addition, Tatung also carries out
product carbon footprint project on amorphoustransformer and also sets the schedule to completeby the end of 2016.

73

Chapter 6 Environmental performances▲▲

Devote in developing environmental
friendly products

Table 6.4-1 Lists of green products
Green Energy Water
Mark1 Label2 Label－◎－

Product
Electric fan
Refrigerator

－

◎

－

Washing machine

－

◎

◎

Monitor－◎－

Water dispenser (warm/hot water)

－

◎

－

Dehumidiﬁer

－

◎

－

Domestic air conditioner
Amorphous cast-resin dry typetransformer
Amorphous oil-immersed typetransformer

◎

◎

－

◎

－

－

◎

－

－

Note1: Taiwan EPA established "Green Mark" program inorder to encourage manufacturers to reduce
pollution emissions, consumption of energies andresources during the life cycle of a product as well as
to awake the consumers to choose resource saving,
low pollution, recyclable products. The productswith "Green Mark" represent the environmental
performances ranked from top 20~30% in theirproduct category.
Note 2: 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 thannational energy efﬁciency standard.
Unit：No. of application
250

Energy
Label

Green
Mark

Water
Label
203

190

186

200

150

82
100

73
49

50

19

8

7

4
0

24

0

2012

2013

2014

2015

▲ Figure 6.3-1 Numbers of Green Mark, Energy Label, andWater Label awarded.

Product and package recycling at theend of life

As for the recycle on the wasted products, Tatungtakes great attention on this issue. Tatung pays
"Recycling and Cleaning Fee" to the government
agency (Recycling Fund Management Board)
to carry out country-wide waste recycling affairs.
Based on the statistics 1 in 2014, the average
recycling rate for electric and electronic device is66.32%, the average recycling rate for information
device is 43.13%. Apart from paying the fees andfulfilling producer responsibility, Tatung also works
hard to use more recyclable materials throughdesign and manufacturing stages and actively toapply for Green Mark.
In addition, as a corporate who has her own
retailing system, Tatung works together with TCPC
to set up battery and fluorescent lamp recyclingbox at each Tatung 3C Store to recycle consumers'
wasted batteries and fluorescent lamps, as wellas consumers' large wasted house appliances
upon request when purchasing. By doing this, thewastes can be fully recycled under the controlof regulation and avoided damage to theenvironment.
In regarding to the packaging materials ofhousehold appliances and consumer products,
Tatung believes that the packaging materials
are fully recycled. The reason behind this is therecycling channels in Taiwan are well establishedand residences are highly educated and aware to
do recycle in their households. For the 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 designingand producing more energy efficient andenvironmental friendly products to be consistent
with her vision.
Note 1: The ofﬁcial website of Recycling FundManagement Board
http://recycle.epa.gov.tw/recycle/epa/ShowPage2.aspx?key=6&sno=1010&subsno=293&subsubsno=252

74

2016

TATUNG CSR

6.5 Environmental costs andconformity of regulation

Failure to comply with regulations
and signiﬁcant spills

Tatung takes great concern on thedevelopment of environmental protection
regulations. When there are public hearingsor seminars for new regulations, Tatung
assigns professions to receive the latest
information. In spite of environmental
management system and internal audit
have been implemented in the company,
there were two incidents which breach theregulation in 2015. San-Hsia Factory was
fined NTD$100,000 and Taoyuan 1st Plant
was fined NTD$100,000 due to violationsof "Air Pollution Control Act". The violation
occurred in Taoyuan 1st Plant have beencorrected in accordance to the regulation
and accepted by the authority. The
violation occurred in San-Hsia Factory is
still undergoing improvement. Tatung willfurther enhance internal audit to strengthen
management to prevent such incidents
happened again. Besides, there was not
signiﬁcant spill in 2015.

Environmental protection expendituresand investments by type
Tatung evaluates any possible pollutants
occurred from the operations and has installed
pollution prevention facilities in the factories.
The environmental protection expenditures andinvestments in 2015 are NTD$ 16,693,374 and shownin Figure 6.5-1.

5,141,391

Waste treatment cost

7,685,283

Pollution prevention facility operation cost

Pollution prevention
facility setup cost

3,866,700

Authority0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Note: Salary not included

7,000,000

8,000,000
NTD$▲ Figure 6.5-1 Environmental protection expenditures and investments

Audit

by type in 2015

Internal control audit
Improvement

ESD
3P Program onsite audit

ISO 14001
Factoryaudit▲ Figure 6.5-2 Conformance measures in Tatung

75

Chapter 6 Environmental performances76

ANNEX
Annex 1

Subsidiaries notes to consolidated ﬁnancial statements

The consolidated entitles are listed as follows

ANNEX

2016

TATUNG CSR

ANNEX

ANNEX

2016

TATUNG CSR

ANNEX

ANNEX

2016

TATUNG CSR

2016

ANNEX

TATUNG CSR

Annex 2Business
Groups

Products and services provided by Tatung
Business Units

Power
Equipment BU

POWER
BUSINESS
GROUP

Industrial Appliance: Researching, developing and manufacturing
all kinds of transformers rated 345kV 1000MVA and under, allkinds of reactors rated 345kV 100MVAR and under, 161kV class ofgas insulated switchgears and gas circuit breakers, 36kV seriesof switchgear, power distribution equipment, and other industrial
equipment.
Wire & Cable: With nearly fifty years of technical experience, thisbusiness unit is responsible for manufacturing and sale of various
wires, cables, optical fiber cables and busway which are widelyused in telecommunication, power transmission and distribution
system, industrial equipment, home appliance and IT network &electronic device.

Motor BU

Tatung's motors business has been operating for over six
decades with sales worldwide. With "Tatung Motors Drive
the World" as its theme. Integrating of all aspects of electricmachine which covered for designing, manufacturing, andselling of electric motors, immersible pump motors, PM motors,
EV motors, drives, water jacket motors, generator sets, and totalsolutions of power systems.

AdvancedElectronics BU

The Advanced Electronics Business Unit (AEBU) focuses onproviding global ODM customers with design and manufacturing
products & solutions. The product lines include 2 main lines: digitalentertainment and Internet-of-Things (IoT) products. The digitalentertainment line includes electronic gaming and imaging
accessories.
The IoT products include IP camera, smart energy management
and sensing-&-control devices and solutions. 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.

Appliance BU

Tatung launches Smart Home Energy Management System toprovide efficient, convenient and comfortable green life. Tatung
Smart HEMS is useful for anyone who wants to reduce home energy
consumption and save money to offer users total managementof home energy consumption with appliance control, energy
consumption monitoring, and selfmonitoring functions anytime,
anywhere, through any internet-enabled personal device.
For new product developments, the new launched golden 6°
4K curved Display significantly reducing the standard error of
6° elevation design in the visual reflection of light generated,meanwhile to improve screen contrast images to create thebest viewing perspective; the frame-type design with curved
base metal material finish delivers the extraordinary taste. Largehome appliances parts, Tatung continuously devotes itself to thedevelopments of grade 1 energy label air-conditioning products
and refrigerators, and energy-saving water mark washingmachines. For small home appliances, with the rising awareness ofenvironmental protection and energy, Tatung introduces Classic
DC fan products which equipped with DC motor and DC inverter.
Comparing with traditional fans, the new generation Classic DC
fans can significantly save energy and reduce noise while retaining
the high-quality and green life! Tatung home appliances products
have been awarded the TAIWAN Excellence for over 22 years todemonstrate superior design and innovation capability.

CONSUMER
BUSINESS
GROUP

ANNEX

Products and services

ImportantCertiﬁcations

2306

MIRDC REGISTERED

4A4Y002

MIRDC REGISTERED

4A4E004

MIRDC REGISTERED

4A4H004

2613

UL
R33001

2016

ANNEX
Business
GroupsBusiness Units

Smart Solution
BU

SYSTEM
BUSINESSGROUP

SystemIntegration BU

Real Estate
AssetManagement
Division

ANNEX

TATUNG CSR

ImportantCertiﬁcations

Products and services
IoT business opportunity is increasing therefore Tatung's Smart
Solutions Business Unit integrates energy-saving products, ICT
technologies, big data analysis and energy management systems
to provide customers with the best applications.
Tatung provides the Smart Building Management System, to analyze
energy data to help you set a reasonable energy capacity, uninstallor improved insufficient equipment together with a management
system that optimizes the best energy-saving effect. Tatung also has
the smart building know-how to provide a complete Smart Home
Solution and make customers enjoy the intimate experience inhome life.
The Smart Grid Solutions include all kinds of smart meters and AMI
system. In addition, we are capable of integrating the Micro Gridsystem, developing and designing the solar system and related
solar solutions for worldwide power utilities, governments, andresidential users.

DLMS User Association

TEST REPORTIEC 62052.11 Electricity metering equipment (AC) – General requirements, tests andtest conditions – Metering equipment
IEC 62053.21 Electricity metering equipment (AC)—Particular requirements
Part 21: Static meters for active energy (classes 1 and 2)
IEC 62053.23 Electricity metering equipment(ac) – Particular requirements – Static
meters for reactive energy (classes 2 and 3)

devicelanguagemessage
specification

Bahnhofstrasse 28
CH-6304 Zug
Switzerland

Tel. +36 28 514065
Fax +36 28 514066
dlms@dlms.com

Certification No. 1285

Test Report
Reference No. .................................... : 13CA09125-MA03

This is to certify that the metering equipment identified as:

Tested by (+ signature) ...................... : Marwa Alkaisi

Type: ETD-21
Mgmt. SAP = 1, "54415445544432313030303030303031" (TATETD2100000001)

PROJECT ENGINEER

Approved by (+ signature) ................. : R A Hills

manufactured by:

SECTION MANAGER

TATUNG

Date of issue ...................................... : 17 April 2013
Date of testing .................................... : February 2013 – April 2013

has successfully passed the DLMS/COSEM Conformance test, under the following conditions: CTT version: CTT version 2.5
 Licensed to: ITRI_Taiwan (2011/06/28)
 COSEM object definitions file version: Object_defs_v2.6_120912.dat
 Media identifiers used: [ABSTRACT, ELECTRICITY]

Contents ............................................. : 63 pages
Laboratory details
Name .................................................. : UL International New Zealand Ltd
Physical Address ............................... : 10 Vanadium Place, Middleton, Christchurch 8024, New ZealandContact Details ................................... : Telephone (+64) 3 940 4400 Facsimile (+64) 3 940 4411
Test specification
Standard ............................................. : IEC 62052-11 : 2003 (Ed 1.0), IEC 62053-21 : 2003 (Ed 1.0) andIEC 62053-23 : 2003 (Ed 1.0), IEC 62055-31 : 2005 (Ed 1.0)
Client details

Test
performed

Communication
profileOpening mode

Application
context

Date and time

Digital signature of the test report

Test 13-layer HDLCDIRECT_HDLC

LN

29th Nov 2012

1FF5757E12FAD54ED20A0A5726EA5B4B

The authenticity of the test report(s) has been verified by the DLMS User Association and themetering equipment identified above is listed on its web site at: http://www.dlms.com.
With this, the manufacturer is entitled to display the DLMS/COSEM Compliant mark – shown below– on its product duly identified and on its product literature.

Applicant ............................................. : Tatung Co.
rd
Address .............................................. : 22, Chungshan N. Rd., 3 Sec., Taipei, Taiwan
Product details

Annex 3 Factories and subsidiaries participated in 3P program andOccupational Accident Prevention Pays program in 2015(see additional details on page 3)

COSEM
CompliantType of test object .............................. : Energy meter
Model/type reference ......................... : ETD-21AWEB
Rating ................................................. : 230V, 5(100)A, 50Hz

The test reports are filed by the DLMS UA. Copies are available from the manufacturer.
This Certificate is only valid for the functions successfully tested. The test has been executed on one
specimen of the product, as identified by the Management Logical Device Name reported. Results
may not be applicable for other test specimens.

Accreditation details

Factories and subsidiaries participated in 3P program and Occupational Accident Prevention Pays programin 2015

Date: Zug, the 30th November 2012
TRF revision 130130

The issuance of this report in no way implies Listing, Classification or Recognition by UL and does not authorize the use of UL Listing, Classification or
Recognition Marks or any other reference to UL on or in connection with the product or system. You cannot use this test data or UL's name or marks inconnection with any product, packaging, advertising, promotion or marketing without UL's prior written permission. Please be informed that UL neither
selected the sample nor determined whether the sample was representative of production samples. The test results apply only to the actual samples
tested.

Paul Fuchs
General Secretary

UL METER PERFORMANCE COMPLIANCE REPORT FOR:
Tatung Co.
22 Chungshan N Rd, Sec 3, Taipei, 104, TW

Factories owned by Tatung

Subsidiaries

Tayuan Plant

Tatung Die Casting Co., Ltd.

Chunghwa Picture Tubes, Ltd.2

Taoyuan Wires and Cables Plant

Tatung Okuma Co., Ltd.

Forward Electronics Co., Ltd.

San-Hsia Factory

Tatung SM-Cyclo Co., Ltd.

Green Energy Technology Co., Ltd.3

Taoyuan 1st Plant

Tatung Fine Chemicals Co., Ltd.

Toes Opto-Mechatronics Co., Ltd.

Electrical Meters Center1

Shan Chih Semiconductor Co., Ltd.

Product: E3 Electricity Meter New Nic

ANSI C12.20 0.2 and 0.5 Accuracy Classes for Static Meter Test Report
American National Standard Institute, Inc.

Date: July 12, 2012
Project: 11CA59939
Job: 1001448768
Report: R11CA59939

NATIONALLY RECOGNIZED TESTINGLABORATORY:

Underwriters Laboratories Inc.
12 Laboratory Drive, RTP, NC 27709

03-EM-F0404 Issue: 1.0
Copyright UL LLC. All rights reserved. May not be reproduced without permission. UL PROPRIETARY AND CONFIDENTIAL. FOR ULINTERNAL USE ONLY. This document is controlled and has been released electronically. The version on the UL intranet is the up-to-date document.
Hard copies are uncontrolled and may not be up-to-date. Users of hard copies should confirm the revision by comparing it with the electronicallycontrolled version.

System I nteg ration BU ma i n ly p rovides I CT (I nfo r mation
Communication Technology) system, solar energy system andinfrastructure services.
In the ICT system, BU primarily focus on ICT system integration
services and software development, including Tatung’s smart
e n e rg y m a n a g e m e nt s y s te m, d o cu m e nt m a n a g e m e nt
system, attendance management system, enterprise resource
management system and various information management
systems, etc. The services are across government agencies,
schools and related businesses. Besides, as early as 1992, BU has
already won the achievement of CMMI (Capability Maturity Model
Integration) maturity level 3.
In the solar energy system, from north to south in Taiwan, there are
hundreds of public buildings and cases, integrated with Tatung’s
high-performance solar energy products, to provide professionalenergy creation management and establishment services. The
main services are electricity grid systems, stand-alone solar energy
systems and related applications. With rich experience in Taiwan,
BU actively expands foreign markets currently, like the areas of theSoutheast Asia and the Middle East markets.
In the infrastructure, BU provides high-quality total solution tocustomers, combined with multidisciplinary professionals which
consists of the fields of power, electronics, mechanics, smart
control, information, communication, transportation and project
management, coordinates cross interface and integrated design,
implementation, project management with related technicalsupport.

Real Estate Asset Management Division provides specialized investment services from entire real estate
life cycle associated with planning, analyzing, developing, operating and managing on behalf of the
Tatung Corporate to maximize asset value and achieve optimal asset performance through value added
real estate strategy. Recent on-going projects include: Real Estate Asset Activation, Construction ProjectManagement and Self-owned Building Renovation.

Note : Only factories and subsidiaries with manufacturing function participate in 3P program and Occupational Accident
Prevention Pays program. The information disclosed in this report is from Tatung's Factories (the light tan color
background). Crystal Growing Center is not on the list due to it is no longer operated by Tatung
Note 1: Locates at Tayuan Plant.
Note 2: Includes Lungtan 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.

2016

ANNEX
Annex 4TATUNG CSR

List of GRI g4 Indicators

General standard disclosures

GRI content index for "in accordance" - core
General standard disclosures

Pages

Note

G4-22 Report the effect of any restatements of information provided in previous
reports, and the reasons for such restatements.
G4-23 Report signiﬁcant changes from previous reporting periods in the Scope andAspect Boundaries.

Strategy and analysis
G4-1

G4-2

Provide a statement from the most senior decision-maker of theorganization about the relevance of sustainability to the organization andthe organization’s strategy for addressing sustainability.
Provide a description of key impacts, risks, and opportunities.

G4-24 Provide a list of stakeholder groups engaged by the organization.
G4-25 Report the basis for identiﬁcation and selection of stakeholders with whomto engaged.
G4-26 Report the organization's approach to stakeholder engagement, including
frequency of engagement by type and by stakeholder group, and an
indication of whether any of the engagement was undertaken speciﬁcallyas part of the report preparation process.
G4-27 Report key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key topics
and concerns, including through its reporting. Report the stakeholder
groups that raised each of the key topics and concerns.

G4-3

Report the name of the organization.

8

G4-4

Report the primary brands, products, and services.

8, 13, Annex 2

G4-5

Report the location of the organization’s headquarters.

8

G4-6

Report the number of countries where the organization operates, and namesof countries where either the organization has signiﬁcant operations or thatare speciﬁcally relevant to the sustainability topics covered in the report.

9~10

G4-7

Report the nature of ownership and legal form.

8

G4-8

Report the markets served.

9~10

G4-9

Report the scale of the organization.

8

G4-12 Describe the organization’s supply chain.
G4-13 Report any signiﬁcant changes during the reporting period regarding theorganization's size, structure, ownership, or its supply chain.
G4-14 Report whether and how the precautionary approach or principle isaddressed by the organization.
G4-15 List externally developed economic, environmental and social charters,
principles, or other initiatives to which the organization subscribes or which itendorses.
G4-16 List memberships of associations and national or international advocacy
organizations.

39

—

20~22
11
9~10

Annex 1
3
5~6
6
6

2
3

3

G4-28 Reporting period for information provided.

About this report

G4-29 Date of most recent previous report.

About this report

G4-30 Reporting cycle.

About this reportG4-31 Provide the contact point for questions regarding the report or its contents.

About this reportG4-32 Report the "in accordance" option the organization has chosen.

About this reportG4-33 Report the organization's policy and current practice with regard to seeking
external assurance for the report.

About this report

No signiﬁcantchangeG4-34 Report the governance structure of the organization, including committeesof the highest governance body. Identify any committees responsible fordecision-making on economic, environmental and social impacts.
G4-35 Report the process for delegating authority for economic, environmental
and social topics from the highest governance body to senior executives
and other employees.
G4-36 Report whether the organization has appointed an executive-level positionor positions with responsibility for economic, environmental and social topics,
and whether post holders report directly to the highest governance body.
G4-38 Report the composition of the highest governance body and its
committees.
G4-41 Report processes for the highest governance body to ensure conﬂicts ofinterests are avoided and managed. Report whether conﬂicts of interestare disclosed to stakeholders.

16~18
23
23
18
17

Ethics and integrity
G4-51 Report the remuneration policies for the highest governance body andsenior executives.
G4-52 Report the process for determining remuneration. Report whether
remuneration consultants are involved in determining remuneration
and whether they are independent for management. Report any otherrelationships which the remuneration consultants have with the organization.
G4-56 Describe the organization's values, principles, standards and norms of
behavior such as codes of conduct and code of ethics.
Note: All the above have been veriﬁed by third party.

ANNEX

2

Governance

27~29

Identiﬁed material aspects and boundaries
G4-17 List all entities included in the organization's consolidated ﬁnancial
statements or equivalent documents.
G4-18 Explain the process for deﬁning the report content and the Aspect
Boundaries.
G4-19 List all the material Aspects identiﬁed in the process for deﬁning reportcontent.
G4-20 For each material Aspect, report the Aspect Boundary within theorganization.
G4-21 For each material Aspect, report the Aspect Boundary outside theorganization.

—

Report proﬁle

41~42

Note

—

Stakeholder engagement
Top
Management
Statement
Top
Management
Statement, 22

Organization proﬁleG4-10 Report the total number of employees by employment type, contract,
region, and gender.
G4-11 Report the percentage of total employees covered by collective
bargaining agreements.

Pages

20
20
17, 23~24

No signiﬁcantchange

2016

ANNEX

TATUNG CSRSpeciﬁc standard disclosures
Category

AspectEconomic
performance(Material
Aspect)EconomicMarketpresence(Material
Aspect)Indirect
economic
impacts

OthersProcurement
practices(Material
Aspect)Governance(Material
Aspect)Disclosure on
non-ﬁnancial
information(Material
Aspect)Materials

Energy(Material
Aspect)Emissions
Water

Emissions(Material
Aspect)

ANNEX

Category
DMA/Indicator

Pages

Level ofdisclosure1 Note12, 43G4-EC1 Direct economic value generated and distributed

12

●

12~13

●

43

●

DMA

41~42

G4-EC5 Ratios of standard entry level wage by gender comparedto local minimum wage at signiﬁcant locations ofoperation
G4-EC6 Proportion of senior management hired from the local
community at signiﬁcant locations of operation

Notapplicable

42

●

41

●

DMA

55

G4-EC7 Development and impact of infrastructure investments
and services supported

Not
applicable

55

●

DMA

66

G4-EC9 Proportion of spending on local suppliers at signiﬁcantlocations of operation

Notapplicable

66

●

DMA

17, 20~21, 23

Notapplicable

23

Not
applicable

DMA

66

Not
applicable(Material Aspect)

66

●

DMA

62, 64, 70~73

G4-EN3 Energy consumption within the organization

62●

G4-EN6 Reduction of energy consumption

64●

G4-EN7 Reductions in energy requirements of products andservices

70~73

●

DMA

66

Not
applicable●

DMA

G4-EN8

Total water withdrawal by source

66

G4-EN10Percentage and total volume of water recycled and resued

66

DMA

64~65, 68

EmissionsNotapplicable

DMA
G4-EC2 Financial implications and other risks and opportunities forthe organization's activities due to climate change
G4-EC3 Coverage of the organization's deﬁned beneﬁt plan
obligations

AspectEfﬂuents andwaste(Material
Aspect)Products andservices(Material
Aspect)Compliance(Material
Aspect)Overall

Employment(Material
Aspect)Labor/
management
relations

G4-EN15

Direct greenhouse gas emissions (scope 1)

63●

G4-EN16

Energy indirect greenhouse gas emissions (scope 2)

63●

G4-EN19

Reduction of greenhouse gas emissions

64●

Emissions of ozone-depleting substances

68

G4-EN21

NOx, SOx and other signiﬁcant air emissions

68

Training andeducation(Material
Aspect)66, 69Level ofdisclosure1 Note●

Not
applicable

G4-EN22

Total water discharge by quality and destination

67●

G4-EN23

Total weight of waste by type and disposal method

69●

G4-EN24

Total number and volume of signiﬁcant spills

75●

G4-EN25

Weight of transported, imported, exported, or treated waste
deemed hazardous under the terms of the Basel Convention
annex I, II, III, and VIII, and percentage of transported waste
shipped internationally

69

●

DMA
G4-EN27
G4-EN2873~74
Extent of impact mitigation of environmental impacts of products
73
and services
Percentage of products sold and their packaging materials that74
are reclaimed by category

DMA
G4-EN29

75
Monetary value of signiﬁcant ﬁnes and total number of nonmonetary sanctions for non-compliance with environmental laws 75
and regulations

Not
applicable●Not
applicable
●

DMA

75

G4-EN31 Total environmental protection expenditures and investments by
type

Not
applicable

75

●

DMA

41, 43, 47

G4-LA1Not
applicable

G4-LA2

Total number and rates of new employee hires and employee
turnover by age group, gender and region
Beneﬁts provided to full-time employees that are not provided
to temporary or part-time employees, by signiﬁcant locations ofoperation

47●

G4-LA3Return to work and retention rates after parental leave, by gender 43●

DMA

G4-LA4Social(labor practices
DMA
and decent
work)
Occupational
G4-LA5health and safety(Material
Aspect)G4-LA6Not
applicable

Pages

G4-EN20

DMA

Not
applicable●

DMA/Indicator●

44
Minimum notice periods regarding operational changes, including
44
whether these are speciﬁed in collective agreements
51~53
Percentage of total workforce represented in formal joint
management-worker health and safety committees that help
monitor and advise on occupational health and safety programs
Type of injury and rates of injury, occupational diseases, lost days,
and absenteeism, and total number of work-related fatalities, byregion and by gender

DMA
G4-LA941

average hours of training per year per employee by gender, andby employee category
G4-LA11 Percentage of employees receiving regular performance andcareer development reviews, by gender and by employee
categoryNotapplicable●Not
applicable

51

●

53~54

●

42, 44~45

Not
applicable

46

●

42

●

2016

ANNEX
Category

Social(labor practices
and decent
work)

TATUNG CSR

AspectDiversityand equal
opportunity

DMA/Indicator
DMA
G4-LA12DMA
Equal
remuneration for
G4-LA13
women and men
DMA
Nondiscrimination
G4-HR3(Material Aspect)

DMA
Forced or
G4-HR6Social (human
compulsory laborrights)(Material Aspect)

Indigenous rights

Social (society)

Composition of governance bodies and breakdown of
employees per employee category according to gender, agegroup, minority group membership, and other indicators ofdiversity
Ratio of basic salary and remuneration of women to men by
employee category, by signiﬁcant locations of operation

Operations and suppliers identiﬁed as having signiﬁcant risk
for incidents of forced or compulsory labor, and measures tocontribute to the elimination of all forms of forced or compulsory
labor
Total number of incidents of violations involving rights ofindigenous peoples and actions taken

DMA
Anti-competitive
G4-SO7 Total number of legal actions for anti-competitive behavior, antibehavior
trust, and monopoly practices and their outcomesNot
applicable

41~42

●

42

Not
applicable

42

●

39

Not
applicableNot
applicable

39

●

44

Not
applicable

44

●

35

Not
applicable

35

●

G4-PR
Product andservice labeling(Material
Aspect)Social (productresponsibility)

Type of product and service information required by theorganization's procedures for product and service informationand labeling, and percentage of signiﬁcant product and service
categories subject to such information requirements
G4-PR4 Total number of incidents of non-compliance with regulations andvoluntary codes concerning product and service information andlabeling, by type of outcomes

33, 36

●

34

●

36

DMA
Marketingcommunications
G4-PR7 Total number of incidents of non-compliance with regulations and(Material
voluntary codes concerning marketing communications, including
Aspect)advertising, promotion, and sponsorship, by type of outcomes
Customer
DMA
privacy
G4-PR8 Total number of substantiated complaints regarding breaches of(Materialcustomer privacy and losses of customer data
Aspect)35

Not
applicable

35

●

36

Not
applicable36●

31, 33G4-PR9 Monetary value of signiﬁcant ﬁnes for on-compliance with laws
and regulations concerning the provision and use of products andservices

34

Note: The above DMA and indicators have been veriﬁed by third party.
represents such indicator is partially disclosed.
Note 1： ● represents such indicator is fully disclosed,

The Ten Principles
39

Human rights

Businesses should support and respect theprotection of internationally proclaimed humanrights.
Businesses should make sure that they are notcomplicit in human rights abuses.

39

Not
applicable●

Page

Businesses should uphold the freedom of associationand the effective recognition of the right to39collective bargaining
Labor

Environment

Businesses should uphold the elimination of all formsof forced and compulsory labor.

39

Businesses should uphold the effective abolition ofchild labor.

39

Businesses should uphold the elimination of
discrimination in respect of employment andoccupation.

39, 41Businesses should support a precautionary
approach to environmental challenges.

59, 61Businesses should undertake initiatives to promote
greater environmental responsibility.

59, 61Businesses should encourage the development and70~73
diffusion of environmentally friendly technologies.

●

Not
applicable

List of UN Global Compact – The Ten Principles

Category●

G4-PR5 Results of surveys measuring customer satisfaction

Compliance

ANNEX

Not
applicable

33

DMA

Annex 5

●

39

DMA
30~32
Customer health G4-PR1 Percentage of signiﬁcant product and service categories for which31
and safety
health and safety impact are assessed for improvement(Material
G4-PR2 Total number of incidents of non-compliance with regulations andAspect)31
voluntary codes concerning the health and safety impacts ofproducts and services during their life cycle, by type of outcomes
DMA

Level ofdisclosure1 Note

39~41

Total number of incidents of discrimination and corrective actions
39
taken

DMA
G4-HR8Pages

Anti-corruption

Businesses should work against corruption in all its
forms, including extortion and bribery.

17, 40Note

ANNEX
Annex 6

ANNEX

Third-party assurance statementsrty assurance statements

2016

TATUNG CSR

ANNEX
Annex 7

Feedback Survey FormThank you for reading 2016 Tatung Corporate Social Responsibility Report, andsharing Tatung's achievements toward sustainable development. Tatung welcomes
your opinions and believes that communication should be a dialogue. In order topresent 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:
E-mail1.

2.

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csrreport@tatung.com

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□Top Management Statement□Identiﬁcation of the stakeholders and signiﬁcant topics□Proﬁle of Tatung□Structure and governance□Supply chain management, product responsibility and customer service□Social performances□Environmental performances
Opinions:

3.

In what chapters do you think needed to be improved in this report?
□Top Management Statement□Identiﬁcation of the stakeholders and signiﬁcant topics□Proﬁle of Tatung□Structure and governance□Supply chain management, product responsibility and customer service□Social performances□Environmental performances
Opinions:

4.

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ANNEX

Environment & 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
The report is printed on recycled paper.

2016/10