2017

TatungCSR ReportAbout this report

We follow GRI G4 to produce 2017 Tatung Corporate Social
Responsibility Report to present a more focused content to theneeds of the stakeholders, as well as sharing the achievements
done by 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
GRI guidelines andveriﬁcation
The contents of this reportfollow the requirements ofAA1000AS:2008 and Global
Reporting Initiative (GRI)
guidelines (G4) and havebeen verified by TÜV Asia
Pacific Ltd. Taiwan Branch(TUV NORD). The disclosure ofthis report follows "CORE" inaccordance. The assurance
statement is enclosed in
Annex 6.

Contact of this report
Han-sheng Chang
Environment & Safety Division
Tatung Co.
+886-2-25925252 ext. 3167
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.

The time frame of this report is one year period. All the activities anddata disclosed are from 2016/01/01~2016/12/31 unless otherwise
stated.

Previous reports

Tatung published her first non-financial report since 2002. The
previous report was published in June 2016. All the reports can be
downloaded via:
http://www.tatung.com/Content-EN/csr-report.asp

Schedule for the next report2018 Tatung Corporate Social Responsibility Report is scheduled tobe published in June 2018.

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 not1
included in this report except for TCPC .
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 social and quality performances were gathered byrelated departments in the company. The numbers (presented
in international indicators) in environmental performances were
provided by BUs and reviewed/corrected by ESD.

Top management statement

Top management statement

TATUNG –The practitioner in smart city and renewable energy industry
In response to global warming, climate change, and with the government's energy policy,
Tatung actively put lots of efforts in the development of smart city and renewable energy.
We have participated in Smart City EXPO in Taipei for 3 consecutive years and earned well
reputation. In 2015, we brought smart green community "Tatung Manor" into market which
certiﬁed with Green Building Label and 2015 Taiwan's Excellent Smart Green Building and
System. In order to tie in with the government's goal to build a low carbon emission country,
we are committed to construct solar PV systems nation-wide. By the end of 2016, we haveconstructed nearly 35 MW solar PV capacity and expected to have 80 MW by the end of
2017. We are expected to be the practitioner in smart city and renewable energy industry
and share such experiences to the world.
In order to slow down the impact of global warming and climate change, governments
have worked together to achieve the goal of average temperature not exceeding 2℃through signing Kyoto Protocol and even Paris Climate Agreement. As a company that has
committed to environmental protection long time ago, we have make "Development andconstruction without destroying the environment, growth and prosperity without polluting theearth" become out core value. In the past few years, we have introduced the concept andtechnology of green production in the company to reduce the impact to the environment.
On the other hand, we also actively provide environmental friendly, energy-saving products
and systems to help consumers and customers to conserve energies in their places.
For the future carbon reduction directions, high energy efﬁciency and reduce thedependence on fossil fuels will be two spindles. Tatung took "Green Energy Tatung" as
the company's development strategy since 2015. On the one hand, Tatung has spent

tremendous resources to develop various
smart solutions by using IOT, cloud computing,and big data analysis to develop various
smart solutions. On the other hand, Tatung
integrates the solar PV supply chain within
Tatung Group to invest in the construction ofsolar PV systems to help the government tobuild a low carbon emission city.
Looking forward to the future, according
to the development of the IOT, Tatung
will continue to march into our vision – thepractitioner in smart city and renewableenergy industry. We look forward to the
future that Tatung not only is the benchmarkof smart energy solution but also is amodel of sustainable development for theenvironment. We will work together with thegovernment, industries, and communities toreduce the impact of global warming andcreate a better future for next generation. Asa nearly 100 years old company, we wish us
wisdom 100, green 100, and health 100.

Chairman2017

TATUNG CSR

2017

TATUNG CSR

Table of Contents

Table of Contents

About this report
Top Management Statement

25

CH4

Summary of 2016 CSR performances
1

CH1
7

CH2
15

CH3
2017

TATUNG CSR

Chapter 1 Identiﬁcation on thestakeholders and signiﬁcant topics
1.1 Identiﬁcation on the stakeholders andcommunication channels
1.2 Identiﬁcation of signiﬁcant topics

Chapter 2 Proﬁle of Tatung
Company
2.1 Company proﬁle
2.2 Financial performances
2.3 Services and products

Chapter 3 Structure andgovernance
3.1 Corporate structure
3.2 Governance

37

37

CH5
51

CH6
67

ANNEX

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

Chapter 5 Social performances

5.1 Human rights and anti-discrimination
5.2 Employees' code of ethics
5.3 Employee compositions, career development and beneﬁts
5.4 Health, safety and disaster free
5.5 Participates and beneﬁts to the society

Chapter 6 Environmental performances
6.1 Environmental 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 1 Subsidiaries notes to consolidated ﬁnancial statements
Annex 2 List of Tatung products and services
Annex 3 Factories and subsidiaries participated in 3P program andOccupational Accident Prevention Pays program in 2016
Annex 4 List of GRI indicators
Annex 5 List of UN Global Compact – The Ten Principles
Annex 6 Third-party assurance statements
Annex 7 Feedback survey form

2017

TATUNG CSRSummary of 2016 CSR
performances

Summary of 2016 CSR
performances

Economy Items / Performances

Environment Items / Performances• Sales revenues / NTD$ 17.26 billions• New ISO 50001 certiﬁcation / 2 factories• 3P Program correction percentage / 97.62%• Amount of energy consumption / 220,839.05 GJ• Amount of resource consumption / Water：658,302 M3
Steel：6,617 tons
Copper：15,441 tons
Aluminum：447 tons
Insulation oil：376 KL• Power saving / 2.06 mega kw-hr• GHG emission reduction / 1,086.26 tons CO2e
• Percentage of product achieved the target of energy intensity / 66.67%• No. of green products / 153 models• No. of product carbon footprint veriﬁcations / 2 models• EPS / -1.03 dollars• Awards / 14 awards• Memberships in associations and organizations / 31
• Board of directors attendance percentage / 100%
• Independent director percentage / 33%• Governance / Updated "Tatung corporate social responsibility best practiceprinciples" based on the recommendation issued by the authority• Ratio between company’s basic salary and legal salary / 1.33:1 ~ 1.71:1• The percentage of managers from local in High level management / 100%
• The percentage of local suppliers / 91.31%• Disclosure on non-ﬁnancial information / Published CSR report in 16 consecutive years.

Society Items / Performances• No. of discrimination incident / 0• No. of forced or compulsory labor incident / 0• Percentage of local employees / 94.70%• Salary ratio between female and male employees / 0.87 ~ 0.89:1• Percentage of employees who are labor union members / 80.39%• No. of education/training hours for male and female employees / Male:10.76 hours, Female: 8.74 hours• Return to work percentage of employees taken parental leave / Male: 43%, Female: 55%• FR / Male：2.00, Female：1.25• SR / Male：15, Female：17• No. of non-competitive incident / 0• No. of product against safety regulation / 0• Percentage of accurate labeling on products / 100%
• No. of incident against advertisement or promotion regulation / 0• Customer satifactory / 94.34%• No. of complaint about information leaking from the customers / 0

2017

TATUNG CSR

2017

TATUNG CSR

Chapter 1
Identification on the stakeholders
and significant topics

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

Chapter 1 Identification of the
stakeholders and significant topics

Stakeholder
groupsMeaning to
TatungConcerned
issuesInstructors of
TatungCompliance

Suppliers

Partners growtogether

The quality of parts -Supplier complaint mailbox
supplier@tatung.com
and products,-Supplier evaluation, annually rethe requirements
evaluation
regarding to-Supplier assessment
hazardous
substances-Irregular

Product safety and TCPC phone lines (+886-800052666),
labeling, leakage Tatung 3C Stores, ofﬁcial websites,
satisfactory survey, etungo onlineof personal
shopping website
information

Irregular

Tatung takes great concern on stakeholders' opinions. We have direct engagement channels
for all stakeholders to collect their concerned topics in order to continue improve our CSR
performances. Table 1.2-1 shows the list of stakeholders and their communicating channels.
▲▲

Table 1.2-1 List of stakeholders and the communication channels
Meaning to
TatungShareholders

The investors who
support Tatung

Concerned
issuesGovernanceand ﬁnancial
performances

Communication channels

Communication
frequencies-Shareholders'meeting-Irregular shareholders' meetings, direct
phone line (+886-2-25925252 ext.
3258/3259), shareholder e-mail-Disclosure of ﬁnancial information onofﬁcial website and MOPS (market
observation post system)-Once per year
-Irregular

The companies
having businesswith Tatung

Product quality

Customer service, PM

Irregular

Employees

The most valuableassetsLabor rights,
welfares-Chairman's mailbox, HR mail box,
complaint mechanism, schedulededucation and training, notice board-Biweekly HR newspaper-Health and Safety Committee in theheadquarter and factories-Labor-management meeting-Irregular

2017

1 TATUNG CSR

Tatung's goodneighborhood

Pollutant emissions, Direct phone lines, social charity/
donation activities
interaction withlocal communities

Past
operation
experiences-Once per year
-Once per month-Once per 2 weeks-Once per 3 months-Once per 3 months
Irregular

Latest global
trends

Topic generating process
Invite stakeholders to
express their concerns byfilling surveys-Every month

Customers

Localcommunities
and parties

Supporters of
Tatung products-Irregular-Irregular

1.3 Identiﬁcation of signiﬁcant topics

1.2 Engagement with the stakeholders

Stakeholder
groupsConsumers-Onsite audits-Hearings, seminars

Communication
frequencies

Authorities

1.1 Identiﬁcation on the stakeholders
Based on AA1000 standard and GRI G4 guidance, Tatung CSR Reporting Group (members arefrom the top level departments in the headquarters and the factories) identiﬁed her stakeholders
by her operation experiences and based on the principle that any organizations or persons
impacted by the operation of the company or any organization or persons having impacts to thecompany. In this report Tatung identiﬁed 7 stakeholder groups such as shareholders, customers,
employees, local communities and parties, authorities, suppliers and consumers.

Communication channels

Analyze on thesinificance of each topic
and rank it

Internal meetings,
discussions, andconfirmation

Identifiy on sustainability
and significant topics
internallySignificant topics decision process
Responding the significant
topics in CSR report

2017

TATUNG CSR

2

Chapter 1 Identification of the
stakeholders and significant topics

Chapter 1 Identification of the
stakeholders and significant topics

Tatung concluded 31 possible topics that may have impacts to the stakeholders and to thecompany based on the operation experiences and the latest global trends on sustainability suchas GRI G4 indicators and UN Global Compact. The topics are listed on Table 1.3-1.

In order to receive opinions from wide range of stakeholders, from 2016.12.23~2017.1.13 Tatung
invited stakeholders to ﬁll in surveys which included the 31 identiﬁed topics mentioned above. The
data was analyzed and the most concerned topics were ranked in Figure 1.3-1.

Economic aspect

Social aspect

▲
▲

▲
▲

Table 1.3-1 Tatung's sustainable topics
Environment aspect

3.90

Financial performance

Supplier management

Global warming

GovernanceLabor’s right

Environmental management

Code of ethics

WelfareEnergy management

Risk management

Labor-management relations

Air and water emission

Disclosure on non-ﬁnancial
information

Occupational health and safety

Wastes management

Education and careerdevelopment

Water and resourcesmanagement

3.50

Recruitment

Environmental products

3.40

Human rights and nondiscrimination
Freedom of association andcollective bargaining

Compliance on environmental
regulation

3.30

Forced labor
Help disadvantage groups

Anti-competitive behavior
Product quality and safety
Product labelingManagement on hazardous
substances
Marketing communications
Management of customer
relations

2017

3 TATUNG CSR

Economic aspect

Social aspect

Environment aspect

3.80

3.70
3.60

3.20
3.10

Global warming
Freedom of association and collective bargaining
Interaction with local communities
Environmental management
Energy management
Suppliers management
Anti-competitive behavior
Disclosure on non-ﬁnancial information
Human rights and non-discrimination
Water and resources management
Forced labor
Waste management
Help disadvantage groups
Compliance on environmental regulation
Recruitment
Code of ethics
Governance
Education and career development
Air and water emissions
Management of customer relations
Occupational health and safety
Marketing communications
Risk management
Management on hazardous substances
Environmental products
Financial performance
Labor-management relations
Product labeling
Labor’s right
Product quality and safety
WelfareInteraction with local
communities

Figure 1.3-1 The ranked topics that are concerned by stakeholders

2017

TATUNG CSR

4

Chapter 1 Identification of the
stakeholders and significant topics

Chapter 1 Identification of the
stakeholders and significant topics

During the identiﬁcation process, CSR Reporting Group evaluated the probability, the inﬂuence,and the level of impacts that brought by the topics and graded them (grade 1~5). At the sametime, the grades from inside and outside the company were evaluated and discussed by CSR
Reporting Group and the combination grading for the topics that located on blue color region in
Figure 1.3-2 were identiﬁed as the signiﬁcant topics.
▲▲

Figure 1.3-2 Demonstration of signiﬁcant topics

Level of impact to the company

Economic aspect

5.00

Social aspect

Environment aspect

Governance

Under the identification process, twelve significant topics were indentified from 31 topics thisyear. The significant topics are governance, forced labor, recruitment, education and careerdevelopment, occupational health and safety, labor-management relations, labor's right,
welfare, marketing communications, product labeling, and product safety and quality. Topics insocial aspect take great portion among all the signiﬁcant topics. The most probable explanation
could be the intensive media reporting in regarding to the proposal of amendment of ''Labor
Standard Act'' in 2016, which led publics make more concerns on labor issues. In addition, asa responsible company, topics such as governance, product quality, and use of energy andresources are the topics which Tatung always concerns. The significant topics are responded
in detail in the following chapters. The relevancy of the significant topics in the value chain isexpressed on Table 1.3-2.
▲
▲

4.50
Recruitment

Product quality and safety

Education andcareer development
Forced labor

3.50

Occupational healthand safety

8
1

12

4
2

3
6

2.50
5

Labor-management
relations
Labor’s right

15

7

3.00

OutsideWithin the organization organization

Marketing communications

Global warming

4.00

9

13

17

14

11

3.40

3.45

3.50

Forced labor

19

Recruitment

16

3.55

3.60

3.65

3.70
3.75
3.80
3.85
Level of concerns to the stakeholders

SocialNon-signiﬁcant topics
Economic aspect
7.Disclosure on non-ﬁnancial
information
13.Code of ethics

Social aspect
1.Freedom of association andcollective bargaining
2.Interaction with local
communities

Environment aspect

Forced orcompulsory labor
Diversity and equal
opportunity

Education
Training andand career
education
development
Occupational
Occupational
health and safety health and safety
LaborLabor-management
management
relationsrelations
Training andLabor’s righteducation

4.Energy management

MarketingMarketingcommunications communications
Product and service
Product labelinglabeling
Product quality
Customer healthand safety
and safety

9.Water and resourcesmanagement

19.Financial performance

6.Anti-competitive behavior

10.Wastes management

8.Human rights and nondiscrimination

12.Compliance on
environmental regulation

11.Help disadvantage groups

14.Air and water emission

2017

-

Welfare5.Supplier management

5 TATUNG CSR

Aspects in GRI
G4

3.Environmental management

16.Risk management

15.Management of customer
relations17.Management on hazardous
substancesSigniﬁcant
topicsEconomic Governance

Product labeling18

10

Welfare

Group

2.00
3.35

Table 1.3-2 The boundaries of signiﬁcant topics

18.Environmental products

Environment Global warming

Employment

Emissions

Subsidiaries/
TatungGRI
re-investment SuppliersCo.
indicator
companies

DMA
page

■

■

-

G4-34

17~20,24■■■

G4-HR6

38,39

■

■

-

G4-LA12

40

■

■

-

G4-LA9,G4-LA11

43,44

■

■

■

G4-LA5,G4-LA6

47,48

■

■

-

G4-LA4

42

■

■

-

G4-LA11

43,44

■

■

-

G4-LA240,41,45

■

□

-

■

■

■

■

■

■

■

□

-

G4-PR5,
G4-PR7
G4-PR3,G4-PR4G4-PR1,
G4-PR232,36

G4-EN15,
G4-EN16,
G4-EN19

56~59

35

29,31

Note: ■ represents that Tatung having inﬂuence on; □ represents that Tatung having inﬂuence on part ofsubsidiaries or suppliers; - represents that Tatung have not affecting subsidiaries or suppliers yet.

2017

TATUNG CSR

6

Chapter 2
Profile of Tatung Co.

Chapter 2 Profile of Tatung Co.

2.1 Company proﬁleEstablished in 1918 and headquarteredin Taipei, Tatung Co. has evolved into a
conglomerate from its substantial heritage.
From its inception, Tatung has abided by its
founding values of "Integrity, Honesty, Industry,
and Frugality". Tatung is listed on the Taiwan
Stock Exchange （ TSE ） under the tradingcode of 2371.
Tatung is a leading brand for energy
saving and green energy related systems
and services in Taiwan. With the years ofexperience in smart grid industry, Tatung
supports the government policy and has
become the only one corporation nationwide
that equipped with high-low voltage smart
meter. Most of the smart meters, regardlessfor industry use or domestic use, are designed
and produced by Tatung.

Currently, Tatung solar photovoltaic power
generation system has been built in theresidential, community, factories, dormitories,
business premises of the roof to the groundbased landfill and water-type pond andother new areas. In 2016, we won Taoyuan
Ci ty p ubl i c h ous i n g, Tai pei Ci ty p ubl i chousing, Fu De Keng, and Taoyuan Landfills
solar photovoltaic power generation system
leasing tenders, total capacity of 34.93MW,
completed implementations of the fourthphase of New Taipei City, Kinmen, Hsinchu,
and Fu De Keng large solar photovoltaic
power generation system. In addition, thesmart building model "Tatung Palace mansion"
also won Green Building Label and Intelligent
Building Label, TIBA Gold Award, and APIGBA
Silver Award.

2017

7 TATUNG CSR

Tatung received many awards andcertifications on operations and products
in 2016 (Table 2.1-3). Tatung also endorses
initiatives in regarding care disadvantaged
groups and employee's health (Table 2.1-4).
All these acknowledgements from all sides arecertainly the driving force behind the growthof Tatung.
▲▲In the era of wide spread of cloud andIoT technologies, Tatung integrates
her specialized electrical and systems
technologies to provide variety of smart
management system services, including smart
community, smart building, smart home, smart
health care, and smart monitoring solutions,to create a healthy, safe, low-carbon
sustainable environment.

As a conglomerate, Tatung's investees
involve in some major industries such as
optoelectronics, energy, system integration,industrial system, branding retail channel, andasset 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). Please refer to Annex 1 for the list of
consolidated entities.

Figure 2.1-1 Information of Tatung Co.

Sales revenue (Billion NTD):
NT$17.260
Capital (Billion NTD) :NT$23.395

No. of employees:
3,167
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 City2017

TATUNG CSR

8

Chapter 2 Profile of Tatung Co.

Chapter 2 Profile of Tatung Co.

▲▲

Table 2.1-1 Membership status in associations and organizations

Association/organization

MemberManaging role1

Association/organization

MemberTaiwan Smart Grid Industry Association
Importers and Exporters Association of Taipei
Taipei Electrical Commercial Association
Industrial Association of Taipei City
Taiwan Electrical Contractors Association
Taiwan Electric Wire & Cable Industries Association
Taiwan Electrical and Electronic Manufacturers' Association
Taiwan Refrigeration and Air-Conditioning Engineering Association R.O.C.
Taiwan Association of Machinery Industry
Monte Jade Science & Technology Association of Taiwan
Taiwan Institute for Climate Change and Energy
Electric-Electrionic & Environmental Technology Development
Association of R.O.C.
The Third Wednesday Club
Chinese International Economic Cooperation Association
Taiwan Packaging Association
Chinese National Association of Industry and Commerce, Taiwan

■
■
■
■
■
■
■
■
■
■
■

■

■

■

■
■
■
■

■
■
■

CNS Certiﬁcation Mark Association, R.O.C.
ROC-USA Business Council
Industrial Safety and Health Association of the R.O.C.
Taiwan Digital Television Committee
SINOCON Industrial Standards Foundation
Information Service Industry Association of R.O.C.
Taiwan Telematics Industry Association
Taiwan Wind Energy Association
Taiwan Water Pipe Engineering Industries Association
Taiwan Information Storage Association
Taiwan Environmental Engineering Association
Advanced Industrial Cooperation Association
Chinese Institute of Engineers
Taiwan Society of Heating, Refrigerating and Air-Conditioning Engineers
Taiwan Industrial Technology Association

■
■
■
■
■
■
■
■
■
■
■
■
■
■
■

■

■
■
■

Managing role1■■■

Note1: Managing role includes director and supervisor.

▲▲

Figure 2.1-2 Tatung Co. global network

Taiwan Tatung Co.
Headquarter
San-Hsia Factory
Tayuan Plant

Japan

Tayuan Wires and Cables Plant
Tayuan 1st Plant

Czech

U.S.A.

China

Dubai

MexicoMyanmarThailandSingapore

2017

9 TATUNG CSRPower BG

Power Equipment BU

Motor BU

Consumer BG

Advanced Electronics BU

Appliance BU

System BG

Smart Solution BU

System Integration BUINVESTMENTS

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

2017

TATUNG CSR

10Chapter 2 Profile of Tatung Co.

▲▲

Table 2.1-2 The main domestic subsidiaries of Tatung Co.

*Chunghwa Picture Tubes, Ltd.
*Forward Electronics Co. , Ltd.
*Shan Chih Semiconductor Co. , Ltd.
Energy Solutions Business*Green Energy Technology Inc.
Tatung Forever Energy Co., Ltd.
Retail Channel Business
Tatung Consumer Products (Taiwan) Co. , Ltd.
*Tatung System Technologies Inc.
Electronics & Information
Business
Central Research Technology Co. , Ltd.
Industrial Appliance Business Toes Opto-Mechatronics Co. , Ltd.
and System
Tatung SM-Cyclo Co. , Ltd.
Chemical Engineering*Tatung Fine Chemicals Co. , Ltd.
Business
Asset Development Business Shan Chih Asset Development Co. , Ltd.
Chunghwa Electronics Development Co. ,Ltd.
Shan Chih Investment Co. , Ltd.
OthersTatung Medical & Healthcare Technologies
Co. , Ltd.
Tatung Die Casting Co. , Ltd.
Chih Sheng Investment Co. , Ltd.
Optoelectronics

Note: * Listed/OTC and Emerging companies.

▲▲

Table 2.1-3 Awards received in 2016

Award
Taiwan Excellence Award 20162016 iF Award

2016 Excellence in Engineering
Project Award
Energy Conserving Award by
Taoyuan Wires and Cables Plant
Bureau of Energy
Energy Saving Model by Ministryof Economical Affairs
Excellence Award for Leadershipin Energy Conservation
Taiwan Corporate Sustainability
2016 Tatung Corporate Social
Award – Corporate Sustainability
Responsibility Report
Report Silver Award
2016 New Taipei City
San-Hsia Factory
Occupational Safety Award▲▲

Table 2.1-4 Initiatives endorsed by Tatung Co.
Organization

Item

Chinese Blood Donation
Corporate blood donation
Association
Health Promotion Administration Smoke-free work place
Health Promotion Administration Healthy work place

2017

11 TATUNG CSR

2.2 Financial performances
Affected by the global economy in 2016, while Tatung continues to engage in corporatetransformations and operational advancement, the overall operation in core business has improved
significantly, but failed to make profits due to losses in the investments. Tatung however expects
improvements with all the adjustments made and efforts put in over the years.
2016 Tatung standalone revenue was NT$17.3 billion, operating loss was NT$0.051 billion, together
with non-operating income from investments, the net loss after tax was NT$2.3 billion, which was
NT$1.0 loss per share. Even though Tatung's core businesses were still in deﬁcit in 2016, our operating
losses were greatly reduced to the break-even point, indicating the fruitful results from the company's
management and transformations.
Regardless of the declination in appliance, motor and system group businesses, we strive for reducing
costs and low-gross proﬁt production lines, and we enhanced our service/maintenance capabilities
to gain high margin orders, the overall gross margin is up from last year. Although recognition of oneoff loss was made during the process of adjusting the low-gross proﬁt production which led to losses
in core businesses, the losses have been reduced substantially comparing to that of 2015. Despite
CPT and GET's reduction of losses compared to year 2015, the reduction of losses of several overseas
investment businesses has recognized, and the large amount of proﬁts of several overseas investment
businesses from asset mobilization has also recognized in 2015, besides, Elitegroup Computer Systems
has recognized a huge amount of bad debt provisioning in 2016 and San Chih Assets Development
Co., Ltd. has not recognized the profit for the construction projects. Therefore the losses increased
compared to year 2015 which led to NT$1.67 billion net loss in investments in 2016, a slightly increase
from year 2015 in which investment proﬁts were recognized.
Tatung operates normally on a daily basis and accepts no ﬁnancial support from the government. For
more detailed financial performances, please look into "Tatung 2016 Annual Report" which can be
downloaded at:
http://www.tatung.com/Content/annual-report.asp▲▲

System Integration Award

Description
Silver Award: Tatung rice cooker (TAC03DW), Tatung Microcomputer Controlled
Rice Cooker.
Excellence Award: Air puriﬁer, DC motor
stand fan (wiﬁ), split type air conditioner,
split type conditioner.
Tatung Fusion Skillet (waterless cooker)
Tatung Smart PV Atmospheric Water
Generator
Railway Electriﬁcation Project for Hualian–
Taitung Line

Chapter 2 Profile of Tatung Co.

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

Item

2012

Operating income

32,185,089 24,087,818 21,295,466 18,151,104 17,259,632

Realized gross proﬁt

2,960,479

2013
2,394,002

2014

2015

2016

1,846,739

1,581,503

2,404,376

Personnel expenses
2,966,312 2,810,058 2,700,133
Unit:
160,055(257,408) (874,725)
NT$ Thousand Net income( )represents
Non-operating income(4,200,912) (1,490,473) 1,209,308
negative values and expenses
Income tax beneﬁts
22,226
136,473
28,9562,518,948

2,403,307(966,334)(51,462)

1

Net income after tax
Earnings per share(NT$)
Dividends per share(NT$)(4,415,092) (1,364,192) 1,288,947(1.74)
0(0.70)
0(2,107,282) (2,363,313)(1,399)70,830(3,750,958) (2,765,124)

0.16(1.35)(1.03)

000Note 1: Personnel expenses include salaries, staff labor and health insurance, pension, and others.

2017

TATUNG CSR

12Chapter 2 Profile of Tatung Co.

2.3 Services and products

26,999,522

38,095,214
2015

390,640

5,475,033

12,677,808

2014

399,245

5,573,671

14,466,940

2013

2016

Note: Data from consolidate report▲ Figure 2.3-1 Tatung's production amount

60,000,000

53,993,039

NT$ Thousand

Optical sector

Consumer products sector

Machinery and energy sector

OthersOverseas Domestic

2015

Overseas Domestic

406,978
3,115,095
13,660,197

2014

32,655,577

Overseas Domestic

3,582,593
14,543,661
17,995,465
414,0682013

600,017
4,248,993
13,032,806

Domestic

5,308,973
14,987,003
19,932,691
330,2670

296,077

10,000,000

11,942,798
11,290,607

20,000,000

292,846
5,221,136
13,035,113

30,000,000

11,271,423
15,662,725
23,615,727
2,398,338

40,000,000

36,964,275

50,000,000

11,129,715
10,054,574

2017

13 TATUNG CSROthers406,64503,188,671

註：合併報表數字484,033

10,000,000

Power Business Group
Tatung continued the previous year's adjusted strategy to remove low
gross proﬁt production line, we are also in the process of developing
new energy-saving, highly efﬁcient products. In 2017, Tatung expects
to highly efﬁcient and smart system solutions to provide more energysaving and safer power and engineering products, to collaborate withoverseas investment companies to expand the market share in power
plants, business buildings and public construction projects.

Consumer products sector

Machinery and energy sector

17,367,687

20,000,000

1,107,232

Looking forward to the future, we will continue to provide "professional
techniques for solar power system planning and installation", topromote renewable energy. To develop power plant maintenancebusiness opportunities by having mechanical and electrical integration
capacity and monitoring technology, we believe Tatung will become
Taiwan's leading manufacturer of solar power, we hope that the systembusiness.

30,000,000

24,421,043

Currently, Tatung solar photovoltaic power generation system has
been built in the residential, community, factories, dormitories, businesspremises of the roof to the ground-based landfill and water-type
pond and other new areas. We cooperate with the Time-of-Use (TOU)
electric rate policy, to resolve the electricity shortage problem. We also
take part in the new generation of smart meter project, and it can be
estimated that the implementation of smart meter will contribute to theGDP by NT$ 41.3 billion. Tatung will become the only one corporation
nationwide that equipped with high-low voltage smart meter, and we
support the government policy and we grasp the business opportunity.

Optical sector

40,000,000

57,553,252

System Business Group

50,000,000

4,150,419

Based on the theme of Aesthetic Life, Health and Energy-Saving,
our team brings a superior design capability into full play, and we
introduced and applied the IoT technologies into our productdevelopment of smart appliances and have received approval frominternational awards. In 2016, to strengthen our promotion on Click-andMortar, the Online to Ofﬂine (O2O) Business Model, we have launcheda campaign of publicity for a series of white colored appliances, which
has initiated discussions to increase business sales and to enhancebrand image. In 2017, we are releasing more aesthetic-designed
home appliances on the market which are combined with product,
marketing, and channel. In the international market, we will befocusing on the US and ASEAN markets, coordinating with the overseas
subsidiaries and dealers to release the localized products, and we willtake part in the Southern Policy to promote the Tatung brand.

60,000,000

50,909,666

Consumer Business Group

NT$ Thousand

21,117,249

Global warming caused by climate change has brought risks to the operation 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 to smart grid, smart community and smart
home (Please see Annex II for product information). Tatung’s future development priorities as follows:

The production values and sells information are shown on Figure 2.3-1 and Figure 2.3-2.
54,464,666

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.

Chapter 2 Profile of Tatung Co.

2016

Overseas

Note: Data from consolidate report▲ Figure 2.3-2 Tatung's domestic and overseas sales information

2017

TATUNG CSR

14

Chapter 3
Structure and governance

3.1 Corporate structure

TargetGovernance

Disclosure on non-ﬁnancial
information• Short-term: Establish principles regarding
to corporate governance and modify
them when receiving new request from
authorities.
• Mid-term: All the operations follow
related governance principles andindicators in Corporate GovernanceEvaluation.
• Long-term: Managers and employees of
Tatung follow ethical principle to avoid
breaching regulations and ensuring
company's sustainable operation andperformance, as well as concerns aboutsocial issues and practices corporatesocial responsibility.

• Short-term: Publish CSR report every
year.
• Mid-long term: Follow GRI Standards
to publish CSR report since 2019
(otherwise requested by theauthority).

Published the revised
Tatung Corporate Social
Responsibility PracticePrinciples in December
2016.

Chapter 3 Structure andgovernancePublished 2016 Tatung
Corporate Social
Responsibility Report inJune 2016 (for the 15th
consecutive year) anddisclose it on Tatungofﬁcial website and
MOPS.
Performances

The governance structure of Tatung is shown on Figure 3.1-1. The top manager is Chairman, Weishan Lin, and he does not have any other administrative position. Apart from the administrative
divisions, Tatung is also consisted with Power BG, Consumer BG, System BG, and domestic/
overseas subsidiaries.

Shareholders’ Meeting
Board of Directors
Audit Committee
ChairmanPresident

Power BG

Consumer BG

System BG

GeneralAdministration
Division

Finance &Accounting
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

Operation
SupportDivision

Human
Resources
Division

Legal
DivisionManagement
Information
SystemDivision

Environment& Safety
Division* Investment
Division

Note: The chart is updated to April, 2017.
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 Township, Taoyuan City.
Note 4: Owns Electrical Meters Center at Tayuan Plant.

▲ Figure 3.1-1 Tatung operation structure

Performances

2017

15 TATUNG CSR

2017

TATUNG CSR

16

Chapter 3 Structure andgovernanceTatung 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
with ongoing organizational and physicaladjustment, the focus of operations andintegration of group resources, but also review
and revise the relevant corporate governanceapproach to enhance the operational
efﬁciency of corporate governance.

Tatung corporate governancebest practice principles

In order to establish sound corporate
governance system, Tatung adopted theprinciples of Taiwan Stock Exchange Corporation(TWSE) and the GreTai Securities Market (GTSM)
and published "Tatung corporate governancebest practice principles". The principles areagreed by board of directors and aiming toachieve the followings:
1.Protect the rights in interests of shareholders.
2.Strengthen the powers of the board of
directors

to build up a good business mode of operation,risk control mechanism and sustainablebusiness environment, Tatung published"Tatung corporate ethical principles". The
principles prohibit director, supervisor, manager,
employees, and mandataries or persons having
substantial control shall not conduct unethicalbehavior. Ethical training and education are
conducted among the mentioned personnel
regularly. Persons and companies who havebusiness with Tatung are invited to attend theeducation to fully understand the commitment
made by Tatung.

Shareholders' meeting

Shareholders' meeting is consisted witheach shareholder and held once per year.
Extraordinary shareholders' meetings areheld under exceptional circumstances.
Each shareholder has right to express his/her opinions to the company and involves indecision making with votes. Tatung has a groupwhich is responsible for gathering/disclosing
company's information and responding toshareholders. Tatung also setup company's
official site to disclose the related governancenews and company activities and to act as acommunication channel
between the company
1and shareholders .

3.Fulﬁll the function of supervisors

Note 1: Contact window for shareholders
http://www.tatung.com.tw/home/contactus

4.Respect the rights and interests of stakeholders.

Board of directors

5.Enhance information transparency.

Tatung corporate 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 interests andfulﬁll the duty of conﬁdentiality, fair dealing, protection
and proper use of company assets, to follow the laws
and regulations, to encourage the reporting of any
violations of law or ethical behavior and conduct of
disciplinary measures, Tatung has developed "Tatung
corporate code of ethics" and agreed by the board of
directors.

Tatung corporate ethical principles

In order to establish an ethical and soundmanagement of corporate culture development

2017

17 TATUNG CSR

The highest governance body in Tatung isboard of directors. The members of the board
are voted by shareholders and responsible forcompany's operation performances. The board
had 9 directors and 3 of them were independent
directors. All the directors have professional
qualiﬁcations in many ﬁelds and continuously totake trainings to enhance their ability to run acompany. The detailed information about theboard of directors is shown on Table 3.2-1 andage and gender distributions are showed on
Figure 3.2-1 and Figure 3.2-2. In 2016, the board
held 8 meetings and the major resolutions arelisted on Table 3.2-4. In addition, when thereis event of conflicts of interest during boardof directors' meeting, Tatung follows related
regulations to resolve it. No conflict of interest
event was occurred in 2016.

▲▲

3.2 Governance

Chapter 3 Structure andgovernanceName

Nationalityor
corporate
seat

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

Republic
Mr. Wei-shanof China
Lin(Taiwan)ChairmanRepublic
Ms. Wen-yen
of China
K. Lin(Taiwan)Director

Mr. I-hua
Chang

Republicof China(Taiwan)Director

Mr. Lung-ta
LeeRepublicof China(Taiwan)Director

Representativeof TatungRepublic
Universityof China
Mr. Huo-yen (Taiwan)
Chen
Republic
Mr. Peng-fei Su of China(Taiwan)

Audit
Compensation
Job title assumed in the Company and any other company
committee committee
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., Chairman of 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 ofJapan, Inc., Chairman of Tatung Electronics (Singapore) Ptd. Ltd.,
Chairman of Tatung Electric (Singapore) Pte. Ltd.
President of Tatung Company, 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.
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., Directorof Kuender Co., Ltd.
Director & President of Shan Chih Semiconductor Co., Ltd., Director of
Tatung Fine Chemicals Co., Ltd., Director of Green Energy Technology
Inc., Director of Greater Power Ltd., Director of Tatung Company ofJapan, 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

President of Tatung High School

Independent
Director○○

Republic
Mr. Tzong-derof China
Liou(Taiwan)

Independent
Director○○

Republic
Mr. Chi-mingof China
Wu(Taiwan)

Independent
Director○○

Senior Vice General Manager in Investment Department, ChengYe Assets Management Co., Ltd., Independent Director, San Chih
Semiconductor Co., Ltd.
Professor, College of Law, National Chengchi University, Director,
JinWen University of Science & Technology Managing Supervisor,
Central News Agency, Chairman, Teacher Grievances Committee of
Ministry of Education, Commissioner, Central Election Commission.
Associate Professor, Department of Finance, National Chengchi
University, Independent Director, TSC Auto ID Technology Co., Ltd.

Note: Director of Wei-Tung Lin had resigned on March 10, 2017.
Male

1

Female1

Under 506
50~60Over 602

Note: Director Wei-tung Lin resigned on 2017.3.10.

8▲ Figure 3.2-1 Genders distribution of theboard of directors.

▲ Figure 3.2-2 Age distribution of theboard of directors

2017

TATUNG CSR

18

Chapter 3 Structure andgovernance

▲
▲

Title

Chapter 3 Structure andgovernanceCompensation committee

Table 3.2-3 Status of the board of directors' meeting
Name

Attendancein person

Attendanceby proxyAttendance
rate (%)

Notes

Actual attendance
rate: 100%

Wei-Shan Lin

Director

Wen-Yen K. Lin

8
8

Director

I-Hua Chang

7

1

88

Director

Wei-Tung Lin

4

0

50

Director

Lung-Ta Lee

7

1

88

Director

8

0

100

Independent Director Tzong-Der Liou

8
8

0
0

100
100

Independent Director Chi-Ming Wu

7

1

88

Tatung University /Huo-Yen Chen
Independent Director Peng-Fei Su

0
0

100
100

Actual attendance
rate: 100%

In regarding to the Board's performances, Tatung Co. evaluates the performances in accordance to"Corporate governance self-evaluation indicators" and reports the results to Audit Committee (functional).
Tatung Co. authorizes the board of directors to determine the directors' traveling expenses and remuneration
based on the contribution to the operations of the Company 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 the other inaccordance with the provisions of Companies Act.

Actual attendance
rate: 100%▲▲

Chairman

The Compensation Committee is responsible for approving the Compensation Committee Charter for
intensifying corporate governance and consolidating the director and executive compensation programs.
Table 3.2-6 shows the status for the attendance of Compensation Committee members.

Title

Note: Director of Wei-Tung Lin had resigned on March 10, 2017.

▲▲

表 Table 3.2-4 Major resolutions of the board of directors

Date

Major resolutions

2016.03.23

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

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

Audit Committee (functional)

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

表 Table 3.2-5 Status for the attendance of Audit Committee member

Attendancein person

Title

Name

Independent Director

Peng-Fei Su

Independent Director

Tzong-Der Liou

8
8

Independent Director

Chi-Ming Wu

7

Attendanceby proxy001Attendance
rate (%)

Notes

100
100
88

Actual attendance
rate: 100%

Attendance by
proxy

Attendancerate(%) (B/A)

Convenor

Tzong-Der Liou

2

0

100

Peng-Fei Su

2

0

100

Committee

Chi-Ming Wu

2

0

100

▲
▲

Audit committee

Attendance inperson (B)Committee

The board of directors resolved to convene the 2016 Regular Shareholder's Meeting.
Directors' resolved no dividend distribution in year 2016, no dividend employees'
compensation and directors' remuneration in year 2015. Supplementary information on
2016 Annual General Shareholder's Meeting.

2016.05.04

Name

Table 3.2-7 Remuneration paid to directors in 2016
Unit NT$ Thousand

Job title

Name

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

Chairman

Wei-Shan Lin

10,059

11,109

-

-

-

140

-

2,714

Director

Wen-Yen K. Lin

-

4,400

-

-

-

1,500

120

2,950

Director

I-Hua Chang

-

-

-

-

-

-

120

490

Director

Wei-Tung Lin

-

-

-

-

-

-

120

190

Director

Lung-Ta Lee
Huo-Yen Chen
(Representativeof Tatung
University)

-

60

-

-

-

-

120

600

-

-

-

-

-

-

120

120

3,200

3,632

-

-

-

-

-

-

2,720

2,720

-

-

-

-

-

-

2,450

2,450

-

-

-

-

-

-

Director

IndependentPeng-Fei Su
Director
IndependentTzong-Der Liou
Director
IndependentChi-Ming Wu
Director

Note: Please refer to 2016 Tatung Annual Report page 19-20 for completed data.

2017

19 TATUNG CSR

2017

TATUNG CSR

20

Chapter 3 Structure andgovernance

Chapter 3 Structure andgovernance▲ Figure 3.2-3 Tatung internal control system statement

Internal control system and internal control committee

Risk management

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

When facing on rapid changing business environment and climate change, Tatung assigns
responsible departments (Table 3.2-8) to process risk assessment on signiﬁcant topics. Table 3.2-9
shows Tatung's risks and counter measures.

The mission is to:
1. Ensure the enforcement of company policies and rules.
2. Avoid the waste, lost and non-efﬁcient use of assets.
3. Ensure the accuracy of accounting and operating information.
4. Evaluate the performances for each division.

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

Risks

Table 3.2-8 Structure of risk management
Bodies in charge

Responsibilities

Strategy and operation risk

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

1. Stipulation and implementationof management policies.
2. Assessment and analysis ofoperation performance.

Market risk

Sales unit of each factory anddivision.

Business and sales promotions
as well as market research andevaluation.

Financial and liquidity risk

Finance & Accounting Division.

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

Legal risk

Legal Division

Process of litigation and nonlitigation cases▲▲

In addition to internal control system, Tatung has introduced and maintained various ofmanagement systems in the factories for specific topics, such as ISO14001 (environment),
OHSAS18001 (health and safety), ISO9001 (quality) and others. The factories follow the proceduresof the management systems to review and update the related laws and regulations. At the sametime, the factories conduct internal audit and management review to ensure the operations cancomply with the laws and regulations. The administrative in headquarter also announce the latest
and related regulations to the employees by publishing on the internal website and/or throughe-mails. In this way, the employees will gain the knowledge of regulations and avoid breachingthem at work.

▲▲

Internal control system covers all operations of Tatung, including accounting, ﬁnance, planning,organization, control and management, and information about sales, production, purchasing,materials, engineering, personnel and research and development. Tatung follows "Regulations
Governing Establishment of Internal Control Systems by Public Companies" proclaimed by
Financial Supervisory Commission, dividing the business operations to Sale and receipt cycle,
Purchase and payment cycle, Production cycle (environment, health and safety issue included),
Labor and wage cycle, Finance cycle, Fixed asset cycle, Investment cycle, and Research anddevelopment cycle, as well as setting out the management controls for data access and otheractivities. Tatung monitors and controls the system and operation procedures continuously bycarrying out the internal auditing and review meetings of Internal Control Committee. Such
practice can enhance the internal control system and optimize the efficiency of corporate
governance. Figure 3.2-4 shows Tatung internal control system statement.

There was a fire incident on Dec. 4th, 2016 at the headquarter and the fire was put out
immediately. The space was used to store documents and some of testing instruments. Tatung
has insurance on buildings and properties hence such incident had no-signiﬁcant impact to thecompany in financial and operating aspect. We will enhance the management on electricity
safety and conduct regular audit on electrical devices according to relevant regulations.

Category

Table 3.2-9 Risks and counter measures of Tatung

Item

Countermeasures

Change inmanagement of thecompany

Tatung has a strong and stable management team, and there is no risk fromthe change in the management of the company.
■ Tatung states that the employees are prohibited to perform malpractices

Operation
Non-ethical behavior▲ Figure 3.2-4 Regulation promotions on internal website

2017

21 TATUNG CSR

or accept gifts of others in regarding to their jobs on company rules, ethicalcorporate management best practice principles, and business ethics
statement for group employees. Tatung Co. also establishes rigorous andeffective accounting system and internal control system to prevent bribery
and acceptance of bribes, illegal campaign contributions.
■ Tatung has established effective accounting and internal control systems for
ensuring the implementation of policies, and the internal auditors formulateannual audit plans based on the results of the risk assessment and report to
the Board its audit report.
■ Tatung has a mechanism of processing employees' complaints for
employees' unethical conducts. The company maintains secrecy andinspects the reported contents as well as protects informants' rights andinterest.

2017

TATUNG CSR

22

FR

UG

AL

Chapter 3 Structure andgovernanceU
IND

Category

Item

Countermeasures■ With the mass demand for energy efﬁciency & carbon reduction technique

Operation

Changes intechnologies on theﬁnancial positionand operation of thecompany

to cope with global warming, Tatung has developed deep technicalfoundation, 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 & distribution and energy management.
■ Tatung has strived to carry on ﬁne tradition, and reinforced to develop highquality green home appliances with health, environment protection, energy
saving and high efﬁciency concepts to increase the sales performance andproﬁt.
■ Tatung's focus is on developing visual products, such as LCD TVs and LCD
monitors, which offer bright market prospects.
■ With the coming of age of personal high-frequency radio communication,
Tatung is actively exploring opportunities in 4th generation wirelesscommunications business.
■ Derivatives can be used as a hedge against interest rate ﬂuctuations for

Tatung's long-term debts.

Interest rate
Finance

Exchange rate

Legal

Market■ When considering mid to long-term bond issues, Tatung carefully sets its

target interest rate to lower its interest rate risks as much as possible. For
example, Tatung's offshore exchangeable corporate bond issue offers aﬁxed interest rate, while its domestic secured convertible bond offers a zero
coupon rate. secured convertible bond offers a zero coupon rate.

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

Changes in policies
and laws

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

Concentration of sales

Tatung will diversify its customer base in order to reduce the concentration ofsales.

Concentration ofpurchase

Tatung will arrange for alternative sources for purchase in order to reduce theconcentration of purchase.
■ Continue to run environmental management system to elevate

Environment
Environment/
health andsafetyClimatechange2017

23 TATUNG CSR

environmental performance.
■ Conduct "Pollution Prevention Pays" program and internal control system toprevent the violations of regulation.
■ Continue to run occupational health and safety management system toelevate health and safety performance.

Health and safety■ Conduct "Disaster Prevention Pays" program and internal control system toprevent the violations of regulation.
■ Conduct monitoring on operation site, job safety analysis and establish
safety S.O.P.

Carbon emission

Conduct GHG emission inventory and energy saving projects.

Water resource

Promote water saving projects.

Loss from disasters

Tatung makes property insurance to transfer the risks. Tatung also requests
engineers to provide improvement recommendation for the potential ﬂooding
areas. The factories then enhance their preventing plans to reduce the levelof losses.

ITY

IN

Y

HO

STR

TE

NE

I
GR

ST

TY
Chapter 3 Structure andgovernanceY

Corporate social responsibility
Policy and management

Established in 1918, the foundation of thecompany is built on four fundamental values– integrity, honesty, industry, and frugality.
They are represented as the essence of thecompany's commitments to our stakeholders.
Mr. T. S. Lin, Chairman Emeritus of the company
further extended the precepts behind thesecore values to serve as the guidelines for thecompany's continued success and prosperity.
To be able to fulﬁll corporate social responsibility
and contribute to the progress of economy,
environment and the community, Tatung
stipulated "Tatung corporate social responsibility
best practice principles" to manage theeconomy, environment and social risks andimpacts in 2014. The principles act as guidance
for implementing corporate governance,sustainable development and the environment,
the maintenance of social welfare, strengthening
CSR disclosure. We updated the principles basedon the recommendation issued by the authority
in Dec., 2016. General Administration Division is
responsible for CSR promoting and managing.
The results and performances will be reported toboard of directors regularly.

hence beneﬁt to communicate with stakeholders.
We have made schedule to edit and verify "2019
Tatung Corporate Social Responsibility Report" byusing GRI Standards.
Tatung commits that we will publish CSR reportin June every year to be in accordance with
our CSR best practice principles and the request
by authority to disclose Tatung's performancesin the economic, social and environment.
The report works as a tool for communicatingwith stakeholders. Tatung also encourages her
subsidiaries to issue CSR report. Currently CPT and
GET also issue their CSR report every year.

大同公司『企業社會責任政策』
●

●

●

●

●

本公司之經營應以『正誠勤儉』為本，所有人員均須遵守本公司『道德行為準則』
與『誠信經營守則』，確保社會責任之履行。
本公司人員應謹記股東所託，為股東謀利益，以利公司永續經營。經由完善之公司
治理架構，以積極提升公司永續價值。
本公司應積極推動環境保護、節能減碳，
以降低對自然環境生態之衝擊。
本公司應持續關懷社福團體與弱勢家庭，並積極參與公益活動，以善盡企業社會責任。
本公司應持續進行產學合作，培育公司人
才與扶植產業。

Disclosure on non-ﬁnancial
information

In order to actively and effectively disclosecompany information and show theachievements in sustainable development,
Tatung followed GRI (Global Reporting Initiative)
framework and started to publish "Tatung
Corporate Environmental Report" since 2002.
Starting from 2008, the environmental report was
renamed to "Tatung Corporate Sustainability
Report" due to the balance of disclosed
information. From 2015, with the request from theauthority, we once again changed its name to"Tatung Corporate Social responsibility Report".
GRI published "GRI Standards" in 2016 andthis "Standards" can make a company
present information in economic, society, andenvironment easier and more transparent and◎ Renamed to◎ Rename to Corporate

Corporate
Sustainability Report2002◎ First time published2008

nonfinancial report (Corporate
Environmental Report)

Social Responsibility
Report

2012

2015

2019

◎ First time introduced◎ Start to use GRI

third-party to verify thecontents

Standards to edit
CSR report

Note: Previous reports can be downloaded here:
http://www.tatung.com/Content-EN/csr-report.asp▲ Figure 3.2-5 Evolution of CSR report

2017

TATUNG CSR

24

Chapter 4
Supply chain management,
product responsibility andcustomer service

4.1 Supply chain management

TargetSupply chain
management

Product
responsibility

Productlabeling

Sales

Customermanagement

100% of new
supplier
signs backthe suppliercommitment
letter.

•Short-termtarget: Complete
establishment of
ISO 9001:2015 in thefactories by the endof 2017.
•Mid-long term
targets:
1. Continue to run
ISO/IEC 17025 intesting labs andpass certification.
2. Design andmanufacturewith national
and international
standard and passcertification.
3. All products willpass tests then can
produce and sale.
4. Strengthen
quality control in
supply chain, also
conduct DFMEA/PFMEA andincorporate into
Design Guideline
Check List.
5. Upholds customer
first, total
participation, thesix fundamental
powers to raise
product quality.

•Short-termtarget: All airconditioners
change label
from EER to
CSPF.
•Mid-long term
target: Establish
feedback andanti-recurrence
mechanisms•Aware ofchange inregulation
and avoid
violation uponsales.
•Maintain
onlineshopping
platform andestablish auto
correction
measure.

•Continue
to manage
customer
information inaccordance
to regulation.
•Satisfaction
above 94% forrepair service

100%of new
suppliers has
signed backthe suppliercommitment
letterPerformance

household air
conditioners
has labeledwith CSPF since2017.1.1.

0 violation

fromadvertisement
or promotion
activities

Performance
Performance

Tatung believes that with good relationship with decent suppliers can make sure getting highquality parts/products to raise productivity to share the benefits to the customers around theworld. Hence, Tatung conducts internal control and related management procedures tomanage and introduce new suppliers. Regular auditing is conducted in BUs and subsidiaries.
Good quality, competitive price, on time delivery, and service are the ﬁrst consideration when
Tatung purchases raw materials, parts and products. Tatung also prefers purchase from local
suppliers in Taiwan in order to support local business and fulfill social responsibility. The main
suppliers are from Taiwan, followed by China. The details are list in Figure 4.1-1. Meanwhile, inorder to maintain excellent product quality, Tatung requests suppliers to use brand new materials
in providing main materials, parts, and products.
In addition, Tatung requests suppliers to fulﬁll corporate social responsibility together by adding
anti-corruption and human rights (human rights, freedom of association, child labor, andforced labor) clauses in the contract. Also from 2015, we started to request suppliers to sign acommitment letter, which includes health and safety, environmental protection, human rights
topics. The commitment letter is a must have document to become Tatung’s supplier. In 2016,
all the new suppliers have signed back the commitment letters. We will continue this policy andexpect the existed suppliers to sign back the commitment letter.

0 complaints

0.67%
1.36%

about
information
leaking fromthe customers
in 2016.

0.59%

3.18%
Taiwan(local)

2.89%

China
Hong Kong
U.S.
91.31%Japan
OthersRepairsatisfaction
94.34%in2016.

▲ Figure 4.1-1 Suppliers' geographic distribution in 2016
▲
▲

2017

25 TATUNG CSR

100% of

Chapter 4 Supply chain management,
product responsibility andcustomer service

Performance

Category

Table 4.1-1 Summary of the commitment letter
Commitment

Non-corruption
Human rights and labor
conditions
Environmental protection

Refuse to offer or accept any improper advantages.
Comply with national and international regulations, policies or
guidance in regarding to human rights.
Comply with environmental protection regulations.
Comply with Tatung’s and the supplier’s ethical and CSR
Corporate social responsibility
policies.

2017

TATUNG CSR

26

Chapter 4 Supply chain management,
product responsibility andcustomer service

Chapter 4 Supply chain management,
product responsibility andcustomer service

Introduction and management on suppliers
Tatung groups her suppliers into four categories; each category has its own introducing
procedures and evaluation standards. The introduction of the new supplier in Category I requires
on site assessment by evaluation team. The assessment content mainly includes design, technicalcapabilities, quality management, manufacturing capabilities and management capacity. The
introduction of the new supplier in Category II requires only document review. For construction
category, the introduction of the new supplier requires on site assessment. So far, Consumer
BU has already implemented CSR related topics into on site assessment, we will implement thismechanism into all BUs from July, 2017. In addition, Tatung also evaluates the management of
hazardous substances (RoHS and REACH), conducting safety measures for hazardous job, andimplementation of environmental management system as an extra evaluation for introductionof a new supplier. The detailed management measures are shown on Table 4.1-2 and Figure 4.12. The supplier with assessment result above B grade can then be introduced. All suppliers arerequested to sign procurement contract and commitment letter.
▲▲

Category

Classiﬁcation criteria

Introducing
procedureManagement

Category I

Category II

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

1. Document review Monthly
2. Sign procurement assessment1
contract
3. Sign commitment
letter

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

1. On-site assessment Evaluation
after the caseor document
review for existed is completedcases
2. Sign procurement
contract
3. Sign commitment
letterOthers

1. Sign procurement Monthly
1. Suppliers who provide ofﬁce appliances, hard
assessment1
wares, software, waste disposal, veriﬁcation, etc. contract
3. Sign commitment
2. Suppliers who provide instruments or
letterequipments.
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.

2017

27 TATUNG CSR

R&D

Provide sample
for inspection

Qualified(includeds
CSR topics)

QA/QC(includeds
CSR topics)

Manufacturing

Top manager
in BUs

Evaluation
based ondocument andon-siteassessment

On-siteassessment

Operation
SupportDivision

QualifiedIncludes in to
supplier databa
and under semanagement

Table 4.1-2 Category of suppliers and introducing procedures

1. On-site assessment 1. Monthly
1. Important materials (parts, components, halfassessment1
2. Sign procurement
ready products, and products).
contract
2. ODM/OEM
2. Annually re3. Sign commitment
3. Outsourcing (including full case, manufactureevaluation2
letteronly, product only).
4. Signiﬁcant to product quality that need intensive
management and tutoring.

Construction

Procurement

Supplier

BUs

Monthlyassessment

Yearlyre-evaluation

Note: Consumer BU's management procedure▲ Figure 4.1-2 Supplier management procedures

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. An annually re-evaluation is periodically implemented for main components
suppliers, listed component suppliers, and outsourcing suppliers. Tatung wishes the suppliers
who collaborate with us can grow together. As for the safety of the service-providing suppliers(construction, waste disposal, repairing) who operate in the factories and subsidiaries, Tatung
stipulated "Tatung Health and Safety Management Method for Contract Suppliers" to make sure
all this type of suppliers can follow it to reduce the risk from accidents.

1.82%

0.00%

3.46%

17.86%

Grade A

Grade A

Grade B

Grade B

Grade C/D
94.72%▲ Figure 4.1-3 Result of supplier monthly

assessment in 2016

Grade C82.14%▲ Figure 4.1-4 Result of supplier annually

re-evaluation in 20162017

TATUNG CSR

28

Chapter 4 Supply chain management,
product responsibility andcustomer service

Chapter 4 Supply chain management,
product responsibility andcustomer service

4.2 Product responsibility
Quality management
Product quality and safety is the keystone of sustainable operation for a company. By providing
high quality and safe products can build the brand image, enhance competitiveness and createhigh-proﬁt, low-risk business model, and achieve a win-win situation for consumers and company.
Based on this philosophy, Tatung have established ISO 9001 and passed the certification since
1993 (as shown in Table 4.2-1). The system can implement standardization, deviation reduction,
as well as a tool to pass down the knowledge and experiences internally. In addition, they system
can enhance the management capability, product quality stability, reduce product defect rate
and reduce complain. The system can also enhance conﬁdence of customers, thus expanding
the market and enhancing competitiveness.

Q
Taoyuan Wires and Cables Plant
Taoyuan 1st Plant
and Tayuan Plant
San- Hsia Factory
passed certification.
passed certification.

▲
▲

▲
▲

Table 4.2-1 Tatung product acquired ISO 9001

Aim to update to the latest
version of ISO 9001 in 4 factories
and passed certification.

▲ Figure 4.2-1 Status of ISO 9001 and schedule for updating

ISO published ISO 9001:2015 in September, 2015 and gave three years of time for companies to
update their quality management system. Tatung has already put lots of effort into updatingwork. Our target is set to complete all the version updating and pass certification before
September 2017 (as shown in Figure 4.2-1).
Other than the management systems in the factories, Tatung has her own Calibration Lab andTatung Environmental Research Center in headquarter. These two laboratories provide accurate
measuring and calibration test services and hazardous substances testing service. In addition,
Tatung has Transformer Testing Lab, Switchgear Testing Lab, Air Condition Facility Testing Lab, andMotor Testing Lab in the factories (as shown in Table 4.2-2) to provide the assurance of excellent
quality.

2017.09

1994

1993

Table 4.2-2 TAF certiﬁed laboratories in Tatung Co.

Name of laboratory andcertiﬁcation number

Testing item

Date of certiﬁcation

Calibration Lab
L0003-120207

Measuring and calibrating of products

1990.06.01

Tatung Environmental ResearchCenter
L1697-131009

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

2007.10.24

Tatung Transformer Testing Lab
L2306-130411

Transformer testing

2010.12.27

Factory

Registered productRegisterdate

Air Conditioning Facility Testing Lab
Cooling capacity and EER of air conditioners
L2270-140417

2011.01.20

Taoyuan
1st Plant

ISO 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.

1993.12.09

Tatung Switchgear Testing Lab
L2308-140316

Switchgear testing

2011.03.23

San-Hsia
Factory

ISO 9001:2008 → Generators (less than 10,560KVA), electrical motors (500HP andabove), electrical motors (less than 500HP).

1993.12.14

Tatung Motor Testing Lab
L2613-120701

Motor testing

2012.07.01

Tayuan
Plant

IISO 9001:2008 → Oil-immersed transformers (below and including 345KV), Oilimmersed reactors (below and including 345KV), Oil-immersed potential & current
transformers (below and including 69KV), Dry type transformers (below andincluding 36KV), Dry type reactors (below and including 36KV), Cast resin dry typetransformers (below and including 36KV), Cast resin dry type potential & current
transformers (below and including 36KV), High voltage & low voltage metalenclosed 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 andincluding 600V), Distribution board (panel) (below and including 600V), Rectiﬁer(below and including 600V), Amorphous metal transformers (below and including
36KV), Gas insulated switchgear, Capacitors, Watt-hour meters.

1994.08.03

TaoyuanWires and
CablesPlant

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.

1994.07.23

2017

29 TATUNG CSR

ISO 9001 certificates

ISO 17025 certificates

2017

TATUNG CSR

30

Chapter 4 Supply chain management,
product responsibility andcustomer service

Product safety and labeling

Chapter 4 Supply chain management,
product responsibility andcustomer service

TWD-500B

TWD-510B

TWD-511B

TWD-711B

TWD-710B

Product safety光觸媒
抑菌

Most of the countries make the laws and regulations in regarding to product's quality and safety inorder to protect their citizens. Brand owners must pass all the tests and acquire certiﬁcations thencan put their products into markets. In order to comply with related regulations among the world,
Tatung designs and manufactures the products (including ODM/OEM products and accessories)
to meet the requirements of the regulations. At ﬁrst, the samples must pass the tests and managed
by SAP management system. After all the test results have met the requirements, bulk production
and sales then can be made. Table 4.2-3 lists the relevant regulation requirements, standards andveriﬁcation internationally adopted by Tatung.

▲▲

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

Business group

Standards, certiﬁcations, and veriﬁcations

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

System BG

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

Consumer BG

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

Although we have such measures to ensure the quality of products, we still have 4 types of productsthat need to be recalled or inspected in the past few years:★ The pc board is likely to be damaged for window type air conditioner with model number TW252DCN due to water could go into air conditioner along power cord. TCPC has made recall
on ofﬁcial site and offered free inspection service;★ Dehumidiﬁers (with model numbers TWD-500B, TWD-510B, TWD-511B, TWD-711B, TWD-710B, TWD660B, TDH-200HB, TWD-1400B, and TWD-1400BL, as shown in Figure 4.2-2) are recalled since 2007
due to one defected part provided by a supplier. Such defected part will cause unexpected
accident while the machine is running. Consumer who has these particular models, please makea phone call to Tatung or TCPC and the specialist will visit your place for service free of charge;★ One of the ﬂuoresced lamps (Model: LS-3U21WD) (Figure 4.2-3), batch number 0904, 0905 and,
0906, is recalled due to parts problem. All the consumers will have the defected lamp replacedwith a new one when they bring the defected one to any of Tatung 3C Stores;★ Two models of electric water boilers (TLK-52Y and TLK-56Y) with the production number list on
Table 4.2-4, some parts has quality issue and the customers can take the boiler to TCPC toreplace the part for free of charge.
Note 1: BSIM ofﬁcial website
http://www.bsmi.gov.tw/wSite/xslgip/chinese/index.html
Note 2: TCPC ofﬁcial website
http://tcpc.tatung.com

2017

31 TATUNG CSR

TWD-200HB

TWD-1400B

TWD-1400BL▲ Figure 4.2-3 Fluoresced lamp

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

be recalled▲▲

In addition, for the defected
products from the design2 or manufacture stage, Tatung makes recall
1
on BSMI official website , medias and TCPC website to prevent the consumers getting harmed
from further using of such products. For the problem occurred, Tatung will strengthen overall quality
control in supply chain, also conduct Design/Process Failure Modes and Effects Analysis (DFMEA/ PFMEA) and incorporated into Design Guideline Check List measures to prevent recurrence.
Tatung will do the best for providing consumer healthy, energy-efficiency, and safe products. In
2016, no violation occurred against Regulations Governing Registration of Product Certiﬁcation.

TWD-660B

表 Table 4.2-4 The water boilers that need to be inspected and replaced part

Model No.

TLK-52Y

TLK-56Y

Production No.

3AY7094*****

3AY8094*****

Production No.

3AY7097*****

3AY8097*****

Production No.

3AY7098*****

3AY8098*****

Product labeling
In order to let consumers having accurate and sufficient amount of product information (e.g.,energy efﬁciency information), and instruct consumers using products safely and correctly, Tatunglabels required information on the products or on the package or on the instruction manual.
In addition, Tatung also includes the instruction guide, maintenance guide and notice in the
packages (as shown on Figure 4.2-4).
Tatung has responsible department in each BU for the management, review, and monitor of
product labeling issue, as well as takes part in BSMI market survey to ensure the correct labeling.
There was no incident that violating label regulation.

Label of sustainability on products and services
Yes

No

Manufacturer, ODM/OEM, importer＊－

Hazardous substances＊－

Safety instruction＊－

Disposal treatment

＊

－
5

6

1

2

7

8

3

4

▲ Figure 4.2-4 Product labeling and instruction(e.g. hair drier)

2017

TATUNG CSR

32

Chapter 4 Supply chain management,
product responsibility andcustomer service

Chapter 4 Supply chain management,
product responsibility andcustomer service

Product researchand develop

Review thetest result fromsampleSample making
and testing

Pass

Research stage
trial-run,veriﬁcation andcertiﬁcation offunction andreliability

TargetNG

Commercial air conditioners
labeled with CSPF from 2017.07

100% of household air conditioners haslabeled with CSPF
95% of commercial air conditioners haslabeled with CSPF
NG
Pass

Review
before mass
production

NG
Sample making
for certiﬁcationand veriﬁcation
before mass
production

Pass

Bureau of Energy requested that the current air conditioner
energy efficiency label EER would be replaced by CSPF since2017.1.1.
CSPF (air conditioning season performance factor) is taking
seasonal outdoor temperature into account to test the air
conditioner to meet the indoor cooling capacity needsand its
corresponding power consumption. CSPF can accurately assess
the energy efﬁciency of air conditioners!

CSPF

Review for preproduction(Air conditioning season
performance factor)

EER(Energy efficiency
ratio)Taking seasonaltemperature differences
into accountTaking different running
conditions into accountPrecise cooling
capacity estimation
Mass production
and release onto
market2017

33 TATUNG CSR

Monitor thequality of
product on themarketCorrect thedefected partand prevent reoccurrence

The higher
CSPF value,
the more
power saving

2017

TATUNG CSR

34

Chapter 4 Supply chain management,
product responsibility andcustomer service

Chapter 4 Supply chain management,
product responsibility andcustomer service

4.3 Sales and customer service

Management on customer informationand satisfaction

Fair trade and anti-trust behavior
The commercial advertisements and promotions that made by Tatung are all complied with theregulations. There was no violation against the regulations regarding to advertisements and onsale promotion in 2016. 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 and fair trade topics.

Wide-spread service locations and convenient shopping experiences
Tatung upholds "customer first", "having only one phone call, the service is to" and aims toprovide fast and excellent services to customers. Tatung lists the service channels on the ofﬁcial
website for all the business, including TCPC, information (OA), large-size air conditioners, power
equipment, smart grid business, and system solution business. Tatung entrusts her subsidiarycompany "TCPC" to provide a comfortable shopping environment as well as excellent aftersale services to consumers. TCPC has more than 200 3C Stores spreading from cities to countries,
providing professional recommendations on purchasing house appliances and repairing services.
In addition, TCPC launched "etungo" online shopping website to provide wide variety of productin kitchen, 3C, living room and make up. Besides, Tatung runs a fan site on Facebook and LINE
group to provide instant news and living tips.
In order to provide a more convenient customer service, TCPC has online service that the1consumers can access to official website make service request (Figure 4.3-1). The system willassign the service request to the accordance service station and provide rapid and high quality
2
services. The consumers can also check the repairing progress by assessing online webpage(Figure 4.3-2). At the end of each case, customers are able to provide any positive or negative
feedbacks by ﬁlling the online survey which will be used for future improvement. To extend the3channels for listening to the customers, Tatung also provides an online feedback service whichcustomers can ask questions, express their opinions and give positive feedbacks to us (Figure 4.3-3).

etungo online shopping mall

FB for Tatung fans

FB for Tatung multi-function cooker fans

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
has established associated management
system and passed ISO/IEC 27001. There wasno complaint about information leaking fromthe customers in 2016.
Tatung takes great concern about thecustomer satisfaction. When a customer
makes purchase or approaches Tatung 3C
Stores to repair products, Tatung will makehis/her information to phone interview list andinterview about repairing experience. If the
feedback is unsatisfied, Tatung will conduct
a second service and make improvement.
We set targets for repairing satisfaction (forconsumers) to be not lower than 92%. The
result was 99.34% satisﬁed in 2016. Tatung willcontinue to listen to the customers.

▲ Figure 4.3-1 Product online service form

Note 1：http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_100.asp
Note 2：http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_200.asp
Note 3：http://www.tatung.com.tw/home/suggestion

98.00%

96.80%

96.81%

97.09%
94.34%

96.00%
94.00%

93.39%
Target: Above 94%

92.00%▲ Figure 4.3-2 Inquiry page forrepairing progress

90.00%
88.00%

2012

2013

2014

2015

2016

▲ Figure 4.3-4 Results of customer satisfaction▲ Figure 4.3-3 Online feedback form

2017

35 TATUNG CSR

2017

TATUNG CSR

36

Chapter 5
Social performance

Chapter 5 Social performance

5.1 Human rights and antidiscrimination

TargetAn equaled working environment

LaborAntiForced
management corruption labor
relationsContinue to put
efforts towards
the harmonious
betweenemployees andthe company.

0 lossesdue to labor
relation
disputes in2016.
Performance

Recruits
andwelfareContinue • Continue
Continueto comply
to comply
to againstwith laborwith genderimproperconditionequality
behavior,
relatedand nonto prohibit
regulations. discriminative
improperregulations.
ﬁnancial• Continuetransactions,to carry out
and toand improveemphasize
employee's
the0
welfare.
company's
forcedcore values,
laborperformancecase inreview0
2016.
system indiscriminationeach course.
case in 2016.
Performance
At last,implement
Parental leavethese in theretention ratework place.
Male: 43%
Female: 55%

0corruption
case in2016.
Performance

Education andtraining

Health andsafety• Short term: Make
the employees tounderstand thecompany's corevalues, businessphilosophy andlearn all thenecessary work
abilities throughtraining courses.
• Mid-term: Make
the employees
to practice thekey behavior on
daily basis bylearning from their
managers.
• Long-term: Make
the employees
to work hard andraise performanceto help thecompany toachieve her
targets.

• Maintain OHSAS
18001 andCNS 15506
management
systems in thefactories.
• Organize regulation
promoting seminarat least once per
year, organize
health and safety
education andtraining.
• At least 95%
correction rate
for the nonconformities
found in Accident
Prevention Pays
Program• 10% lower eachyear for FR and SR.

Performance

Each employee
had 10.25
training hours inaverage in 2016,
which was higher
than in 2015.
Won TTQS silver
medal.
Performance

2017

37 TATUNG CSR

In 2016, all the
OHSAS 18001 and

CNS 15506 passed
certiﬁcation.

97% correction

rate for the nonconformities found in
Accident Prevention
Pays Program in
2016.
FR and SR did notmeet the target in2016.

Tatung takes great concern on humanrights. All employees, applicants andcontract workers are treated with dignity,
fairness and respect regardless of their race,
religion, skin colors, genders, marriage status,
disables, member of union, birth place, andnationalities etc. Commitments of respectand ensure the beneﬁts of labors, fulﬁll social
responsibility and comply with regulation
are clearly stated in our Labor Policy. Tatung
hires one handicapped worker per every 100
workers and provides equal opportunities forminority groups.
Tatung also stipulated "Anti-sexual harassment
Regulation" and published on the internal
website. Sexual harassment in any forms isstrictly prohibited in any working places in
Tatung. There was no discrimination andanti-human right incident in 2016. Tatung willcontinue to promote anti-discrimination policyin the company to prevent discrimination.

Trainings on human right
The vision of Tatung is to fulfill the social
responsibility. Tatung actively involves in social
welfare activities, respects and cares for life.
In addition, Tatung helps employees to clarify
the values and concepts, as well as respectfor dignity and human rights through common
educational courses. For example, in generalstaff training courses we emphasis on ethics,
team work, and respect. In managementlevel training courses we emphasis on genderequality, respect different races, colors,
languages, religions and so on. As for security
personnel, education in regarding to respect
the employees' emotion and wills is given
before carrying out their duties. This is not only
ensuring the employees' human rights but also
making security duties go smooth.

Freedom of association
Tatung Labor Union was funded in 1959 forthe purposes of taking care of labors' rights,
improving labors' living standard, conducting
collective bargaining, etc. Each employee
has freedom choice to be the member ofthe union. Currently Tatung has totally 5 labor
unions distributed in the HQ and factories.
Tatung does not interfere with the wills of
the employees to join labor unions; hence
the percentages of employees joining labor
unions are always over 80%. In 2016, 80.399%
of employees are the members of labor
unions (Figure 5.1-1).

Child labor and forced labor

Tatung's recruiting policy is in line with theregulations. Hiring child labor is not allowed
by Tatung. In our labor policy, we set out
commitments such as "respect for labor,
protect of labor rights, and fulfill with social
responsibility", "company's labor management
measures must comply with labor regulations".
In "Company Rules" we defined the working
hours for a day and for a week. If there isnecessary to adjust or prolong the working
hours, the practice only can be implemented
after getting the agreement from the labor
union or the employee. In order to avoid mismanagement, Tatung has appeal method,
chairman box and HR e-mail box for theemployees to engage with management level.
Tatung also organizes labor-management
meetings to communicate and solve theproblems between the employees and thecompany. There was no force labor situation in2016.

Performance

2017

TATUNG CSR

38

Chapter 5 Social performance

Chapter 5 Social performance

5.2 Employees' code of ethics

81.39% 2012
82.03% 201381.59% 2015
80.39% 2016

▲ Figure 5.1-1 Percentage of employees who

are labor union member

5.3 Employee composition,
career development andbeneﬁts

San-Hsia Factory
Labor Union

Tatung Co.
Labor Union

TatungLabor Union

Tayuan 1st Plant
Labor Union

In April and May, 2016, we organized 4
seminars in regarding to anti-corruption. In
December, 2016, we organized a seminarin regarding to legal responsibility to run
a business. There was no corruption casehappened in 2016.

Tayuan Plant
Labor Union

Employee diversity
The recruitment policy of Tatung holds
equality as the central concept; only
capability is taken into account whenrecruiting an employee. Every division/
factory evaluates the potential developed
situation to propose a human resource
budget and authorized by the president.
When there is an empty position, the division/▲▲

82.29% 2014

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 practiceprinciples" to prohibit every member in thecompany from doing non-ethic behaviors.
Tatung requests the employees not to takeadvantages in any form at work, nor makeexternal leakage of the technical andbusiness 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 the requirements 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.

factory proposes a request to HR department
based on the human resource budgets. HR
department will then start to process therecruiting procedure from different channels.
Every recruiting procedure is compliedwith the regulations. Table 5.3-1, Figure 5.31, Figure 5.3-2 demonstrate the employee
compositions of Tatung. Tatung has more than
94% of local employees and 1.67% of disable
employees which is than the requirement by
the regulation.
Table 5.3-1 Employee compositions of
Tatung (by ages)
Youngerthan 3030~50Over 50

2012 550

123

1773

587

833

192

2013 456

141

1727

574

813

191

2014 362

122

1606

530

739

176

2015 356

No. ofmanagers

121

93.27%

1534

516

704

175

6.82%

93.18%

2012

6.25%

93.75%

2013

2014

6.81%
93.19%

5.30%
Overseas employees

94.70%

2015

2016

Domestic employees▲ Figure 5.3-1 Percentages of domestic andoverseas employees
Managers

932

Male Female Male Female Male Female

No. ofemployees

6.73%

Full-time

2,662

by titlebyemployeement
type

2,224

897

Contract
staffsFull-time

494

269

2012

Managers

General staffs

4

46

2,538

by title

General staffs

2,099
Contract
staffsbyemployeement
type

458

262

2013

4

6

52

6

by
employeement
type

Contract
staffsFull-time

871

31

867

by
employeement
type

Contract
staffsManagersby title

General staffs

Managersby title

General staffs

Full-time

140
Managersby title

762

157

General staffs

Managersby title

39

749
General staffs

2016 226

118

1280

497

641

183

2012

45

0

623

123

264

17

2013

23

3

611

127

263

27

2014

26

0

610

123

242

28

2015

20

6

588

121

231

30

2016

15

3

555

124

253

32

Full-timebyemployeement
type

Contract
staffsFull-time

785

43

755

by
employeement
type

Contract
staffs

2012 7.34

1.40

5.79

1.21

0.86

0.00

Managersby title

General staffs

Managers

General staffs

677

157

by title

0.03

Managers

Percentage 2013 3.49
of new2014 3.93
employeehires (%)
2015 7.90

1.05
1.24
2.70

4.10
5.04
5.96

1.18
1.27
1.61

0.21
0.57
1.91

0.03

878
2,339

2.21

3.98

1.20

1.11

0.09

2012 4.71

0.79

7.27

1.87

2.51

0.39

Percentage 2013 4.20
of2014 5.77
employeeleaving (%) 2015 6.31

0.56

7.38

1.69

2.51

0.67

2.18

9.00

2.29

4.02

1.05

2.14

7.90

2.20

4.84

0.94

2016 4.45

1.74

7.51

1.52

2.81

0.41

1,829

839

Contract
staffsFull-time

368

219

2014

823
Full-time

2,048

by titlebyemployeement
type

428

2,594
812
227

2015

6

45

5

9

57

655

1,534
Contract
staffs

309

2,357
810

No. of employee
No. of overseas employee
No. of disable employee

46

4

8

759

by
employeement
type

Contract
staffsManagersby title

General staffs

Full-time

159

2,166

1,755
Contract
staffsbyemployeement
type

General staffs

164

2016

49

2

151

0.29

2016 4.61

byemployeement
type

Full-time

51

651

Note: The members of senior managers (deputy plant/generalmanager and above) are all Taiwanese. There were 11
disabled managers in 2016 (1.12%) in Tatung.

▲ Figure 5.3-2 Employee compositions of

Tatung (by genders)2017

39 TATUNG CSR

2017

TATUNG CSR

40

Chapter 5 Social performance

Chapter 5 Social performance

Basic salary and performance review

Post-employment beneﬁts

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 andinternal control to ensure the minimum salary is complied with regulation. Tatung discloses the
structure of the salary and methods of payment on "Company Rules", so that all the employees
understand their rights and interests. Based on the concept of equality among genders, the basic
salary between female employees and male employees is 1:1. For different employment types,
the ratio of basic salary and legal salary for technicians is 1:1; for staffs is from 1.33~1.71:1 (Figure
5.3-3) based on different job types, specialty and qualiﬁcations. The above calculation does notinclude allowances and/or bonuses. In average salary, the female employee to male employee
is 0.87~0.89:1 in 2016 (Figure 5.3-4).

Tatung adopts "Deﬁned contribution plan" and "Deﬁned beneﬁts plan" as her post employment
beneﬁts. For "Deﬁned contribution plan", Tatung makes monthly contributions of no less than 6%of the employees' monthly wages to the employees' individual pension accounts in accordancewith the Labor Pension Act. For "Defined benefits plan", Tatung contributes an amountequivalent to 2% of the employees' total salaries and wages on a monthly basis in accordance
to Labor Standard Act to the pension fund deposited at the Bank of Taiwan in the name of theadministered pension fund1 committee. For detailed post-employment benefits, please refer to
Tatung 2016 Annual Report page 300~302.

Every employee's performance is reviewed regularly based on "Performance management
method". The reviewed result is used as the base for training, promoting, salary adjusting, bonus
earning, and hiring. The method ensures reasonable alignment between employees' salary andlabor contributed.

Defined contribution plan

NTD$ Thousand
80,00080,22278,281
66,2101.2

Staffs (master)
Research staffs (bachelor)

1.0

Staffs (bachelor)
Senior high school

0.8

1.0
0.9

1.0
0.92

Overseas employees

1.0

1.0

1.0

1.0

Male

0.60
0.40
0.20
0.00

0.89

0.82

0.89

0.87

salary for different employment types

43,678Staffs2014

2015

27,223

2013

2014

2015

2016

▲ Figure 5.3-4 Ratio between salary for female andmale employees (by employment type)

Return to work rate

2017

41 TATUNG CSR

11

3

6

43%

55%

2016

Male Female
Retention rate
Total number of employees that1
applied and returned to work in 2015.
Total number of employees who
returned to work after parental leave0
ended who were still employed 12months after their return to work in 2015.
Percentage of employees who
returned to work after parental leave0%
ended who were still employed 12months after their return to work in 2015.

Table 5.3-3 Labor relation measures

Management of labor relations
Channels for employees to voice
dissent or communicate withmanagement

Measures
Measure of processing employees' complaints
Employees' mail box
Voice out opinions in training courses
Present proposals during Q.C. activities
Communication during regular/special meetings between
management and the labor unions

6▲▲

Total number of employees who returned
1
to work after parental leave ended in
2016.

7

2015

Tatung has "Measure of processing employees' complaints" and other practices (Table 5.3-3) in place for theemployees to complain about any dispute and provides a channel to deal with. Tatung sets the minimum
notice periods (Table 5.3-4) regarding to operational changes on "Company Rules".
▲
▲

▲
▲

Total number of employees that shallend parental leave in 2016.

2014

Procedure for complaints and shortest notice period

Technicians
2016

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 on parental leave is shown in Table 5.3-2.
Table 5.3-2 Tatung parental leave statistics

18

41,50520,000Parental leave

Male Female

69,421▲ Figure 5.3-5 Expenses under the post-employment benefits

0.2▲ Figure 5.3-3 Ratio between basic salary and legal

73,40457,19760,000

2012

0.4

0.0

Defined benefits plan

Female0.6

Application for parental leave
Total number of employees that took13
parental leave in 2016.

76,49440,000Research staffs (master)
2.00 1.71
1.62
1.80
1.43
1.33
1.60
1.40
1.00 1.00
1.20
0
1.0
0.80

Note 1: http://www.tatung.com/Content/annual-report.asp

233%Note 1: Changed job due to personal career planning.

Table 5.3-4 The shortest notice period
Shortest notice period

Work for 3 months~1 year
Work for 1~3 years
Work for more than 3 years

10 days
20 days
30 days2017

TATUNG CSR

42

Chapter 5 Social performance

Education and career development
Business' success is relied on talented
employees. Tatung believes that only each
employee fully shows "Tatung DNA" in theirwork can help the company to achieve goals
and vision. Therefore, Tatung takes "Tatung
DNA" as basic to develop an education andtraining system which provides skill/profession
oriented training courses to the employees
to help the company to achieve sustainable
development.

大同DNA

Tatung plans training courses by taking
company's human resource policy into
account and indentiﬁes the annual capacity
gap of organizational functions. The training
target is to capacity building of employee
management, professional skills, andperformance improvement.
Tatung manages her training system by using"Tatung Education and Training Manual"
which includes training management
manuals, procedures, instructions, and forms.
The contents are:
1. Education and training responsibility: Set out
the training policy and training responsibility
to ensure the implementing thoroughly.
2. Establish education and training system: Set
out training scopes, objects, and structures.
3. Develop education and training program:i. Demand planning – Consolidate
the training needs and analyze theimplementation process.

2017

43 TATUNG CSR

Chapter 5 Social performanceii. Plan drafting – Draft training course
details such as course time, hours,
lecturer, etc.
4. Course design:i. Design the contents of the course.
ii. Organize the classroom, the lecturers,
and the tutors.
5. Conduct the trainingi. During the class the tutor observes andassists lecturer to run the course.
ii. Document all the records.
6. Course assessment: Assess the outcome
and the performance of the course inorder to continue improves.
7. Course performance review.
In 2016, we organized 19 general courses
which covered from recruits training,
environmental protection, occupational
health and safety, information safety, etc.
For advanced courses we organized 28
specialized courses in each field, 18 courses
for managers, 49 business operating related
lectures, 5 health lectures, and 5 law lectures.
In total there were 32,452 training hours andeach employee was given 10.25 hours inaverage. The detailed training statistics areshown in Figure 5.3-7. Tatung's educationand training system also won TTQS(Taiwan
TrainQuali System) Silver Medal in 2016.

Vision / Destiny

Strategy / Target

Training performances
Operation plan

Performance elevation

Defining unsatisfied performances

Behavior modification

Input

Professional learning

1 PlanOutputInput

Output4 Review

2 Design

Review /Monitor

OutputInput

Reaction

Analysis on
insufficientworkingability

3 Implement

OutputInput▲ Figure 5.3-6 TTQS strategic human resource development system
25

Hours

Staffs15

Engineers

Male

Female

11.05

8.98

8.82
7.68
4.61

2012

2013

15.02

14.35

12.06

10

0

Technicians

20.14

20

5

Managers

6.5

6.21

2014

2015

8.40

2016

9.13

7.06

7.62

2012

2013

8.43
7.15

2014

9.16

8.19

5.01

2015

9.52

6.48

6.04

2012

2013

10.76
8.25
7.27

7.21
8.74
6.21

4.57

2016

▲ Figure 5.3-7 Training hours per employee

2014

2015

2016

2016 Q4 Training
schedule

Training class forreserved managers

Tatung awarded with TTQS Silver Medal

Training class for
new recruits

2017

TATUNG CSR

44Chapter 5 Social performance

WelfaresTatung Welfare Committee handles abroad range of employee welfare issues
including: daily activities, ﬁnancial assistancefor education, funeral assistance, andinterest free installment loans. Table 5.35 shows employees' welfare implemented
in the factories and subsidiaries. Besides, inorder to provide female employees a more
comfortable and more convenient way tonurture the next generation without having
to sacrifice their own work, or to increase
their physical or psychological unnecessary
burden, Tatung set up a nursery room for
postnatal breast-feeding employees. It is also
the company's most intimate birth gift for
female employees.
▲▲

Table 5.3-5 Employees' welfare

Employees'
welfareImplementation

Tatung subsidized employees to buy
Stockcorporate stocks since 1992 as part ofownership
their savings.
Education subsidies for employees'
children in senior high school andcollege/university; funeral subsidies
for colleagues or their spouses andSubsidies 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.
Restaurants, noodle stands, fruits shops
Restaurants and grocery stores are provided in
Headquarter and factories/subsidiaries.
Employees can purchase Tatung
products with interest-free installments
Beneﬁts
and price discounts on groceries incorporate stores, free movies, train
service on Chinese New Year.
Tatung organizes education, recreation,
physical education, languages, hiking/Club
mountain climbing and photography
activities
clubs to provide variety of social
activities after work.
Labor insurance, health insurance,
Health and group insurance, retirement pension,
safety plan free annual health check-up, oversea
business trip insurance.
Retirement Equal or better than regulation.
plan

2017

45 TATUNG CSR

Chapter 5 Social performance

Health promotion and disease
prevention
Tatung believes that the health of theemployees and their families is a valuableasset to the company. Tatung organizes
numerous health speeches, seminars, healthchecks to let the employees understand theimportance of their health and promote totheir families. The concreted measures arefollows:
1.Clean air, healthy and happy workplaceenvironment
Smoking has been proven to havenegative effects to the health and smoking
in workplace increases the risk of fireincidents. Smoking within the boundary of
the companies/factories has always beenprohibited. The employees, contractors, andvisitors are not allowed to bring cigarettes,
matches and lighters into the company.
Tatung also clearly posts/marks "NOSMOKING" notice in the meeting room, at
entrances and exits. The reason for Tatung
doing this is to build a clean air and healthy
workplace for everyone.
2.Welfare Committee regularly organizes thephysical and cultural activities to encourage
the employees having healthy living. It alsoestablishes aerobic fitness club to provide
employees physical activities to stretch andrelieve pressures in their spare time.
3.Health examination fair
Tatung works with Health Center ofZhongshan District of Taipei City to organize
Health examination fair on a yearly basis.
The specialists from Taipei City Hospital areinvited to the company to do high bloodpressure, hyperlipoidemia and high blood
sugar screening, oral cancer screening, andcervical smear, breast cancer screening for
women. Tatung also arranges high-quality
health check annually in order to find out
any premature diseases and treat them inadvance to protect employees' health.
4.Tatung organizes health promotion seminars

and also publishes information about serious
diseases on the company website ande-publications. The information contains
not only about the diseases but also thepreventions and treatment channels.

By carrying out regular health check canfind out potential diseases in advanceto heal early. 357 managers and 715
employees were given health check in
2016.
C.Tatung works with Zhong Shan District
Health Center to organize Health Fair inthe company to provide free health check
items for the employees.
D.Organized health speech for the employees'
health knowledge and awareness in theheadquarter.

5.Tatung runs ﬁrst-aid/CPR courses every year
to enhance employee's ability.
Health and serious disease seminars took
place in HQ in 2016:
A. Fist aid training was held in May, 2016.
B. Employees regular health check.

Health fair

CPR+AED class

CPR+AED class
TopicsHealth speech

Health speech
Organizers

Health fair
No. of participants

Heart disease prevention

Tatung / Pﬁzer TW

200

Optimize way of life

Tatung /John Tung Foundation

200

Tatung / John Tung Foundation

200

Tatung / John Tung Foundation

200

Tatung / Taipei City Zhong Shan
District Health Center

200

Acupuncture point massage –easy DIY
Easy health exercise in theofﬁce
Pressure release

2017

TATUNG CSR

46

Chapter 5 Social performanceOccupational health and safety
management

Health and safety guidebook

104 年

訂

8 月修

60.00%

54.55%

55.00%
50.00%
45.00%
40.00%
35.00%

33.33%

35.00%

38.10%

35.71%

30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

Headquarter

TayuanPlant

TayuanWires and
Cables Plant

Tayuan
1st Plant

San-hsia
Factory▲ Figure 5.4-1 Percentage of labor representatives

in Health and Safety Committees

2017

47 TATUNG CSROther than relying on the management systems,
Tatung also carries out "Occupational Accident
Prevention Pays" program every year and works
hard to achieve the final target "disaster free 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.
The results from Occupational Accident Prevention
Pays program in 2016, 34 (subsidiaries not included)
incidents against company rules were found.
The incidents were major focused on lack ofproper health and safety education for specified
employees, and not sufficient preventative
measures against electric shock. By the end of
2016, 33 incidents were corrected (97%) which
met our target. For that had not been corrected,
we will follow up the correction status. In this year's
Occupational Accident Prevention Pays program,we will focus on checking electricity safety andself-checking mechanism to protect employees'
health and safety.

Table 5.4-1 Factories with OHSAS 18001
and CNS 15506

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

In the case that recognition of dangerous materials
is unsatisfactory, or that safety management
has not been satisfactorily accomplished in thefactories, 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 thecompany should be in accordance with relevant
health and safety regulations in "Company Rules"
and holds employees' health examination(free of charge to the employees).
Tatung also issues "Tatung Health and司
大同公 守則Safety Guidebook" to employees in
生工作
安全衛
order to raise their awareness regarding
to occupational risks. In addition,
Tatung holds "Health and Safety
Committee" meetings in headquarterand factories to communicate andreview the contents and progressof health and safety issues. The
percentage of labor representatives isbetter than the requirement of regulation (at least33%), especially in San-hsia Factory the percentageof labor representatives is even up to 50%.

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 healthand safety management systems in Tatung.

▲▲

5.4 Health, safety, anddisaster free

Chapter 5 Social performance

OHSAS18001
certiﬁed since

CNS15506
certiﬁed since2009.06-

2010.03
2011.012013.01

2008.072010.07

Table 5.4-2 Health and safety training
results and targets

Training item
Health and Safety
Training Class (newrecruits)
Health and
Safety Training
Class (generalemployees)
Health and Safety
Training Class(managers)
Emergency
training classFire ﬁghting class
Stationary Cranes
training class (over3 tons)Forklifters trainingclass (over 1 tons)
Health and Safety
Training Class(construction
contractors)
First-aid training

2015

2016

2017

256

168

120

687

773

900

213

41

175

41

436

470

365

172

240

48

403

40

55

192

60

26

31

45

-

94

60

Targeting
No. ofNo. ofNo. ofparticipants participants
participants

Health and safety training andregulation promoting:In order to raise the awareness of occupational
health and safety among the employees and tocomply with current regulations, Tatung opens"Health and Safety Training Class" for new recruits,
general employees, and managers in headquarter.
The training classes introduce the related healthand safety regulations such as "Occupational
Safety and Health Act" and demonstrate theprevention of the occupational disasters. The
factories and subsidiaries also organize training
courses for the needs of the business operations
such as VOCs & Designated Chemicals class, Job
Safety Analysis class, Fork lifters and Stationary
Cranes training class, etc.
As for regulation promotion, Tatung organizes"Tatung Corporate OHS Seminar" every year. The
seminar was held in March 2016 and the topic
was risk assessment of occupational exposuresand case study on past occupational disasters. 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.

Hea
boa lth andrd insa
the fety no
factorie tices

TATUNG Corporate OHS Seminar

2017

TATUNG CSR

48

Chapter 5 Social performance

Health and safety performances
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 2016. There was nooccupational disease case and death incident in2016. From Figure 5.4-2, FR in 2016 is higher than in
2015, but SR for male employee in 2016 is greatly
lower than in 2015 which indicates that the degreeof severity is relatively minor. As for AR, there is no
signiﬁcant change between 2015 and 2016.
Tatung has made a target to lower 10% for FR
and SR each year. From the statistics in the past 5
years, Tatung did not meet the target. The main
reason was the employees in headquarter having
trafﬁc accident at work. In addition, some factories
relocated production lines and office areas, so
the employees were not familiar with the newenvironment which also added the result. We
have reinforce to safety promotion in the factories
and requested supervisors on-site to audit more
frequently to reduce the accidents.
▲
▲

FR
2
SR
Occupational
disease3rate
No. of death incidents
4
AR

Male
2.00
15

Female
1.25
17

0

0

0
0.00

0
0.01

Note 1: FR is one of the indicators selected by MOL foroccupational 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 MOL foroccupational disaster statistic purpose. The formula is(Total lost days/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)

2017

49 TATUNG CSR

3.2

80
2.87

73

2.8

70

2.4

60

2013

50

2014

2012
62

2.00

2.0

1.81

1.75

1.6

40
1.30

1.2

1.25
1.05

0.92

0.8

18

15

10

0

FR

SR

▲ Figure 5.4-2 Trends of FR and SR

0.012
0.01050.01

0.00960.01010.0091

0.008

2013
2014
2015

0.006

2016

0.004

0.00300.00300.0024

17

5

0.00

0

2016

24

22

20

0.53

0.4

2015

35

30

0.00270.002
0AR▲ Figure 5.4-3 Trends of AR

Table 5.4-3 Health and safe
performance in 2016

1

Chapter 5 Social performance

5.5 Participation and beneﬁts
to the society
Participation in infrastructure
projects, serving the country
through industry
Tatung always actively gets involved ingovernment's infrastructure projects with the spiritsof serving the country through industry and fulﬁlling
corporate social responsibility. In recent years,
we support government's policy to develop solar
PV systems and have become the biggest solar
PV system provider with the most experiences on
government owned roof. In 2016, we won thebidding of solar PV system for the public buildings
in New Taipei City. System of micro grid wasintroduced to the project to enable the emergency
supply of electricity when without power supply
from state grid in an event of natural disasters. At
the same time, we responded to the policy by
COA to transform barren farmlands into solar PV
green zone for the subsiding areas in Yulin County,
we cooperated with local farmers to run groundmounted solar power plants for the first time. We
also worked with Taipei City to establish Fudekeng
Restoration Park Solar PV system which transforming
the ex-landﬁll into the Hill of Energy. In addition, we
won the bidding of 2016 Taipei City Public Premises
Solar PV Roofing Project, in which two innovative
systems including PM2.5 measurement system andlight-weighted solar modules would be installed. We
have established 43 MW of solar PV systems nationwide which reduces almost 30,000 tons greenhousegases every year. Tatung will continue to uphold"Green Energy Tatung" development strategy andcontinue to participate in the renewable energy
industry for making an effort to the country.

Integration of education andindustry 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 andcompany which is the former of current Tatung HighSchool and Tatung University. The spirit of operating
the education in Tatung shows that the company
is an annex company factory of the schools andprovides the intern opportunities for students topractice their theories learnt from the lectures. In
2016, we not only provided intern opportunities for
Tatung University, but also had academia-industrial
cooperation with Soochow University.

Tatung charity soccer summer
camp
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 child's places tointroduce international football game and teachthe children proper skills of football. The children are
also divided into teams to happily experience thegame on the ﬁeld. The main purpose of organizing"Tatung Charity Summer Soccer Camp" is hoping
every child can gain happiness and satisfaction as
well as positive attitude.
Tatung invited 450 children of grade 1~9 from 24
schools and 5 orphanages in Yilan, Taipei, Penghu,
and Kinmen in 2016. Children were taught skill
and knowledge of soccer in the field by Tatung's
professional team.

Supporting in traditions and arts
Tatung has always been supporting in traditionalart and innovation. To preserve Taiwan traditional
folk art, Tatung invited Taiwanese paper carving
master to creat Tatung Boy handheld lanterns as away of celebrating the Year of Monkey. To support
Taiwan folk art creation, Tatung invited folk art artist
to make Tatung Boy creative lantern which made its
debut in the 2016 Taiwan Lantern Festival, Taoyuan
and 2016 Nantou Lantern Festival. To support thecreation of performing arts groups, Tatung invited
local performing art groups to work together forthe children's drama "Tatung Boy Loves the Earth",in which some positive notions such like energysaving, health and environmental protection were
integrated as the key elements of the play. The play
was performed to students of some elementary
schools in Taiwan helping youngsters develop good
habits from their early age.

2017

TATUNG CSR

50

Chapter 6
Environmental performances

6.1Environment management

Two factories

implemented ISO 50001
in 2016.
Performance• Carry out GHG inventorywith ISO 14064-1:
Short term – Complete ISO
14064-1 GHG inventory
every year in Taoyuan
Wires and Cables Plant,
Taoyuan 1st Plant, andSan-hsia Factory.
Mid-long term –Implement ISO 140641 in Tayuan Plant andheadquarter.

Three factories

completed GHG
inventory by ISO 14064-1
for year 2015.
Performance

2017

51 TATUNG CSR

Plan

Implementation& Operation
Checking &Corrective Action▲ EMS establishing and implementing

procedure

ISO50001
Energy Saving Audit
Product Carbon Footprint
40
ISO14001

ISO14064-1

3P Program

1990

1993

1996

2009

2010

2013

2014

2015

2018

Energy Saving target

Performance

By the endof 2016, thetotal installedcapacity was
43MWp.

Base year

2013

6%

⇧

• Establish ISO 50001:
Mid-long term – Allfactories have ISO 50001.

Did not meet
the target, 3violations in2016 which is
1 more than in
2015Management
Review⇧

Performance

Numbersof violation
againstregulationis less thanprevious year.

Ch
eck PlanActi
o n Do1%⇧• Update ISO
14001 to newversion:2017 – Tayuan
Plant, Taoyuan
Wires and
Cables Plant,
San-Hsia
Factory.
2018 –
Taoyuan 1st
Plant

products met the goal in
2016• Continue toseek for solar
PV system
cases.
• Continue toinstall solar PV
system in thefactories andsubsidiaries.
• Work hard insmart buildings
and greenbuildings.
• Continue
to apply forGreen Mark,
Energy Label,and Water
Label.

Tatung believes that by implementing
ISO14001 is able to continue improve
environmental performances, and improveexport competitively and company images.
Thus, in May, 1996, Tatung started to
implement ISO14001 among the factories
and the subsidiaries. So far all 4 factories
have established ISO 14001 and certified
every year. Table 6.1-1 shows the factories
which have been certified with ISO14001
certiﬁcation.

⇧

Performance

2/3 represented

Efﬂuent and air
emission are
below national
standards.

Compliance

2014

2015

2016

2017

1%

1%

1.5%

⇧

3P Program
correction
rate was
97.62% in2016• Energy intensity ofrepresented products in2018 will be 6% less than in
2013:
2016 - 3% less2017 - 4.5% less2018 - 6% lessGreen
products

Environmental
PolicyContinual
Improvement

1.5%

Target 6%
2018⇧• Correction
rate over 95%
for the nonconformities
from 3P
Program.

ISO 14001environmental
management system⇧

TargetEnvironmental Energy and
Pollutants
management greenhouse gases management
management

Chapter 6 Environmental
performances▲ Tatung environmental management roadmap

New applied
Energy Label –133 models,Green Mark –19 models,
Water Label –1 model.
Performance

1996
Started to
implement

1998

1999

Taoyuan 1st
San- hsia
Plant and
Factory
Tayuan Plant
passedpassedcertification
certification

2000

2017

2018

Taoyuan Wires Tayuan Plant, Taoyuan
Taoyuan 1st
and Cables
Wires and Cables Plant,
Plant isPlant passed and San-Hsia Factory are scheduled tocertification
scheduled to update to update to newnew version.
version.

Tayuan Plant
San-hsia Factory
ISO 14001 certiﬁcate ISO 14001 certiﬁcate▲ Figure 6.1-1 ISO14001 certification status

2017

TATUNG CSR

52

Chapter 6 Environmental
performances

Chapter 6 Environmental
performances

Pollution Prevention Pays (3P) Program
Tatung started to implement "Pollution Prevention Pays, 3P" program in the factories andthe subsidiaries which have manufacturing function since 1993 to help Tatung to develop
environmentally sound operations. The elements of 3P program are listed as follows:
Measures

Descriptions

Promote Clean Production
technology, fully utilize resources andmaterials and to reduce the wastes
and the production costs.

Improve the existing manufacturing processes andmanagement operations to eliminate sources ofpollution. Also improve upon the recycling/reuse,and exchange/reuse of waste materials.

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

Apply Design for the Environment, DfE", in the designphase to produce "recyclable, low pollution, toxicfree, resource saving, power saving, and durable"
products to beneﬁt the environment.

Manufacturing
aspectManagement
aspectPerform 3P Program on-site evaluation The results can beneﬁt management in their review
in the factories and subsidiaries
of environmental performances and draft of new
regularly.
policy and objectives.

Conformity

Conduct internal audit.

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

When there any incidents found against company rules or with potential to cause environmental
pollution, we will list such incidents and request the factories and the subsidiaries to correct them.
We also set yearly correction target to be 95%. For the incidents which can not be correctedby the end of year, we will track them and make them to be corrected next year. In 2016, 42
incidents (without subsidiaries) were requested to be corrected and 41 were completed by theend of 2016. The correction rate was 97.62% and met target.

6.2 Energy consumption and
GHG management
There are two types of energies that Tatung
consumes – direct energy and indirectenergy. Direct energy sources are fromdiesel 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 most consumed
energy in 2016 was purchased electricity andthe amount was 199,598.13 GJ (90.38%) whichequaled to 55,443.93 kkw-hr; followed by
LPG with 13,753.87 GJ (6.23%) which equaled
to 272.52 tons. The total amount of energy
consumption in 2016 was 79,629.69 GJ lesser
than in 2015, which was 26.50% reduction.
The main reason was Crystal Growing Center
was no longer operated by Tatung. When
compares to 5 years ago, there is 48.19%
reduction in total.
90.38%
6.23%
3.19%
0.20%

Purchased
electricity

GJ
500,000
450,000 426,271.39
398,383.26

400,000

48.19% reduction
386,648.95

350,000
300,468.74

300,000
250,000

220,839.05

200,000
150,000
100,000
50,000
0

2012

2013

2014

2015

2016

▲ Figure 6.2-2 Trend of energy consumption

LPG
DieselDiesel fuel oil◄ Figure 6.2-1 Energy consumption

breakdown in 2016 (by category)▲▲

Table6.2-1 Tatung Co. energy consumption
Unit: GJ

3P Program on-site audit(1/2)

3P Program on-site audit(2/2)

2017

53 TATUNG CSR

2012

2013

2014

2015

2016

Diesel fuel oil

3,695.31

5,181.47

3,655.14

3,454.31

441.83LPG

24,776.34

22,727.29

21,323.74

17,573.38

13,753.87

Diesel

7,053.35

7,445.85

7,927.32

7,487.31

7,045.22

Purchased lectricity

390,746.39

363,028.65

353,742.74

271,953.74

199,598.13

Note: The data from San-Hsia Factory, Taoyuan Wires and Cables Plant, Taoyuan 1st Plant in 2012~2015 is colleted
based on ISO14064-1 and have been certiﬁed. The data in 2016 is collected based on ISO14064-1 but have notbeen certiﬁed yet. The data from H.Q. and Tayuan Plant is collected from power bills and receips.

2017

TATUNG CSR

54

Chapter 6 Environmental
performances

Chapter 6 Environmental
performances

Greenhouse gas emission

Energy saving and GHG reduction
95.35%

Due to Tayuan Plant and headquarter is still
undergoing the establishment of ISO14064-1, theGHG emissions (scope 3 is not included) in thisreport are calculated as follows: the amount ofenergy sources disclosed in previous paragraphmultiplied by each emission factor. The total GHG
emission in 2016 was 30,702.54 tons CO2e (Figure
6.2-3), 95.35% of the emission was from purchased
electricity. The second largest portion was from
LPG which was 2.83% (Figure 6.2-4). The emission
was 11,120.52 tons CO2e lesser than in 2015. When
compares to 5 years ago, there is 50.59% reduction
in total.

Purchased
electricity

2.83%

LPG

1.71%

Diesel

0.11%

Diesel fuel oil▲ Figure 6.2-4 GHG emission percentage bysource in 2016

Amount of carbon emission reduction
increases for 3 consecutive years

Tons
CO2e

Purchased
electricity

70,000

Diesel

LPG

Diesel fuel oil

1,200

60,00050.59% reduction

50,00057,743.63

52,639.15

51,194.44

39,886.55

29,274.39

2012

554.491,436.23
402.602013

590.35
1,347.54
284.01

2014

557.581,110.53
268.402015

524.66869.1634.33

2016

164.472000Note 1: One Daan Forest Park can absorb 389 tons of GHG every year.

2012

2013

2014

2015

2016

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

Main product2014◎

Motors/generators

Note 1: The data from San-Hsia Factory, Taoyuan Wires and Cables Plant,
Taoyuan 1st Plant in 2012~2015 is colleted based on ISO14064-1
and have been certiﬁed. The data in 2016 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 and receips.
Note 2: The greenhouse gases are CO2, CH4, N2O and calculated with
GWP (IPCC, 1995)▲ Figure 6.2-3 Amount of GHG emissions

2017

55 TATUNG CSR▲ Figure 6.2-5 Amount of carbon emission

reduction

Rice cookers
Domestic air conditioners
Business air conditioners

1

Transformers/Switch gears
Mechanical meters
LAN cables
Power cables
Wires

2015

▲
▲

525.26
1,565.72
287.13

To achieve the goal, Tatung conducts annual energy audit and reports the energy consumption information to thegovernment as well as implements energy saving projects in the headquarter and the factories. In the subsidiaries,
Tatung checks the energy saving performances during 3P program on-site audit to ensure the energy saving target
can be achieved. In 2016, Tatung reduced about 2 million kwh of purchased electricity consumption via 5 dimensions(Table 6.2-3)
which equaled to 1,086 tons of GHG emission reduction (2.8 Daan Forest Park's carbon reduction
1amount ). Figure 6.2-5 indicates that the amount of GHG emission increases in 3 consecutive years since 2013.
In addition, San-Hsia Factory has implemented ISO 50001 energy management system and passed certiﬁcationin 2015. In 2016, Tayuan Plant and Taoyuan Wires and Cables Plant have also completed implementation of ISO
50001 and passed the certiﬁcations. The company's ISO 50001 status can be found in Figure 6.2-6. We commit that
we will continue to conduct energy review to ﬁnd out where the energy is greatly consumed according to ISO
50001 and tries hard to reduce the amount of energy without compromising the quality of products.

617.55600

From the table we can see there are few represented products did not meet the target due to the production
amounts were less. In order to understand where are the signiﬁcant power consumption areas, the headquarterand the factories have completed "The ﬁrst phase: smart power monitoring system" project. The project installed
smart meters and monitoring systems on the main power circuits to instantly monitor the real-time energy
consumption, energy demand, power factor and other important information. The historical records wereused to enable more accurate energy management works. We will have "The second phase: the monitoringand management of significant energy consumption equipments" project in 2018. The project will implement
temperature control and power scheduling management to the air conditioners at public area, the ofﬁce, andthe telecommunication room. For the production equipments which have large energy consumption and long
operating times will be installed monitoring systems to deﬁne the variables may affect the energy efﬁciency. The
variables will be managed to save the energy. Other the other hand, energy management staffs in the factories
will inspect the work sites from time to time to ﬁnd out a place where energy is wasted or can save energy andpropose energy saving plans. The company will also participate in Taipower Company's demand suppression
activity to supplement the power supply system's reserve capacity in order to make efforts to energy conservationand carbon emission reduction to the nation.

▲▲

0

1,075.43 1,086.26
927.45400

20,00010,0001,000
800

40,00030,000Tons
CO2e

Global warming greatly increases the frequency of extreme weather and directly causes impacts to the operationof a business. In order to fulﬁll corporate social responsibility and reduce operating costs, Tatung sets short andmedium term goals which are based on energy intensity per product and the baseline year is 2013. The goals are:Short term – reduce 3% in 2016, Medium term – reduce 6% in 2018. The result for each year is listed on Table 6.2-2.

2016

X

X
X

X
X

◎
◎

◎
◎

X
X
X
X
X

X

X

◎
◎
◎
◎

◎
◎
◎
◎

◎
◎

Note: ◎ represents it meet the target, X represents it does notmeet the target.
Note 1: The unit for transformers and switch gears are the same,and the energies consumed are allocated which may
have possible errors. Therefore, these two products arecalculated together since 2016 and the results are traced
back to 2013 (base year).

Table 6.2-3 Tatung energy saving projects and results

Energy saving projects
Utilized manufacturing process to
reduce operation time.
Replaced with high energy efﬁcientand energy saving equipments
Installed controllers or inverters
on massive energy consumed
equipments and/or managed theoperation time and temperature.
Centralized operation areasand shut down unnecessary air
conditioners and lightings.
Increased the frequency ofmaintenance for air conditioners
and installed curtains to avoid
leakage of cooled air.
Total

Amount ofGHGelectricity
reduction
saved (kw-hr) (ton CO2e)529,695

279.68663,082

350.11

464,521245.27

277,601

146.57

122,41064.63

2,057,309

1,086.26

Note: 1 kw-hr of electricity emits 0.528 kg CO2e.

2017

TATUNG CSR

56

Chapter 6 Environmental
performances

Chapter 6 Environmental
performances

Disclosure on product carbon
information
Taoyuan Plant
ISO 50001

2014

2015

2016

Started to
implement

San- hsia
Factory
passedcertification

Tayuan Plant,
Taoyuan Wires andCables Plant passed
certification

Taoyuan Wires San-Hsia Factory
ISO 50001
and Cables Plant
ISO 50001▲ Figure 6.2-6 The status of Tatung's ISO 50001

Greenhouse gas emitted by human activities
have already caused global warming and led
to the threat on the sustainable development.
Corporations actively to reduce the greenhousegas emissions are not only to show a responsible
image to the public but also able to reduce theoperation costs from running the business. 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. Once thefactory completes GHG inventory, verification
will be conducted by the third party based onreasonable level of assurance. Figure 6.2-7 shows
the factories have done GHG inventory andveriﬁed by third party. Tatung also encourages her
subsidiaries to implement ISO 14064-1. So far, CPT
and GET have implemented such system to work
out GHG inventory.
For the purpose of enhancing the ability to dogreenhouse gas inventory in the factories, Tatungruns ISO14064-1 Internal Verification Class every
year. We are expecting to have more well-trained
employees through these classes and they are able
to do the greenhouse gas inventory well and pass
the verification by the third party in the future. At
the same time, the factories will continue to reduce
GHG emissions by any possible measures.

As global warming issue become more
and more concerned, we begin to disclose
carbon information on products and hopeto provide more detailed information to
consumers and customers for the purposeto select products with less environmental
impacts. In the past few years, we havecompleted product carbon footprint for
motor, vehicle panel (CPT), silicon wafer forsolar power generation (GET). We also issued
PCRs (product category rule) for electriccookers (15-044 V. 2.0) and electronic cookers(15-045 V. 2.0) for industry to use. In 2016, wecompleted a product carbon footprint foroil-immersed amorphous core transformer(3 φ 60Hz-2000kVA-420/242-6600V) basedon ISO 14067 and passed verification. We
also completed product carbon footprint for
Tatung's signature product – multi-function
cookers (TAC-10L-SR) in 2016, and acquired
EPA's Carbon Footprint Label in Apr, 2017.
In the future, we will continue to conduct
product carbon footprint to disclose theproduct carbon information and make effort
to conserve energy and reduce GHG.

Oil-immerse amorphouscore transformer
carbon footprint
veriﬁcation statement
Carbon Footprint Labelfor multi-function cooker(TAC-10L-SR)

Raw material
stage
0.4326%

Headquarter ／ Tayuan Plant
Taoyuan Wires and Cables Plant ／ San-Hsia Factory

Disposal andrecyclingstage
0.0281%

Taoyuan 1st Plant
2009

2010

2011

2012

2013

2014

2015

2016

2017
2017

Calculated without verified.
Calculated based on ISO14064-1 and veriﬁed by the third party.
Calculated based on ISO14064-1 and scheduled to be veriﬁed by theend of 2017.
▲ Figure 6.2-7 The status of GHG inventory in the factories

2017

57 TATUNG CSR

Production stage
Distribution and sales
0.6873%0.0031%

Use stage
98.8489%▲ Carbon information on each life cycle stage for multi-function cooker (TAC-10L-SR)

2017

TATUNG CSR

58

Chapter 6 Environmental
performances

6.3 Resources consumption
and pollutants management
Consumption and management
on main materials

Tatung puts 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 from local purchase.
▲▲

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

Main materials
Steel (silicon steel
included)
CopperAluminum
Insulation oil

Amount ofconsumption

Local purchasepercentage

6,617 tons

88%

15,441 tons
447 tons
376 KL

8%
100%
100%

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

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 2016. In addition, the factories arelocated in industrial area and/or industrial zone
where do not have bio-sensitive sites nearby.

2017

59 TATUNG CSR

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.

Tatung sets up and operates air pollutant treatment
facilities in the factories in accordance to theregulation. Pollutant concentration is regularly
tested and met the standard. The main air pollutantsfrom the factories are NOx, SOx, and VOC. Tatung
declares the amount of emissions and pays air
pollution control fee to the authority. The amountof air pollutants in recently 5 years is shown in Figure
6.3-2 and Figure 6.3-3.

Emission of ozone-depleting
substances

In order to reduce the usage of ozone-depleting
substances, Tatung started to use R-410A coolant
in some of the air conditioners which was the first
local company to do so. In addition, Tatung actively
applies Green Mark for the air conditioners and thebasic requirement is using zero ozone depleting
substances. In 2016, 19 models of air conditioners
were granted Green Mark.
On the other hand, the authority regulates that the
air conditioners with cooling capability less than
7.1kw is forbidden to use R-22 as coolant since 2011.
Therefore, Tatung stopped using R-22 coolant on
the air conditioners with cooling capability less than
7.1kw from 2011.
Table 6.3-2 Waste water treatment andefﬂuent description in 2016

Factory
Treatment method

San- Tayuan Taoyuan Taoyuan
Hsia
Plant Wires and 1st Plant
Total
Factory
Cables
Plant
Factory owned waste water
treatment plant in accordance tothe requirement by the regulation

Average COD
concentration (mg/L) 22.11 11.50 14.21 11.10 782.31kg
Average SS
3.64
2.65 238.48kg
concentration (mg/L) 15.26 4.19
Amount of efﬂuent (m3) 2,268 1,637 51,275 3,992 59,172
Heng New
New Tianxinzhi
RecipientRiver Street StreetRiverwater body
River
River
Efﬂuent reused by others
None

Tap
water

M3
300,000

Air pollutant emissions andmanagement▲▲

The sources of water for Tatung are from tap water,
ground water, and river water. Tatung consumed
658,302 M3 (Figure 6.3-1) of water in 2016 which
was 1,376 M3 less than the consumption in 2015. In
2015, 18.24% of waste water was recycled (equaled
to 120,087 M3). Tatung will continue to conduct
water conserving project in order to reduce water
consumption.

Chapter 6 Environmental
performances

Ground
water

River
water

275,181

270,626
256,166
243,461

250,000

253,008

230,583

238,185
235,384

229,321245,799

桃園壹廠廢水處理廠

242,003

197,944

200,000

203,603
186,109170,500

150,000

桃園電線電纜廠廢水處理廠
2012

2013

2014

2015

2016

▲ Figure 6.3-1 Tatung water consumption by sources

Amount of NOxemissions

Kg
4,000

3,718

3,500

Amount of SOx
emissions

Amount of VOCs
emissionsKg
120,000
109,515

3,493

100,000

89,135

3,000
2,500
2,000

80,000

2,266
1,752

79,431

1,932
1,666
1,351

1,323

1,500

1,464

1,087

2015

2016

1,000
500

2012

2013

2014

72,92067,09860,000Note:Based on EPA'S calculation method▲ Figure 6.3-2 Air pollutant emission (NOx, SOx)

40,00020,000

2012

2013

2014

2015

2016

Note:Based on EPA'S calculation method▲ iFigure 6.3-3 Air pollutant emission (VOCs)

Note: Efﬂuent standard COD: 100, SS: 30.

2017

TATUNG CSR

60

Chapter 6 Environmental
performances

Chapter 6 Environmental
performances

80MWp

6.4 Green products for abetter earth

Waste reduction andmanagement
Tatung has already implemented plenty ofpollution reduction measures in the factories,
mostly resulting from green product design phaseand improvement of manufacturing process.
Tatung generated 3,449.90 tons of industrial
wastes which included 3,392.95 tons of generalindustrial wastes and 56.95 tons of hazardous
industrial wastes in 2016. The largest portion (49.91
tons) of hazardous industrial wastes was wasted
varnish or wasted solvent. 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

5,043.69

5,000.00

4,176.07

4,000.00

3,248.25

3,392.95

3,000.00
2,000.00
1,000.00
0.00

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 2016, 2,646.45 tonsof wastes were reused (76.71% of total wastes).

66.62 66.73 27.63 43.66 56.951
2012 2013 2014 20152016

Hazardous industrial waste

2012 2013 2014 2015

2016

General industrial waste▲ Figure 6.3-4 Amount of industrial wastes▲▲

Table 6.3-3 Waste treatment methods

Treatment method

Reuse

Incinerate

Solidify

Landﬁll

PhysicalChemical

Total

General industrial
waste (tons)

2,646.45

675.77

17.61

31.24

21.88

0.00

3,392.95

Hazardous industrial
waste (tons)

0

49.91

3.87

0

3.16

0.016

56.95

Treatment method
percentages(by weight)

76.71%

21.03%

0.62%

0.91%

0.73%

0.00%

100.00%"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. Currently, Tatung solar photovoltaic power
generation system has been built in the residential,community, factories, dormitories, business premisesof the roof to the ground-based landﬁll and watertype pond and other new areas. In 2016, we won
Taoyuan City public housing, Taipei City public
housing, Fu De Keng, and Taoyuan Landfills solar
photovoltaic power generation system leasing
tenders, completed implementations of the fourthphase of New Taipei City, Kinmen, Hsinchu, and Fu
De Keng large solar photovoltaic power generation
system. By the end of 2016, we have installedcapacity up to 43MWp and targeted to expand to
80MWp by the end of 2017. The systems generated
32 million kw-hr electricity which was equaled to1
17,000 tons CO 2 reduction, and approximately
2
43 Daan Forest Parks equivalent. For more details
about out PV solar power system, please browse:
http://www.tatung.com/solution/detail/16

43MWp
23MWp
13MWp

2014

2015

2016

2017

▲ Total solar PV power generation system

capacity and target

Kinmen Kaoliang Liquor Inc.

Hsin Chu County Tzu
Chiang Junior High School

Taoyuan Tayou Elementary School

Fu De Keng Landﬁll Restoration Park

Note 1: 1 kw-hr electricity emits 0.528 kg CO2e.
Note 2: One Daan Forest Park absorbs 389 tons of CO2
per year.

43
Tatung solar PV systems▲ 2016 Tatung solar power generation

Daan
ForestParks

system performance

2017

61 TATUNG CSR

2017

TATUNG CSR

62

Chapter 6 Environmental
performances

Chapter 6 Environmental
performances

Devote in developing
environmental friendly products

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 purpose ofa smart commercial building is to provide energyefﬁcient 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) andTatung's smart building management system (SBMS).
After implementing SBMS, the building achieved
8% power saving target in 2015, and achieved 30%
power saving target in 2016. For more details about
Tatung smart buildings, please visit
http://www.tatung.com/solution/detail/11.

Tatung tirelessly dedicates to the developmentof green products and many of them have been
awarded with "Green Mark", "Energy Label", and"Water Label". There were 19 models awarded
with Green Mark, 133 models awarded with
Energy Label, 1 model awarded with Water Labelin 2016. Please refer to Table 6.4-1 and Figure
6.4-1 for more details. As for toxic free products,
Tatung has followed EU RoHS directive and REACH
regulation, through supply chain management andmanufacturing management to ensure there is nohazardous substance in the products shipped to EU.

Tatung pools its R&D strengths together within the
Tatung smart building-ECS Headquarter building
group to introduce smart systems and green energy
efﬁciency into smart building project, and utilizes thedesign ideas of smart and green building to createa sustainable smart community. This will connect
Taiwan to the world and make Tatung one of thepioneers in smart innovated applications. Tatung
5S
brings together the entire group, as Shan-Chih
Development works on the development of "Tatung
Smart Manor," Tatung, Tatung System Technologies Smart energy saving
and Tatung Medical and Healthcare Technologies
join force for the smart system and apply for a
Smart living andsmart health care"smart green community" of smart building at the
diamond level and green building at the gold level.
property
This will be the first demonstrational community Smart
management
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 water Smart safety
Smart communityand power and reduction of 40% of CO2 emission, and Security
but also create new energy as renewable source.
On basis of the latest intelligent system platform of
Tatung, all building facilities are connected and all
the tenants have to do is to move a ﬁnger to exploit
the public facilities of community or smart home
appliances through cloud information APP whilestaying on top of the information of what they needfor everyday life. For more details about Tatung's
Tatung Manor "5S"
smart green building, please visit
http://www.tatung.com/Solution/Detail/12.

2017

63 TATUNG CSR▲▲

Smart buildings and green
buildings

Table 6.4-1 Lists of green products

Products
Electric fans
Refrigerators
Washing machines
Monitors
Water dispensers(warm/hot water)
Electric ovens
Dehumidiﬁers
Domestic air
conditioners
Amorphous cast-resin
dry type transformers
Amorphous oilimmersed typetransformers

Green
1
Mark
－
－
－
－

Energy
2
Label
◎
◎
◎
◎

Water
Label
－
－
◎
－

－

◎

－

－
－

◎
◎

－
－

◎

◎

－

◎

－

－

◎

－

－

Note 1: Taiwan EPA established "Green Mark" program in order toencourage manufacturers to reduce pollution emissions,consumption of energies and resources during the life cycleof a product as well as to awake the consumers to choose
resource saving, low pollution, recyclable products. The
products with "Green Mark" represent the environmental
performances ranked from top 20~30% in their productcategory.
Note 2: Bureau of Energy, Ministry of Economic Affairs, Taiwan
initiated the voluntary "Energy Label" program. The productswith "Energy Label" indicate that the energy efficiencyof the product is 10~50% higher than national energy
efﬁciency standard.
250

Unit：No. of models

Energy Label

200

203

190

186

Green Mark
Water Label
133

150
82
100

73
49
19

50
4
0

24
7

19
8

1

0

2012

2013

2014

2015

2016

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

2017

TATUNG CSR

64

Chapter 6 Environmental
performances

Product and package recycling at
the end of life
As for the recycle on the wasted products,
Tatung takes great attention on this issue.
Tatung pays "Recycling and Cleaning Fee"to the government agency (Recycling FundManagement Board) to carry out countrywide waste recycling affairs. Based on thestatistics1 in 2016, the average recycling
rate for electric and electronic devices
was 58.91%, the average recycling rate for
information devices is 30.91%. In addition, as acorporate who has her own retailing system,
Tatung works together with TCPC to set up
battery and ﬂuorescent lamp recycling box ateach Tatung 3C Store to recycle consumers'
wasted batteries and fluorescent lamps,
as well as consumers' large wasted houseappliances upon request when purchasing.
By doing this, the wastes can be fully recycled
under the control of regulation and avoided
damage to the environment. Apart frompaying the fees and fulfilling producer
responsibility, Tatung also works hard to use
more recyclable materials through design
and manufacturing stages and actively toapply for Green Mark.
In regarding to the packaging materialsof household appliances and consumer
products, Tatung believes that the packaging
materials are fully recycled. The reason
behind this is the recycling channels in Taiwan
are well established and residences arehighly educated and aware to do recyclein their households. For packaging materials(mainly wood/iron pallets or axles) used onlarge 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 beconsistent 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&su
bsubsno=252

2017

65 TATUNG CSR

Chapter 6 Environmental
performances

6.5 Environmental costs andconformity of regulation
Environmental protection
expenditures and investments
Tatung evaluates any possible pollutants
occurred from the operations and has
installed pollution prevention facilities in
the factories. The environmental protection
expenditures and investments in 2016 were
NTD$ 37,603,717 and shown in Figure 6.5-1.
NTD$
25,000,000

21,600,000
20,000,000

15,000,000

10,000,000

7,836,060

8,167,657

Failure to comply with regulations
and signiﬁcant spills
Tatung takes great concern on thedevelopment of environmental protection
regulations. When there are public hearings orseminars 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 3 incidents
which breach the regulations in 2016. SanHsia Factory was fined NTD$26,000 due toviolations of Waste Disposal Act and Water
Pollution Control Act. The violations have beencorrected in accordance to the regulation
and accepted by the authority. The numbersof violation in 2016 were more than in 2015
which led to fail of our target. We will further
strengthen management in the factories
and enhance compliance education to thestaffs and the managers. In addition, we willcontinue to conduct internal audit and 3P
Program evaluation to prevent such incidents
happened again. Besides, there was not
signiﬁcant spill in 2016.

Authority

5,000,0000

Waste
treatment
cost

Audit

Pollution
Pollution
prevention
prevention
facility
facility setup
operation cost
cost

Note: Salary not included

Internal control audit▲ Figure 6.5-1 Environmental protection

expenditures and investments in 2016

ESD

Improvement

3P Program onsite audit

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

2017

TATUNG CSR

66

to the non-controlling interests even if this results in the non-controlling interests having a
deficit balance.
If the Company loses control of a subsidiary, it:

ANNEX

ANNEX

(a) derecognizes the assets (including goodwill) and liabilities of the subsidiary;(b) derecognizes the carrying amount of any non-controlling interest;(c) recognizes the fair value of the consideration received;(d) recognizes the fair value of any investment retained;(e) recognizes any surplus or deficit in profit or loss; and(f) reclassifies the parent’s share of components previously recognized in otherto profit
or loss.
Annex 1 comprehensive
Subsidiariesincome
notes
to consolidated
ﬁnancial statements

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

December 31,

a. The consolidated
are listed
as follows:
The consolidated
entitles entities
are listed
as follows

Investor

Investor

Main businesses

2016

2015

The Company, Chunghwa Electronics

Tatung Fine Chemicals Co., Ltd.

Industrial coatings, electrocution

54.63%

54.63%Development Co., Ltd. and Chih-Sheng(“TFC”)

coatings resistor coatings, photo-

100.00%100.00%December 31,

December 31,

Main businesses

2016

2015

Investment Co., Ltd.

Manufacture, research and sale of

41.25%

24.22%The Company

Subsidiary

Subsidiary

December 31,

catalyst, inkjet ink
Shan-Chih Asset Development Co.

Development and leasing of real(“SCAD”)

estateThe Company, SCAD and Chih Sheng

Chunghwa Electronics

Professional investment holding

99.86%

99.86%

Ltd. and Tatung Global Strategy

Investment Co., Ltd.

Development Co., Ltd.

Investment and Trading (BVI) Inc.

The Company

Tatung DIE Casting Co.

Manufacturing and sales of casting

51.00%

51.00%

100.00%100.00%100.00%100.00%90.00%

90.00%

100.00%100.00%100.00%100.00%

The Company, Chunghwa Electronics
Development Co., Ltd., Green Energy

Chunghwa Picture Tubes, Ltd.
(“CPT”)

picture tubs and TFT-LCD

Technology Inc., Chih Sheng Realty Co.,

products

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

Software and hardware service andLtd. and Shan-Chih Asset Development

system integration(“TSTI”)

54.40%

54.40%Co.
The Company, CPT, SCSC and

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

Chunghwa Electronics Development Co.,

40.75%

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

Manufacturing and sales of IT(Thailand) Co., Ltd.

products, home appliances and AI
meter

40.75%The Company

electronics

Tatung Co. of Japan, Inc.

Sales and purchase of electronicparts, home appliances and ITLtd
The Company

Taiwan Telecommunication Industry Telecommunication devices.

100.00%

The Company

Company Ltd.
The Company and Chunghwa Electronics San-Chih Semiconductor Co.,

Manufacture and sales ofDevelopment Co., Ltd.

Ltd.(“SCSC”)

semiconductors and chips

The Company

Central Research Technology Co.

EMCIRF testing and certification

58.20%The Company

Tatung Consumer Products (Taiwan) Sales of home appliances andCo., Ltd.

digital computer products

Tatung SM-Cycle Co.

Manufacture of speed reducers,

Purchases, sales and services ofraw material

The Company
100.00%100.00%99.10%

99.10%

85.33%

Tatung Electronics(S) Pte. Ltd.

58.20%

services
The Company

products

100.00%85.33%

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

The Company

cable

Tatung Information (Singapore) Pte. Professional investment holdingLtd.

The Company

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

100.00%100.00%

The Company

Tatung Co. of America Inc.

50.00%

50.00%

100.00%100.00%

Sales and service of IT andhousehold electronics products inspeed aviators

the US
The Company

28

Manufacture of electronic products

Tatung Mexico S.A de C.V.
(“TMX”)The Company

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

100.00%100.00%

The Company

Tatung Electric Company of

Manufacture and sales of motor

100.00%100.00%America, Inc.

products in the U.S.

The Company

Tatung Netherlands B.V.

Sales of electronic products

100.00%100.00%

The Company

TATUNG CZECH s.r.o

Manufacture of IT products

100.00%100.00%

The Company

Tatung Medical Healthcare

Design and sales of medical

95.08%

95.02%

Technologies Co., Ltd.

instruments.

Toes Opto-Mechatronics Co.

Manufacture of data storage and85.00%

85.00%

100.00%100.00%

The Company

process equipment
The Company

Tatung Vietnam Co., Ltd.

Manufacture and sales of home
appliances

2017

67 TATUNG CSR

29

2017

TATUNG CSR

68

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

December 31,

December 31,

Main businesses

2016

2015

Tatung Electric Technology (VN)

Manufacture and sales of wire and100.00%100.00%Co., Ltd.

cable

Chih Sheng Investment Co., Ltd.

Professional investment holding

100.00%100.00%

The Company and Chunghwa Electronics Shan Chih Investment Co., Ltd.

Professional investment holding

100.00%100.00%Professional investment holding

100.00%100.00%Investor
The Company

The Company

Subsidiary

Absolute Alpha Limited

Professional investment holding

100.00%100.00%

The Company

Tatung Forever Energy Co., Ltd.

Solar energy related business98.12%

100.00%

The Company

Leap High Limited

Professional investment holding

65.00%-

CPT

Giantplus Technology Co., Ltd.

Research, development, production

53.67%

53.67%(“Giantplus”)

and sales of LCD.
100.00%100.00%100.00%100.00%CPTB and CPTL

Chunghwa Picture Tubes (Bermuda) Investment holding and sales ofLtd. (“CPTB”)

TFT-LCD

Chunghwa Picture Tubes (Labuan)

Investment holding and sales ofLtd. (“CPTL”)

TFT-LCD

Chunghwa Picture Tubes

Research, design, manufacturing,Technology (Group) Co., Ltd.
(“CPTTG”)

Fuzhou YingYuan Equity Investment Professional investment holding

100.00%Vibrant Display Technology CO.,R&D, design and manufacture

100.00%100.00%Ltd.

components of TFT-LCD

CPT TPV Optical (Fujian) Co., Ltd.

Manufacture components of TFT-

80.00%

80.00%

100.00%100.00%100.00%100.00%55.00%-

100.00%100.00%LCD
CPTB

CPTF Optronics (Shen-Zhen) Co.,

Sales and service of flat-panelLtd.

display

CPTTG, CPTF Optronics Co., Ltd., andKornerstone Materials Technology

R&D, design and manufacture

Goldmax Asia Pacific Ltd

Co. Ltd.

components of TFT-LCD

Kornerstone Materials Technology Co.

DDD3Empire

Manufacture, research and sales ofLtd.

optical glass

sales and service of flat-panel

Giantplus Technology Co., Ltd.

Hsh Heng Investment Co., Ltd.

Investment

100.00%100.00%display device, monitor display

Giantplus (Samoa) Holding Co., Ltd.

Giantplus Holding L.L.C

Investment

100.00%100.00%model and components

Giantplus Holding L.L.C

Kunshan Giantplus Optoelectronics

Manufacture components of LCD

100.00%100.00%Technology Co., Ltd.

display
100.00%100.00%100.00%100.00%100.00%100.00%

CPTB

Bangalor Investment Ltd.

Professional investment holding

100.00%100.00%

CPTB

Bensaline Investment Ltd.

Professional investment holding

100.00%100.00%CPTB

New Kingston Enterprises Limited

Professional investment holding

100.00%100.00%Chunghwa Picture Tubes (Wujiang) Assembly final module of TFT-

100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%(“NKEL”)

Ltd. (“CPTW”)

LCD

Chunghwa Pictures Display

Assembly final module of TFT-

Technology (Fujian) Ltd.(“FDT”)

LCD

CPTF Optronics Co., Ltd.

Assembly final module of TFT-

Giantplus Holding L.L.C

Giantplus Holding L.L.C

Chunghwa Picture Tubes (Malaysia) Manufacture and sale of CRT

CPTF Optronics Co., Ltd., NKEL, and

CPTF Visual Display (Fuzhou)

Manufacture components of TFT-

Forward Development Co., Ltd.

Ltd.(“FVD”)

LCD

CPTF Optronics Co., Ltd.

Huallar Optronics (Fuzhou) Co. Ltd. Manufacture components of TFT-

Shenzhen Giantplus Optoelectronics Manufacture components of LCD
Display Co., Ltd.

display

Kunshan Giantplus Optronics

Sales of touch panel

100.00%100.00%Forward Electronics Co., Ltd.

Forward Development Co., Ltd.

Investment holding

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

Gintung Energy Co., Ltd.

Manufacture and sale of solar

45.82%

45.82%

100.00%100.00%100.00%100.00%

Energy Technology Inc. and Toes Opto-

Sdn. Bhd. (“CPTM”)

51.00%

Sales of TFT-LCD

Display Technology Co., Ltd

module and related component

Mechatronics Co.
Forward Development Co., Ltd.

LCD

Forward Electronics Equipment

Manufacture and sale of tuner,(Dong Guan) Co., Ltd

keyboard, mouse, remotecontroller, switch, socket andpotentiometer.

Forward Development Co., Ltd.

Suzhou Forward Electronics

Manufacture and sale of backlight

Technology Co., Ltd.

unit for TFT-LCD, driving board,
tuner, keyboard, mouse, switch,

51.00%

socket and connector.

LCD

30

100.00%

TFT-LCD

100.00%Professional investment holding

2017

100.00%100.00%Professional investment holding

69 TATUNG CSR

100.00%Giantplus (Samoa) Holding Co., Ltd. Investment

67.49%

Daliant Investment Ltd.

CPTB

2015

Giantplus Technology Co., Ltd.

30.42%

Dalemont Investment Ltd.

CPTB, CPTL and CPTTG

December 31,

2016

CPTF Optronics (HK) Co., Ltd.

CPTB

CPTB, CPTL and CPTTG

Chunghwa PictureTubes Technology Investment holding and sales ofDecember 31,

CPTF Optronics Co., Ltd

CPTB

CPTB, CPTL,CPTM and CPTTG

Main businesses

Management Co., Ltd.

CPTB and CPTTG

The Company

The Company, CPT and CPTB

CPTTG

CPTTG
Tatung Global Strategy Investment
and trading (BVI) Inc.

CPT

CPTTG

Subsidiary(Labuan) Ltd

Development Co., Ltd.
The Company

Investor

31

2017

TATUNG CSR

70

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

Investor

Subsidiary

Main businesses

SCSC , Shan Chih Investment Co.,

Green Energy Technology Inc.

Manufacture and sales of

Ltd .and SCAD , Chih Sheng Investment(“GET”)

electronic parts and devices.

December 31,

December 31,

2016

2015

36.22%

36.57%

Investor

Subsidiary

Main businesses

Corporation

December 31,

December 31,

2016

2015

generators, variable speed motors,
inverters and PLCs, transformers
and switchboards.

Co., Ltd.
SCSCGreater Power Limited

Investment holding

100.00%100.00%TMX

TMX Logistics, Inc.

Hub service

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

Investment holding

100.00%100.00%TMX

TMX Technologies Inc.

Technologies & business100.00%100.00%GET

Energy Well International Limited

Investment holding

100.00%100.00%GET

Green Energy Global Investment

Investment holding

100.00%100.00%100.00%100.00%Greater Power Limited and Energy Well

Ultra Energy Holdings Limited

Investment holding

100.00%100.00%100.00%100.00%100.00%100.00%International Limited
Energy Well International Limited

Golden Sunny Limited

Investment holding

100.00%100.00%Ultra Energy Holdings Limited

Ultra Energy (WEIFANG)

Solar silicon wafer slicing.

100.00%100.00%development
Shan Chin Investment Co. Ltd

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

100.00%100.00%coating and electro-deposition

Shan-Chih International Holding

Shan-Chih Wire&Cable Technology Manufacture and sales of wire andCorporation(Wujiang) Co. , Ltd.

cable

TSTI

Chyun Huei Business Technology

Information software

Inc.

ServiceTatung System Technologies

Investment holding

100.00%100.00%Software design and development

100.00%100.00%

TFC

Huaian Tatung Advanced

Manufacture and sale of positive

Information software

94.00%

94.00%

Technology Materials Co., Ltd.

material of lithium battery, printer100.00%100.00%ink, electro-deposition highperformance coating.
TFC

Shang Chih International Chemical

Investment holding

100.00%100.00%Industry Co., Ltd.
TFC

Wujiang Shang Huah Plastic Co., Ltd. ABS plastic, color dyes

100.00%100.00%Shang Chih International Chemical

Wujiang Shanghua Material

Manufacture and sale of ABS

100.00%100.00%Industry Co., Ltd.

Technology Co., Ltd

plastic.

Shang Chih International Chemical

Dongguan Tongli Trading Co., Ltd.

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

Tatung Information (Singapore) Pte. Ltd.

TSTI

Holding Ltd.
TSTI

coating.

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

monitor and PCs.

Tatung Wire And Cable Technology Manufacture and sales of wire and(Wujiang) Co., Ltd.

cable

Tatung Information (Singapore) Pte. Ltd.

Tatung Compressors

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

reciprocating compressors.

Ltd.

Service

Chih Sheng Investment Co., Ltd.

Chih Sheng Investment (BVI)

Investment holding

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

HEDA Biotechnology Co., Ltd.

Produce, food retail and wholesale

52.17%

52.17%

industry
Chih Sheng Investment (BVI) Co., Ltd

Chih Sheng Holding Co., Ltd.

Investment holding

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

Goldmax Asia Pacific Ltd

Investment holding

51.26%

51.26%

Chih Sheng Holding Co., Ltd.

Chih Sheng Holding HK Limited

Investment holding

100.00%100.00%Absolute Alpha Limited

Tatung Information Technologies

Sales of electronic products

100.00%100.00%100.00%100.00%99.87%

99.87%

50.61%

50.61%Corp.
Chih Sheng Holding HK Limited

Tatung (Shanghai) Co., Ltd

Manufacture and sales of motors,

100.00%100.00%100.00%100.00%100.00%100.00%Shan-Chih Asset Development Co. andTatung Forestry and Construction

Design and construction of

Taipei Industry Corporation

Co.

structural engineering.

Shan-Chih Asset Development Co.

Taipei Industry Corporation

Production and sales of mixing
concrete.

Shan-Chih Asset Development Co.

Chih Sheng Realty Co., Ltd.

Realty management

100.00%100.00%Shan-Chih Asset Development Co.

Shan-Chih Asset International

Investment Holding

100.00%100.00%Realty and Leasing Service

100.00%100.00%Holding Corporation

Shan-Chih International Holding

2017

71 TATUNG CSR

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

Corporation
Tatung Electric (Singapore) Pte. Ltd. andTisnet Technology Inc.

Tatung System Technologies Holding Ltd. TSTI Technologies (Shanghai) Co.,chemical products.
Tatung Information Technology

Investment holding

Corporation

Technology Co. Ltd
TFC

Shan-Chih International Holding

generators, diesel engine

32

100.00%100.00%Shan-Chih Asset International Holding

Tatung Management Consultant

Corporation(Shanghai) Co., Ltd.

33

2017

TATUNG CSR

72

ANNEXANNEXTATUNG CO., LTD. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Expressed in Thousands of New Taiwan Dollars unless otherwise Specified)Annex 2 List of Tatung products and services
Investor

Subsidiary

Main businesses

Shan-Chih Asset International Holding

Shan-Chih Asset International (Hong Realty and Leasing Service

Corporation

Kong) Holding Limited

Shan-Chih Asset International (Hong

Suqian Zhiwei Real Estate Co., Ltd.

Realty management

December 31,

December 31,

2016

2015

100.00%100.00%100.00%100.00%

Products and services provided by Tatung
Business
GroupsBusiness Units

Kong) Holding Limited
Tatung Forever Energy Co., Ltd.

Sheng Yang Energy Co., Ltd.

Battery Material Retail100.00%100.00%

Tatung Information (Singapore) Pte. Ltd., Myanmar Tatung Co., Ltd.

Sales and customer service of solar

100.00%-and Tatung (Thailand) Co., Ltd.

energy, industrial motor, home

Power
Equipment BU

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

Tatung Myanmar JV Holding Co., Ltd. Investment Holding

100.00%-

The Company increased its shareholding in CPT by 17.03% as a result of the legal
action against Compal Electronics, Inc. Refer to Note 9.5(6) for further details.

Power BusinessGroup

Tatung Medical Healthcare Technologies Co., Ltd. held a capital injection in August
2016. The Company subscribed to the shares proportionately and thus its holding
percentage increased to 95.08%
Tatung Forever Energy Co., Ltd. held a capital injection in January 2016, but the Group
did not subscribe the shares, and thus the Company’s holding percentage decreased to98.12%.
In March 2016, the Company signed a share purchase agreement with CPT to purchase41.03% of the total shares of Chunghwa Picture Tubes (Labuan) Ltd., totaling 8,000
thousand shares and the transaction amounted to NTD 968,560 thousand. The
settlement date was June 30, 2016. The transfer did not affect the controlling power of
the Group over CPTL, and thus CPTL is still a subsidiary.
On September 14, 2016, CPTTG held a capital injection amounting to RMB
10,000,000 thousand, less the issuance cost of RMB 87,799 thousand, the actual
proceeds of the capital injection was RMB 9,912,201 thousand. The Group did not
subscribe the shares, and thus the direct plus indirect holding percentage of CPTL and
CPTB towards CPTTG decreased from 67.49% to 30.42%.
In September, 2016, Kornerstone Materials Technology Co. Ltd. and Guanhe Optical
Glass Ltd. located in Dong Guan invested and established DDD3Empire Co. Ltd.,
jointly. Kornerstone Materials Technology Co. Ltd. provided capital of RMB 8,250
thousand, accounting for 55% holding shares of the capital of DDD3Empire Co. Ltd..

Motor BU

Products and services

ImportantCertiﬁcations

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

2306

MIRDC REGISTERED

4A4Y002

MIRDC REGISTERED

4A4E004

MIRDC REGISTERED

4A4H004

Cable: With more than ﬁfty years of technicalexperience, this business 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.
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 electric machine
which covered for designing, manufacturing, andselling of electric motors, immersible pump motors,
PM motors, EV motors, drives, water jacket motors,
generator sets, and total solutions of powersystems.

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

2613

UL
R33001

To reinforce brand management, the company
has expanded internal sales pipeline andAppliance BU
overseas market sales through innovative design,qualitative products and technical integration to

The Group sold partial shares of GET in the first quarter of 2016. As of the balance
sheet date, the holding percentage was 36.22%.

2017

73 TATUNG CSR

34

2017

TATUNG CSR

74

ANNEXBusiness
GroupsBusiness Units

ANNEX

Products and services

increase brand value. The product types areplentiful, including ecological energy saving air
conditioning for business and home use, smart
LED display panels, 4K UHD LED display panels,
leading brand of Multi-functional Cooker in
Taiwan, Easy Cooker, multi-functional combiovens, juice blenders and household appliancessuch as electric fans, refrigerators, washers, hairdryers and used in compressor of refrigerator anddehumidifier. Many products have won awards
from Taiwan Excellence, MIT mark and safety
standard qualification in many countries. To
conquer the severe problem of food safety, we
have launched a new brand "in fresh" to focus
on "non-toxic vegetables", use technology toConsumer
Appliance BU
overcome limitation in farming techniques and use
Business Groupwater farming cultivation to create a comfortableand pure environment for growth.
To comply with the trend of online internet
connection, Tatung appliances have integrated
resources in the smart and ecological ﬁeld throughsensor and network technology to link various end
devices. According to user's demand, it provides away to smart life. Through smart home system andsmart appliance APP, it could control all kinds ofsmart appliances by wireless network to achieve
electricity management, remote control, schedulemanagement, personalized situation mode, etc. toreduce energy waste in appliances and reach thegoal of energy saving for a better world.
Tatung Smart Solution Business Unit drives theInternet of Things and cloud computing, data
analytics and other technology platforms todevelop smart solutions pursuing environmental
sustainability been Taiwan's leading brand ingreen energy.
Tatung IoT Solutions - Reinventing our products
SystemSmart Solution from motors, switchboards, transformers to home
appliances. Products with capabilities such as
Business Group
BU
predictable maintenance and malfunction
identification which informs the customer inadvance to reduce risks and avoid losses allaiming for an extended product life. Energy
Management for IoT - Tatung's Smart Grid supports
electricity transmission to utility's end customers
allowing electricity management and demand
control achieving improved energy conservation.

2017

75 TATUNG CSR

ImportantCertiﬁcations

Business
GroupsBusiness Units

Products and services

ImportantCertiﬁcations

With this technology utility companies can provide
a flexible billing system giving the end users
convenient payment options.
Smart Solution The Smart Grid Solutions include all kinds of smart
meters and AMI system. In addition, we are
BU
capable of integrating the Micro Grid system,
developing and designing the solar system andrelated solar solutions for worldwide power utilities,
governments, and residential users.

SystemBusiness Group

System Integration BU mainly provides ICT(Information Communication Technology) system,
solar energy system and infrastructure services. In
the ICT system, BU primarily focus on ICT system
integration services and software development,
including Tatung's smart energy management
system, document management 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 highSystem
Integration BU performance solar energy products, to provide
professional energy creation management
and establishment services. The main services
are electricity grid systems, stand-alone solar
energy systems and related applications. Withrich experiences in Taiwan, the establishmentof various types of solar power plants has been
extended from public housing roofs to groundbased landﬁll sites and water-based photoelectric
ponds. In the infrastructure, BU provides highquality total solution to customers, combined withinterdisciplinary professionals covering all kindsof technologies such as electrical engineering,
electronics, mechanics, smart control, information,communication, civil engineering, transportationand project management, and coordinates crossinterfaces, integrated design, implementation,
project management with related technicalsupport.

2017

TATUNG CSR

76

ANNEX

ANNEX

Annex 3 Factories and subsidiaries participated in 3P program andOccupational Accident Prevention Pays program in 2016.
Factories owned by Tatung.

Annex 4 List of GRI indicators
GRI content index for "in accordance" CORE
General standard disclosures

Subsidiaries
Tatung Die Casting Co., Ltd.

Chunghwa Picture Tubes, Ltd.

Taoyuan Wires and Cables Plant

Tatung SM-Cyclo Co., Ltd.

Forward Electronics Co., Ltd.

San-Hsia Factory

Tatung Fine Chemicals Co., Ltd.

Green Energy Technology Co., Ltd.

Taoyuan 1st Plant

Shan Chih Semiconductor Co., Ltd.
1

Toes Opto-Mechatronics Co., Ltd.

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).
Note 1: Locates at Tayuan Plant.
Note 2: Includes Lungtang Plant, and Yanmei Plant.
Note 3: Includes Kuanyin Plant, Kuanyin II Plant, Tayuan Plant, and Green Energy Technology Inc. Branch of Southern Taiwan
Science Park.

Note

Strategy and analysis

2

Tayuan Plant

Electrical Meters Center

Pages

3

G4-1 Provide a statement from the most senior decision-maker of theorganization about the relevance of sustainability to the organizationand the organization's strategy for addressing sustainability.

Top
Management
Statement

G4-2 Provide a description of key impacts, risks, and opportunities.

22,23

Organization proﬁleG4-3 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.

8,9

G4-6 Report the number of countries where the organization operates,
and names of countries where either the organization has signiﬁcant
operations or that are 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

G4-10 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.

40
38

G4-12 Describe the organization's supply chain.

26,27,28

G4-13 Report any signiﬁcant changes during the reporting period regarding
the organization'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 it endorses.
G4-16 List memberships of associations and national or international
advocacy organizations.

Nosigniﬁcantchange

22,23
8
9,10

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.

2017

77 TATUNG CSR

Annex 1
2
5,6
6

2017

TATUNG CSR

78

ANNEX

ANNEX

General standard disclosures
G4-21 For each material Aspect, report the Aspect Boundary outside theorganization.
G4-22 Report the effect of any restatements of information provided inprevious reports, and the reasons for such restatements.
G4-23 Report signiﬁcant changes from previous reporting periods in the Scopeand Aspect Boundaries.

Pages

56
－

G4-25 Report the basis for identiﬁcation and selection of stakeholders withwhom to 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 wasundertaken speciﬁcally as part of the report preparation process.
G4-27 Report key topics and concerns that have been raised throughstakeholder 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 andconcerns.

1,2
1
1,2

General standard disclosures
G4-41 Report processes for the highest governance body to ensure conﬂicts
of interests are avoided and managed. Report whether conﬂicts ofinterest are disclosed to stakeholders.

6

Stakeholder engagement
G4-24 Provide a list of stakeholder groups engaged by the organization.

Note

No
signiﬁcantchange

Pages

Note

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 anyother relationships which the remuneration consultants have with theorganization.
G4-56 Describe the organization's values, principles, standards and norms of
behavior such as codes of conduct and code of ethics.

20

20

17,24

Note: All the above have been veriﬁed by third party.
1,2

Report proﬁleG4-28 Reporting period for information provided.
G4-29 Date of most recent previous report.
G4-30 Reporting cycle.
G4-31 Provide the contact point for questions regarding the report or its
contents.
G4-32 Report the "in accordance" option the organization has chosen.
G4-33 Report the organization's policy and current practice with regard toseeking external assurance for the report.

About thisreportAbout thisreportAbout thisreportAbout thisreportAbout thisreportAbout thisreportGovernanceG4-34 Report the governance structure of the organization, including
committees of the highest governance body. Identify any committees
responsible for decision-making on economic, environmental andsocial impacts.
G4-35 Report the process for delegating authority for economic,
environmental and social topics from the highest governance body tosenior executives and other employees.
G4-36 Report whether the organization has appointed an executive-level
position or positions with responsibility for economic, environmental andsocial 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.

2017

79 TATUNG CSR

17~20,24

24

24
17~20

2017

TATUNG CSR

80

ANNEX

ANNEX

Speciﬁc standard disclosures
Category

AspectDMA/Indicator

Pages

DMA

12,42

Not
Applicable

G4-EC1 Direct economic value generated and distributed

12●

Economic
G4-EC2 Financial implications and other risks andperformance
opportunities for the organization's activities due to 13
climate change
G4-EC3 Coverage of the organization's deﬁned beneﬁt
42
plan obligations
DMA
Marketpresence
Economic
Indirect
economic
impacts

G4-EC5 Ratios of standard entry level wage by gendercompared to local minimum wage at signiﬁcantlocations of operation
G4-EC6 Proportion of senior management hired fromthe local community at signiﬁcant locations ofoperation

40,41

Not
Applicable

41

●

40

DMA

49,62

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

Not
Applicable

47,62

●

59

Not
Applicable

59

●

17-21

Disclosure
on nonDMA
ﬁnancial
information

24

Not
Applicable

DMA

59

Not
Applicable

G4-EN1 Materials used by weight or volume

59

●

DMA

Not
54,56,62~64
Applicable

G4-EN3 Energy consumption within the organization

54●

G4-EN6 Reduction of energy consumption

56●

EnergyG4-EN7 Reductions in energy requirements of products and
62-64
services

Water

2017

81 TATUNG CSR

Emissions(Material
Aspect)●Not
Applicable

Materials

Aspect●●DMA
Procurement
practices
G4-EC9 Proportion of spending on local suppliers at
signiﬁcant locations of operation
Governance(Material
DMA
Aspect)Environment

Level of 1
Notedisclosure

Category

●

DMA

59

Not
Applicable

G4-EN8 Total water withdrawal by source

59,60

●

G4-EN10 Percentage and total volume of water recycled
and reused

59●

DMA/Indicator

Overall

Not
Applicable

56-59

G4-EN15 Direct greenhouse gas emissions (scope 1)

55●

G4-EN16 Energy indirect greenhouse gas emissions (scope 2) 55●

G4-EN19 Reduction of greenhouse gas emissions

56●

G4-EN20 Emissions of ozone-depleting substances

59

G4-EN21 NOx, SOx and other signiﬁcant air emissions

60

●

DMA

59,61

Not
Applicable

G4-EN22 Total water discharge by quality and destination

59,60

●

G4-EN23 Total weight of waste by type and disposal
method

61

●

66

●

G4-EN25 Weight of transported, imported, exported, or
treated waste deemed hazardous under theterms of the Basel Convention annex I, II, III,and VIII, and percentage of transported waste
shipped internationally

61

●

DMA

62~65

Products and G4-EN27 Extent of impact mitigation of environmental
62~64
impacts of products and services
services
G4-EN28 Percentage of products sold and their packaging
65materials that are reclaimed by category

Compliance

Level of 1
Notedisclosure

DMA

Efﬂuents andG4-EN24 Total number and volume of signiﬁcant spills
waste
Environment

Pages

Not
Applicable
●

DMA

66

G4-EN29 Monetary value of signiﬁcant ﬁnes and total
number of non-monetary sanctions for noncompliance with environmental laws andregulations

Not
Applicable

66

●

DMA

66

G4-EN31 Total environmental protection expenditures andinvestments by type

Not
Applicable

66

●

DMA

40,41,45

G4-LA1 Total number and rates of new employee hires andemployee turnover by age group, gender and
Employment
region(Material
G4-LA2 Beneﬁts provided to full-time employees that are
SocialAspect)not provided to temporary or part-time employees,(laborby signiﬁcant locations of operation
practicesand decent
G4-LA3 Return to work and retention rates after parental
work)
leave, by gender
Labor/
DMA
management
relations
G4-LA4 Minimum notice periods regarding operational(Materialchanges, including whether these are speciﬁed in
Aspect)collective agreements

Not
Applicable

40

●

45

●

41

●

42

Not
Applicable

42

●

2017

TATUNG CSR

82

ANNEX
Category

AspectANNEXDMA/Indicator

DMA

Pages
47,48

G4-LA5 Percentage of total workforce represented in
Occupational
formal joint management-worker health and47
health andsafety committees that help monitor and advise on
safetyoccupational health and safety programs(Material
G4-LA6
Type of injury and rates of injury, occupational
Aspect)diseases, lost days, and absenteeism, and total
49
number of work-related fatalities, by region and bygenderTraining andeducation(Material
Aspect)Social(laborpracticesand decent
work)
Diversityand equal
opportunity(Material
Aspect)Social(humanrights)2017

G4-LA9 average hours of training per year per employee
by gender, and by employee category
G4-LA11 Percentage of employees receiving regularperformance and career development reviews,
by gender and by employee category
DMA

Not
Applicable

AspectCustomerhealth andsafety(Material
Aspect)

●

43,44
44

●

41

●

40

Not
Applicable

DMA/Indicator
DMA

●

Not
Applicable

G4-LA12 Composition of governance bodies andbreakdown of employees per employee category
40
according to gender, age group, minority groupmembership, and other indicators of diversity

Category

Social(product
responsibility)

29,31

G4-PR1 Percentage of signiﬁcant product and service
categories for which health and safety impact are 29~31
assessed for improvement
G4-PR2 Total number of incidents of non-compliance withregulations and voluntary codes concerning the31,32
health and safety impacts of products and services
during their life cycle, by type of outcomes
DMA

Product
and service
labeling(Material
Aspect)Pages

G4-PR3 Type of product and service information requiredby the organization's procedures for product andservice information and labeling, and percentage
of signiﬁcant product and service categories
subject to such information requirements
G4-PR4 Total number of incidents of non-compliancewith regulations and voluntary codes concerning
product and service information and labeling, by
type of outcomes

32●

G4-PR5 Results of surveys measuring customer satisfaction

36

DMA
Marketingcommunications
G4-PR7 Total number of incidents of non-compliance(Materialwith regulations and voluntary codes concerning
Aspect)marketing communications, including advertising,promotion, and sponsorship, by type of outcomes

35

Not
Applicable

35

●

36

Not
Applicable

●

●

26

Not
Applicable

26

●

DMA
Nondiscrimination G4-HR3 Total number of incidents of discrimination andcorrective actions taken

38

Not
Applicable

38

●

38,39

Not
Applicable

DMA
Compliance(Material
G4-PR9 Monetary value of signiﬁcant ﬁnes for onAspect)compliance with laws and regulations concerning
the provision and use of products and services●

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

Anticompetitive
behavior
Supplier
assessment
for impacts
on society

83 TATUNG CSR

DMA

40

G4-HR8 Total number of incidents of violations involving
rights of indigenous peoples and actions taken

Not
Applicable

40

●

DMA

35

G4-SO7 Total number of legal actions for anti-competitive
behavior, anti-trust, and monopoly practices andtheir outcomes

Not
Applicable

35

●

DMA

26

G4-SO9 Percentage of new suppliers that were screenedusing criteria for impacts on society

NotApplicable

26

●

●

●

41

G4-HR6 Operations and suppliers identiﬁed as having
signiﬁcant risk for incidents of forced or compulsory
38,39
labor, and measures to contribute to theelimination of all forms of forced or compulsory
labor

●

32

41

Forced orcompulsory
labor(Material
Aspect)Not
Applicable

Not
Applicable

DMA
Equal
remuneration
G4-LA13 Ratio of basic salary and remuneration of women
for women
to men by employee category, by signiﬁcantand menlocations of operation
Supplier
DMA
assessment
for labor
G4-LA14 Percentage of new suppliers that were screened
practicesusing labor practices criteria

DMA

Level of 1
Notedisclosure

32,36

Not
Applicable

Indigenous
rightsIndigenous
rightsDMA

Level of 1
Notedisclosure

Customer
privacyDMA

G4-PR8 Total number of substantiated complaints
regarding breaches of customer privacy and losses 36
of customer data

●

29~31

Not
Applicable

31,32

●

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ANNEX

ANNEX

Annex 5 List of UN Global Compact – The Ten Principles
Category
Human rights

Labor

Environment

Anti-corruption

2017

85 TATUNG CSR

The Ten Principles
Businesses should support and respect theprotection of internationally proclaimed
human rights.
Businesses should make sure that they are notcomplicit in human rights abuses.
Businesses should uphold the freedom of
association and the effective recognition of
the right to collective bargaining
Businesses should uphold the elimination of all
forms of forced and compulsory labor.
Businesses should uphold the effective abolitionof child labor.
Businesses should uphold the elimination of
discrimination in respect of employment andoccupation.
Businesses should support a precautionary
approach to environmental challenges.
Businesses should undertake initiatives topromote greater environmental responsibility.
Businesses should encourage the development
and diffusion of environmentally friendly
technologies.
Businesses should work against corruption in allits forms, including extortion and bribery.

Page

Annex 6 Third-party Assurance Statements (1/2)
Note

25,38
38
38
38,39
38
38
52,53
52,53,58
62,63,64
17,25

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ANNEX
Third-party Assurance Statements (2/2)

ANNEX
Annex 7

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ANNEXMEMOEnvironment & Safety Division
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2017/10