TATUNGSUSTAINABILITY REPORTAbout this report“2022 Tatung Sustainability Report” has been prepared in accordance with the GRI Standards: Core option andAA1000 AS v3. In addition, we have adopted SASB Standard to disclose the specific industrial indicators. We expect
this report is able to present a more focused content to the needs of the stakeholders, as well as sharing thesustainable achievements done by Tatung in a systematical manner.

Scope

Data measurement techniques

The scope of this report covers Tatung’s operations
within the Headquarter, Tayuan Plant, Taoyuan Wires
and Cables Plant, Taoyuan 1st Plant, and San-Hsia
Factory. Due to Tatung Consumer Products Co, Ltd(also known as TCPC or Tatung 3C) is mainly in chargeof the sales of Tatung’s house appliances and consumer
products, part of TCPC’s information (sales, services,and consumer data management) is also disclosed inthis report. The disclosure boundary of some material
topics may include some of the subsidiaries and will be
specifically described in its DMA.

Financial data in this report is cited from the Annual
Report and presented in New Taiwan Dollars. Social,quality and environmental performance figures arepresented in metric units, and the data reported tothe authorities is preferentially used. The rest of data
is gathered from internal statistics of the relevant
divisions of the company.

Reporting cycle and reporting period
Tatung Sustainability Report is published by theend of June annually. Unless otherwise stated, thedata and activities in this report are gathered from2021.1.1~2021.12.31.

External assuranceThis report has been verified by TÜV Asia Pacific Ltd.
Taiwan Branch (TUV NORD) based on AA1000AS v3(Type 2, High level assurance) and GRI Standards.
The assurance statement is enclosed in Annex 7.

Previous reports
This report is our 21th non-financial report since 2002.
The previous report was published in June, 2021.

Restatements of information
The energy usages and GHG emissions for year 2020are restated (page 131 and 133). The reasons are:
1. The factories carried out GHG emissions externalverifications for year 2020 by the end of 2021.
2. The government official issued the latest electricity
emission factor for year 2020.

Sustainability Report preparation procedures
1. Gather sustainable topics, reporting standards,
verification standards, etc.
2. Identify stakeholders and material topics of theyear, and submit to “Sustainable Development
Committee” for approval.
3. Prepare the report in accordance to reporting
standards.
4. Submit the drafted report to “Sustainable
Development Committee” for approval.
5. Conduct third party verification.
6. Submit the report to Chairman for issuance.

Contact point for questions regarding to thereportThis report is prepared by “Sustainability Report
Reporting Committee” and the contact information isshown below:
Contact point: Han-sheng Chang
Tel.: +886-2-25925252, ext. 3167
E-mail: csrreport@tatung.com
Sustainability Report downloading webpage:
http://www.tatung.com/Content-EN/csr-report.asp
Tatung has done the best to ensure the accuracy of thisreport. If there is any discrepancy, the latest information fromthe relevant departments of the company shall prevail.
01Top Management Statement

Top
Management
Statement

Table ofContents

2021 CSR
Highlights

ChairmanK. S. WANG

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

02

Message from Chairman

Message from President

The Company’s operations in 2021 faced continuous challenges
amid the ever-changing condition of the pandemic, global shortageof materials and rising transportation costs. We adhere to thespirit of “integrity, honesty, industry and frugality” and a practicalworking attitude to pursue operational profitability and sustainable
development of the company. Through the efforts of organizational
restructuring, business transformation and cost control, the corebusiness has turned losses into profits, and the re-investment
business has also shown good results, hence the EPS in 2021 is
NT$1.57.

Under the influence of climate change, the sustainable developmentof enterprises is faced with many challenges. The World Economic
Forum has also identified that the biggest risk in the next 10 years
will come from the many challenges brought by climate change. Withthe trend of energy saving and carbon reduction, Tatung will expand
investment in innovative businesses such as solar energy, energy
storage and electric vehicle motor and drive systems, and pursue
high energy efficiency in products to help fighting climate change.

In terms of corporate governance, we restructured the original“Corporate Governance Committee” into a “Sustainable Development
Committee” in August, 2021. The committee is consisted with 3
to 5 directors, and an independent director as the convener andchairman of the meeting. The restructuring will further strengthen the
supervisory function of Tatung’s board of directors on environmental
protection, social responsibility and corporate governance, and theimplementation of the sustainable development system.
Looking forward to the future, human civilization has moved towards
a low-carbon economy. Tatung is ready to face the challenges andopportunities brought by the global goal of net zero emissions by
2050. We have a solid foundation in consumer, system and electric
power business. Products design and development also focuseson energy saving, environmental protection, health and othersustainable elements. We will focus on solar power, smart energy
storage and electric motors and drive systems for vehicles basedon its existing advantages and continue to innovate and implement
environmental protection

President
I-Wen Chung

By the end of 2021, we have accumulatively completed theconstruction of a total of 211MW of solar power plants, which isequivalent to reducing carbon dioxide emissions by 123,700 tons forthe country in one year. The target for construction of solar power
plants is expected to reach 312 MW by the end of 2022. In order tocontinue to promote green energy, Tatung will actively establish large
power stations and develop hydraulic engineering, charging piles
for electric vehicles, green power and carbon trading businesses toprovide complete energy integration and management solutions. In
terms of energy storage systems for stabilizing the power grid, we
have accumulatively completed a 1 MW bilateral contract, and thecurrent bid price is 4 MW in 2021. In 2022, a 50 MW large energy
storage system construction project is being actively planned andimplemented, which is expected to become online in 2023. In termsof electric vehicle motor and drive system, we have developed ahigh-efficiency (250 kW) power system for electric buses. Tatung is
now working with domestic vehicle manufacturers. The developmentof power systems with a higher capacity of 330 kW used for intercity
buses will also be completed at the end of 2022. In terms of energy
saving products, we will continue to research and develop ultrahigh efficiency, smart application and electrical vehicle motors aswell as optimizing the overall performance of home appliances andimprovement to the energy efficiency of air-conditioning systems tomeet the national level 1 energy efficiency standards. The seriesof refrigerators and washing machines with upgraded inverters has
obtained Energy Label and Water Label to fulfill the goals of energy
conservation and environmental protection.
Tatung is a leading brand in Taiwan’s consumer, system and electric
power business. Tatung will focus on solar power, smart energy
storage and electric motors for vehicles to assist enterprises andgovernment to achieve the goal of net zero emissions. Whilepursuing corporate development, we will continue to deepen
corporate governance, fully communicate with stakeholders, andmove towards the goal of sustainable development.

03

Table of Contents

CH 1

CH 2

CH 3

CH 4

04

About this report

01

Top Management Statement022021 CSR Highlights

06

Identification on the stakeholders andmaterial topics

08

1.1 Identification on the stakeholders & engagement channels

09

1.2 Identification on the material topics

12

1.3 Tatung and Sustainable Development Goals

20

Profile of Tatung Company

22

2.1 Company profile

22

2.2 Financial performances26

2.3 Services and products

30

Sustainable governance

32

CH 5

CH 6

Annex

Happy workplace and social participation

88

5.1 Building a friendly working place

90

5.2 Good working conditions and career development

98

5.3 Health, safety, and disaster free112

5.4 Participation and benefits to the society

120

Sustainable environment

122

6.1 Management on the environment

124

6.2 Energy consumption and GHG management

128

6.3 Resources consumption and pollutants management

138

6.4 Green products for a better earth

142

148
148

3.1 Corporate structure

34

Annex 1 Tatung Co. and Subsidiaries notes to consolidated
financial statements

3.2 Corporate governance42

Annex 2 Products and services provided by Tatung

154

Annex 3 Factories and subsidiaries participated in 3P programand Accident Prevention Pays Program in 2021

158

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

158

Annex 5 GRI Standards content index

159

Responsible supply chain, product safety,
and customer service

60

4.1 Responsible supply chain

62

4.2 Product responsibility

68

Annex 6 SASB Disclosure Index

168

4.3 Sales and customer information management

78

Annex 7 Assurance statements

17005

2021 CSR Highlight

2021 CSR HighlightTop
Management
Statement

Table ofContents

Honors:TATUNG 3CTAYUAN PLANT

2021 DX Award
by TEEMA

Energy Conserving Award Gold Award
by Bureau of Energy

2021 TATUNG CORPORATESOCIAL RESPONSIBILITY REPORTSMART IP66 ROLLERTABLE MOTOR TENV

2021 TCSA Taiwan Sustainability Award –Corporate Sustainability Report Gold AwardThe 30th
Taiwan Excellence Award

Economic-Governance Aspect
2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

06

Performances

Item

Economic performance

Revenue: Individual revenue was
NT$ 16.176 billion, and consolidated
revenue was NT$ 29.605 billion.

Percentage of
local employees
Average salary ratio
between female andmale employees
Percentage of
employees who arelabor union members
Total education/
training hours
Education/training
satisfaction
Correction percentage of“Occupational Accident
Prevention Pays” Program
Supplier commitment
letterConsumer satisfaction

Sustainable management

Set up Sustainable Development Committee

Corporate governance

The performances of the company’s boardof directors and functional committees
were both “GOOD”.

Ratio between staff’s
basic salary and legalsalary1.25~1.50:1

Percentage of high level
managers from local

100%

Disclosure on nonfinancial information

Published CSR Report for 20 consecutive
years.

TATUNG FOREVER ENERGY CO., LTD.

SHENG YANG ENERGY CO.

2021 Public Construction Commission
Golden Quality Awardby the Kaohsiung City Government

2021 Top Solar System Award –Large and medium scale system /small scale system

Social aspect

Item

EPS: NT$ 1.57.

TATUNG COMPANY“No. 1” organizations and companies that
support the purchase of sheltered workshops by
Taipei City Foreign and Disabled Labor Office.

No. of complaints about
information leaking
received from theconsumers
Participation in social
welfarePerformances

Environmental aspect
Performances

Item

95.01%
0.86~0.93:1

Electricity reduced

969,515 kw-hr

75.24%

GHG emissions reduced 486.70 tons CO2e

21,026 hours

Waste recycling
percentage

92.40%
100%

New introduced suppliers 100% signed it
back.
Maintenance: 95.97.
Shipping: 97.2.
0

1. Tatung responded to the “Vulnerable
Children Scholarship Program” of the
Taiwan Fund for Children and Families.
The corporate totally fundraised
NT$359,500 and donated to TFCF.
2. Tatung and Tatung 3C together donatedinverter washing machine to “ Holy
Word Children’s Home”, so that thechildren of the organization can replace
the old machines with a long service
life and improve a safe and comfortableliving environment.

75.59%

Certified green products

Green Mark: 13 models
Energy Label: 99 models
Water Label: 8 models

Promotion on green
consumption

29 Tatung 3C Stores are registered asGreen Store by EPA.

Supporting green
procurement

Received certificate of appreciation
for promoting green procurement from
EPB, Taipei City Government.
Green procurement amount:
NT$ 48,701,781.

Solar power systems
capacity on grid

211MWp accumulated, approximately
123,718 tons CO2e reduction per year.

07

CH 1

CH 1

Top
Management
Statement

Table ofContents

Identification on the
Stakeholders and Material 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 environmental protection, social participation,and corporate governance in Annual Report, Sustainability Report, and the company’s official
website, but also finds out the blind spots and gains valuable opinions by communicating withthe stakeholders via variety of channels.

Stakeholder
groupsSustainable
environment

Annex

08

Shareholders
The investors who
support Tatung.

Customers

Employees

The companies having
business with Tatung.

The most valuableassets. With theirinnovated ideas andexperiences, Tatung iscapable to counter any
challenges.

Meaning to
TatungResponsible
supply chain,product safety &customer service

Happy workplace& social
participation

Based on AA1000 standard and GRI Standards, Tatung identifies the stakeholders by past operation experiences andbased on the principle that any organizations or persons impacted by the operation of the company or any organizationor persons having impacts to the company. Seven stakeholder groups such as shareholders, customers, employees,
local communities and parties, authorities, suppliers and consumers have been identified.

Table 1.1-1 List of stakeholders and engagement channels

Profile of
Tatung Company

Sustainable
governance

1.1 Identification on the stakeholders and engagement channels

Tatung takes great concern on stakeholders’ opinions. We have direct engagement channels for all stakeholders tocollect their concerned topics in order to continue improve our sustainable development performances.

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Identification on the stakeholders
and material topics

Shareholders’ meeting /Once per year
Irregular shareholders’meetings / Irregular

Communication
channels andfrequencies

Agency department of
Taishin International
Bank Co., Ltd.:
02-2504-8125) /Irregular
Disclosure of financial
information on official
website and MOPS
(market observation
post system) / Everymonth

Customer service,
PM / Irregular

Chairman’s mailbox,
HR mail box, complaint
mechanism, schedulededucation and training,
notice board / Irregular
Biweekly HR
newspaper / Once per
2 weeks
Health and Safety
Committee in theheadquarter andfactories / Once per 3
monthsLocal communities
and parties

Authorities

Suppliers

Consumers

Tatung’s goodneighborhood. Bycommunicating with them,
Tatung is able to find out
what more we can do tocarry out corporate social
responsibility.

Instructors of Tatung.
Following the government
policies and complying
with regulations is thebasic principle of Tatung.

Suppliers are thepartners that Tatung has
grown up with. With theirhigh quality materials,
products, and services,
Tatung successfully
expanded the businessyear by year.

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

Direct phone lines /Irregular

Onsite audits / Irregular

Supplier complaint
mailboxsupplier@tatung.com /Irregular

TCPC phone lines(+886-800052666),
Tatung 3C Stores,
official websites,
etungo online shopping
website / IrregularSocial charity/donation
activities / Irregular

Hearings, seminars /Irregular

Supplier evaluation,
annually re-evaluation /Once per year
Supplier assessment /Once per month

Satisfactory survey /Upon shopping or
repair service

Labor-management
meeting / Once per 3
months09

CH 1

Identification on the stakeholders
and material topics

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

Stakeholder
groupsShareholders

Top
Management
Statement

Concerned topics

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Tatung’s
responses

Profile of
Tatung Company

Authorities

Consumers

Labor rights, welfares

Pollutant emissions,interaction with local
communities

Compliance

The quality of parts andproducts, the requirements
regarding to hazardous
substances

Product safety and labeling,
personal information
management

1. Six major development
directions: heavy
electricity, asset
development, electricbuses, Elite Group
expansion, 3C productsales promotion, Tatung
System Technologies Inc.
driving 5G, AI, and big
data.

1. Establishing ISO 9001,
enhancing supplierquality management,
products that pass related
verifications.

1. Complying with laborand health and safety
regulations.

1. Installing air pollutant andwastewater treatment
facilities.

Carrying out internal control
and internal audit to ensure
conformity.

2. Organizing education andtraining courses.

2. Participating in community
development andcharities events throughcommercial activities,
non-cash property
endowments, volunteer
service and other freeprofessional services.

Establishing ISO 9001,
enhances supplier quality
management, products thatpass related verifications. In
addition, we also request our
suppliers to fulfill corporatesocial responsibility togetherby:
1. Adding anti-corruption
and human rights (humanrights, freedom of
association, child labor,
and forced labor) clausesin the contracts.
2. Signing the “SupplierCommitment Letter”, which
includes health and safety,
environmental protection,
human rights topics.
3. Issuing “Declaration of
Minerals Conflict-Freefrom Tatung Company”
and requesting the
suppliers to follow.

1. Complying with productsafety and labeling
regulations, andestablishing feedback
and anti-recurrence
mechanisms.

100% of new suppliers havesigned back the SupplierCommitment Letter.

1. No. of products violated
product inspection andlabeling regulations: 0.

2. Establishing ISO 27001
to enhance information
management.

3. Providing reasonablesalary and welfares.

2. Provide all-roundsolutions for energy
creation, energy storage,
and energy conservation
to assist Taiwan’s energy
transition and achieve
Taiwan’s 2050 net-zerogoal.

2. Held shareholders’meeting on 2021.08.18.
3. Held domestic investor
conference on 2021.08.20.
4. Published the 153
significant news in both
Chinese and English.

1. No. of products violated
product inspection andlabeling regulations: 0.
2. No. of incident that violated
information security related
regulations: 0.

Summaries of
performancein 2021

Chapters

Suppliers

Product quality and customer
information management.

Sustainable
environment

10

Local communities
and parties

Governance and financial
performances

1. EPS 1.57 dollars.

Responsible
supply chain,product safety &customer service

Annex

Employees

3. Enforcing corporate
governance andinformation transparency.

Sustainable
governanceHappy workplace& social
participation

Customers

5.1, 5.2, 5.3

4.2, 4.3

1. No. of complaints from theemployees: 0.
2. Published 23 bi-weekly
newspaper.
3. Organized educationand trainings with 21,062
hours, 8,051 persons in
total, and the after training
satisfactory: 92.40%.
4. Held labor-management
meetings, labor-retirement
reserve supervision
meetings, employee
welfare meetings andoccupational health andsafety committees on aquarterly basis.
5. Handled employee
performance review andassessed more than 5,400
persons.
6. Maintain the effectivenessof ISO 45001 in thefactories.

1. No incident that polluting
the surrounding
environment.

5.1, 5.2, 5.3

5.4, 6.3

No significant violations
against product, environment
and labor related regulations.

2. Establishing ISO 27001
to enhance information
management.

2. No. of incident that violated
information security related
regulations: 0.

2. Organized blood donation
activities and donated 672
bags of blood.

3.2, 6.1

4.1, 4.2

4.2, 4.3

11

CH 1

Identification on the stakeholders
and material topics

Top
Management
Statement

Table ofContents

1.2 Identification on the material topics

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Table 1.2-1 Material topics identification procedure

1

STEP

Identification
on sustainable
topics.

2

STEP

Happy workplace& social
participation

3
4

STEP
Annex

12

1. GRI Standards’ topic-specific standards;
2. SDGs;
3. SASB Standard;
4. Other companies’ experiences in the industries.

Ranking

2. Conduct impact assessment to the company for eachsustainable topic internally.
3. Comprehensively evaluate the internal and external
results to obtain a ranking of sustainable topics, andthe topics with either (1) the multiplied score reaches 12
points or more; or (2) the three topics with the highest
interest of stakeholders are selected as material topic
candidates list.

Economic andGovernanceDimension

SocialDimension

Environmental
Dimension

Economic performance

Supplier management

Market presence

Employment

Management on theenvironment

Corporate governance andethical practice

Performance review andcareer development

Disclosure on non-financial
information

Labor/management relations

Anti-competitive behavior
Tax

Training and education
Human rights, equality,and non-discriminations
Occupational health andsafetyChild, forced or compulsory
laborSocial participation

STEP
Sustainable
environment

Tatung integrates the past operation experiences, futurecompetitive strategies, and the followings to identify thesustainable topics that related to our operations:

1. Invite stakeholders to take surveys (including online
survey) to collect their opinions in regarding to thesustainable topics.

Sustainable
governance

Responsible
supply chain,product safety &customer service

Table 1.2-2 Tatung’s sustainable topics

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

Confirmation

Reporting

Submit the prioritized topics and material topic candidates
to “Sustainable Development Committee” for confirmation.
The outcome will be the material topics in Sustainability
Report of the year.
Sustainability Report Reporting Committee discusses thecontents of the report and the boundaries of the material
topics; and in accordance to GRI Standards to gather andpresent the information.

Management on waterand resources
Management on energy and
GHG emissions
Management on wastes
Management on water andair pollutants
Promotion and management
on environmental friendly
products
Comply withenvironmental regulations

Product quality and safety
Marketing and labeling
Customer privacy
management
Comply with social andeconomic regulations
Freedom of association andcollective bargaining

13

CH 1

Identification on the stakeholders
and material topics

Top
Management
Statement

Table ofContents

2021 CSR
Highlights

Tatung used surveys to collect the degree of interest of stakeholders on various sustainable
topics (presented by Grade 1 to Grade 5, Grade 5 is the most concerned, Grade 1 is the least
concerned). The target groups of the stakeholders are from those were contacted by the membersof Sustainability Report Reporting Committee and those who took online survey on the Sustainability
Report downloading page1 of the company’s official website during 2021.12.24~2022.1.14. The
principle of survey is that BU focuses on inviting stakeholders such as customers, suppliers or
local communities and parties groups, while administrative divisions invite relevant stakeholders
according to their attributes, for example, the financial department focuses on inviting shareholders,the human resources department focuses on inviting employees, etc. Totally 303 surveys werereceived and the most concerned topics were ranked. Please see Figure 1.2-1 for details.
1. https://www.tatung.com/Content/csr-report.asp
3.100

3.200

3.300

3.400

3.500

3.600

3.700

3.800

3.900

4.000

4.100

In addition, the Sustainability Report Reporting Committee analyzed the possibility, severity and level of impact to thecompany’s economic, environment and social dimensions for the above sustainable topics and gave different ratingsfrom Grade 1 to 5 (Grade 5 is highest, Grade 1 is lowest). Then, the committee members comprehensively evaluatedand discussed the degree of concerns from the stakeholders. The topics with multiplied score 12 points or more havebeen considered as material topic candidates. In order to fully respond the concerns from the stakeholders, from thisreport, the top 3 concerned topics gathered from the stakeholders will also be placed on the material topic candidatelist. The candidate list was submitted to Sustainable Development Committee for confirmation. The confirmed material
topics are located in the light blue area on Figure 1.2-2 and No. 11 has also been identified as one of the material topics(the 2nd most concerned topic by the stakeholders).
High 4.300

4.200

Product quality and safety

3.800

Customer privacy management
Economic performanceOccupational health and safety
Promotion and management
on environmental friendly productsManagement on water and air pollutants
Comply with environmental regulations
Management on wastes
Management on energy and GHG emissions

Sustainable
governance

Employment
Low 1.800

Marketing and labeling

3.400

Market presence
Labor/management relations

Material Topics

Human rights, equality, and non-discriminations

Management onenergy and GHG
emissions

Supplier management

Economic performance

Anti-competitive behavior

Disclosure on nonfinancial information

Social participation
Child, forced or compulsory labor
Performance review and career development
Disclosure on non-financial information
Tax
Freedom of association and collective bargaining

Employment
Economic andgovernance dimension
Social dimension
Environmental dimension

Annex

Figure 1.2-1 Degree of concerns on the sustainable topics by Tatung’s stakeholders
14

3.500

3.600

Low

Training and education

Sustainable
environment

2.800

Comply with social and economic regulations

Management on the environment

Happy workplace& social
participation

3.300

2.300

Management on water and resources

Responsible
supply chain,product safety &customer service

Economic and Governance Dimension
Social Dimension
Environmental Dimension

Profile of
Tatung Company

Level of impact to the company

Corporate governance and ethical practice

Identification on
the stakeholders &material topics

Market presence
Customer privacy
management
Product quality andsafety

3.700

3.800

4.000

3.900

Degrees of concerns to the stakeholders

4.100

4.200

High

Other Sustainable Topics
Promotion andmanagement onenvironmental
friendly products
Occupational healthand safety
Labor/management
relations
Corporate
governance andethical practice

Performance
review and careerdevelopment
Supplier management
Comply withenvironmental
regulations
Freedom of
association andcollective bargaining
Marketing and labelingTraining and education

Tax
Management on waterand air pollutants
Management on
wastesManagement on theenvironment
Comply with social andeconomic regulations

Management on waterand resources
Human rights,
equality, and nondiscriminations
Social participation
Child, forced orcompulsory labor

Anti-competitive
behavior

Figure 1.2-2 Distribution of the material topics
15

CH 1

Identification on the stakeholders
and material topics

Top
Management
Statement

Table ofContents

In this report, we have identified 11 material topics. In terms of economic and governancedimension, the topics are Economic Performance, Disclosure on Non-financial Information,
Market Presence, and Corporate Governance and Ethical Practice. In terms of social dimension,
the topics are Employment, Customer Privacy Management, Product Quality and Safety,
Occupational Health and Safety, and Labor/Management Relations. In terms of environmental
dimension, the topics are Management on Energy and GHG Emissions, and Promotion andManagement on Environmental Friendly Products. We can find from Table 1.2-3 that two newmaterial topics – Economic Performance and Labor/Management Relations have been identified
in this report. We will make detailed responses to these 11 material topics in the following
chapters. The correlation of each material topic in the value chain is shown in Table 1.2-4.

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

16

Table 1.2-3 Material topics in recent 3 years
Material topics in 2020 Material topics in 2021

Material topics in 2022 and their meanings to Tatung

Corporate governance andethical practiceCorporate governance andethical practice

Economic performance

We will focus on solar power, smart energy storage and electric motors and drive systems for vehicles based on our existing advantages and pursue operational
profitability and sustainable development.

Disclosure on non-financial
information

Disclosure on non-financial
information

Disclosure on non-financial
information

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

Product quality and safety

Market presenceMarket presence

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

Customer privacy management

Customer privacy management

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

Occupational health and safety

Product quality and safety

Employment

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

Marketing and labelingOccupational health and safety

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

Comply with social andeconomic regulations

Comply with social and economic
Product quality and safety
regulations

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

Labor/management relations

Employment

Occupational health and safety

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

Comply with environmental
regulations

Training and education

Labor/management relations

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

Management on energy and
GHG emissions

Marketing and labelingManagement on energy and
GHG emissions

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

Management on wastes

Performance review and careerdevelopment

Promotion and management on This topic echoes Tatung’s product design concepts: “Environmental friendly, energy saving and water saving.” as well as Tatung’s sustainable strategy “Assisting
environmental friendly products companies and countries with net zero emissions.”

Management on theenvironment

Human rights, equality,and non-discriminations

Promotion and management onenvironmental friendly productsManagement on energy and
GHG emissions
Comply with environmental
regulations
Promotion and management onenvironmental friendly products
17

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Top
Management
Statement

Table 1.2-4 Boundaries of material topics
Dimensions

Table ofContents

2021 CSR
Highlights

Economic andGovernance

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governanceSocialResponsible
supply chain,product safety &customer service

Happy workplace& social
participation

Environment
Sustainable
environment

Annex

Note:

Material topics

Tatung Co.

Subsidiaries1

Suppliers

Page No. of DMA

GRI indicators

UN SDGS
CLIMATEACTION

Economic performances

26, 27

GRI 201-1, 201-2, 201-3

Disclosure on non-financial
information

44, 45

Not ApplicableMarket presence

98, 99

GRI 202-1, 202-2

Corporate governance and ethicalpractice

42, 43

Not Applicable

Employment

90, 91

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

Customer privacy management

78, 79

GRI 418-1

Not Applicable

Product quality and safety

68, 69

GRI 416-1, 416-2

Not Applicable

Occupational health and safety

112, 113

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

Labor/ management relations

100, 101

GRI 402-1

Management on energy and GHG
emissions

128, 129

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

Promotion and management onenvironmental friendly products

142, 143

GRI 302-5

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

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

WORK AND
8 DECENTECONOMIC GROWTH

Not Applicable
WORK AND
8 DECENTECONOMIC GROWTH

WORK AND
8 DECENTECONOMIC GROWTH

WORK AND
8 DECENTECONOMIC GROWTH

AND
7 AFFORDABLE
CLEAN ENERGY

CLIMATEACTIONAND
7 AFFORDABLE
CLEAN ENERGY

represents that the relevant management measures

Note1: Part of subsidiaries with larger scale such as Tatung System Technologies Inc. and Forward Electronics, their sustainable development information is disclosed in their sustainability reports and/or on their official websites.
18

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Ensure access to water and sanitation for all.

MEASURES

Raising energy efficiency on the products and continually applying for Energy
Label, Green Mark, and Water Label.

Protect labor rights and promote safe and secure working environments for all
workers, including migrant workers, in particular women migrants, and thosein precarious employment.
Ensuring the salary paid to the employees is complied with the regulations or
better.
Conducting “Working condition monitoring”.
Establishing ISO 45001 Health and Safety Management System in thefactories.

CLIMATEACTION

Integrate climate change measures into national policies, strategies and planning.
Improve education, awareness-raising and human and institutional capacity on climate change
mitigation, adaptation, impact reduction and early warning.

MEASURES

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

Take urgent action to combat climate change and its impacts.
DESCRIPTION

208DECENT WORK AND
ECONOMIC GROWTH

MEASURES

Annex

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

Strengthen the ability in the field on smart energy management and dispatchingby combining with energy storage, smart meters and micro-grids.

DESCRIPTION

Sustainable
environment

Complying with RoHS and REACH regulations to ensure a green supply chain.
Implementing waste recycling in the factories.
Paying “Recycling and Cleaning Fee” to the government agency (Recycling Fund Management
Board) to carry out countrywide waste recycling affairs.
Recycling wasted large home appliances, batteries, and CDs in Tatung 3C Stores.
Publishing Tatung Sustainability Report in June every year to disclose company’s sustainable
information.

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

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

Recruiting only on capability. The starting salary ratio for male and female employees is 1:1.

By 2020, achieve the environmentally sound management of chemicals and all wastes throughout
their life cycle, in accordance with agreed international frameworks, and significantly reduce theirrelease to air, water and soil in order to minimize their adverse impacts on human health and theenvironment.
By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
Encourage companies, especially large and transnational companies, to adopt sustainable practices
and to integrate sustainability information into their reporting cycle.

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

Expanding solar power systems and having installed 211MWp capacity
accumulatively at the end of 2021.

Responsible
supply chain,product safety &customer service

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

MEASURES

Sustainable
governance

DESCRIPTIONAFFORDABLE AND
CLEAN ENERGY

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

Ensure sustainable consumption and production patterns.

Ensure access to affordable, reliable, sustainable and modern energy for all.

7

Happy workplace& social
participation

Maintain well function of the waste water treatment facilities in the factories toensure the quality of the effluents are complied with the standards.

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

DESCRIPTION

Water
6 Clean
AND SANITATION

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

MEASURES

Profile of
Tatung Company

REDUCEDINEQUALITIES

Table 1.3-1 Measures taken for responding SDGs

DESCRIPTION

Identification on
the stakeholders &material topics

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

Reduce inequality within and among countries.

MEASURES

2021 CSR
Highlights

1.3 Tatung and Sustainable Development Goals

DESCRIPTIONTopManagement
Statement

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

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Management
Statement

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

22

Profile of Tatung Company

Profile of
Tatung Company

2.1 Company profile
Established in 1918 and headquartered in Taipei, Tatung
has evolved into a conglomerate from its substantial
heritage. From its inception, Tatung has abided by its
founding values of “Integrity, Honesty, Industry, andFrugality”. Tatung is listed on the Taiwan Stock Exchange(TSE) under the trading code of 2371.
Tatung’s business covers traditional businesses such as
consumer business, system business, and electric powerbusiness, with solid R&D, design and manufacturing
capabilities. The business is comprised with Heavy
Electrical Equipment BU1, Cable BU2, Motor BU3,
Advanced Electronics BU, Appliance BU4, Smart Meters
BU5, System Integration BU, Solar Energy BU, and Smart
Energy BU. The heightening environmental awarenesshas made Tatung expand its investment in solar power,
smart energy storage and electric vehicle motor anddrive system and other innovative businesses. Tatung will
also continue its reorganization of resources and focus
on core businesses and asset development to increase
profitability.
Tatung is equipped with core technologies to manufacture
important products in the system integration solutions
while working with strategic business partners to target
the world market. For more information about us, please
visit “TATUNG Official Channel”6 and clip of “Enabler of
Digital Transformation”7.
As a conglomerate, Tatung’s investees involve in somemajor industries such as optoelectronics, energy, system
integration, industrial system, branding retail channel,
and asset development. Those that are public listedon the Taiwan Stock Exchange include Tatung System
Technologies (8099), Forward Electronics (8085), andTatung Fine Chemicals (4738: Emerging stock market).
Please refer to Annex 1 for the list of consolidated entities.

Figure 2.1-1 Information of Tatung Co.
Heavy Electrical Equipment BU
Advanced Electronics BU
Cable BU
System Integration BU
Motor BU
Solar Energy BU
Smart Meter BU
Smart Energy BU
Appliance BU

China

Tayuan Plant: No.102, Minsheng Rd., Dayuan Dist., Taoyuan City
Taoyuan Wires and Cables Plant: No.106, Minsheng Rd., Dayuan Dist., Taoyuan City
Taoyuan 1st Plant: No.38, Ln. 1119, Daguan Rd., Dayuan Dist., Taoyuan City
San-Hsia Factory: No.352, Xidong Rd., Sanxia Dist., New Taipei City

CN

Tatung Information Technology (Jiangsu) Co., Ltd.
Tatung (Shanghai) Co., Ltd.
Tatung Compressors(Zhongshan) Co., Ltd.

CZ

Capital (Billion NTD): 23.395
Sales revenue (Billion NTD): 161.76
No. of employees: 2,585
Operation sites: Headquarter: No.22, Sec. 3, Zhongshan N. Rd., Zhongshan Dist., Taipei CityTW

Taiwan

JP

Czech

Japan

Tatung Company of Japan, Inc.

USA

U.S.A.

Tatung Electric Co. of America, Inc.

Tatung Czech s.r.o.

Thailand

Tatung (Thailand) Co., Ltd.

TH

Tatung received many awards and certifications on
operations and products in 2021 (Please refer to 2021
CSR Highlight). Tatung also endorses initiatives inregarding care disadvantaged groups and employee’s
health (Table 2.1-3). All these acknowledgements from all
sides are certainly the drive behind the growth of Tatung.
Note1: Owns Tayuan Plant at Dayuan Industrial Park, Taoyuan City.
Note2: Owns Taoyuan Wires and Cables Plant at Dayuan Industrial
Park, Taoyuan City.
Note3: Owns San-Hsia Factory in Sanxia District, New Taipei City.
Note4: Owns Taoyuan 1st Plant in Dayuan District, Taoyuan City.
Note5: Owns Meter Factory in Taoyuan Wires and Cables Plant.
Note6: https://www.youtube.com/user/TATUNGTW/featured
Note7: https://www.youtube.com/watch?v=GY7bzP59qYw

Singapore

Tatung Information (Singapore) Pte. Ltd.
Tatung Electric (Singapore) Pte. Ltd.

SG

Figure 2.1-2 Tatung Co. global network
23

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Management
Statement

Table ofContents

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

MemberManagingrole

CNS Certification Mark Association, R.O.C.

Industrial Association of Taipei City
Taipei Electrical Commercial Association

Profile of
Tatung Company

Energy Solutions
Business

Electronics &Information
Shan Chih Semiconductor Co., Ltd.
Business
Tatung Forever Energy Co., Ltd.
Tung Yang Energy Co., Ltd.

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

Industrial Appliance Toes Opto-Mechatronics Co. Ltd.
Business & System

Taiwan Electrical and Electronic Manufacturers’ Association

Yau Yang Energy Co., Ltd.

Asset Development Shan Chih Asset Development
Co., Ltd.
Business

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

Ting Shin Energy Co., Ltd.

Taiwan Motor Industry Association

Zhi Shin Energy Co., Ltd.

Taiwan Environmental Engineering Association

Tung Shin Energy Co., Ltd.

Taiwan Digital Television Committee
Electric-Electronic & Environmental Technology Development Association of R.O.C.

Responsible
supply chain,product safety &customer service

Importers and Exporters Association of Taipei

Happy workplace& social
participation

Taiwan Association of Machinery Industry

Cin Zhi Power Co., Ltd.

Tung Kuang Energy Co., Ltd.
Chuang Shih Neng Co., Ltd.

Tatung Fine Chemicals Co., Ltd.*

Asset Development Chunghwa Electronics
Development Co., Ltd.
Business
Shan Chih Investment Co., Ltd.
Tatung Medical & Healthcare
Technologies Co., Ltd.
Tatung Die Casting Co., Ltd.
Chih Sheng Investment Co., Ltd.

Note: *As of 2021/12/31 Listed/OTC and Emerging companies.

Taiwan Electrical Contractors Association
Taiwan Electric Wire & Cable Industries Association

Taiwan Water Pipe Engineering Industries Association
Taiwan Metal Industry Association

Sustainable
environment

Forward Electronics Co., Ltd.*

Retail Channel
Business

Shang Shin Energy Co., Ltd.

Taiwan Wind Energy Association

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

Chunghwa Picture Tubes, Ltd.

ChemicalEngineering
Business

Taiwan Telematics Industry Association
Identification on
the stakeholders &material topics

Optoelectronics

Chinese International Economic Cooperation Association

Information Service Industry Association of R.O.C.

2021 CSR
Highlights

Table 2.1-2 The main domestic subsidiaries

Table 2.1-3 Initiatives endorsed by Tatung
Organization

Item

Chinese Blood Donation Association

Corporate blood donation

Health Promotion Administration

Smoke-free/Healthy work place

Taiwan Electric Power Association
Taiwan Association of Energy Service Companies
Taiwan Association of Information and Communication Standards

Annex

24

Taiwan Smart Grid Industry Association
Taiwan Power and Energy Engineering Association
Note: Managing role such as director or supervisor. Tatung is also the Chairman of TC3. Device Networking Committee
in TAICS.

25

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Management
Statement

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

2.2 Financial performances
DMA

Economic Performance

An explanation of why
the topic is material
Climate change caused by global warming
poses risks to businesses and also
creates opportunities. Tatung focuses on
solar power, smart energy storage andelectric motors and drive systems forvehicles based on its existing advantages.
The development of diverse industries
and mutual support and integration, assist
Taiwan’s energy transformation, and thusachieve Taiwan’s 2050 net zero goal.

Specific limitation regarding
the topic boundary

Purpose of the management approach

Policies

Performance disclosure includes Tatung
Co. and part of important subsidiaries.

Tatung will continue to focus on its corebusiness and expansion. There will also
be transformations toward the directions ofgreen energy, smart energy storage, andelectric vehicle motor and drive systems.
In terms of reinvestment business, theinvestment structure will be changed toearn profits to appreciate the support ofour shareholders.

1. Six major development directions:heavy electric, asset development,
electric buses, ECS expansion, 3C
product sales promotion, TSTI driving
5G, AI, and big data.

Boundary for the material topic
Tatung and its subsidiaries.

2. Provide all-round solutions for energy
creation, energy storage, and energy
conservation to assist Taiwan’s energy
transition and achieve Taiwan’s 2050
net-zero goal.

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Commitments

Goals and targets

Tatung will continue to develop products that are
green and efficient, and commit itself to solar powerand energy storage businesses. The management
team will lead its traditional consumer, system andpower businesses and new businesses in solar
power, smart energy storage and electric motors
for vehicles to continue to innovate and implement
environmental protection.

1. The cumulative target solar photovoltaic systems
by the end of 2022 is 312 MW.
2. In 2022, a 50 MW large energy storage systemconstruction project will be planned andimplemented.

Results of the evaluation of
the management approach
Performances in 2021:

Related adjustments tothe management approach
NIL.

1. Operating revenue: NT$16.176 billions (individual),
NT$29.605 billions (Tatung and Subsidiaries).
2. EPS: NT$1.57
3. The cumulative solar photovoltaic systems: 211
MWp.
4. The commercial operation of the energy storage
system as a 1 MW bilateral contract, and thecurrent bid price is 4 MW.

Annex

26

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Management
Statement

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Tatung’s operations in 2021 faced continuous challenges amid the ever-changing condition of
the pandemic, global shortage of materials and rising transportation costs. The organizational
restructuring, business transformation and cost control efforts have been effective and the corebusiness has turned losses into profits, and the re-investment business has also shown goodresults. The 2021 after-tax income is NT$3.672 billion, the standalone revenue increased over
2020, mainly benefiting from the demand growth in the electric power business and the revenue
from related products. The overall revenue increased by 1.97% compared with last year. In terms
of profitability, despite the impact of global material shortages and rising shipping costs, Tatung
continues to have cost improvement and adjust its product mix, and the overall gross profit
margin still increases by 7.3% compared with the year before.
Among the important investment companies, Shan Chih Asset Development’s Phase 1 of Tatung
Manor has 490 units of households, and a total of 465 units has been sold as of the end of2021, bringing in NT$9.113 billion in revenue, and the remaining 25 units will be sold in 2022.
The re-sold 177 units in Phase 2 have been sold out in Q3 of 2020, with a total sales of about
NT$2.5 billion. As of December 2021, 35% of Phase 2 has been completed, and completion of
construction and handover will be in Q2 2023, which is expected to contribute to the revenue andprofit of the parent company. As for the joint development project Zhonghe MRT, the Company
has applied to the New Taipei City Government for the urban design review in late December of2021. It is expected to apply for a construction permit in Q2 2022. After the permit is obtained,
and the zoning of the parking spaces for the houses is completed with the government, the presale will be launched. Tatung System Technologies has been profitable for 20 consecutive years
and has steadily distributed dividends. In recent years, it has focused on using digital technology
to help the government and enterprises in digital transformation to improve operational efficiency
and decision-making analysis, including smart solutions, consulting, big data platform, cloudcomputing, communication system integration, data security and uninterrupted services,
implementing strategic planning of cybersecurity solutions. For 2021, the consolidated revenue
was NT$4.272 billion, with an EPS of NT$2.01. Chunghwa Picture Tubes’s operations are
suspended and there is a pending court ruling of bankruptcy. However, Tatung still needs torecognize its investment losses based on the shareholding percentage, which mainly include
equipment depreciation, loan interest and penalties. Before the court rules that it is bankrupt,
Tatung will continue to help in the disposal of assets through legal channels to reduce losses.

Table 2.2-1 Financial income and expenses of Tatung
Item

2017

2018

2019

2020

2021

Operating revenue

17,482,835

19,138,488

17,825,749

15,863,678

16,176,127

Realized gross profit

2,164,903

2,064,017

1,789,027

1,129,220

2,319,193

Employee benefits*

2,379,086

2,329,118

2,269,620

2,323,250

2,463,007

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

207,552

Unit: NT$
ThousandNon-operating income
and expenses

280,968(10,313,757)

3,466,194

792,008

3,435,899( )represents
negative values

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

58,52828,668Net loss attribute toequity attributable toowners of parents

140,317(10,642,906)

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

3,672,119

Earnings per share
(NT$)

0.06

(4.75)

1.24(0.46)

1.57

Dividends per share
(NT$)

0

0

0

0

0

Note: Employee benefits include salary, labor and health insurance, pension, remuneration of directors and others.

Tatung operates normally on a daily basis and accepts no financial support from the government.
For more detailed financial performances, please refer to “Tatung 2021 Annual Report” or ourofficial website. In the future, Tatung will continue to focus on its core business and expansion.
There will also be transformations toward the directions of green energy, smart energy storage,
and electric vehicle motor and drive systems. In terms of reinvestment business, the investment
structure will be changed to earn profits to appreciate the support of our shareholders.

Sustainable
environment

Annex
Note8: http://www.tatung.com.tw/Content/finance-investor.asp
28

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Management
Statement

Table ofContents

Identification on
the stakeholders &material topics

Tatung’s business covers traditional businesses such as consumer, system and electric powerbusiness and will engage in global strategic planning to improve export sales. Climate change
caused by global warming poses risks to businesses and also creates opportunities. Tatung will
expand its investment in solar power, smart energy storage and electric vehicle motor and drive
system and other innovative businesses. Tatung will also continue its reorganization of resources
and focus on core businesses and asset development to increase profitability. The detailed ofproducts/services is listed on Annex 2 and the focus of operations in 2022 is as follows:

Consumer Business

2021 CSR
Highlights

2.3 Services and products

0

0

0

0

Machinery, energy andsystem department

1,212,395

10,177,548

1,071,076

8,755,453

Consumer products department

6,239,294

5,242,675

3,959,970

4,537,140

Real estatedevelopment department

0

0

0

0

Other operating segments

222,491

933,459

238,313

1,299,290

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

Unit:
NT$Thousand
40,000,000

18,304,862

2020

2021

998,922

2,343,323

2,300,742

0

2020

0

0

767,383

3,329,546

0

0
2019

2,287,647

1,109,253

4,359,505

2,908,970

0
2018

1,416,591

1,757,928

4,837,812

2017754,2173,624,040

8,399,755
2,747

766,603

5,677,949

9,446,041

1,524

792,836

2019

Export4,374,752

00326,537

5,000,000

3,577,037

10,000,000

4,108,390

25,000,000

15,000,000

9,266,499

2018

30,000,000

20,000,000

99,4982017

23,041,902

35,000,000

800,850

00
Unit:
NT$Thousand
40,000,000

966,800

5,000,000

978,103

10,000,000

3,821,659

15,000,000

12,573,065

20,000,000

16,077,201

25,000,000

19,449,050

30,000,000

Machinery, energy and system department
Consumer products department
Real estate development department
Other operating segments

Domestic

25,301,644

35,000,000

13,432,551

30

Optical department

9,057,769

AnnexElectric Power Industry

Sustainable
environment

In response to market demand, Tatung will continue to modify the product line, invest
in manufacturing equipment for ultra-high voltage (UHV) products and collaborate withforeign power distribution brands to develop smart, environmentally friendly and lower
power consumption products. Tatung will be the first equipment supplier in the nation
to offer transformers, inductors, distribution boards and GIS equipment, enabling it tocompete for the business opportunities in the addition of power plants and construction ofwind, solar, energy storage system and other renewable energy projects of Taiwan Power
Company. In addition, a new catenary continuous vulcanization (CCV) line is establishedto increase the production capacity and yield to meet the needs of the ultra-high voltage
market. In terms of motors, Tatung has accumulated more than 70 years of technology
and experience and followed the industry development trends to provide industry-grade
motors and the relevant services in various fields (such as ROT motors, high-voltage
maintenance motors, IE4 ultra-high-efficiency motors, explosion-proof motors, toolingmachine shaft motors), further improving the business development of EV power systems.

2021

Output (set) Amount (NT$ Thousand) Output (set) Amount (NT$ Thousand)

33,567,544

Happy workplace& social
participation

2020

1,172,276

Responsible
supply chain,product safety &customer service

System Business

Sustainable
governanceMore than 211 MW of solar photovoltaic systems has been built as of the end of 2021, andthe cumulative target by the end of 2022 is 312 MW. The smart meter system, the mostcomprehensive type in the domestic market, developed by Tatung, has gained market
share in Japan, Thailand and Malaysia, and Tatung is actively developing the ASEAN
market. Besides, Tatung’s excellent power-related experience and system integration
capabilities make it the first auxiliary service provider of energy storage and frequency
modulation to participate in Taiwan Power Company’s electricity trading platform. Tatungalso demonstrates rich results of long-term accumulation of technological development by
successfully becoming the first in Taiwan to obtain the UL9540 Energy Storage Systemsafety on-site certification to ensure the safe operation and stable profit of systems. The
commercial operation of the energy storage system started in October 2021, as a 1 MW
bilateral contract, and the current bid price is 4 MW. In 2022, a 50 MW large energy
storage system construction project is being actively planned and implemented, which is
expected to become online in Q1 2023.

Table 3.2-1 Tatung production output and amount

19,084,084

Profile of
Tatung Company

The main products include commercial/home energy-saving and smart air-conditioners
and home appliance products with inverters which adopt the IoT technology to provide
consumers with situational scheduling control and personalization services and improvetheir daily life experience. The steam cooker product remains a market leader, and there
is product extension of kitchen appliances for the active expansion in the overseas market.
Tatung has won many awards for its product design over the years, and the awards include
the iF Product Design and Red Dot Design of Germany, Good Design in Japan and Taiwan
Excellence Award. In addition, Tatung has continued to cultivate the professional acoustic
field and smart home products and incorporated advanced technology and smart functions
to provide design and manufacturing services for world’s well-known brands. The retailstores continue to improve their brand image of serving as a distribution channel for
multiple brands and offering after-sales services to improve store visits and performance of
in-store areas, and reinforce the operation of e-commerce platforms to provide customers
with around-the-clock services.

The production quantities and values for the last two years are shown on Table 2.3-1.

2021

Figure 2.3-1 Tatung’s domestic and export sales values (The above data are subject before consolidation)
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Highlights

Identification on
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Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

32

DISCLOSURE ON
NON-FINANCIAL INFORMATIONGOVERNANCE

TARGETSTARGETS

Short-Term Targets:

Mid-Term Targets:

1. Appointing chief corporate
governance officer to be responsible
for corporate governance related
matters, implement corporate
governance, and improve theeffectiveness of the board of
directors.
2. Conducting the performance
evaluation for the board of directors
and the functional committees.
3. Revising the relevant principles ofcorporate governance at any time inaccordance with the latest publishedversion from the authority.
4. Enhancing corporate information
disclosure in English (e.g. English
official website).

PERFORMANCESIN 2021

Each operation follows the corporate
governance-related codes formulatedby the company, and is in line withthe corporate governance evaluation
project, with the goal of being in the
top 6-20% of the corporate governanceevaluation.

Long-Term Targets:Continue to strengthen corporate
governance and improve informationtransparency. The company’s
managers and all employees abide by
the ethical corporate management toavoid illegal incidents and ensure thecompany’s sustainable operation andperformance, and continue to carefor the environment, consider socialand culture factors, and strengthen
corporate governance to fulfill corporatesocial responsibility.

TARGETS

1. Publish Sustainability Report every
year in accordance to the regulation.
2. Disclosing and update ESG
information on the company’s official
website regularly.

PERFORMANCESIN 2021
1. Published “2021 Tatung Corporate
Social Responsibility Report” in June.
The report has been uploaded to
Tatung’s official website and MOPS.
2. Optimized the “Sustainable
Development” section of thecompany’s official website todisclose ESG information morecomprehensively.

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

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Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

3.1 Organization structure
The top management level is Shareholders’ Meeting, followed by Board of Directors, Chairman,
and President. There are three functional committees under Board of Directors, such as Audit
Committee, Remuneration Committee, and Sustainable Development Committee (formerly
known as Corporate Governance Committee), to assist directors. The Chairman is Wkang Hsiang
Wang. Apart from the administrative divisions, Tatung is also consisted with Heavy Electrical
Equipment BU, Cable BU, Motor BU, Advanced Electronics BU, Appliance BU, Smart Meter BU,
System Integration BU, Solar Energy BU, and Smart Energy BU. The governance structure of
Tatung is shown on Figure 3.1-1.

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

Board of Directors

Sustainable
Development Committee
Internal Audit Committee

ChairmanPresident

Administration
President ‘s OfficeFinance & Accounting Division
Human Resources Division
General Administration Division
Central Research Institute

Legal Division
Procurement Division
Management Information System Division
Health & Safety Division
Product Verification Department

Heavy Electrical Equipment BU

Tatung has appointed the stock agency
department of Taishin International Bank tohandle the affairs of the shareholders meeting,and set up the “Shareholder Service andAnnouncement Section” to receive suggestionsor questions from shareholders. Tatung also
has “Investors”section 1 on the company’s
official website to disclose financial andcorporate governance related information, andalso immediately announces the informationthat need to be disclosed at “Market Observation
Post System” for shareholders to acquire
information at any time. On the other hand, Tatung
maintains a good relationship with investment
institutions and has established a system of
spokespersons and deputy spokespersons asa window for dialogue and connection between
the two parties. In addition, Tatung participatesin the domestic legal person briefing every year
to provide the latest operation information.

Cable BU
Motor BU
Smart Meter BU
Appliance BUAdvanced Electronics BU
System Integration BU
Solar Energy BU

Note: As of 2022.3.31.
Note1: www.tatung.com

Audit Committee
Remuneration Committee

Shareholders’ Meeting

Annex

34

Shareholders’Meeting

Smart Energy BU
Figure 3.1-1 Tatung operation structure
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Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

36

Board of Directors
The members of the Board of directors were re-elected in 2020. Since 2021.12.30, the director
Tatung High School resigned, there are currently 7 directors, including 2 independent directors,
1 director with employee status, accounting for 28.57% and 14.29% of all directors respectively.
In accordance with the principle of gender equality, the company aims to increase at least one
female director and independent director. The hope of monitoring the board of directors andbringing a fresh and independent perspective on the discussion in the board.
The specialties that the board of directors range from leadership, business management, crisis
management, law, finance, and practical experience in the industry. The company has made a
policy to diversify the board of directors in Article 20 of the Corporate Governance Best-PracticePrinciples. In order to implement a good Board governance mechanism, the diversity of the Board
members need to be considered. The composition of Board members should be diversified,such as having different professional backgrounds, industry experiences or genders; as well as
different knowledge, skills and attainment in order to exert the quality and monitoring mechanismof the board of directors. Please refer to Table 3.1-1 for our directors’ information.
The board of directors had held 8 meetings in 2021. When there is event of conflicts of interest
during board of directors’ meeting, Tatung follows related regulations to resolve it. The cases of
directors’ withdrawing from motion due to conflict of interest in 2021 were:
1. Changed of President of the company, director I-Wen Chung maintains that this case inrelated to him and avoids participating in discussions and resolutions;
2. Appointment of President of the company, at the same board meeting, director Chun-Sheng
Ho maintains that this case is related to him and avoids participating in discussions andresolutions.

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

Audit Committee
The Audit Committee assists the board in fulfilling its responsibility and duty for oversight of theCompany Act, Securities and Exchange Act, and other related laws and regulations. The focus of
the work of the Audit Committee in 2021 was to review the quarterly report, semi-annual report,
annual financial report and loss compensation case; revise the internal control system and related
policies and procedures; material asset or derivatives transactions; offering or issuance of any
equity- type securities; material lending founds, endorsements or guarantees; hiring or dismissalof an attesting CPA, or the compensation given thereto; significant investment evaluation andmanagement; and corporate risk management, etc. Table 3.1-2 shows the member attendance
status in 2021.

Table 3.1-1 The policy to diversify the membership of the Board
Basic Requirements
and Values
Name/ Title

Nationality andGender

Employee

Nationality:
R.O.C. (Taiwan)
Gender: Male

Wkang-Hsiang
Wang
ChairmanProfesstional Knowledge and Skills

Professional
Background

Operational
judgments

Accounting
International
And
Operation
CrisisMarketFinancial management management knowledge perspective
analysis

Lead

Policydecisions

Construction
works

Nationality:
Rong-Chuan
R.O.C. (Taiwan)
Chen
Executive Director Gender: Male

Logistics

I-Wen Chung
Director

Nationality:
R.O.C. (Taiwan)
Gender: MaleOperation
management

Daho Yen
Director

Nationality:
R.O.C. (Taiwan)
Gender: Male

Legal

Nationality:
Ruey-Long Chen
R.O.C. (Taiwan)
Director
Gender: MaleOperation
management

Sheng-Tsheng Lee Nationality:
R.O.C. (Taiwan)
Independent
Gender: Male
Director

Construction
works

Chung-Zung Kung Nationality:
R.O.C. (Taiwan)
Independent
Gender: Male
Director

Finance
Accounting

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

Name

Attendancein Person

Attendanceby ProxyAttendanceRate (%)

Note

Chair

Sheng-Tsheng Lee

7

0

100

-

MemberChung-Zung Kung

7

0

100

-

MemberChin-Lai Wang

5

0

100

Resigned on
2021.10.28.
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Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

Unit: NTD$ Thousand

Compensation Committee
In view of the fact that the compensation system is an important part of corporate governance andrisk management, in order to strengthen corporate governance and improve the compensation
system for the directors (including independent directors) and managerial officers of the company,
Compensation Committee is established under the board of directors according to law, which is
responsible for prescribing and periodically reviewing the performance and the compensation
policy, system, standards, and structure for directors and managerial officers, as well as
periodically evaluating and prescribing the compensation of directors and managerial officers
on the first quarter of each year. Table 3.1-3 shows the attendance status of Compensation
Committee in 2021.
The Board of Directors is authorized to determine the transportation allowance and remuneration
to directors of the Company based on their contribution to the Company’s operation and by taking
into consideration the local and foreign standards as applied in the same industry. Presidents
and vice presidents manage the Company’s business on the order of the Board of Directors.
The appointment, dismissal and remuneration of presidents and vice presidents shall be subject
to the Company Law. Furthermore, remuneration will also be allocated from the Company’s
earnings, if any, in accordance with the Company Regulations.

Table 3.1-3 Status for the attendance of Compensation Committees
Attendance Attendance Attendancein Person
by ProxyRate (%)

Title

Name

Chair

Chung-Zung
Kung

3

MemberSheng-Tsheng
Lee

3

MemberChin-Lai
Wang

2

MemberMing-Jen Yu

0

0
0

100%

Note
-

Table 3.1-4 Remuneration to directors in 2021
Remuneration to directors
Job Title

Name

Remuneration (A)Refirement pension (B)Refirement allocatedfrom earning (C)Business execution
expenses (D)The
Company

All companies
included infinancialstatements

The
Company

All companies
included infinancialstatements

The
Company

All companies
included infinancialstatements

The
Company

All companies
included infinancialstatements

Chairman

Wkang-Hsiang
Wang

0

0

0

0

0

0

60

502

Director

Rong-Chuan
Chen

0

0

0

0

0

0

0

5

Director

I-Wen Chung

0

0

0

0

0

0

60

97

Director

Daho Yen

0

0

0

0

0

0

5

5

Director

Ruey-Long
Chen

0

0

0

0

0

0

10

10

Independent Sheng-Tsheng
Director
Lee

2,350

2,350

0

0

0

0

35

35

Independent
Director

Chung-Zung
Kung

2,210

2,210

0

0

0

0

35

35

Director

Hung-Hsin Lin

23

23

0

0

0

0

10

10

Director

Wen-Yen K.
Lin

0

30

0

0

0

0

20

177

100%

-

0

100%

Resigned on
2021.10.28

Director

Chi-Yen Liang

0

0

0

0

0

0

40

97

0

N/A

Elected on
2022.01.03

Director

Ching-Hsiang
Lin

0

0

0

0

0

0

55

75

Independent
DirectorChin-Lai
Wang

2,143

2,143

0

0

0

0

15

15

Chairman

Ming-Kuang
Lu

4,813

4,813

0

0

0

0

60

80

Director

Chun-Sheng
Ho

0

0

0

0

0

0

40

80

Gindon Investment Co.

1,795

1,795

0

0

0

0

0

0

Xin Tong Investment
Consultancy Co.

598

598

0

0

0

0

0

0

Tatung High School

598

598

0

0

0

0

0

0

Note: This Table is cited from 2021 Tatung Annual Report. Please refer to page 23 and page 24 for more information.
38

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Sustainable Development Committee

Internal evaluation of the performance of the board and functional committees

In order to implement the company’s sustainable development, improve the corporate governancesystem, strengthen the board of directors’ supervision function on environmental protection, social
responsibility and corporate governance, and establish a good functional committee governancesystem, Tatung restructured the original “Corporate Governance Committee” into “Sustainable
Development Committee” in August, 2021.

In order to strengthen corporate governance and enhance the functions of the board of directors and various functional
committees of Tatung, the Board of Directors passed the “Board and Functional Committee Performance Evaluation
Guidelines”. The evaluation guidelines and results in 2021 are listed on Table 3.1-6. The procedures for the establishmentof directors’ remuneration of Tatung are based on the above criteria and the relevant measures of the functional committees.
The relevant performance appraisal and remuneration rationality are reviewed by the functional committees and the boardof directors. At any time, the directors’ remuneration system will be reviewed in a timely manner depending on the actual
operating conditions and relevant laws and regulations.

The board of directors elected the following to be members of the Company’s sustainable
development committee: Sheng-Tsheng Lee (Independent director with expertise in law, risk
control and corporate governance), Chung-Zung Kung (Independent director with expertise infinance, risk control and corporate governance) and Wkang-Hsiang Wang (Director with expertisein engineering and business management) who are responsible for corporate governance related
matters (Table 3.1-5).

Descriptions

1

To give considerations to experience, expertise and independence to formulate
selection criteria for members of Sustainable Development Committee andsubmit to the board of directors for resolution

2

Research and analysis, implementation, planning suggestions on the company’ssustainable development and environmental protection, social responsibility
and corporate governance systems, and review and revise on the company’senvironmental protection, social responsibility and corporate governance related
codes, standards, rules and regulations, and report to the board of directors.

3

Tracking and suggesting the implementation situation of the relevant
information disclosure.

4

Review the sustainable development relationship between Tatung andits subsidiaries and other related companies; put forward suggestions for
improvement and report to the board of directors

5

Review the effectiveness of the implementation of the sustainable development
system.

6

Other duties in accordance with the board resolutions.

Sustainable
environment

Annex

40

The Sustainable Development Committee shall meet at least once a quarter, and may holdother meetings as necessary. The management of the company should proactively provide thefollowing complete and sufficient information to the Sustainable Development Committee tofacilitate the promotion and review of related work:
1. Information related to the responsibilities of the Sustainable Development Committee;
2. The information provided to the Sustainable Development Committee has been updated
afterwards;
3. Information provided by the management as decided by the committee or requested by eachmember of the committee respectively.

Evaluation content

Item

Sustainable
governanceHappy workplace& social
participation

Table 3.1-6 Evaluation content of the performance of the board and functional committees

Table 3.1-5 The main tasks and duties of the Sustainable Development Committee

Profile of
Tatung Company

Responsible
supply chain,product safety &customer service

The results of internal performance evaluation of 2021 were submitted to the Board of Directors on 2022.03.15. The
results were both “GOOD” for the performances of the Board of Directors and the functional committees.

Evaluation cycle

1. The Company’s board of directors shall conduct an internal board performance
evaluation every year.
2. The Company’s board performance evaluation shall be conducted by an external
independent professional institution or a panel of external experts and scholars atleast once every three years.

Evaluation period

2021/1/1~2021/12/31

Evaluation scope

The Company’s board and functional committees evaluation scope covers theevaluation of the board as a whole, individual directors, functional committees andindividual committees.

Evaluation method

Methods of evaluations include the internal evaluation of the board, self-evaluation
by individual board members, internal evaluation of functional committees, selfevaluation by individual committee members and evaluation by appointed external
professional institutions, experts, or other appropriate methods.

The criteria forevaluating the
Performance of theboard of directors

1. Participation in the operation of the company
2. Improvement of the quality of the board of directors’ decision making
3. Composition and structure of the board of directors
4. Election and continuing education of the directors
5. Internal control
6. Participation in sustainable operations (ESG)

The criteria forevaluating the
Performance of theboard members(on themselves)

1. Alignment of the goals and missions of the company
2. Awareness of the duties of a director
3. Participation in the operation of the company
4. Management of internal relationship and communication
5. The director’s professionalism and continuing education
6. Internal control

The criteria forevaluating the
Performance offunctional committees

1. Participation in the operation of the company
2. Improvement of quality of decisions made by the functional committee
3. Composition and structure of functional committees
4. The committee’s election and continuing education
5. Internal control
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Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

42

3.2 Corporate Governance
DMA
An explanation of why
the topic is material
Corporate governance is amechanism to guide and manage
a company. It is important toimplement the responsibilities ofbusiness operators, and protect
the legitimate rights and interestsof shareholders and take into
account the interests of otherstakeholders.
Resources
1. Tatung restructured the original“Corporate GovernanceCommittee” into “Sustainable
Development Committee”.
The committee is responsible
to implement the company’ssustainable development,
improve the corporate
governance system, strengthen
the board of directors’supervision function on
environmental protection, social
responsibility and corporate
governance, and establish
a good functional committee
governance system,
2. The Chief Financial Officerof the company has been
appointed as chief corporate
governance officer.
3. Relevant corporate governanceeducation and training havebeen conducted. More than 600
employees have implemented
it, and the results of corporate
governance education andtraining have been disclosed
in the investor section of thecompany’s official website.

Corporate governance and ethical practice

Performance disclosure is limited
to Tatung Co.

Purpose of the
management approach
Good corporate governanceshould be achieved by the Boardof Directors and management
in a manner that is in the bestinterests of the company andall shareholders, assists in theoperation of the company, andprovides an effective monitoringmechanism to incentivize thecompany to make good use ofresources, improve efficiency, andthus enhance competitivenessand promote social welfare for thesociety.

Grievance mechanisms

Responsibilities

Boundary for the material topic
Tatung and its subsidiaries.

Specific limitation regarding the
topic Boundary

Adhering to the principle ofhonesty and integrity, Tatung
has established the “ Corporate
Governance Best PracticePrinciples”. In accordance withthe content of the Corporate
Governance 3.0 -Sustainable
Development Roadmap issued
by the Financial Supervisory
Commission, Tatung gradually
Mechanisms for evaluating thepromotes and revises relevant
effectiveness of the management policies on corporate governance,
approachstrengthens the functions of theboard of directors, improves
Tatung has “Board and Functional
information transparency,
Committee Performancestrengthens communication
Evaluation Guidelines” andwith stakeholders and voluntary
performs internal evaluation of
implementation of corporate
the performance of the board andgovernance and sustainable
functional committees each year.
development.
Tatung establishes the“Regulations for Handling
Whistleblowing Illegal Cases, andUnethical or Dishonest Conduct
Cases” and a dedicated unit ofprocessing employees’ complaints
for employees’ feedback, foundviolations of lawlessness, andreported unethical conducts.

Policies

Commitments

Goals and targets

Tatung takes “Integrity, Honesty,
Industry and Frugality” as the corevalue of its management. Basedon the values, Tatung formulates
relevant policies based on integrity
such as “Ethical Corporate
Management Best PracticePrinciples” and “Procedures for
Ethical Management and Guidelines
for Conduct”, “Regulations for
Handling Whistleblowing Illegal
Cases, and Unethical or Dishonest
Conduct Cases”, and “Management
Procedures for the Prevention of
Insider Trading in Tatung Company”,
as well as management regulations
such as employee rewards andpunishments, and appeals.

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

Results of the evaluation of the
management approach

Related adjustments to the
management approach

Short-Term Targets:
1. Appointing chief corporate
governance officer to be
responsible for corporate
governance related matters,
implement corporate governance,
and improve the effectiveness ofthe board of directors.
2. Conducting the performance
evaluation for the board of
directors and the functional
committees.
3. Revising the relevant principles
of corporate governance at any
time in accordance with thelatest published version from theauthority.
4. Enhancing corporate information
disclosure in English (e.g.
English official website).

Performances in 2021:
1. The board of directors appointed
Chief Financial Officer as Chief
Corporate Governance Officer.
2. Corporate GovernanceCommittee (name changed
to Sustainable Development
Committee) had 4 meetings to
discuss corporate governancerelated issues.
3. Completed the performance
evaluations for the board of
directors and the functional
committees. The results wereall “Good”.

Tatung follows the check itemsof “Corporate GovernanceEvaluation” implemented by TWSE
to review and improve the practiceof each aspect of the company
and fully improve the quality ofcorporate governance.

Mid-Term Targets:
Each operation follows thecorporate governance-related codes
formulated by the company, and is inline with the corporate governanceevaluation project, with the goalof being in the top 6-20% of thecorporate governance evaluation.
Long-Term Targets:Continue to strengthen corporate
governance and improve informationtransparency. The company’s
managers and all employees abideby the ethical corporate management
to avoid illegal incidents and ensure
the company’s sustainable operationand performance, and continue tocare for the environment, consider
social and culture factors, andstrengthen corporate governance tofulfill corporate social responsibility.
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Highlights

DMA
An explanation of why
the topic is material
The transparency of a company’s
non-financial information is an
important tool for measuring its
sustainable development andcorporate value. Investment
institutions, government agencies
and other stakeholders all attach
great importance to this topic.

Disclosure on non-financial information
Boundary for the material topic
Tatung and its subsidiaries.

Specific limitation regarding
the topic Boundary

Purpose of the
management approach

Performance disclosure islimited to Tatung Co. and certain
subsidiaries.

By proactively disclosing thecompany’s ESG information andachievements, and focusing
on meeting the expectations ofstakeholders to systematicallydemonstrates the company’sefforts towards sustainable
development.

Commitments

Goals and targets

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

1. Publishing Tatung Sustainability
Report by the end of June every
year.

Results of the evaluation of the
management approach

Related adjustments to the
management approach

2. Updating and disclosing ESG
information on the company’s
official website regularly.

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Resources
Tatung has organized Sustainable
Report Reporting Committee
to be responsible to prepare
Sustainability Report.

Grievance mechanisms
Tatung Sustainability Report
feedback e-mail:csrreport@tatung.com

Specific actions
Prepare Sustainability Report inaccordance with GRI Standards
and “Taiwan Stock Exchange
Corporate Rules Governing
the Preparation and Filling ofCorporate Social Responsibility
Reports by TWSE Listed
Companies”.

Mechanisms for evaluating
the effectiveness of the
management approach
Prepare Sustainability Report inaccordance with GRI Standards
and “Taiwan Stock Exchange
Corporate Rules Governing
the Preparation and Filling ofCorporate Social Responsibility
Reports by TWSE Listed
Companies”.

1. “2021 Tatung Corporate Social
Responsibility Report” waspublished in June, 2021. The
reports can be downloaded:

NIL.

http://www.tatung.com/ContentEN/csr-report.asp
2. Optimized the “Sustainable
Development” section of thecompany’s official website todisclose ESG information morecomprehensively.

Annex

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Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

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

Corporate Governance Best Practice Principles
In order to establish sound corporate governance system, Tatung adopted the principles of
Taiwan Stock Exchange Corporation (TWSE) and the GreTai Securities Market (GTSM) andpublished “Corporate Governance Best Practice Principles”. The principles are agreed by boardof directors and aiming to achieve the followings:
1. Protect the rights and interests of shareholders.
2. Strengthen the powers of the board of directors.
3. Fulfill the function of supervisors.
4. Respect the rights and interests of stakeholders.
5. Enhance information transparency.

Ethical Corporate Management Best Practice Principles
Sustainable
environment

Annex

46

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

Employees’ code of ethics
Tatung upholds the principles of “Integrity, Honesty, Industry, Frugality” and prohibits any improper behavior and financial
dealings. Each new employee will sign a self-regulation statement when they report to the company. The statement
states that employees must not doing fraud or receiving gifts from others in duties, and shall not disclose the company’s
technologies and business contents. Relevant control measures have also been established in this regard. For example,
the Company Rules clearly stipulate that it is not allowed to take advantage of the convenience of the position, engage
in personal fraud, or accept gifts from others.
For the management of corruption and bribery, in addition to complying with the Securities and Exchange Law, theCompany Law and other social and economic laws, Tatung has also formulated the “Ethical Corporate Management
Best Practice Principles”, “Procedures for Ethical Management and Guidelines for Conduct”, and “Ethical Conduct
Principles”, etc., to regulate all the employees (including management level). When establishing business relationships
with others, the company should first evaluate the legality, business integrity policies, and a history of dishonesty of theagents, suppliers, customers or other business partners to ensure that they conduct business in a fair and transparent
manner and do not ask, offer or accept bribes. In case of corruption, bribery or other related matters, it can be reported
to the responsible unit in accordance with the “Regulations for Handling Whistleblowing Illegal Cases, and Unethical or
Dishonest Conduct Cases”. If it is verified, it will be handled in addition to the Company Rules and will be investigatedfor legal responsibility to prevent corruption or leakage of secrets.

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

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Internal control system and internal control committee

Risk management

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

When facing on rapid changing business environment and climate change, Tatung has assigned responsible departments(Table 3.2-1) to process risk assessment on significant topics. Table 3.2-2 shows Tatung’s risks and counter measures.
In order to identify the financial-related risks and opportunities brought by climate change, Tatung refers to the
Climate-related Financial Disclosure Framework (TCFD) to identify climate-related financial risks, opportunities andcountermeasures. For details, please refer to Table 3.2-3 and Table 3.2- 4.

1. Ensure the enforcement of company policies and rules.
2. Avoid the waste, lost and non-efficient use of assets.
3. Ensure the accuracy of accounting and operating information.
4. Evaluate the performances for each division.
Internal control system covers all operations of Tatung, including accounting, finance, planning,organization, control and management, and information about sales, production, purchasing,materials, engineering, personnel and research and development. In addition, internal control
should prepare, distribute, report and analyze data to the management level, so that the highest
management level can keep track on the execution and control of Tatung’s various work andbusiness.
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 ofsubsidiaries have different internal control frequencies to effectively optimize the corporate
governance of subsidiaries. Figure 3.2-1 shows Tatung’s internal control system statement.
In addition to internal control system, Tatung has introduced and maintained various ofmanagement systems in the factories for specific topics, such as ISO14001 (environment),
ISO 45001 (health and safety), ISO9001(quality), ISO 27001 (information safety),
TTQS (training and education) and others.
The factories follow the procedures of the
management systems to review and update
the related laws and regulations. At the sametime, the factories conduct internal audit andmanagement review to ensure the operations
can comply with the laws and regulations.
The administrative in headquarter alsoannounce the latest and related regulations
to the employees by publishing on the internal
website and/or through e-mails. In this way,the employees will gain the knowledge of
regulations and avoid breaching them atwork.

Sustainable
environment

Annex

Figure 3.2-1 The internal control statement of Tatung in 2021
48

Table 3.2-1 Structure of risk management
Risk management

Bodies in charge

Responsibilities

Strategy andoperation risk

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

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

Sales unit of each plant and division

Business & sales promotion as well as
market research and evaluation

Financial andliquidity risk

Finance & Accounting Division

Final accounting of cost, funds allocationand control, and hedging of interest andexchange rates

Legal risk

Legal Division

Process of litigation and non-litigation cases

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

Financial

Item

Countermeasures

Impact ofinterest
rate andexchange rate
fluctuations
and inflation

1. Interest rate:1) Derivatives can been used as a hedge against interest rate fluctuations for theCompany’s long-term debts.
2) When considering mid to long-term bond issues, the Company carefully sets its target
interest rate to lower its interest rate risks as much as possible. For example, theCompany’s offshore exchangeable corporate bond issue offers a fixed interest rate,
while its domestic secured convertible bond offers a zero coupon rate.
2. Exchange rate:
The Company has a natural hedge against currency fluctuation as its business involves
imports and exports. It also utilizes derivatives to hedge the remainder of its foreignexchange position that is exposed to currency exchange risks. The management of risks
involving such derivatives are set forth in the Company’s “Operational Procedures for
Derivatives Treading.” The Company also has an internal control system to supervise theloss limit of foreign currency transactions.
3. Inflation:
The constant inflation rate in recent years has no significant impact on the company’s
operations and profits. The company will continue to prudently evaluate the price trendsof raw materials and work out the best procurement and sales strategies in line with
operational needs.
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Management
Statement

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

2021 CSR
Highlights
Financial

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

50

Countermeasures

Investment
1. The Company engages in derivative trades, such as operational
policy andhedging of foreign exchange, for the sole purpose of lowering its
reasons forfinancial risk and conducts all transactions in accordance with thegains and losses
Company’s internal control procedure.
on high-risk and
2.
The Company’s operating procedures for funding and endorsement
high – leverage
are based on “Guidelines for Lending of Capital”, and “Guidelines
investments,
for Endorsements and Guarantees”, which were formulatedloans to a thirdby referring to related laws and regulations set up by Financial
party, derivative
Supervisory Commission.
tradesTable ofContents

Identification on
the stakeholders &material topics

Item

MarketRisk fromconcentrationof purchase or
sales

The Company will arrange for alternative sources for purchase, andwill diversify its customer base in order to reduce the concentrationof sales.

Expected
benefits andpotential
risks frommergers andacquisitions

The Company has no ongoing merger and acquisition targets. In
considering future M&As, the Company will evaluate their efficiency,
risks, vertical integration and other factors in accordance with
Regulations Governing the Acquisition and Disposal of Assets by
Public Companies.

Expected
benefits andrisks related
to plant
expansion

The company has established the “procedures for the acquisition or
disposal of assets” in accordance with the “Regulations Governing
the Acquisition and Disposal of Assets by Public Companies“, andconducts appropriate benefit evaluation and risk avoidance inaccordance with the company’s internal control procedures.

Future R&D
plans

The Group plans to invest NT$787 million for R&D expenditures in
2022, and will have to adjust the plans according to the global market
condition and actual operation situation of the companies. For an
overview of the company’s technology and R&D, please refer topage 62~80 on Tatung Company 2021 Annual Report.

Impact ofchanges intechnologies(includeinformation
securityrisk) on thefinancial
position andoperation of
the Company

1. The Company have developed deep technical foundation, kept
putting efforts on research & development, and expanded thebusiness of key products as well as system aggressively in smart
grid to ensure its technology and market leading position indomestic electricity generation, power transmission & distribution
and energy management. The Company marches into oversea
market and aims at the energy technology industry leader.
2. With the trend of energy efficiency and carbon reduction, thecompany has strived to carry on fine tradition, and reinforced
to develop high-quality green home appliances with health,environment protection, energy-saving and high efficiency
concepts to increase the sales performance and profit.
3. Committee conducts risk assessments on a regular basis orin the event of major changes in the information technology
environment. As a basis for the operation of the information security
management system, the information security risk level related tovarious service operations of Tatung is defined. The Assessment
Procedures regulates risk management plans and subsequent
improvement measures to reduce the risk to an acceptable level.

Category

Item

Countermeasures

Impact by
1. The Company was founded on philosophy that emphasizes“integrity, honesty, industry and frugality.” These four core values
changes ofare strictly followed by each and every individual in the Company
corporateand have won public recognition. The Company will strive to carry
image on theon this tradition, while, actively pursue new ideas to ensure better
Company’s risk
corporate governance.
management
policies
2. The Company has also appointed a special task force to respondto unforeseen situations in order to reduce uncertainties andensure smooth business operations.

Company
image andchange in Risk frommangement major transfer
or swap ofstocksRisk from thechange inmanagementof theCompany

PolicyNone

None

Major changes 1. The Company carefully monitors any changes in local and foreign
in domestic
policies and makes appropriate adjustments in the Company’s
and foreigninternal control system and operations when necessary.
government
2. The Company’s R&D units and financial department continues topolicies andavail of and seek various investment incentives, such as tax credit,
laws which
may impact
granted by the Ministry of Economic Affairs and other governmenton the financial
agencies.
position andoperation of
the Company
Environment

Environmental
protection,
health and Health andsafetysafetyContinue to run environmental management system to elevateenvironmental performance.
Conduct “Pollution Prevention Pays” program and internal control
system to prevent the violations of regulation.
Continue to run occupational health and safety management
system to elevate health and safety performance.
Conduct “Disaster Prevention Pays” program and internal control
system to prevent the violations of regulation.
Conduct monitoring on operation site, job safety analysis andestablish safety S.O.P.

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Sustainable governance

Table 3.2-3 TCFD disclosure framework comparison table

Top
Management
Statement
Describe the board’s
oversightof climate-related risks
and opportunities.

Table ofContents

2021 CSR
Highlights

Governance
Describe management’s
role in assessing andmanaging climate-relatedrisks and opportunities.

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

52

Strategy

Tatung reports to the board of directors on thestatus of greenhouse gas inventory quarterly,
and reports on the implementation of sustainable
development once a year, including thedevelopment of a sustainable environment,
investment in major projects of energy
management, and the promotion of solar power
generation projects.
Tatung has Sustainable Development Committee
under the board of directors, which reviews
Tatung’s sustainable development status andprovides suggestions for improvement, andsubmits it to the board of directors.

Describe theclimate-related risks
and opportunities
the organization has
identified over the short,medium, and long term.

Please refer to Table 3.2-4 for physical risks,transition risks and climate change opportunities.

Describe the impact ofclimate related risks
and opportunities on
the organization’s
businesses, strategy, andfinancial planning.

Please refer to the potential financial impact andmeasures in Table 3.2-4.

Describe the resilienceof the organization’s
strategy, taking into
consideration different
climate-related scenarios,
including a 2°C or lower
scenario.

In response to the Paris Agreement limiting global
warming to 2°C, governments around the world
have gradually stepped up their efforts to reducecarbon emissions. At this stage, Tatung is facing
the mandatory installation of self-use renewableenergy equipment and carry out greenhouse gas
emissions inventory. In addition, Taiwan has set
2050 net zero emissions target, Tatung will also
focus on energy creation, energy saving, energy
storage and electric vehicle motors and otherbusinesses to assist enterprises and the country
to achieve net zero emission targets.

Risk
Management

Metrics andTargets

Describe theorganization’s processes
for identifying andassessing climate-relatedrisks.

1. With the risk management organization listed
in Table 3.2-1, each department will evaluate
and analyze relevant climate-related issues,and then submit it to the top management for
confirmation.

Describe theorganization’s processes
for managing
climate-related risks.

2. Through the risk identification and assessment
process, two climate-related regulatory risks are
the priority projects, such as constructing selfgenerated and self-used solar power generationequipment according to the Renewable
Energy Development Act, and carrying out
the company’s greenhouse gas emissions
inventory according to the prescribed schedule.

Describe how processes
for identifying, assessing,and managing climaterelated risks areintegrated into theorganization’s overall risk
management.

The physical risks and transition risks under the
climate issue, and the derived climate change
opportunities are included under the existing risk
management organization in Table 3.2-1.

Disclose the metrics usedby the organization toassess climate relatedrisks and opportunities
in line with its strategy
and risk management
process.

Tatung has disclosed information such as
the amounts of energy consumption, water
consumption, and wastes. Please refer to page
128, 129, 136, 137, 138, and 139.

Disclose Scope 1, Scope2, and, if appropriate,
Scope 3 greenhouse gas(GHG) emissions, andthe related risks.

Tatung has carried out greenhouse gas emissions
inventory, please refer to page 130 and 131.

Describe the targets used Please refer to the column of climate changeby the organization toopportunities on Table 3.2-4.
manage climate-relatedrisks and opportunities
and performance against
targets.

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Table 3.2-4 The identified risks, opportunities and measures under climate change
Type

Risk
descriptions

Table ofContents

Measures

1. Plants, operating bases, andequipment are damaged
due to climatic disasters
which increasing financial
expenses.

1. Regularly inspect the factorybuildings and operating bases
for damage, and repair and fix
them before natural disasters.
Prepare sandbags to prevent
flooding; analyze the site
climate and flooding potential
at the design stage for outdoor
equipment (such as solar
power stations), and set
appropriate support strengthand height; take out natural
disaster insurance to transfer
risks and reduce losses.

2. Climatic factors may affecttransportation, causing
supply chain disruptions
and subsequent production
stoppages.

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Potential financial impacts

Physicalrisk

Typhoon,flooding

3. Employees are unable toattend work, and productivity
is affected, resulting in
reduced revenues andincreased occupational healthand safety costs.

Profile of
Tatung Company

1. The awareness ofsustainability is enhanced,
and customers may purchaselower-carbon products orservices in the market, which
will affect revenue.

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

54

2. Pay attention to information
on natural disasters, andprepare sufficient materials
in advance if traffic
disruptions are expected.
3. Refer to the announcementof the Directorate-Generalof Personnel Administration,
if the scale of the natural
disaster threatens the safetyof employees, the work will
be reduced or suspended.

Sustainable
governanceTransition
Marketrisk

2. In response to the increasein the number of renewableenergy installations, in orderto stabilize the power grid,
the market demand forenergy storage equipment
has increased. However,under the pressure of thecurrent shortage of materials,
it is difficult to reduce theinvestment cost of batteries.
Due to the rush for materials
from electric vehicle industry,
there is a large shortage ofbatteries around the world,so that the cost of energy
storage is still high.

Type

Risk
descriptions

Policies andregulations

Transition
risk

Measures

1. The Renewable Energy
Development Act stipulates
that power users above acertain contracted capacity
should install renewableenergy power generationequipment. Tatung’s Taoyuan
Wires and Cables Plant isrequired to install 639.2kWpof obligatory capacity before
2025, which will increase
operating costs.

1. Taoyuan Wires and Cables
Plant has installed solar
power generation equipment(selling electricity to Taipower
Company), Tatung has strived
for early bird discounts inaccordance with regulations
and reduced the obligatory
capacity to 384kWp andreduced the financial impact.

2. The Financial Regulatory
Commission requires that
listed companies of a certain
scale should complete thegreenhouse gas inventory in2023, the external verificationin 2024, the greenhouse gas
inventory of the consolidated
subsidiary in 2025, and theexternal verification of theconsolidated subsidiary in
2027.

2. Tatung has started acomplete GHG inventory(according to ISO 14064-1)
at the H.Q. Tayuan Plant
and Meter Factory, and will
disclose the company’s
complete GHG emissions nolater than June 2023.
3. Continuously track changes
in regulations and masterfirst-hand information.

3. It may be affected by thepotential carbon tax, carbon
trading system, and the costof purchasing raw materials
and parts in compliancewith regulations to increase
operating costs.

1. Introduce sustainable productdesign, focus on improving
energy efficiency, productrecycling and reduction ofharmful substances, such as
high-efficiency amorphoustransformers and energysaving motors.
2. Actively strive for Taipower
Company energy storage
equipment bids, plan to buildenergy storage equipment
at suitable sites, increase
market share. With the
improvement of supporting
mechanisms, such as
the power market tradingmechanism, it can accelerate
investment recovery throughthe participation of the power
market, reduce investment
risk.

Potential financial impacts

1. Cooperating with high-carbon
emission suppliers may
affect customers’ trust in thecompany.
Reputation

2. The company’s environment,
energy and carbon reduction
practices and performance
have become the focus of
stakeholders’ concerns.
Failure to implement
management may affectbrand trust.

1. Select suppliers andconduct energy performance
improvement assessmentsfor purchasing major energyusing equipment according
to the “Energy Design and
Procurement Management
Procedures”.
2. Continue to operate ISO
14001, ISO 14064-1, ISO
50001 to improve theperformance of environment,
energy and carbon reduction.

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Management
Statement

Table 3.2-4 The identified risks, opportunities and measures under climate change (cont.)
Type

Table ofContents

Energy saving
marketDescriptions
The market demands for the products withfeatures of energy saving and high energy
efficiency.

Potential financial impacts

Measures

Match to market trends and expand revenue.

1. Introduce products with Energy Label toincrease selling and increase profits. For
example, in 2021, the product split-type air
conditioners with Energy Label has been
well received by the market, with total of
20,869 units sold.

2021 CSR
Highlights

Energy creationand storage

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

1. The industry is in urgent need of lowcarbon energy, and the demand for solar
power plants has greatly increased.
2. In response to the increase in the numberof renewable energy installations, in orderto stabilize the power grid, the market
demand for energy storage equipment has
increased.

Opportunities
brought byclimate change

Improve on
resourcesand energy
efficiency.

1. Switch to more efficient electricalequipment.
2. Promote energy-saving projects.

1. Actively strive for solar power generation
projects to increase sales profits.
2. Actively strive for Taipower Company
energy storage equipment bids to increase
brand exposure and increase sales profits.

Reduce energy cost and carbon emissions.

Targets
1. Products continue to apply for Energy
Label, Green Mark or first-class energy
efficiency label.

2. Launched IE4 grade energy-saving motor.

2. In 2025, IE4, Super Premium, GB2 andMEPS high-efficiency motor series will
be launched; in 2030, IE5 and GB1 highefficiency motor series will be launched.

1. Widely set up solar energy projects andexpand the fields of green power transfer
and renewable energy certificate.

1. The cumulative capacity of 250MWp units
will be connected to the grid by the end of2022.

2. Widely set up energy storage facilities.

2. Taipower Company promotes the target
to reach 1GW of energy storage capacity
in 2025, and Tatung will strive to achieve
300MW participation in 2025.

1. Purchasing energy-saving equipment andoffice appliances. The green purchaseamount in 2021 reached NT$48,101,781.

1. Continue to support green procurement
and try to use more efficient equipment.

2. Support green procurement and receivea certificate of appreciation for green
procurement from Taipei Environmental
Protection Bureau in 2021.

2. The energy intensity of the represented
products in 2023 will be reduced by 6%
compared to 2018.

3. Promote energy-saving projects in thefactories through the “Annual Energy Audit”
program.

Sustainable
environment

Annex

56

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Management
Statement

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable Development

Integrity Honesty Industry Frugality

Table 3.2-5 Tatung sustainable development responsible units

Industry-Education
Cooperation

Employee Harmony

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

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

Shareholder Responsibility

Customer Satisfaction

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

Annex

58

Topic

Responsible unit

Sustainable
Development

Legal Division

Environmental
Management

Health &Safety Division

Ethical Corporate
Management

Greenhouse
Gas Emission

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

Policy and management
Sustainable
environment

To be able to fulfill corporate social responsibility and contribute to the progress of economy, environment and thecommunity, Tatung stipulated “Tatung Company Sustainability Development Best Practice Principles” (formerly known
as Corporate Social Responsibility Best Practice Principles) to manage the economy, environment and social risks
and impacts. The principles act as guidance for implementing corporate governance, sustainable development and theenvironment, the maintenance of social welfare, strengthening ESG disclosure. The results and performances will bereported to Board of Directors every year (Table 3.2-5).

Established in 1918, Tatung, formerly known as Xie Chih Business Enterprise, has evolved andgrown over the decades into one of Taiwan’s leading conglomerates. The foundation of Tatungis built on four fundamental values—Integrity, Honesty, Industry, and Frugality. Developed by
Tatung’s founder and former chairman, Mr. Shan-chih Lin, they represent the essence of theCompany’s commitments to our customers, shareholders, and employees. Mr. T. S. Lin, Chairman
Emeritus of Tatung, further extended the precepts behind these core values to serve as theguidelines for the Company’s continued success and prosperity. These are: Industry-educationcooperation, Shareholder responsibility, Employee harmony, and Customer satisfaction.

Duty

Report to the Board of Directors

The implementation of sustainability development
In charge of bringing forward and carrying out thepolicies, systems, management, and implementation and environmental management results in year
2021 were reported to the Board of Directors on
programs for sustainable development.
In charge of environmental management including 2022.03.15.
drafting, promoting, and maintaining relevant
environment management systems and concrete
action plans, and held environment education
courses for their managerial officers and other
employees on a periodic basis.

Human Resources &GeneralAdministration
Division

In charge of the ethical management policy, the“Ethical Corporate Management Best PracticePrinciples,” as well as the prevention programs
against unethical conduct, the “Regulationsfor Handling Whistleblowing Illegal Cases, andUnethical or Dishonest Conduct Cases.”

Legal Divisionin charge of the revision, implementation,interpretation, consulting service, and notificationof the contents of the “Procedures for EthicalManagement and Guidelines for Conduct.”

Health &Safety Division

Greenhouse gas inventory promotion andmanagement, and organize relevant education andtraining courses.

The implementation of ethical corporate
management results in year 2021 were reported to
the Board of Directors on 2021.12.21.

The information on the GHG inventory will bereported to the Board of Directors on a quarterly
basis starting from the second quarter of 2022.

Disclosure on non-financial information
In order to proactively and effectively disclose Tatung’s
non-financial information and show our achievements insustainable development, and as a tool to communicate withstakeholders, we have set up a “Sustainable Development”
section on the company’s official website in both Chineseand English to disclose Tatung’s economic, social andenvironmental management measures and performances;on the other hand, we publish annual publication “Tatung
Sustainability Report” in accordance with GRI Standards
and introduce external verification agency to verify theformat and content of the report to improve the reliability of
disclosed information reliability.
We promise to continue to publish sustainability report inJune every year and disclose Tatung’s ESG information on
the official website to communicate with stakeholders.

Sustainable Development section on Tatung’s official website
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Management
Statement

CH 4

Responsible supply chain, product safety
and customer service

Responsible supply chain,product safety andcustomer service

SUPPLY CHAIN MANAGEMENTPRODUCT RESPONSIBILITYSALE

CUSTOMER MANAGEMENT

Table ofContents

TARGETSTARGETSTARGETSTARGETS

2021 CSR
Highlights

All new suppliers sign back theSupplier Commitment Letter.

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Short-Term Targets:
1. All the products are complied withproduct inspection regulations andcustomer requirements.

Ensure the contents ofadvertisements or promotions arecomplied with regulations.

2. Satisfaction for repairing service > 94%,
satisfaction for shipping service > 97%.

2. Strive for product awards orcertification.

PERFORMANCE
IN 2021
100% of new suppliers havesigned back the SupplierCommitment Letter.

3. Continue to run ISO 9001 and TAF
certified laboratories in the factories.
4. Meet annual quality KPI.
5. No. of product inspection and labeling
related violations: 0.
Mid-Long Term Targets:
Treat zero defects as the only standard
for management and operation.

1. Continue to manage customer
information in accordance to theregulations.

PERFORMANCE
IN 2021
No. of advertisements or
promotions violated related
regulations: 0.

PERFORMANCE
IN 2021
1. No. of complaints in regarding toviolating customer privacy or losing
customer information: 0.
2. Satisfaction for repairing: 95.7%,
satisfaction for shipping: 97.2%.

PERFORMANCE
IN 2021
1. All the factories passed ISO 9001
annual audit.
2. No. of products violated productinspection and labeling regulations: 0.
3. Smart IP66 Roller Table Motor (TENV)
was won the 30th Taiwan ExcellenceAward.

Annex

60

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Responsible supply chain, product safety
and customer service

Top
Management
Statement

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

62

4.1 Responsible supply chain
Tatung firmly believes that establishing a good relationship of mutual trust and mutual assistancewith excellent suppliers can achieve reliable quality assurance, on-time delivery, and increase
productivity at competitive costs, and share the results with consumers around the world.
Therefore, we introduce and manage suppliers through the implementation of the internal control
system and in accordance with the provisions of the “Supplier Introduction and Management
Measures”, and regularly check the supplier management status of each BU and subsidiary toensure the supplier management is well conducted.
Good quality, competitive price, on time delivery, and after sale service are the first 4 considerations
when Tatung purchases raw materials, parts and products. Tatung also prefers purchase fromlocal suppliers in Taiwan in order to support local business and fulfill social responsibility. The
main suppliers are from Taiwan, followed by China. The details are list in Figure 4.1-1. Meanwhile,
in order to maintain excellent product quality, Tatung requests suppliers to use brand newmaterials in providing main materials, parts, and products. Tatung supports the concept of green
consumption, within the company, we encourage our BUs to take environmental friendly products
into considerations when purchasing materials, parts, or products. Our efforts in 2021 wererecognized by EPB, Taipei City Government (Received certificate of appreciation for promoting
green procurement, Figure 4.1-2) and EPA (Received certificate of green procurement).
On the other hand, Tatung requests suppliers to fulfill corporate social responsibility together byadding confidential, anti-corruption and human rights (human rights, freedom of association, childlabor, and forced labor) clauses in the contract. Also from 2015, we started to request suppliers
to sign the “Supplier Commitment Letter”, which includes health and safety, environmental
protection, and human rights topics. The commitment letter is a must have document to become
Tatung’s supplier. In response to the attention to conflict minerals internationally, Tatung has
issued “Declaration of Minerals Conflict-Free from Tatung Company” and passed to the suppliers
to follow since 2019.

Taiwan91.00%

China/HK
4.86%

Japan
0.60%

Korea
0.60%

Others
2.94%

Figure 4.1-1 Suppliers’ geographic distribution in 2021
(by numbers)

Figure 4.1-2 Certificate ofappreciation for promoting green
procurement from EPB, Taipei City
Government

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

Commitment

Non-corruption

Refuse to offer or accept any improper
advantages.

Human rights andlabor conditions

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

Environmental
protection

Comply with environmental protection
regulations.

Anti-conflictmineralsComply with Tatung anti-conflict mineral policy.

Corporate social
responsibility

Comply with Tatung’s and the suppliers’ ethicaland sustainable development policies.

Declaration of Minerals ConflictFree from Tatung Company
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Highlights

Introduction and management on suppliers
Tatung groups its suppliers into four categories; each category has its own introducing procedures andmanagement standards. The introduction of the new supplier in Category I requires on site assessment by
evaluation team. The assessment content mainly includes design, technical capabilities, quality management,
manufacturing capabilities and management capacity. The introduction of the new supplier in Category II
requires only document review. For construction category, the introduction of the new supplier requires onsite assessment. Starting from 2018, CSR related contents were incorporated into on site assessment for
all BUs. In addition, Tatung also evaluates the management of hazardous substances (RoHS and REACH),
conducting safety measures for hazardous job, and implementation of environmental management system
as an extra evaluation for introduction of a new supplier. The detailed management measures are shownon Table 4.1-2 and Figure 4.1-3 (Category I as an example). The supplier with assessment result above B
grade can then be introduced. All suppliers are requested to sign procurement contract and commitment
letter.

Identification on
the stakeholders &material topics

Profile of
Tatung Company

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

Category 1
1. Important materials (parts, components,
half-ready products, and products).

Sustainable
governance

2. ODM/OEM
Classification Criteria

Sustainable
environment

Annex

64

3. Outsourcing (including full case,manufacture only, product only).

Category 2
1. Suppliers, who provide raw materials,
ready to sale products, imported
components, with less quality risks.

Construction

OthersSuppliers who build factory, apartment, officebuilding, system installation, or repair project.

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

2. Suppliers who are world famous company
with top capability in product and QA/QC.

3. Technical maintenance service.

4. Significant to product quality that need
intensive management and tutoring.

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

For suppliers (construction category not included) who already cooperate with Tatung are implemented
monthly assessment1 in aspect of quality, delivery, price, and service (Figure 4.1-4). Any non-conformities
found will be requested to correct. An annual re-evaluation2 is periodically implemented for main components
suppliers, listed component suppliers, and outsourcing suppliers (Figure 4.1-5). The annual re-evaluation
is focusing on suppliers’ operation policy, CSR policy, quality management, R&D capability, manufacturing
management, servicing ability. Tatung wishes the suppliers who collaborate with us can grow strong
together. As 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.

Introducing ProcedureManagement

On-site assessment
Sign procurement contract
Sign commitment letter

1. Monthly assessment
2. Annual re-evaluation

Document review
Sign procurement contract
Sign commitment letter

Monthly assessment

On-site assessment or document review
for existed cases
Sign procurement contract
Sign commitment letter

Evaluation after the case is completed

Sign procurement contract
Sign commitment letter

Monthly assessment

Note1: Increasing or decreasing procurement amount based on the result of monthly assessment.
Note2: Maintaining business or searching for second source based on the result of re-evaluation.
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Provide samples
for inspection

Supplier

R&D

PASS

Table ofContents

Procument(including CSR topics)

On-siteassessment

Grade B: 3.09%

QA/QC

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Grade A: 96.54%

Grade C/D: 0.36%(including CSR topics)

Top manager in BU

Education based on
document review andon-site assessment

Procurement division

Manufacturing

PASS

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

Input into supplier
database and undermanagement

Figure 4.1-4 Result of suppliers’ monthly assessment in 2021

Sustainable
governance

PASS

PASS

Responsible
supply chain,product safety &customer service

Monthlyassessment

Grade A: 13.33%
Grade B: 85.00%

BUs

Grade C/D: 1.67%
Happy workplace& social
participation

Sustainable
environment

Yearly re-evalution(including CSR topics)

Removing fromsupplier database

FAIL

Re-examing

Annex

Figure 4.1-3 Supplier introducing and managing procedures (Category I)
66

Note: Grade A and B are qualified suppliers; Grade C is failed from annual re-evaluation. If BU managers
require them to be re-examined, the failed suppliers have to be improved within limited time and to be reexamined again. The percentage for Grade C was 1.67%. The main reason is lack of document management,
and it had been improved after the counseling and re- examined.
Figure 4.1-5 Result of suppliers’ annual re-evaluation in 2021
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4.2 Product Responsibility
DMA
An explanation of why
the topic is material
Product quality and safety are
the most basic responsibilities ofa company. If customer sufferedproperty losses and physical harm
due to product problems, it is not
only violating laws and regulations,but also seriously affecting the
reputation of the company andcausing customers to distrust thebrand of the company.

Product quality and safety
Boundary for the material topic
Tatung and its subsidiaries.

Specific limitation regarding
the topic Boundary

Purpose of the
management approach

Performance disclosure is limited
to Tatung Co.

Through implementing internal
control system and ISO 9001 in
the company, we can grasp theissues or problems generated ineach factory and outside and therequirements of stakeholders,so that quality and safety
management resources can beeffectively used, and the policies
and goals can be achieved.
Departments, which affect quality
and safety, well plan and operate
to achieve quality enhancement,
industrial waste reduction,and good quality and safety
management benefits.

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

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68

Goals and targets
Short-Term Targets:
1. All the products are compliedwith product inspection andsafety regulations as well as
customer requirements.
2. Strive for product awards orcertification.
3. Maintain ISO 9001 certification
and TAF certified laboratories in
the factories; establish Tatung
Meter Laboratory and pass TAF
certificate.
4. Meet annual quality KPI.
Mid-Long Term Targets:
Treat zero defects as the only
standard for management andoperations.

Responsibilities
1. Comply with national andinternational standards.
2. Products that meet customer
requirements.
3. All home appliances of Tatungare covered by product liability
insurance.

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

Mechanisms for evaluating theeffectiveness of the management
approach
1. Each factory holds regular/
irregular quality meetings toreview internal and external
quality issues within thefactory. If any defects occur,
an improvement plan will be
proposed immediately andimplemented.
2. Audits the quality management
status regularly of each factoryby internal control.

Policies

Commitments

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

Tatung guarantees product safety
and provides quality services.

Results of the evaluation of the
management approach

Related adjustments to the
management approach

Performances in 2021:
1. All factories’ ISO 9001 passannual audit.

NIL

2. No. of products violated
product inspection and labeling
regulations: 0.
3. Smart IP66 Roller Table Motor(TENV) was won the 30th
Taiwan Excellence Award.

3. Enhances Key Performance
Indicators (KPI) management
methods to set quarterly quality
goals every year. Proposes
specific methods for achieving
the goals for projects that failed
to meeting the goals.
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Quality Management
Product quality and safety is the keystone of sustainable operation for a company. By providing
high quality and safe products can build the brand image, enhance competitiveness and createhigh-profit, low-risk business model, and achieve a win-win situation for consumers and company.
Based on this philosophy, Tatung has established ISO 9001 and passed the certification (asshown in Table 4.2-1) in the factories and strictly follow and implement the management
mechanism of this system to ensure the production of stable quality products, enhance brandimage, strengthen customer confidence, expand market and achieve the goal of sustainablebusiness.
Tatung is constantly improving product quality by using quality key performance indicator (KPI)
and setting quality targets as the target of quality achievement every year. The factories regularly
audit the quality control projects every month, and continuously strive for perfection in all aspectsof quality according to the P-D-C-A management cycle, in order to continuously improve productquality and achieve quality goals at all stages. The detailed process of management andimplementation is shown in Figure 4.2-2.

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

Registered products

Taoyuan 1st Plant

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

San-Hsia Factory

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

Profile of
Tatung Company

Sustainable
governance

Setting Annual
Quality Targets

Quality
Performance
Review

Confirm Quality
Improvement
Activities

Measure Annual
Quality Results

Tayuan Plant

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Taoyuan Wires andCables Plant
Sustainable
environment

Annex

Key Performance Indicator

Meter Factory

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

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

Design, manufacturing and sales of Electricity Meters.

Figure 4.2-1 Quality KPI management flowchart
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As to ensure the quality of the products and management of hazardous substances, Tatung has
its own Calibration Lab in headquarter to provide accurate measuring and calibration testing
services. In the factories, Tatung has Transformer Testing Lab, Switchgear Testing Lab, Air
Condition Facility Testing Lab, Motor Testing Lab, Generator Set Testing Lab, and Tatung Meter
Lab in the factories (as shown in Table 4.2-2) to provide the assurance of excellent quality.
For the management of hazardous substances, in addition to sending the samples to third
parties for testing (RoHS, REACH, etc.), Tatung has Tatung Environmental Research Centerin headquarter which specializes in hazardous substances testing for electrical, electronic
components, and finished products. Tatung also monitors internally to ensure the safety andhealth of our customers.

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Table 4.2-2 Tatung’s TAF certified laboratories
Name

Certified No.

Testing Items

Register Date

Calibration Lab

0003

Measuring and calibrating of products

1990.06.01

Tatung Transformer
Testing Lab

2306

Transformer testing

2010.12.27

Air Condition Facility
Testing Lab

2270

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

2011.01.20

Tatung Switchgear
Testing Lab

2308

Switchgear testing

2011.03.23

Tatung Generator Set
Testing Lab

2442

Generator testing

2011.10.12

Tatung Motor
Testing Lab

2613

Motor testing

2012.07.01

Tatung Taoyuan Wire
and Cable Testing Lab

2964

Wires, cables, and busway testing.

2015.04.29

Tatung Meter
Laboratory

3773

Meter Testing2021.01.20

Profile of
Tatung Company

Sustainable
governanceISO 9001 certificates
Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

Certificates of TAF certified laboratories
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Sustainable
governance

Product Safety
Most of the countries make the laws and regulations in regarding to product’s quality and safety
in order to protect their citizens. Brand owners must pass all the tests and acquire certifications
then can put their products into markets. In order to comply with related regulations among
the world, Tatung designs and manufactures the products (including ODM/OEM products andaccessories) to meet the requirements of the regulations. At first, the samples must pass the tests
and managed by SAP management system. After all test results have met the requirements, bulk
production and sales then can be arranged. Table 4.2-3 lists the relevant regulation requirements,
standards and verification internationally adopted by Tatung.
In addition, for the defected products that have been sold, Tatung makes recall on BSMI official
website3 and TCPC website to prevent the consumers getting harmed from further using ofsuch 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) andincorporated into Design Guideline Check List measures to prevent recurrence. Tatung will dothe best for providing consumer healthy, energy-efficiency, and safe products.
In response to some defected dehumidifiers, BSMI announces recall messages every year.
Some models of Tatung’s dehumidifiers are on the recalled list (Models: TWD-500B, TWD510B, TWD-511B, TWD-711B, TWD-710B, TWD-660B, TDH-200HB, TWD-1400B, and TWD1400BL). Consumer who has these particular models can make a phone call to Tatung or TCPC
and the specialist will visit your place for service free of charge. Tatung 3C also launched thedehumidifier replacement campaign in 2021 to provide preferential repurchase programs for theabovementioned models to attract consumers to review the models of dehumidifiers in order toincrease the number of recalls.

Standards, certifications, and verifications

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

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

Smart Meter BU

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

Appliance BU

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

AdvancedElectronics BU

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

Heavy Electrical
Equipment BU andSmart Energy BU

Apply according to customer’s product requirements.

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

Happy workplace& social
participation

Sustainable
environment

74

Business Unit

Note 3: https://safety.bsmi.gov.tw/wSite/mp?mp=65

Responsible
supply chain,product safety &customer service

Annex

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

Figure 4.2-3 Tatung 3C dehumidifier replacement
campaign in 2021

TWD-500B

TWD-510B

TWD-511B

TWD-710B

TWD-660B

TWD-200HB

TWD-1400B

TWD-1400BL

TWD-711B

Figure 4.2-2 Dehumidifiers that need to be recalled
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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 the products (including ODM/OEM products) with required information on the products or
its package in accordance to related regulations. In addition, Tatung also includes the instruction
guide, maintenance guide and notice in the packages (as shown on Figure 4.2-4) to provide theconsumers with sufficient information to use the products safely and correctly.
Taking Taoyuan 1st Plant as an example, for the management of product labeling, the responsible
personnel checks the labeling content in the design and verification stage, relevant functional
personnel will also be arranged to participate in the product labeling seminars to understand thelatest regulatory requirements and ensure that product labeling is in line with regulations andcustomers. We also cooperate with the BSMI to conduct regular/irregular market spot checks toensure the correctness of product labeling.
In 2021, we did not have any violations against product labeling related regulations. We willcontinue to aim to comply with the relevant regulations on product labeling and carry out relevant
control operations.

Product Hazardous Substances
Information
Tatung follows relevant regulations on hazardous substancesin products and in accordance with our “Environmental
Prohibited and Restricted Substances Management
Procedures”, through effective management on the supply
chain and production control, as well as reviews thecontent of hazardous substances in the products in the
product development verification stage to ensure that thehazardous substances in the products meet the standards
and protect the health and safety of consumers. In addition
to fully disclosing the contents of hazardous substancesin the product manuals (Figure 4.2-5), we also disclosesuch information on Tatung’s official website “Hazardous
substances in products”4 section (Figure 4.2-6), which fully
protects consumers’ right to know.

Note 4: https://www.tatung.com/Content/csr-product-restrict.asp

Profile of
Tatung Company

Figure 4.2-5 Hazardous substances containing
information (e.g. Electric Fans)

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

Figure 4.2-4 Product labeling and instruction (e.g. Electric Fans)
76

Figure 4.2-6 Hazardous substances in products section on the official site
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4.3 Sales and customer information management
DMA
An explanation of why
the topic is material
Comply withregulations (especially
Personal Data
Protection Act).

Customer privacy management
Boundary for thematerial topic
Tatung and its
subsidiaries.

Tatung takes great
concern on it.

Specific limitation
regarding the topic
Boundarymaterial topic

Purpose of the
management approach

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

Enhance the securityof personal data
maintenance andmanagement to prevent
personal data from being
stolen, altered, damaged,
lost and leaked.

Identification on
the stakeholders &material topics

Resources
Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

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78

In accordance to ISO
27001:2013 / BS10012:2017 / Personal
Data Protection Act /GDPR

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

Specific actions
New employees need to sign a confidentiality andnon-competition agreement.
Customer service personnel who contact thecustomer’s personal information will be understrictly access control and forbidden to contact
customers privately without the authorizationof the supervisor to avoid the loss of important
personal information.
Strengthen the security control management of
website information: Import appropriate protection
mechanisms and monitoring software, conduct
regular penetration testing and source code
detection to prevent improper access and protect
customer personal data.
Strengthen information safety awareness:
Regularly hold personal information andinformation security training courses andimplement tests after class to ensure theemployees fully understand the importance of
personal information.
When customers join membership, they will be
notified in accordance with Articles 8 and 9 of the“Personal Data Protection Act”.
Set up a contact window to provide the parties
with the right to exercise their personal data or filerelated complaints and consultations.

Policies

Commitments

Goals and targets

Formulated personal dataprotection policies, andthe collection, processing
and use of customer
data are in compliancewith the “Personal
Data Protection Act”
and related laws andregulations.

Uninterrupted service,
no loss of information,
personal information notleaked, and enterprisesustainable operation.

Ensure the confidentiality,
integrity, availability andcompliance of eachservice.

Related businessdepartments.

Mechanisms for evaluating the effectivenessof the management approach

Results of the evaluationof the management
approach

Related adjustments
to the management
approachEstablished Tatung Information Security and the
Personal Information Protection Committee andhold monthly meeting.

1. No. of incidents inregarding to violating
customer privacy in
2021: 0.

NIL.

Conducts information security and personal
information protection education and testing
regularly.
Conducts internal audit regularly.
Introduces outsourcing consultants to counsel andimprove.

Responsibilities

2. No. of complaints inregarding to violating
customer privacy in
2021: 0.

Conducts management review meeting every
year.

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Profile of
Tatung Company

Fair Trade and Anti-Trust Behavior
Companies engaging in business activities shall comply with fair trade laws and relevant
regulations, and shall not fix prices, rig bids, limit production and quotas, or share or divide
the market by allocating customers, suppliers, operating areas or business types. Directors or
managers shall treat the company’s purchase (sale) customers, competitors and employees
fairly, and shall not use manipulation, concealment, misuse of information they have collectedbased on their duties, misrepresentation of important matters or other unfair dealing methods.
Tatung has relevant regulations in “Ethical Corporate Management Best Practice Principles” and“Procedures for Ethical Management and Guidelines for Conduct” to prevent such activities. In
addition, through contract control, it is clearly stipulated that Tatung and its distributors shall not
conduct malicious price-cutting competition or intentional damage to the image, so as to ensurethat there is no anti-competitive behavior. In 2021, Tatung has no violation against fair trade orsales related laws and regulations.

Table 4.3-1 Tatung consumer protecting measures

1. When providing products or services, it should be ensured that the products or services
meet the safety requirement that can reasonably be expected by the technology or
professional standards at the time.
Customer healthand safety

Customer privacy

Sustainable
governance

Responsible
supply chain,product safety &customer service

2. Providing consumers with channels and methods for terminating or canceling contracts,
returning products and refunds.
Product marketingand labeling

3. If the terms of the contract stipulate that the consumer must pay cancellation money whencanceling the contract, the amount should be proportional to the damage that may becaused by the cancellation of the contract.
4. If the trial period of products or services is provided, consumers should be clearly andfully informed about the trial period, relevant discounts and possible charges after the trial
ends. If there are charges, consumers should be notified in advance and their consent
should be obtained.
5. Product labeling is handled in accordance with the relevant regulations to protect the rights
and interests of consumers.

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80

Tatung protects consumers’ privacy in accordance with the Personal Data Protection Act,
collect, process and use consumers’ personal data in a legal, transparent and fair manner,and provide reasonable security protection measures.

1. Advertising contents and marketing information shall be clear and shall not conduct
misleading, fraudulent or unfair commercial, advertising and marketing activities.

Happy workplace& social
participation

Annex

2. If the use of products or services have the potential to endanger the life, body, health,or property of consumers, warning signs and emergency handling methods should belabeled at obvious places.
3. When there are facts that confirm that the products or services provided by Tatung may
endanger the safety and health of consumers, the products should be recalled and theservices should be terminated immediately.

Protecting Consumer Rights
Tatung has a policy to protect the rights and interests of consumers. The policy has appropriate
regulatory measures for customer health and safety, customer privacy, product marketing andlabeling. If consumers are dissatisfied with Tatung’s products or services, Tatung provides
channels for complaints and a special person will handle and reply to the consumer. In 2021,
Tatung has no major customer complaints. Table 4.3-1 shows Tatung’s consumer rights protection
measures.

Descriptions

Items

Complaint
proceduresConsumers can provide valuable opinions on Tatung’s products and services through the“Customer Service”5 and “Stakeholders”6 on the company’s official website, which will beproperly handled by special personnel, and the results will be replied to the consumers.

Note 5: https://www.tatung.com/Content/service.asp
Note 6: https://www.tatung.com/b5/appeal.asp

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Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Wide-spread service
locations and convenient
shopping experiences
Tatung upholds “customer first”, “having
only one phone call, the service is to” andaims to provide fast and excellent services
to customers. Tatung lists the service
channels on the official website for all thebusiness, including TCPC, information(OA), commercial air conditioners, power
equipment, smart grid business, systemsolution business, and etungo online
shopping, etc. Tatung entrusts her
subsidiary company “TCPC” to provide a
comfortable shopping environment (Tatung
3C Store) as well as excellent after-saleservices to consumers. TCPC currently
has 152 Tatung 3C Stores7 (including 5
Appliance Branding Stores) spreading from
cities to countries, providing professional
recommendations on purchasing houseappliances and repairing services. In
addition, TCPC launched “etungo”8 online
shopping website and Tatung Fans App toprovide wide variety of product in 3C, houseappliances, and living products. Besides,
Tatung runs Tatung Fans9 site and Tatung
Rice Cooker Fans site10 on Facebook toprovide instant news and living tips.

etungo online
shopping website

FB for Tatung fans

FB for Tatung
Rice Cooker fans

Due to market trends and the COVID-19 epidemic, it restricted the scope of people’s activities, and shopping behaviors
may occur online and offline at any time and it also inspired us to develop this mobile app. Therefore, we integrating
services such as online shopping, recipes, and smart appliances allows users to enjoy a seamless and complete digital
life experience. We hope to help the world and make users enjoy a convenient life. In 2021, we were awarded the “2021Digital Transformation Model Award” by the TEEMA Electronics Association.
Tatung 3C won 2021 Digital Transformation Model Award

Happy workplace& social
participation

Sustainable
environment

Annex

82

Note 7: As of 2022.03.10
Note 8: www.etungo.com.tw/
Note 9: https://www.facebook.com/tatung.tw/
Note 10: https://www.facebook.com/ricecooker50/
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Statement

Table ofContents

In order to provide a more convenient customer service, TCPC has online service11 that theconsumers can access to official website making service request (Figure 4.3-1). The system willassign the service request to the accordance service station and provide rapid and high quality
services. The consumers can also check the repairing progress by assessing online webpage12(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 thechannels for listening to the customers, Tatung also provides a service phone-line13 and an
online feedback service14 which customers can ask questions, express their opinions and give
positive feedbacks to us (Figure 4.3-3).

98.0%

2021 CSR
Highlights

97.0%

97.4%

Figure 4.3-1 Product online service form
Responsible
supply chain,product safety &customer service

97.2%

97.0%
96.2%

95.9%

96.0%

Sustainable
governance95.72%

95.5%
95.0%

95.3%

95.3%

94.5%

Happy workplace& social
participation

84

97.3%

96.5%

Profile of
Tatung Company

Annex

97.6%

97.5%

Identification on
the stakeholders &material topics

Sustainable
environment

Tatung takes great concern on customer satisfaction. When a customer makes purchase or approaches Tatung 3C
Stores to repair products, Tatung will make his/her information to phone interview list and interview about shipping or
repairing experience. If the feedback is unsatisfied, Tatung will conduct a second service and make improvement. We set
consumer satisfaction targets for shipping service to be not lower than 97%, repairing service to be not lower than 94%.
The results (Figure 4.3-4) in 2021 are 97.2% satisfied for shipping service and 95.7% satisfied for repairing service. The
set targets were achieved. Tatung will continue to listen to the voices of consumers, respect and serve customers.

94.0%

Figure 4.3-2 Inquiry page for repairing progress

Figure 4.3-3 Online feedback form

Note 11: http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_100.asp
Note 12: http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_200.asp
Note 13: Free service phoneline: 0800-052-666. For mobile phone, please dial: 02-2591-5068.
Note 14: http://www.tatung.com.tw/home/suggestion

2017

2018

Shipping service

2019

2020

2021

Repairing service

Figure 4.3-4 Results of consumer satisfaction
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Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Information Security Management

Convenor

In response to personal information protection and information security needs, Tatung establishedthe Information Security and the Personal Information Protection Committee as early as 2014,
continuously obtained BSI third-party certification, passed the ISO 27001 information security
management system verification (Validity period of the certificate: 2020.12.31~2023.12.30), andensured the security of the company’s personnel, data, information systems, equipment andnetwork in accordance with the requirements of the BS 10012 personal data protection standard.
To ensure the safety of the company’s personnel, data, information systems, equipment andnetwork, establishing an information security policy as the highest guiding principle of thecompany’s information security management system, achieving the goal of “uninterrupted
service, no loss of information, personal information not leaked, and enterprise sustainable
operation”.
The actual implementation method is based on the pre-emptive and risk reduction pre-existing
issues. Through the discussion of the Information Security Annual Meeting and the emergency
response, the review of the new internal and external security issues will be carried out to theannual plan. In the activities of the planning, the security management review meeting will beheld each year, and the results of this year’s implementation and the budget plan for the next
year will be reported. The annual activities include semiannual external audits, two outsourcing
consultants’ external counseling every year, and an annual internal audit of the audit committee
to determine the implementation status of the information security management system andwhether to achieve the information security objectives of confidentiality, integrity, availability andcompliance of each service.
In response to changes in the social environment, laws and regulations, and technologicaladvancement, Tatung has formulated a privacy protection statement. The collection, processing
and use of customer data are in compliance with the “Personal Data Protection Law” and related
laws and regulations and properly protect the personal data of customers. The summary of key
control measures is shown in Table 4.3-1. In 2021, there was no complaint related to infringementof customer privacy or loss of customer information. In addition, in recent years, there have beencases of fake official community accounts for fraudulent use. When we were informed of suchnews, we immediately went to the company’s official website and our social group to announce
warning messages to prevent consumers from being victimized.

PM / Executor

Training andnews group

Party’s right claim
response group

Annex

86

IT support andincident reaction group

Risk evaution
group

Operation
sustaining group

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

Table 4.3-2 Key personal data protection management and control measures
Management systems

Happy workplace& social
participation

Sustainable
environment

Audit and management
flow optimizing group

Tatung has passed ISO 27001 certification and complies with the BS 10012 personal
data protection standard.
1. Customer service personnel who contact the customer’s personal information
will be under strictly access control and forbidden to contact customers privately
without the authorization of the supervisor to avoid the loss of important personal
information.

Management andcontrol measures

2. Strengthen information safety awareness: Regularly hold personal informationand information security training courses and implement tests after class toensure the employees fully understand the importance of personal information.
3. Strengthen the security control management of website information: Importappropriate protection mechanisms and monitoring software, conduct regular
penetration testing and source code detection to prevent improper access andprotect customer personal data.

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Table ofContents

2021 CSR
Highlights

Profile of
Tatung Company

Sustainable
governance

EMPLOYMENTMARKET PRESENCEEMPLOYEE PERFORMANCE
MANAGEMENTEDUCATION AND
TRAINING

HEALTH AND SAFETYTARGETSTARGETSTARGETSTARGETSTARGETSTARGETS

Short-Term Target:

Short-Term Target:

Short-Term Target:

Short-Term Target:

Short-Term Target:

Short-Term Target:

1. The retention rate of new
recruits after the 3-monthtrial period is over 80%.

Tatung against employment
discrimination, and provides
equal job opportunities
for all job seekers anddisadvantaged groups.

Continue to ensure the basic
salary is better or equal tolegal salaryThrough performance review
to ensure that employees
pay attention to correct
performance projects
and review the daily work
performance to link withcompany strategies.

The total training time is morethan 28,000 hours and training
satisfaction higher than 90%

1. All 4 factories pass ISO
45001 annual re-audit.

Mid-Term Target:
Actively encouraging
employees to set up morediversified activity clubs,
allowing employees to freely
assemble and participate inassociations, communicate
with each other, andpromoting the efficiencyof cross-departmental
communication.
Long-Term Target:

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

88

Happy workplace andsocial participation

HUMAN RIGHTS,
EQUALITY AND
NON-DISCRIMINATIONS

2. No major labor dispute.
Identification on
the stakeholders &material topics

Happy workplaceand social participation

Follow labor-related laws
and regulations, continue towork hard to create a happy
working environment, andcare all employees equally.

PERFORMANCE
IN 2021
1. The retention rate of
Tatung’s new recruits after
the 3-month trial period
is 84.16%, which hasreached the target.
2. No major labor dispute.

Mid-Term Target:
Tatung continue to work hardto create a happy working
environment, and care all
employees equally.

Mid-Long Term Target:
Designs a reasonableorganizational structure anddeploy talents of all levels
according to the company’s
strategic development
direction.

Long-Term Target:
Tatung regards all
employees as an important
asset for the company’ssustainable development,
and follows labor and otherrelated laws and regulations
regarding labor rights andhuman rights.

PERFORMANCE
IN 2021
No violation against Act
of Gender Equality in
Employment.

PERFORMANCE
IN 2021
The ratio of basic salaryfor female and male is 1:1;
the ratio of basic salaryand legal salary for migrant
workers and technicians are
1:1 and 1:1.04; for staffs isfrom 1.25~1.50:1 based on
different job types, specialty
and qualifications.

Mid-Term Target:
Giving rewards foroutstanding personnel;
coaching personnel withpoor performance for
improvement.
Long-Term Target:
Using long-term performance
review system to identify
potential talents, and linkwith promotion or salaryadjustment.

PERFORMANCE
IN 202195.83% of employees was
conducted with performance
review (employees inprobation period, leave ofabsence, and short-term
contract were not included).

Mid-Term Target:
To enhance the inheritanceof professional knowledge,
technology and experience ofeach business department andunit. Continue to strengthen
the course training related toorganizational managementand development to create
a competitive advantage for
growth and appreciation oftalent assets.

2. At least 95% correction rate
for non-conformities foundin Accident Prevention
Pays Program.
3. FR and SR are reduced by
10% each year.
Mid-Long Term Target:
Zero disaster.

Long-Term Target:
Optimize the behavior, ability
and attitude of the employees
through training, make every
effort to exert their strengths
in the job position, drive theimprovement of organizational
performance, and assist in theachievement of the company’sbusiness goals and the practiceof vision and mission.

PERFORMANCE
IN 2021

PERFORMANCE
IN 2021
1. Factories with ISO 45001
passed annual certification.
2. The correction rate of
Accident Prevention Pays
Program is 100%.
3. FR is reduced by over
10%, however, SR for male
employees is risen.

1. Total training hours was
21,026 hours due to thesevere COVID-19 andwork-from-home measures.
2. Education and training
satisfaction was 92.40%.

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Management
Statement

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

5.1 Building a friendly working place
DMA
An explanation of why
the topic is material
Employees are an
important asset for thecompany’s sustainable
development, so Tatung
actively cares about
the lives and working
conditions of employees,
ensuring that employees
work in a safe,
satisfactory and healthy
working environment.

Employment
Boundary forthe material topic
Tatung Co. and its
subsidiaries.

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

Policies

Commitments

Responsibilities

Tatung complies with
the Labor Standards
Act, the Act of Gender
Equality in Employment,
the Occupational Safety
and Health Act andother related laws andregulations to achieve
harmony in labor andemployment, and coexist
and prosper together.

Keep up with thelatest trend and revise
Company Rules,
welfares, salaries,
allowances, vacations,compensation foroccupational accidents,
etc. to give equal careamong employees.

1. Establish andimplement theprotection ofcomplainants and theprevention of illegal
infringements in theperformance of theirduties.
2. Establish a workplaceenvironment thatvalues ​​human rights.

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

90

Resources

Grievance mechanisms

Specific actions

Mechanisms forevaluating theeffectiveness of the
management approach

1. Approval of Company
Rules to thecompetent authority
in accordance withthe law, and disclose
within the company.

Tatung has set up“Regulations ofProcessing Employees’Complaints” to quickly
and satisfactorily handle
disputes caused by theemployees during theirwork.

1. Broaden recruitment
channels.

Performance disclosure
is limited to Tatung Co.

2. Establish thepersonnel rules in the
Company Rules andrelevant methods.

2. Optimize the salaryand remuneration
system.
3. Expand employee
welfare measures.

Results of the evaluationof the management
approach
Performances in 2021:
1. The retention rate of
Tatung’s new recruits
after the 3-month trial
period is 84.16%,
which has reached thetarget.
2. No major labor
dispute.

Related adjustments
to the management
approach
NIL

Purpose of the
management approach
1. Tatung recruits diverse
and outstanding
employees, adheresto the principle ofmeritocracy, injects
new blood into theorganization, brings
new vitality and new
thinking, and continues
to pass on professional
skills and experience invarious positions.
2. In order to promote theharmony between laborand management,
Tatung makes
employees work ina safe and stableworking environment
and establishes aharmonious, mutual
trust, mutual love, andmutual respect of laboremployment relations.
3. The company recruits
a wide range ofoutstanding employees,
adheres to the principleof meritocracy, injects
new blood into theorganization, brings
new vitality and new
thinking, and continues
to pass on professional
skills and experiencein various positions,and attaches great
importance to provide asafe and health working
environment to protect
all employees, andactively implements
various welfares.

Goals and targets
Short-Term Targets:
1. The retention rate of
new recruits after the
3-month trial period isover 80%.
2. No major labor
dispute.
Mid-Term Targets:
Actively encouraging
employees to set
up more diversified
activity clubs, allowing
employees to freely
assemble and participate
in associations,communicate with eachother, and promoting
the efficiency of
cross-departmental
communication.
Long-Term Targets:
Follow labor-related
laws and regulations,continue to work hard tocreate a happy working
environment, and care all
employees equally.

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2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

The recruitment policy of Tatung is based on the principle of meritocracy. It does not discriminate
against any age, gender or race but only take applicants’ talents into account. The recruitment
process follows the relevant regulations and selects the right applicants in a fair and equitablemanner. Table 5.1-1, Figure 5.1-1, and Figure 5.1-2 demonstrate the employee compositions of
Tatung. Tatung has more than 95% of local employees and 1.74% of disable employees which
is more than the requirement by the regulation.

94.82%

93.00%

93.23%

94.25%

95.01%

Local
Employee

80.00%

Migrant
Worker

10.00%
0.00%
Annex

2017

7.00%

2018

6.77%

2019

5.75%

2020

4.99%

2021

Figure 5.1-1 Percentages of local employee and migrant worker
92

670

644

208

209

78

1,218

436

649

225

2017

5.80

1.27

4.92

1.30

0.94

0.16

2019

Percentage
of New
2.58
Recruits
(%)

2021

1.90

2019

240

No. of
Employees

2021
2018
2020

Younger than
30 years old

173

86

1,274

57

436

1,130

398

657

217

613

30~50
years old

Over 50
years oldMale Female Male Female Male Female

207

439

14

No. of
Managers

214

5

493

106

247

40

8

6

448

105

225

43

4

7

438

130

242

51

4.72

0.85

6.25

1.50

2.54

0.75

4

7

6

438

3

420

119

241

122

46

241

55

5.38

1.12

5.85

1.25

1.39

0.14 Percentage 3.52

0.88

6.52

1.96

3.99

0.88

3.91

2.45

2.95

1.88

1.49

0.46

2.42

4.80

2.13

3.77

0.96

2017

2,291 155 58

0.62

0.46

5.12

1.65

2.28

0.89

1.48

2.13

of
Employee
Leaving
(%)

0.34

0.15

2018

2,206 203 54

2019

2,171 194 43

2.58

0.69

3.98
2.28

5.81

0.85

5.38

2020

2,076 160 38

2.41

3.26

2.48

0.69

6.34

1.47

2021

1,916 127 35

TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:

PART-TIME:

PART-TIME:

PART-TIME:

PART-TIME:

PART-TIME:

731

5.18%

460

1,289

754

GENERAL STAFF:

1,537

4

11

TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:

20.00%

1,342

105

779

40.00%

112

273

338

50.00%

30.00%
Sustainable
environment

279

1,953

60.00%

Over 50
years oldMale Female Male Female Male Female

2017

2018

30~50
years old

Note: The retention rate of new recruits after the 3-month trial period is 84.16%.

90.00%

70.00%

Younger than
30 years old

Year

2020

Employee Diversity

100.00%

Table 5.1-1 Employee compositions (by ages)

PART-TIME:

48

151

GENERAL STAFF:

628

1,822
384

752

681

GENERAL STAFF:

1,525

5

4

TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:

726

PART-TIME:

26

154

GENERAL STAFF:

568

1,786
385

739

683

GENERAL STAFF:

1,488

3

11

TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:

699

PART-TIME:

40

172

GENERAL STAFF:

567

1,717
359

739

684

GENERAL STAFF:

1,392

2

10

TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:

699

PART-TIME:

40

188

GENERAL STAFF:

551

1,623
293

669

667

GENERAL STAFF:

1,249

2

10

TYPE OFJOB TITLEEMPLOYMENTFULL-TIME:MANAGERS:

649

PART-TIME:

20

180

GENERAL STAFF:

489

No. of disabled employees

Happy workplace& social
participation

Tatung takes great concern on human rights. All the employees, applicants and suppliers aretreated with dignity, fairness and respect regardless of their race, religion, party affiliation, placeof birth, genders, marriage status, disables, appearance, disability, or union membership, etc.
Commitment s of respect and ensure the benefits of labors, fulfill social responsibility and comply
with regulation are clearly stated in our Labor Policy. Tatung hires one handicapped worker per
every 100 workers and provides equal opportunities for minority groups.Tatung also stipulated“Sexual harassment prevention, control, appeals, and disciplinary measures” and published on
the internal website. Sexual harassment in any forms is strictly prohibited in any working placesin Tatung. There was no discrimination and anti-human right incident in 2021.

No. of migrant workers

Responsible
supply chain,product safety &customer service

An Equaled Working Environment

Note: The members of senior managers (deputy plant/general manager and above) are all Taiwanese. There were 4 disabled
employees who are in job title of managers in 2021 (0.50%).

Figure 5.1-2 Employee compositions (by genders)
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2021 CSR
Highlights

Human Rights Training

Freedom of association and collective bargaining

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

Tatung Labor Union was founded in 1959 for the purposes of taking care of labors’ rights, improving labors’ living
standard, conducting collective bargaining, etc. Each employee has freedom choice to be the member of the union.
Currently Tatung has totally 5 labor unions distributed in the HQ and factories. Tatung does not interfere with the willsof the employees to join labor unions. In 2021, 75.24% of employees are the members of labor unions (Figure 5.1-3).

82.00%
80.00%

74.00%

Happy workplace& social
participation

Sustainable
environment

Annex

94

70.00%

70.65%

Responsible
supply chain,product safety &customer service

72.00%

68.00%
66.00%

2017

2018

2019

72.01%

Sustainable
governance75.24%

Profile of
Tatung Company

76.00%

77.30%

78.00%

79.35%

Identification on
the stakeholders &material topics

2020

2021

Figure 5.1-3 Percentage of employees who are labor union memberChild labor and forced labor
Tatung’s recruiting policy is in line with the regulations. Hiring child labor is not allowed by Tatung. In “Company Rules”
we defined the working hours for a day and for a week. If there is necessary to adjust or prolong the working hours,
the practice only can be implemented after getting the agreement from the labor union or the employee. There was noforced labor situation in 2021.
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Parental leave

WelfareTatung 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 5.1-2.

Tatung Welfare Committee handles a broad range of employee welfare issues including: daily activities, financial
assistance for education, funeral assistance, and interest free installment loans. Table 5.1-3 shows employees’ welfare
implemented in Tatung Company. In addition, Tatung provides staff dormitories with convenient transportation andbeautiful environment, so that employees are not only financially trouble-free, but also enjoy Safe and convenient living
environment. Besides, in order to provide female employees a more comfortable and more convenient way to nurture

Table ofContents

2021 CSR
Highlights

Table 5.1-2 Tatung employees parental leave statistics

Identification on
the stakeholders &material topics

No. of employees that took parental leave in 2021.
Profile of
Tatung Company

Sustainable
governanceApplication
and return
to work fromparental leave

Responsible
supply chain,product safety &customer service

Annex

No. of employees who returned to work after parental
leave ended in 2021.

No. of employees that applied and returned to work in
2020.

Retention
rate

Female

2

10

2

5

Chartered train service for returning homeduring the Chinese New Year

Table 5.1-3 Employees’ welfare

Return to work rate

Happy workplace& social
participation

Sustainable
environment

No. of employees that shall end parental leave in
2021.

Male

the next generation without having tosacrifice 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 birthgift for female employees. Although thecompany is affected by the global Covid-19
pandemic in 2021, Tatung has not reduced
its welfare measures for this reason, andcontinues to work hard to create a happy
workplace and handle diversified welfare
measures.

No. of employees who returned to work after parental
leave ended who were still employed 12 months after
their return to work in 2020.
Percentage of employees who returned to work afterparental leave ended who were still employed 12months after their return to work in 2020.

1

50%

1

1

100%

3

60%

Employees’ welfare

Implementations

Stock ownership

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

Subsidies

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

Benefits

Employees can purchase company products via zero-interest installments andprice discounts on groceries in corporate stores. Free movie shows and special
trains in Chinese New Year.

Club activities

Education, recreation, physical education, languages, hiking/mountain climbing
and photography.

Health and safety plan

Labor insurance, health insurance, group insurance, retirement pension, freeannual health checkup.

5

3

60%

Note: The reason for not returning to work is they changed jobs due to personal career planning.
96

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Management
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Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

5.2 Good working conditions and career development
DMA
An explanation of why the
topic is material
Tatung attaches great
importance to the recruitment
and promotion of talents andadheres to the principle ofmeritocracy. Tatung does
not discriminate against
any age, gender, race, andselect talents based on
performance, and provide
reasonable salary andbenefits for employees.

Market presence
Boundary for thematerial topic
Tatung Co. and its
subsidiaries.

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

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

98

Purpose of the
management approach
Tatung regards employees
as an important asset forthe company’s sustainable
development. Due tothe deterioration of theemployment environment,
the starting salary for
freshmen is generally low
in recent years. Tatung, asa deep plowing corporation
for a century in Taiwan, well
protects the salaries andbenefits for its employees.

Responsibilities

Resources

Grievance mechanisms

Specific actions

Building an equal workplaceenvironment for equal pay forgenders.

Tatung announces theappointment method oftechnicians and staffs withclearly statement of the initialsalary standard internally.

Tatung has set up“Regulations of Processing
Employees’ Complaints” toquickly and satisfactorily
handle disputes caused by
the employees during theirwork.

1. Optimizing the salarysystem to provide thebest and most reasonablesalary for the employees.
2. Reviewing and revising
the development of thecompany’s businessstrategy, and recruiting
suitable senior executives
who meet the manpower
needs.

Policies
1. Respect labor, protect
labor rights, and fulfill
social responsibilities.

Commitments

Goals and targets

Tatung upholds the spirit ofgender equality, and does
not have different startingsalaries due to genderfactors, and the startingsalaries for all types of jobs
are superior to laws andregulations.

Short-Term Targets:Continue to ensure thatthe basic salary meets orexceeds the regulations.

Mechanisms for evaluating
the effectiveness of the
management approach

Results of the evaluation of
the management approach

Related adjustments to the
management approach

1. The basic salary ratio of
female employees to male
employees.

Performances in 2021:

NIL

2. Tatung’s labor
management system mustcomply with labor-related
laws and regulations andother requirements.

2. The ratio of each position
to the legal salary.
3. The proportion of senior
managers who are hiredfrom local.

Mid-long Term Targets:
According to the strategic
development direction,
design a reasonableorganizational structure anddeploy talents of all levels.

1. The ratio of basic salaryfor female and male is
1:1; the ratio of basic
salary and legal salary
for migrant workers
and technicians are 1:1
and 1:1.04; for staffs
is from 1.25~1.50:1
based on different job
types, specialty andqualifications.
2. There are 69 senior
managers (deputy plant/
general manager andabove) of the company
are 100% Taiwanese.

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Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

100

DMA

Labor-management relations

An explanation of why the
topic is material

Boundary for thematerial topic

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

Tatung and its subsidiaries.

Goals and targets

Resources

Grievance mechanisms

Specific actions

Short-Term Targets:Through performance review
to ensure that employees
pay attention to correct
performance projects
and review the daily work
performance to link withcompany strategies.

Relevant measures forgender equality are clearly
defined within the Company
Rules.

Tatung has “Chairman
Mailbox” and “HR e-mail”
for the employees tocommunicate withmanagement level.

All departments use
various methods suchas gatherings, e-mails,
electronic newsletters,
or internal documents
to deliver information inregarding to strengthen
anti-discrimination, sexual
harassment related
prevention measures andappeal channels to theemployees.

Mid-Term Targets:
Giving rewards foroutstanding personnel;
coaching personnel withpoor performance for
improvement.
Long-Term Targets:
Using long-term performance
review system to identify
potential talents, and linkwith promotion or salaryadjustment.

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

Organizing Labormanagement Meetings
to communicate with theemployees and solve theproblems.
Tatung has “Measure ofprocessing employees’complaints” and otherpractices in place for theemployees to complain
about any dispute andprovides a channel to dealwith.
HR is the unit responsible
for re-appealing of labor
incidents such as sexual
harassment and labor
relations cases.

Purpose of the
management approach
Provide employees andjob seekers with a working
environment that complies
with laws and regulations,and take appropriate
preventive, corrective,
disciplinary and handlingmeasures to protect therights and interests of theparties, and continue to strive
towards employee harmony.

Policies

Commitments

Responsibilities

Employees are one of thecompany’s important assets.
Human rights, equality,
and anti-discrimination areimportant core values in ourlabor policies.

Tatung’s labor andmanagement relation isharmony. The employees
and the company work
together, coexist and prosper.
The employees contributeto their own company andfactory, and the employees
and management are wellcoordinated.

1. Establish and implement
the protection system on
the employees who makecomplaint.

Mechanisms for evaluating
the effectiveness of the
management approach

Results of the evaluation of
the management approach

Related adjustments to the
management approach

Performances in 2021:

NIL.

Organizing Labormanagement Meetings
regularly or additional
meetings when it isnecessary.
Audit by the authorities.

2. Establish a workplace thatvalues human rights.

Held 12 Labormanagement Meetings
among 3 BUs; audited by
the authorities 6 times;
administrative penalty 0
time.
No. of significant labormanagement disputes.

Employees have theright to apply for theparental leave and return
to work after the expire
of the parental leave inaccordance to relevant
regulations.

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Identification on
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Profile of
Tatung Company

1.60

1.00
0.80

1.33

1.20

1.42

1.40

1.25

0.90

0.88

1.00

0.89

1.00

0.85

0.85
0.75

2017

2018

2019

2020

0.90

0.90

0.90

2017

2018

2019

0.92

0.86
0.84

2021

2020

1.00

0.93

2021

Figure 5.2-2 Salary ratio between female and male employees (by employment type)NT$
800,000
700,000

No. of employees
3,100

2,974

3,000

600,000

2,900
2,833

0

2,701
2,692

2017

2018

Average Salary

2019

Median Salary

2,572

2020

No. of Employees

645,306

100,000

2,800

730,052

Note1: Directors and top level managers are not included.
Note2: Employees who were in probation period, leave of absence, and short-term contract were notincluded.

0.90

596,301

Research staffs(master)

0.92

0.86

676,401

Staffs(mater)0.94

566,890

Research staffs(bachelor)

1.00

0.98

645,975

Staffs(bachelor)

1.00

Staffs569,127

Technicians

1.00

Technicians

627,213

Migrant
workers

1.00

0.88

200,000

0.20

1.00

0.80

300,000

0.40

1.02

1.00

0.96

0.89

568,129

102

0.95

1.00

400,000

Figure 5.2-1 Ratio between basic salary and legal salary for different employment types
Annex

1.00

1.00

500,000

0.60

0.00

1.05

620,570

Sustainable
environment

Tatung takes great concern to the overall performance of individuals, departments andorganizations, and encourages employees to perform better. Through the performance review
counseling mechanism and career development, it helps to enhance and affirm the performanceof employees. Employees are assessed according to the “Performance Management Method”
regardless of gender. The purpose of the assessment is to identify talents with high performancepotential and poor performance and effectively links the performance with bonuses, rewards or
promotions. The employee ratio for performance review in 2021 is 95.83%2.

1.04

Happy workplace& social
participation

Based on the concept of gender equality, the basic salary between female employees and male
employees is 1:1. For different employment types, the ratio of basic salary and legal salary
for migrant workers and technicians are 1:1 and 1:1.04; for staffs is from 1.25~1.50:1 (Figure5.2-1) based on different job types, specialty and qualifications. In average salary, the female
employee to male employee is 0.86~0.93:1 in 2021 (Figure 5.2-2); the average annual salaryis NT$730,052 and the median annual salary is NT$645,306 for non-management employees1(2,572 employees in total). Please refer to Figure 5.2-3 for details.

1.00

Responsible
supply chain,product safety &customer service

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

1.50

Sustainable
governance

Salary and performance management

2021

2,700
2,600
2,500
2,400
2,300

Figure 5.2-3 Number of non-management employees, average salary, and median salary
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Post-employment benefits

Labor-management relations

Tatung adopts “Defined contribution plan” and “Defined benefits plan” as its post-employment
benefits. For “Defined contribution plan”, Tatung makes monthly contributions of no less than 6%of the employees’ monthly wages to the employees’ individual pension accounts in accordancewith the Labor Pension Act. The cost of the pension contributions to the Labor Insurance Bureau
for 2021 amounted to $73,075 thousand.

In order to provide employees with a working
environment that complies with laws and regulations
and continues to strive towards employee harmony.
Tatung has “Regulations of Processing Employees’Complaints” and other practices in place for theemployees to complain about any disputes or sexual
harassments and provides a channel to deal with.
Tatung uses various methods such as gatherings,
e-mails, electronic newsletters, or internal documents
to deliver information in regarding to strengthen antidiscrimination, sexual harassment related prevention
measures and appeal channels to the employees.
The employees can not only propose questions inlabor-management meetings or to labor unions, butalso can directly mail the questions to Chairman’s Box
or HR e-mail. There was no major labor-management
dispute in 2021.

For “Defined benefits plan”, Tatung contributes an amount equivalent to 4% of the employees’ totalsalaries and wages on a monthly basis in accordance to Labor Standard Act to the pension funddeposited at the Bank of Taiwan in the name of the administered pension fund committee. As of
December 31, 2021, Tatung’s contributions to the pension funds which amounted to $1,411,473
thousand were deposited with Bank of Taiwan. For detailed post-employment benefits, pleaserefer to Tatung 2021 Annual Report page 395~398.

Identification on
the stakeholders &material topics

Tatung sets the minimum notice periods (Table 5.2-1)
regarding to operational changes in “Company Rules”.
When there is any major change in operation and may
affect employees, Tatung shall notify the employees
according to it and give severance pay.

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

104

Table 5.2-1 The shortest notice period
Types of employees

Shortest notice period

Worked for 3 months~1 year

10 days

Worked for 1~3 years

20 days

Worked for more than 3 years

30 days

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Highlights

Identification on
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Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Education and careerdevelopment
Business’ success is relied on talented employees.
Tatung believes that only each employee fully
shows “TATUNG DNA” in their work can help thecompany to achieve goals and vision. Therefore,
Tatung takes “TATUNG DNA” as basic to develop
an education and training system which provides
skill/profession oriented training courses to theemployees to help the company to cultivate
the talents that fit into business and achievesustainable development.

Training
Performances

Vision/Destiny

Performance
Elevation

Strategy/Target

Behavior
Modification

Annex

Operartion Plan

Professional
Learning
Defining Unsatisfied Performances

Reaction

1 PlanHappy workplace& social
participation

Sustainable
environment

Education courses in season 4, 2021

4 Review

Review /MonitorAnalysis on
InsufficientWorking
Ability

2 Design

3 Implement
Figure 5.2-4 Tatung human resource strategic development system

106

Tatung plans training courses by taking
company’s human resource policy into accountand identifies the annual capacity gap oforganizational functions. In December eachyear, a survey of the training needs of senior
managers and all employees is collected. Basedon the survey results and the company’s annual
business strategy, the next annual training courseis planned. The training target is to capacity
building of employee management, professional
skills, and performance improvement.
Figure 5.2-4 shows the structure of Tatung HR
development. Tatung has formulated the “Tatung
Company Education and Training Manual” asa norm for education and training, including:
education and training management manuals,
procedures, specifications, various forms, etc.,
and managed through various operations suchas Plan, Design, Do, Review, and Outcome.
The manual is published on internal website tolet employees retrieve freely. We arrange classtutors for each course to be assistance andstudents with any questions can respond tothem. After the class, we conduct satisfaction
survey and the results and responses will be
feedback to the students and relevant managers
to improve the quality of education and training
in the future.
In 2021, in addition to the professional courses
offered by each BU, the H.Q., we haveorganized 28 general courses which coveredfrom new recruits training, environmental
protection, occupational health and safety,
information safety, personal information
protection, intellectual property and trademarks
etc. For advanced courses we have organized
14 specialized courses in each field, 12
courses for managers (such as the reserved
managers, supervisors, mid-level managers),
and various of workshops and lectures.
In 2021, although the number of training hours
was lower than previous years due to the severe
COVID-19 and work-from-home measures, a
total of 624 classes were still held, with a total
training hours of 21,026 hours, and the average
training hours per employee was 8.13 hours. The
average satisfaction rate of personnel training is92.40%.

Leading class for
mid-level managers

Strategy and innovation
professional classAccountability culture andleadership professional classClass for new recruits

14
12
10
8
6
4

12.40
8.50

11.33

12.69
11.80

7.78

12.81

10.18

Female

2017

25

2018
23.14

20
15
10
5
0

7.21
Male

2
0

8.45

8.73
8.14
2017

8.46
2018

2019

18.11

2020

2021
Managers
General
Employees

14.94

10.11

10.85

2019

2020

8.55
7.93
2021

Figure 5.2-5 Training hours per employee
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Identification on
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Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

108

Health promotion and disease prevention
Tatung believes that the health of the employees and their families is a valuable asset to thecompany. Tatung organizes numerous health speeches, seminars, health checks to let theemployees understand the importance of their health and promote to their families. The concreted
measures are follows:

In 2020, there was a global outbreak of Covid-19. In order to ensure the health of employees and reduce operationalrisks, Tatung established an emergency response team. The implementation measures to counter Covid-19 are
below:
1. Depending on the situation of the pandemic, the emergency response team will hold meetings from time to time andrecord them.

1. Clean air, healthy and happy workplace environment
Smoking within the boundary of the companies/factories has been prohibited. The employees,
contractors, and visitors are not allowed to bring cigarettes, matches and lighters into thecompany. Tatung also clearly posts/marks “NO SMOKING” notices in the meeting room,at entrances and exits. The reason for Tatung doing this is to build a clean air and healthy
workplace for everyone.

2. Before entering the company and the factories, everyone
is measured the body temperature with far infrared rays
and require to sterile hands with 75% alcohol and wear amask.

2. Welfare Committee regularly organizes the physical and cultural activities to encourage theemployees having healthy living. It also establishes aerobic fitness club to provide employees
physical activities to stretch and relieve pressures in their spare time.

4. When employees have fever or acute respiratory
symptoms, they are recommended to seek medical
treatment and rest at home or work from home.

3. Health Examination Fair
Tatung works with Health Center of Zhongshan
District of Taipei City to organize Health examination
fair on a yearly basis. In 2021, the specialists from
Taipei City Hospital are invited to the company to
do high blood pressure, hyperlipoidemia and highblood sugar screening, oral cancer screening,cervical smear, breast cancer screening, colorectal
cancer screening, and lung function testing. 131
employees participated in the fair. Tatung also
arranges high-quality health check annually inorder to find out any premature diseases and treat
them in advance to protect employees’ health.

Blood donation activities

Sustainable
environment

Annex

6. Tatung runs first-aid/CPR courses every year toenhance employee’s ability.

3. The daily body temperature must be declared on thecompany’s internal website. The health center will follow
up and care for abnormal reports.

5. Strengthen the promotion of personal protective
measures, observe cough etiquette and keep hands
clean and maintain good hygiene habits.

Guests, visitors, and suppliers are requested to fill out the healthdeclaration form.

6. Strengthen the environmental disinfection of public areas
such as work areas, reception rooms, elevators, andrestaurants and maintain indoor air circulation.
7. Avoid large conferences and indoor activities where
crowds gather.

First aid trainings

8. Guests, visitors, and manufacturers must fill in the healthdeclaration form and measure their body temperature. Ifthey have a travel history in the pandemic area and havea fever, they will be refused to enter the company and thefactories.
9. The employees returning to Taiwan or foreign customers
entering the company or the factories must hold a negative
PCR certificate within 3 days of the date of entry before
they can enter.

4. Tatung organizes health promotion seminars andalso publishes information about serious diseaseson the company website and e-publications. The
information contains not only about the diseases
but also the preventions and treatment channels.
5. Promote breastfeeding.
In order to encourage postpartum female
employees to continue breastfeeding after
returning to the workplace, Tatung has set up
2 breastfeeding rooms to provide a friendly
environment for postpartum female colleagues
to continue breastfeeding.

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

10. Provide the employees with the latest pandemic
prevention information in real time on the internal website
or by email.
Health seminars

11. Check the inventory of anti-epidemic materials every
month.

Body temperature declaration system on thecompany’s internal website.

12. Activate the zoning/diversion/work-from-home mechanism
if necessary.
13. According to the pandemic situation, the employees areprohibited from moving across factories or units.
14. In line with the government’s school suspension measures,“Epidemic Prevention and Care Leave” will be granted.
15. Cooperate with the CDC to promote and encourage theemployees to get vaccinated against the Covid-19.

Promote Covid-19 pandemic prevention informationby e-mail
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Table ofContents

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Identification on
the stakeholders &material topics

Table 5.2-2 Health promotion and disease prevention activities in 2021
Time

ALL YEAR Covid-19 prevention measures promotion.

1

Jan.

3

Mar.

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

110

4
6

June

7

July

8

Aug.

All company
H.Q.

Medical Skin Care Seminar

H.Q.

Conduct special job health check.
CPR+AED and fire prevention training
Health seminar – Noise hazard and prevention
Blood donation activities – 68 bags in total.
Noise tracking check

Blood donation activities – 59 bags in total.

Apr.

Locations

Blood donation activities – 150 bags in total.

Covid-19 prevention measures andtsutsugamushi disease promotion.

Profile of
Tatung Company

Sustainable
governance

Activities

Health Seminar
1. Covid-19 prevention measures
2. Obesity and weight loss.

MacKay Memorial Hospital

Sept.

H.Q.
Tayuan Plant

H.Q.

Health Fair

H.Q.
Tayuan Plant

Health Seminar
Health diet and weight control.

San-Hsia Factory

Covid-19 prevention measures.

San-Hsia Factory

Covid-19 prevention measures.

Taoyuan 1st Plant

Covid-19 prevention measures.

San-Hsia Factory

Covid-19 prevention measures.

Taoyuan 1st Plant

Promotion on COVID-19 vaccination operation,
willingness registration and reservation system
operation information.

San-Hsia Factory

Conduct annual health check and special job
health check.

San-Hsia Factory

Health and safety education for new recruits

San-Hsia Factory

Blood Donation Activities - 134 bags in total.

H.Q.

Ergonomics Hazard Prevention Program
Aiming at 80 employees to fill in themusculoskeletal symptom questionnaire,
5 employees with obvious symptoms werescreened out, and the on-site occupational
doctor was asked for evaluation.

Taoyuan 1st Plant

Health and safety education for new recruits

San-Hsia Factory

Anti-smoking propaganda.

San-Hsia Factory
Taoyuan Wires & Cables Plant

Tayuan Plant

Blood Donations - 87 bags in total.

Tayuan Plant

Health check for cafeteria staffs

CH. Health Service

Blood Donations - 96 bags in total.

San-Hsia Factory

Oct.

Health tracking and interview health education
for abnormal values ​​after health checkup.

San-Hsia Factory

11

Health Promotion - Stroke

San-Hsia Factory

Taoyuan 1st Plant

Locations

Health SeminarCommunication Skills to Enhance Parent-Child
Relationship to AI Generation.

Taoyuan Wires & Cables Plant

Taoyuan Wires & Cables Plant

Activities

Blood Donations - 78 bags in total.

San-Hsia Factory

Health seminar – Stroke.
Health Seminar
Health education promotion and CPR+AED.

9

Time

10
Nov.

12
Dec.

Stress relief activities.

Taoyuan Wires & Cables Plant
Taoyuan 1st Plant

Conduct annual health check and special job
health check.

Tayuan Plant

Influenza vaccination

Tayuan Plant

Health Promotion
Relieve the pain of plantar fasciitis

Taoyuan 1st Plant

Influenza vaccination

San-Hsia Factory

Influenza vaccination

Taoyuan 1st Plant

Health Seminar - Metabolic syndrome.
Health Promotion - Good things to keep warm
during low temperature days.
Conduct annual health check

Taoyuan Wires & Cables Plant
San-Hsia Factory
Taoyuan Wires & Cables Plant

Health Seminar - Cardiovascular diseases.

San-Hsia Factory

Conduct annual health check

Taoyuan 1st Plant

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5.3 Health, safety, and disaster free
DMA
An explanation of why
the topic is material
Practice occupational healthand safety in the work places is
Tatung’s responsibility.

Goals and targets
Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Performance disclosure is limited
to Tatung Co.

Implement occupation health andsafety in the workplace.

Resources

Specific actions

The factories and thesubsidiaries are responsible
for complying with applicablehealth and safety regulations
during daily operations,and the Health and Safety
Division is responsible forchecking the implementation
results of the factories andsubsidiaries.

1. Accident, Prevention, Pays
Program.

1. The factories and thesubsidiaries operate inaccordance to health andsafety regulations.
2. Health and Safety Division
conducts on-site audits toreview the performances.

Commitments

Reduce occupational disasters
and achieve the goal of “ZeroDisaster”.

Mechanisms for evaluating
the effectiveness of the
management approach

Responsibilities

2. Internal audit underInternal Control System.

Policies

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

Work hard to achieve the goal of“Zero Disaster”.

Results of the evaluation of
the management approach

Related adjustments to the
management approach

Performances in 2021:

NIL

1. Factories with ISO 45001
passed annual certification.
2. The correction rate of
Accident Prevention Pays
Program is 100%.
3. FR is reduced by over
10%, however, SR for male
employees is risen.

Mid-Long Term Target:
Zero disaster.

In addition, Tatung holds “Health and Safety Committee” meetings in headquarter and factories
to communicate and review the contents and progress of health and safety issues (Figure 5.3-1).
The percentage of labor representatives is better than the requirement of regulation (at least33%). The headquarter also organizes regular health and safety committee meetings and invites
the representatives in the factories to enhance the communications within the company.

40.00%
39.00%
38.00%
37.00%
36.00%
35.00%
34.00%
33.00%
32.00%
31.00%
30.00%

H.Q.

Tayuan Plant

36.84%In the case that recognition of dangerous materials is unsatisfactory, or that safety management
has not been satisfactorily accomplished in the work places, there may be effects of varying
degree to the employees’ health and safety, and as a result, causing frequent disasters. This will
not only threaten the safety of employees, but also the safety of the publics, as well as adversely
affecting the surrounding environment. Therefore, Tatung stipulates that the company should
be in accordance with relevant health and safety regulations in “Company Rules” and holds
employees’ health examination (free of charge to the employees). Tatung also issues “Tatung
Health and Safety Guidebook” for employees to follow. At the same time, we set up occupationalsafety and health management units and occupational safety and health management personnel
in accordance with regulations to implement automatic inspections, strengthen occupationalsafety and health education and training, and promote laws and regulations to enhance
employees’safety awareness and responsibility to reduce the incidence of occupational disasters.

33.33%

112

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

Purpose of the
management approach

38.89%Annex

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

Tatung Co. and its subsidiaries.

Specific limitation regarding
the topic Boundary

35.00%

Sustainable
environment

1. All 4 factories pass the ISO
45001 annual certification.

Boundary for the material topic

36.36%

Happy workplace& social
participation

Short-Term Target:

Occupational health and safety

Taoyuan Wires &Cables Plant

Taoyuan 1st Plant

San-Hsia Factory

Figure 5.3-1 Percentage of labor representatives in Health and Safety Committees
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Occupational health and safety management
Paying attention to health and safety work is Tatung’s culture. Through institutionalized,
documented, and systematic methods, it actively handles education and training, regulatory
review, hazard identification, and risk assessment, sets safety and health improvement priorities,
sets goals and improvement plans. Through the implementation of improvement plans andregular audits, and then reviewed by the management to continuously improve health and safety
performance, so that the goal of “zero disaster” can be achieved. So far, all the factories haveestablished ISO 45001 and passed the certification. San-Hsia Factory has also established CNS
45001 (TOSHMS) and passed the certification. Table 5.3-1 shows the status of occupational
health and safety management systems.

Table 5.3-1 The status of occupational health andsafety management systems
Name ofmanagement
systems.

The percentage
of all employees
covered bymanagement
systems

The percentage ofworkers who are
not employees*
covered bymanagement
systemEffective andexpiry date

Tayuan Plant

ISO 45001

100%

0%

2020.08.10~2023.08.09

Taoyuan Wires andCables Plant

ISO 45001

100%

0%

2020.07.09~2023.07.08

Taoyuan 1st Plant

ISO 45001

100%

0%

2022.03.04~2025.03.03

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governanceISO 45001
San-Hsia Factory

Responsible
supply chain,product safety &customer service

CNS 45001(TOSHMS)89.22%

10.78%

2020.01.09~2023.01.09
2020.01.09~2023.01.08

Note: Workers who are not Tatung’s employees but whose work and/or workplace is controlled by Tatung.

Happy workplace& social
participation

Other than relying on the management systems, Tatungalso carries out “Accident, Prevention, Pays” Program
every year and works hard to achieve the final target“zero disaster” in the factories and subsidiaries. The
contents of the program are summarized below:

Accident, Prevention, Pays Program onsite audit

1. The factories and subsidiaries implement the
projects which can improve or prevent health andsafety issues, and HSD reviews the performancesand provides feedbacks.
2. An annual Accident, Prevention, Pays seminaris organized to exchange the health and safety
experiences between factories and subsidiaries.
3. Recommends outstanding factories or subsidiaries
to compete governmental awards.
Tatung has set the target of non-conformities improvement
rate over 95% from Accident, Prevention, Pays Program
onsite audit. For the items that have not been improvedin the current year, we will continue to track them and list
them as non-conformities in the next year’s evaluation.
64 non-conformities were found in 2021’s Accident,
Prevention, Pays Program on-site audit. The nonconformities were mostly due to imperfect prevention
measures for electric shock disasters, lack of shields
or covers on the mechanical equipment which has riskof coiling hazards, and or failure of fire evacuation andemergency response equipment. By the end of 2021, all
the non-conformities have been corrected and the target
has been achieved. For 2022’s Accident, Prevention,
Pays Program, we will not only continue to check thecompliance with the occupational health and safety
laws, but also strengthen the protection measures forworkers’ physical and mental health, as well as theimplementation of the monitoring plan for the working
environment of workers, and the enhancement ofworkers’ health implementation service plans.

Sustainable
environment

Annex

San-Hsia Factory ISO 45001 certificate
114

Taoyuan 1st Plant ISO 45001 certificate
115

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2021 CSR
Highlights

Identification on
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Profile of
Tatung Company

Chemical hazard identification and risk assessment

Health and safety training and regulation promotion

In order to let the employees to understand the potential hazards of the working environment, andto ensure that the concentration of harmful gases, vapors, and dusts in the workplace does notexceed the standards for labor workplaces, and to protect the health and safety of employees, all
the factories in Tatung have established a “Working environment monitoring plan” and appointed
Ministry of Labor certified monitoring organizations to implement the monitoring. The monitoringplan and monitoring results will be posted in obvious workplaces for employees to refer to.

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

In addition, in order to let the employees to correctly understand the hazard information ofchemicals, Tatung has established a “Hazard Communication Program”. For containers
containing hazardous chemicals, they are labeled classification, hazard diagrams and formats,and added hazard warning messages and hazard prevention measures in accordance with therequirements of the “Regulations for the Labeling and Hazard Communication of Hazardous
Chemicals”. At the same time, Tatung posts up safety data sheet for the chemical in a placethat is easy to obtain in the workplace for reference by workers. In addition, Tatung follows therequirements of the Ministry of Labor to formulate a “Grading Management Plan” for hazardous
chemicals. The chemicals are evaluated based on their health hazards, distribution status,
usage, or statistical results of monitoring data in the operating environment. According to the risk
level, Tatung implements associated management measures and establishes a management listof chemicals with health hazards in the workplace.
Safety Data Sheet is placed in workplace

The labeling of containers with hazardous chemicals

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

Tatung chemical grading evaluation table
116

Regarding the promotion of laws and regulations, Tatung organizes the “Tatung Group Occupational Health and Safety
Seminar” every year to promote the new revisions of occupational health and safety regulations and corresponding
practices. The 2021’s seminar publicized the key points of the amendments of the occupational health and safety
regulations and the implementation measures for the protection of female labor motherhood.

Table 5.3-2 Health and safety training targets and results
Topics

2018
2019
2020
2021
No. ofNo. ofNo. ofNo. ofparticipants participants participants participants

2022
Targetnumbers

Health and Safety Training Class(general employees and managers)

1,226

1,239

1,046

662

850

Emergency Training Class

1,121

1,163

913

526

600

Stationary Cranes Training Class(including re-training)

69

351

158

0

340

Health and Safety Training Class(construction contractors)

16

16

20

12

20

First-Aid Class (including re-training)

11

125

93

27

60

Forklifters Training Classes(including re-training)

110

134

100

42

60

Training Class for Preventing
Workplace Violence

66

342

131

137

100

Occupational Health and Safety BusinessSupervisor Training Class

0

0

20

60

40

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Profile of
Tatung Company

Sustainable
governance

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 countermeasures will be implemented to prevent such case happening again.
In 2021, there was no occupational disease case and death incident; however there was 1
non-compliance and fined NT$60,000. The reason for the non-compliance was that when theemployer made workers perform the operation with the risk of oxygen-deficiency, the workers
entering and leaving the site should be confirmed or registered by name. The non-compliancehas been improved. Tatung will strengthen the inspection of contractors’ occupational health andsafety operations to avoid recurring violations in order to jointly protect the safety of contractors’labors.
In terms of health and safety indicators, from Figure 5.3-2 and Figure 5.3-3, it can be found thatfemale employees have not experienced occupational accidents for 4 consecutive years, andthe Disabling Frequency Rate (FR) for male employees in 2021 is lower than in 2020. However,the Disabling Severity Rate (SR) is increased. The main reason is that a male employee had
a traffic accident while going out to have lunch, resulting in intracranial hemorrhage and moredays of recuperation. In terms of workers who are not employees, there was no occupational
accidents in 2021.
In 2021, Tatung has achieved the target of reducing the FR by 10% per year, but the SR has notreached the target. We will continue to strengthen the traffic safety advocacy and request thesupervisors in the factories and the subsidiaries to walk around the workplaces more often tostrengthen the work safety requirements, and continue to move towards the established targets.

3.50

2.50
2.00
1.50

Happy workplace& social
participation

Sustainable
environment

2.10

1.29

1.00
Male

0.50
0.00

2017

0.00

2018

0.00

0.00

2020

2019

0.00

Female2021

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

Figure 5.3-2 Trend of FR
120.00
96.03

87.07

80.00
57.35

60.00

40.14

40.00
20.00
0.00

Annex

2.08

1.98

100.00
Responsible
supply chain,product safety &customer service

2.90

2.73

3.00

17.82

5.18

2017

Male

0.00

2018

0.00

2019

0.00

2020

0.00

Female2021

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

Figure 5.3-3 Trend of SR
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Identification on
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Profile of
Tatung Company

5.4 Participation and benefits to the society
Supporting in
traditions and arts

Help the disadvantaged and achieve social justice

As a local corporation, Tatung
supports Taiwanese traditional
craftsmanship. Tatung has
been collaborated with Mr. X.
F. Hong, a renowned master of
paper carving art, in bringing theart into the creation of Tatung
Boy Chinese Zodiac lanterns.
The year of 2021 marked the10th consecutive year for suchsponsorship. The hand-heldpaper-carving lanterns wereallocated to Tatung 3C’s storesgiven free to the consumers
as a collector’s item for Tatung
brand.

Tatung attaches great importance to education. In 2021, it responded to the “Vulnerable Children Scholarship Program”
of the Taiwan Fund for Children and Families. With NT$ 100 per person, children can go to school safely and have their
dreams. The corporate totally fundraised NT$359,500 and donated to TFCF; Tatung and Tatung 3C together donatedinverter washing machine to “ Holy Word Children’s Home”, so that the children of the organization can replace theold machines with a long service life and improve a safe and comfortable living environment; Tatung has always beencommitted to public welfare. In 2021, Tatung Employee Welfare Committee continued to order the “Biscuit Gift Box”
from Children Are Us Foundation as a gift for employees during the Mid-Autumn Festival, which not only benefits therecipients, but also gives full play to the kindness and righteousness of Tatung employees. Tatung also won “No. 1”
organizations and companies that support the purchase of sheltered workshops by Taipei City Foreign and Disabled
Labor Office.

Sustainable
governance

Responsible
supply chain,product safety &customer service

Tatung received the gratitude certificate from Children Are Us Foundation

Happy workplace& social
participation

Sustainable
environment

Annex

120

Tatung Boy Chinese Zodiac lanterns

Tatung received the gratitude certificate from Taiwan
Fund for Children and Families

Tatung donated home appliance toHoly Word Children’s Home
121

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TARGETS

2021 CSR
Highlights

1. Correction percentage over
95% for the non-conformities
from 3P Program.

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Sustainable
Environment

ENVIRONMENTAL
MANAGEMENT & COMPLYWITH REGULATIONS

Table ofContents

2. Maintain ISO 14001 in thefactories.
3. No. of violations against
environmental regulation
remains 0.

PERFORMANCE
IN 2021
1. Correction percentage was
92.2% and the target was notachieved.
2. All the factories’ ISO 14001
passed annual certification.
3. Zero violation against
environmental regulations.

ENERGY AND GHG MANAGEMENT

Energy intensity of represented
products in 2023 will be 6% lessthan in 2018 and 1% less thanthe previous year.

Energy saving rate will be atleast 1% in the headquarters andthe factories from 2019~2022.

PERFORMANCE
IN 2021

PERFORMANCE
IN 2021

4 out of 7 represented products
have met the target. The target
achieve rate was 57.14%.

Promote ISO 50001 energy
management system.
Short-Term:
Factories with ISO 50001 passannual certification.
Mid-Long Term:
Implement ISO 50001 in
Taoyuan 1st Plant.

Happy workplace& social
participation

Sustainable
environment

Annex

122

Sustainable environment

The average energy savingrate in the factories and theheadquarters was 2.26%.

Carry out ISO 14064-1
GHG inventory.

WASTE REDUCTION
MANAGEMENTGREEN PRODUCTS
MANAGEMENTTARGETSTARGETS

Reduce the amount of wastes by
5% every year.

1. Continue to seek for PV
system cases and aim to have
312 MWp capacity by then endof 2022.

PERFORMANCE
IN 2021
Compared with 2020, the amountof wastes was 14.66% increased,
which failed to meet the target.

2. Continue to produce
environmental friendly, energy
saving, and water saving
products and apply for Green
Mark, Energy Label, or Water
Label.

PERFORMANCE
IN 2021

Short-Term:
Carry out GHG inventory basedon ISO 14064-1 every year
among all company.
Mid-Long Term:
Carry out GHG inventory every
year among the company andthe subsidiaries since 2025.

PERFORMANCE
IN 2021

PERFORMANCE
IN 2021

Tayuan Plant, Taoyuan Wires
and Cables Plant, and San-Hsia
Factory have passed ISO 50001
annual certification.

Completed ISO 14064-1 GHG
inventory (year 2020) and passed
the verification for Taoyuan Wires
and Cables Plant, Taoyuan 1st
Plant, and San-Hsia Factory.

1. The total installed capacity was
211 MWp by the end of 2021.
2. New applied Green Mark:
13 models,
Energy Label:
99 models,
Water Label:
8 models.

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6.1 Management on the environment

Table ofContents

2021 CSR
Highlights

3P Program

ISO 14001

ISO 14064-1

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Responsible
supply chain,product safety &customer service

Target6%

Stage 2 Energy Saving Target
Baseline Year

Sustainable
governance

Product
CarbonFootprint

EnergyAudit

ISO 50001
2018

2019

2020

2021

2022

2023

Happy workplace& social
participation

Sustainable
environment

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

124

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Highlights

Pollution, Prevention, Pays (3P) Program

ISO 14001 Environmental management system

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. Ten factories and subsidiaries participated in 2021 (Annex
3). The elements of 3P program are listed on Table 6.1-1.

Tatung believes that by implementing ISO14001 is able to continue improve environmental performances, export
competitively, and company images. Thus, in 1996, Tatung started to implement ISO14001 among the factories and thesubsidiaries. So far all 4 factories have established ISO 14001 and certified every year. We commit that we will continue
to run ISO 14001 in the factories and subsidiaries to improve environmental performances in the future. Table 6.1-2 shows
the implementation status of ISO14001 in the factories.

When there any non-conformity found against company rules or with potential to cause
environmental pollution, we will list such incidents and request the factories and the subsidiaries tocorrect them. We also set yearly correction target to be 95%. For the non-conformities which can
not be corrected by the end of year, we will track them and make them to be corrected next year.
In 2021, there were 64 non-conformities that are requested to be corrected and 59 of these havebeen corrected by the end of year. The correction rate was 92.2% and did not meet the target.

Table 6.1-2 Tatung factories ISO 14001 status
Factories

Implementation year

Effective and expiry date

Tayuan Plant

1998

2020.08.10~2022.08.05

Taoyuan Wires and Cables Plant

2000

2021.09.17~2024.09.16

Taoyuan 1st Plant

1998

2019.09.01~2022.08.31

San-Hsia Factory

1999

2020.09.05~2023.09.05

Table 6.1-1 Description of 3P Program and its performances
Identification on
the stakeholders &material topics

Aspects

Profile of
Tatung Company

Product
designaspectMeasures

Descriptions

Encourage to develop
green products tocreate additional
values for products.

Apply Design for theEnvironment, DfE”, inthe design phase to
produce “recyclable,
low pollution, toxic-free,resource saving, powersaving, and durable”
products to benefit theenvironment.

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

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

Perform 3P Program
on-site evaluationin the factories andsubsidiaries regularly.

The results canbenefit managementin their review ofenvironmental
performances anddraft of new policy andobjectives.

Ten factories
and subsidiaries
participated in 3P
program.

Conduct internal audit.

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

Non-conformity
correction percentage
was 92.2% in 2021.

Sustainable
governance

Responsible
supply chain,product safety &customer service

Manufacturing
aspectHappy workplace& social
participation

Sustainable
environment

Annex

126

Management
aspectConformity

Performances

In 2021, we acquired
Green Mark: 13
models; Energy Label:
99 models; Water
Label: 8 models.

Compliance and major leaks
In 2021, 75.59% of
industrial wastes werereused.

Tatung takes great concern on the development of environmental protection regulations. When there are public hearingsor seminars for new regulations, Tatung assigns professions to receive the latest information. In addition, we implement
mechanisms such as ISO 14001, internal control system on-site audit, and 3P Program on-site evaluation in the factories(Figure 6.1-1), in result, there was no incident of violation of regulations and significant spill in 2021.

Internal control audit

Improvement
H.Q.

ISO14001

Audit

Factory
Audit

Authority

3P program on-site Evaluation

Figure 6.1-1 Measures practiced to ensure the compliance
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Identification on
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Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

6.2 Energy consumption and GHG management
DMA
An explanation of why
the topic is material
Greenhouse gases emitted byhuman activities have alreadycaused global warming and led
to the threat on the sustainable
development. Corporations
actively to reduce the greenhousegas emissions are not only toshow a responsible image to the
public but also able to reduce theoperation costs from running thebusiness.
Goals and targets
Short-Term Targets:
1. Use ISO 14064-1: 2018 to carryout GHG inventory since 2022.
2. Implement ISO 14064-1 in
H.Q., Tayuan Plant and Meter
Center.
3. Factories with ISO 50001 passannual certification.
4. Energy saving rate will be
at least 1% each year in theheadquarters and the factories.
Mid-Term Targets:
Energy intensity of represented
products in 2023 will be 6% lessthan in 2018.
Long-Term Targets:
Implement ISO 50001 in Taoyuan
1st Plant and pass certification.

Energy consumption and GHG management
Boundary for the material topic
Tatung and its subsidiaries.

Responsibilities
The factories are responsible
for running energy management
systems and implement energy
saving projects. Health & Safety
Division is responsible for carryingout energy audit and assisting
GHG emission inventory.

Specific limitation regarding
the topic boundary

Purpose of the
management approach

Performance disclosure is limited
to Tatung Co.

Reduce energy consumption and
GHG emissions.

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

Specific actions

Mechanisms for evaluating theeffectiveness of the
management approach

Results of the evaluation of the
management approach

Tracking energy intensity statusthrough the annual energy audit.

Performances in 2021:

Annual energy audit.

Policies

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

Related adjustments to the
management approach
NIL.

1. Completed ISO 14064-1 GHG
inventory (year 2020) andpassed the verification for
Taoyuan Wires and Cables
Plant, Taoyuan 1st Plant, and
San-Hsia Factory.
2. Tayuan Plant, Taoyuan Wires
and Cables Plant, and SanHsia Factory have passed ISO
50001 annual certification.
3. 57.14% of the represented
products have met the energy
intensity target.
4. The average energy savingrate in the factories and theheadquarters was 2.26%.
5. Tayuan Plant won “Energy
Conserving Award – Gold
Award” by Bureau of Energy.

Annex

128

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Energy consumption
Direct energy sources that Tatung consumes are fuel oil, LPG, and diesel. Indirect energy sourcethat Tatung consumes is purchased electricity from Taiwan Power Company. The amount of energy
consumption in 2021 is 162,181.34 GJ. The details are shown on Figure 6.2-1 and Figure 6.2-2.
The most consumed energy in 2021 was purchased electricity and the amount was 138,812.36 GJ(85.59%) which equaled to 38,558.99 kkw-hr; followed by Diesel with 12,218.98 GJ (7.53%) whichequaled to 348 kL. The total amount of energy consumption in 2021 was 1,588.89 GJ less than in
2020, which was 0.97% reduction.

Purchased Electricty: 85.59%
Diesel: 7.53%
LPG: 6.80%2021 CSR
Highlights

Fuel Oil: 0.08%

Identification on
the stakeholders &material topics

Figure 6.2-1 Energy consumption breakdown in 2021 (by energy types)
Profile of
Tatung Company

250,000.000

Annex

50,000.000

0.000

12,410.45
13,426.16
1,044.33

201714,196.95
13,576.72
646.66

2018

DieselLPG

Fuel Oil

12,885.75
12,615.28
267.11

2019

138,812.36

Sustainable
environment

100,000.000

Purchased Electricty

139,987.93

Happy workplace& social
participation

150,000.000

170,255.66

Responsible
supply chain,product safety &customer service

193,860.63

200,000.000

215,190.36

Sustainable
governance

GJ
300,000.000

11,718.49
11,801.52
262.292020

12,218.98
11,021.47
128.532021

Note: The energy data in 2020 from Taoyuan 1st Plant, Taoyuan Wires and Cables Plant, and San-Hsia Factory has been modified based on ISO
14064-1 verification results. The energy data in 2021 was collected based on the same method however has not been verified yet. The energy datafrom H.Q., Tayuan Plant, and Meter Center was collected from power bills and other energy receipts.

Figure 6.2-2 Trend of energy consumption
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Fuel Oil: 0.05%

Figure 6.2-3 GHG emission percentage in 2021 (by sources)
Tons CO2e

40,000.00

Purchased Electricty
LPG

35,000.00
30,000.00
25,000.00
20,000.00
15,000.00

DieselFuel Oil

19,356.61

Annex

LPG: 3.32%

19,520.54

Sustainable
environment

Diesel: 4.34%

24,072.26

Happy workplace& social
participation

For the purpose of enhancing the ability to dogreenhouse gas inventory in the factories, Tatungruns ISO14064-1 Internal Verification Class whennecessary. We are expecting to have more welltrained employees through these classes and they
are able to do the greenhouse gas inventory welland pass the verification by the third party in the
future. Due to the H.Q., Tayuan Plant, and Meter
Center have not implemented ISO14064-1, theGHG emissions (Types of GHG: CO2, CH4, N2O;
Scope 3 emissions are not included) disclosed inthis report are calculated as follows: the amount ofenergy sources disclosed in previous paragraphmultiplied by each emission factor. The GWP
is based on IPCC, 2007. The completed GHG
emission inventory for Taoyuan 1st Plant, Taoyuan
Wires and Cables Plant, and San-Hsia Factory for
year 2020 can be found in Annex 4 or MOP. The
total GHG emission in 2021 was 20,973.13 tons
CO2e (Figure 6.2-3) which is 186.34 tons CO2e
(0.09%) reduction than in 2020. The emissions fromScope 1 (diesel, LPG and fuel oil) were 1,616.52
tons CO2e, and from Scope 2 (purchased electricity)were 19,356.61 tons CO2e (Figure 6.2-4).

Purchased Electricty: 92.29%

28,702.14

Responsible
supply chain,product safety &customer service

Greenhouse gases emitted by human activities havealready caused global warming and led to the threat
on the sustainable development. Corporations
actively to reduce the greenhouse gas emissions are
not only to show a responsible image to the public but
also able to reduce the operation costs from runningthe business. In order to investigate the amount of
GHG emissions thoroughly and comply with the
future regulations, Tatung voluntarily implements
ISO14064-1 greenhouse gas management system
into the factories since 2009. So far, San-Hsia
Factory, Taoyuan Wires and Cables Plant, andTaoyuan 1st Plant carry out GHG inventory andget verified by third parties based on reasonablelevel of assurance every year. From 2022 onwards,
we have begun to work out the greenhouse gas
emissions of the H.Q., Tayuan Plant, and Meter
Center in accordance with ISO14064-1, and havea complete grasp of the company’s greenhouse gas
emissions.

33,115.40

Sustainable
governanceGreenhouse gas emissions

10,000.00
5,000.00
0.000

924.26850.7781.15

20171,057.31
850.0149.94

2018959.66797.2520.76

2019872.73745.8220.38

2020

910.01
696.529.99

2021

Note: 1. The energy data in 2020 from Taoyuan 1st Plant, Taoyuan Wires and Cables Plant, and San-Hsia Factory has been modified based on ISO
14064-1 verification results. The energy data in 2021 was collected based on the same method however has not been verified yet. The energy datafrom H.Q., Tayuan Plant, and Meter Center was collected from power bills and other energy receipts. 2. This report also modified the emission factorof electricity for year 2020 (0.502 kg/kwh) and use that emission factor to calculate GHG emission for year 2021 due to the authority has not released
the latest emission factor before the publishing date of this report.

Figure 6.2-4 GHG emissions of Tatung
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Profile of
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Sustainable
governance

Energy saving and GHG reduction
Global warming greatly increases the frequency of extreme weather events and directly causes
impacts to the operation of a business. In order to fulfill corporate social responsibility and reduce
operating costs, followed by Stage 1 energy reduction target, Tatung proposed Stage 2 energy
reduction target in 2019: the energy intensity per product in 2023 will be reduced by 6% than in2018 (baseline year).
To achieve the target, we have implemented ISO 50001 in the factories to sharpen up company’s
energy performance. So far San-Hsia Factory, Tayuan Plant, and Taoyuan Wires and Cables Plant
have established ISO 50001. Please refer to Figure 6.2-6 for more details. In addition, we conduct
annual energy audit and report the energy consumption information to the government as wellas implement energy saving projects in H.Q. and the factories. In 2021, Tatung reduced about
969,514 kwh of purchased electricity consumption via 4 dimensions (Table 6.2-2) which equals
to 3,490.25 GJ. The saved electricity contributed as much as 486.70 tons CO2e reduction. Figure
6.2-5 shows carbon reduction results for the past 5 years.

Table 6.2-1 Status of Tatung’s ISO 50001
Factory

Table 6.2-2 Tatung energy saving projects and results in 2021
Energy saving projects(by categories)

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

GHG reduction(tons CO2e)

Optimized manufacturing process to reduce
operation time.

335,262

1,206.94

168.30Replaced with higher energy efficient andenergy saving equipment.

479,891

1,727.61

240.91

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

50,034180.12

25.12

Increased the frequency of maintenanceand inspection from major energy using
equipment, as well as controlled theoperating time to avoid leakage or wastingof pressured air or cooled air.

104,327375.58

52.37

Total

969,5143,490.25

486.70

Implementation year

Effective and expiry date

Tayuan Plant

2016

2020.01.05~2023.01.05

Taoyuan Wires and Cables Plant

2016

2020.01.13~2022.12.27

1,800.00

San-Hsia Factory

2015

2021.12.24~2024.12.24

1,600.00

Note: 1 kwh of electricity emits 0.502 kg CO2e.
Tons CO2e

800.00600.00200.000134486.70400.00

Sustainable
environment

Annex

930.33Happy workplace& social
participation

1,432.85

1,000.00

1,299.50

1,200.00

1,614.52

1,400.00

Responsible
supply chain,product safety &customer service

Tayuan Plant
ISO 50001 certificate

Taoyuan Wires and Cables
Plant ISO 50001 certificate

San-Hsia Factory
ISO 50001 certificate

2017

2018

2019

2020

2021

Figure 6.2-5 Amount of GHG reduction
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The energy intensity of represented products in 2021, 4 of the 7 represented products reached thetarget of reducing energy intensity by 3%, and the achievement rate was 57.14%. The achievement
status of each represented product is listed in Table 6.2-3. Products that did not meet the target areTransformer/Switchgear, Lan cable, and Power cable.

Table ofContents

The energy intensity of Tatung’s operations is shown in terms of revenues; the energy intensity
in 2021 is 1,002.60 GJ/100 million dollars. In terms of electric saving rate, the individual electricsaving rate of the H.Q. and all factories exceeds 1%, and the average electric saving rate of thewhole company is 2.26%, which has achieved the target. The summary of our energy saving planin 2022 is as follows:

2021 CSR
Highlights

Identification on
the stakeholders &material topics
Tayuan Plant

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Taoyuan Wires andCables Plant

Sustainable
environment

Annex

136

San-Hsia Factory

Tayuan Plant will introduce the temperature monitoring of ice waterand cooling water for the 300RT ice water host group of the central airconditioning system, and use the data of the temperature difference
between the inlet and return water to establish an energy baseline, andeffectively find the idle/heavy load period of the equipment to adjust thecooling temperature to achieve the maximum power saving on factory air
conditioners. To promote energy conservation and carbon reduction, theMinistry of Economic Affairs will hold the “2022 Ministry of Economic Affairs
Energy Conserving Award Seminar” to cultivate energy conservation
technology personnel to serve the industry’s energy conservation solutions,and through energy conservation experience sharing and on-site caseobservation will help the visiting companies to achieve the target of saving
1% of electricity.

In order to increase production capacity and achieve the effect of saving
electricity, the 100B collecting machine and the CCV3 extruder in the wireand cable manufacturing process will be replaced this year. The new moldset will improve product yield, maintain quality and reduce the number ofreworks and material waste. The load capacity will be re-planned to reduce
excess horsepower. High-efficiency motors and inverters will be purchased
and installed. It is estimated that 420,000 kWh of electricity can be saved
per year. In response to the “Renewable Energy Development Act “, major
electricity users are requested to set up renewable energy for their own
use. It is expected to complete a nearly 500kW photovoltaic system within
three years and working with the government and other corporates toreduce carbon emissions.

Table 6.2-3 Achievement status of Stage 2 Energy Saving Target (Year 2023
Represented products

Energyintensity inbaseline year(2018)

Energyintensity in
2019

Energyintensity in
2020

Energyintensity in
2021

Motor/Generator

51.8
MJ/HP

48.45
MJ/HP

42.25
MJ/HP

39.75
MJ/HP

Electric cooker

35.22
MJ/Unit

34.03
MJ/Unit

34.31
MJ/Unit

33.44
MJ/UnitCommercial air conditioner

55.78
MJ/KW

53.05
MJ/KW

40.14
MJ/KW

42.85
MJ/KW

Transformer/Switchgear

7,389.51
MJ/MVA

7,257.80
MJ/MVA

8,057.57
MJ/MVA

9,059.99
MJ/MVA

Watt-hour meter(Mechanical and digital)

8.85
MJ/Unit

7.40
MJ/Unit

7.33
MJ/Unit

6.61
MJ/UnitLan cable*

0.13
MJ/Meter

0.14
MJ/Meter

0.14
MJ/Meter

0.15
MJ/MeterPower cable

15.59
MJ/Meter

11.48
MJ/Meter

16.34
MJ/Meter

16.66
MJ/Meter6%)

Targetachievement
status in 2021
( 3%)

Note: The baseline year is 2018. ✓ represents the result meets the target, X represents the result does not meet the target.
＊ We adjusted the energy intensity of Watt-hour meter 2018. The reason is that the energy intensive figure in 2018 was mainly contributed frommechanical watt-hour meters. Later, in line with the government policy, the production of mechanical watt-hour meters was reduced and the
production of digital watt-hour meters was increased. Therefore, the baseline year figure in 2018 was adjusted to both mechanical and digitalwatt-hour meters.

A set of 5,000KVA high-voltage transformers will be replaced to conserve
electricity. The lighting, 200 mercury lamps (500W), in the production area,
testing area and assembly area of motor products have been replaced withreplaced with LED energy-saving lamps. Such improvement can not only
reduce electricity from air conditioning but also reduce peak demand by
about 50kW or more.

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Consumption and management on the main materials

600,000

2,360 kilo-liters

100%

The sources of water for Tatung are from tap water, ground water, and river water. Tatung consumed
537,322M3 (Figure6.3-1) of water in 2021 which was 46,959M3 less than the consumption in
2020. In view of the long-standing problem of fresh water resources shortage in Taiwan, otherthan installing water-saving taps for the employee’s daily usage, we will continue to conduct watersaving projects in order to reduce water consumption.
As for the wastewater management, all the factories and subsidiaries have granted government
approved “water pollution prevention measures” and “permit for effluent”, as well as setup
wastewater treatment facilities based on the prevention measures. All the wastewater treatment
facilities are operated in accordance to the prevention measures and the amount and quality ofthe effluent are regularly tested and reported to the authorities. The rest results are all below
the effluent standard, therefore the effluent from Tatung will not have significant impacts to thebiodiversity of the nearby habitats and the recipient water bodies. The detailed effluent information
is disclosed on Table 6.3-2.

2021

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

Table 6.3-2 Wastewater treatment and effluent status in 2021

Factory

Consumption of water and management on the wastewater

2020

River water

Insulation oil

2019

Ground water

100%

2018

Tap water

731 tons

2017

172,638

138

Aluminum

0105,151

Annex

99%

259,533

Sustainable
environment

5,875 tons

214,102

Happy workplace& social
participation

Copper100,000

108,115

Responsible
supply chain,product safety &customer service

100%

238,196

Sustainable
governance

6,001 tons

211,879

Profile of
Tatung Company

Steel (including
silicon steel)

200,000

161,059

Identification on
the stakeholders &material topics

Amount of consumption

300,000

178,566

Main materials

Local purchased percentage(by purchase values)

153,696

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

138,6402021 CSR
Highlights

262,064

400,000

282,917500,000

269,390

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

M3
700,000

292,811

Table ofContents

6.3 Resources consumption and pollutants management

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

Treatment
methodFactories
setup
wastewater
treatment
facilities inaccordance
to therequirementsof regulations.

Average COD
concentration(mg/L)

Average
Suspended
substances
concentration(mg/L)

Amount ofeffluent(M3/year)

Recipient water
body

22.73

7.68

4,257

Heng River

6.60

2.85

1,689

New Street
River

9.72

10.85

16,733

New Street
River

11.30

10.90

7,562

Old StreetRiver

Effluent reusedby othersNone30,241

Note: The data is collected from EPA’s declaration system Effluent standard for COD: 100 mg/L, SS: 30 mg/L.
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2021 CSR
Highlights

Management on the air pollutant emissions
The main air pollutants from the factories are NOx, SOx, and VOC. Tatung declares the amount ofemissions and pays air pollution control fees to the authority. From Figure 6.3-2 and Figure 6.3-3
we can see the emissions of VOC have reduced gradually year by year and the emissions of SOx
have slightly increased. The reason could be more diesels were consumed by RTO (the treatment
facility that eliminate VOCs by combustion) in the factories.
Tatung sets up and operates air pollutant treatment facilities in the factories in accordance to theregulation. Pollutant concentration is regularly tested and met the standard. In addition to optimize
the air quality and reduce the impact to the surrounding environment around the factories, wehave implemented pollutant treatment facilities with higher VOCs removal efficiency, such as RTO(Regenerative Thermal Oxidizer) in the past few years.
kg
3,500

Sustainable
environment

Annex

140

2019

2020

20,471

10,00002021

19,371

1,500

65.51

7.47

70.00%
60.00%

1,000
2017

2018

2019

2020

2021

Note: Data is from EPA Air pollutant declaration system.

Note: Data is from EPA Air pollutant declaration system.

Figure 6.3-2
Amount of NOx and SOx emissions

Figure 6.3-3
Amount of VOC emissions

Waste reduction and management

500
0

2017

2018

Six methods were used for wastes treatment in 2021 (as listed on Table 6.3-3). The factories also
have been working hard to recycle and/or reuse the wastes in order to minimize the impact to theenvironment. 2,226.04 tons of wastes were reused (75.59% of total wastes) in 2021.

2020

40.00%
30.00%
20.00%
10.00%

2021

Figure 6.3-4 Amount of wastes generated

Tatung’s waste reduction concept is mostly from product design and manufacturing process
improvement to reduce the amount of industrial wastes. The wastes are properly categorized
and stored in accordance to the relevant regulations, and eventually commissioned by domestic
qualified treatment companies or reuse companies. Tatung audits the commissioned companies
from time to time to ensure that the wastes are properly cleaned up or reused.
In 2021, Tatung generated 2,944.78 tons of industrial wastes, of which 2,937.31 tons were generalindustrial wastes and 7.47 tons were hazardous industrial wastes (Figure 6.3-4). Compared withthe amount of wastes in 2020, the amount was increased by 14.66% and failed to meet the target(5% reduction each year). The reason is that San-Hsia Factory updated production equipment,
lighting equipment and iron beds in the dormitory, and hence removed a large number of ironpipes, equipment and iron frames. We will continue to work hard to reduce the amount of wastes
in the future.

2019

50.00%

75.59%

Happy workplace& social
participation

2018

2,000

30.08

63.94%

Responsible
supply chain,product safety &customer service

2017

NOx
SOx

20,000Obtain waste being
proper treateddocument from
entrusted companies

69.42%

Sustainable
governance

30,000

2,500

54.26

72.47%

034,680

Audit the entrusted
waste treatment andre-use companies

75.45%

500

1,097

2,153

3,000

Hazardous industrial wastes
General industrial wastes

1,500
1,227

56,907580.00%

2,502.80

2,049

1,500
1,000

46,26840,0002,000

Profile of
Tatung Company

50,0003,241.57

2,109

2,516

Entrust qualified
waste treatment andre-use companies

56.85

2,832.90

2,500

2,464

Classified, labeled,storedin the factory

42,937.31

2,825

3,000

3

Wastes clean up and treatment flowchart

2,930.28

Identification on
the stakeholders &material topics

Product design andprocess improvement
to reduce waste

Tons
3,500

kg
60,000

3,048

2

1

0.00%

2017

2018

2019

2020

2021

Figure 6.3-5 Waste reuse percentages

Table 6.3-3 Waste treatment methods in 2021
Reuse

Incinerate

Solidify

Physicaltreatment

Heat
treatment

Chemicaltreatment

Total

General industrial
wastes (tons)

2,226.04

522.420.00

149.28

39.57

0.00

2,937.31

Hazardous industrial
wastes (tons)

0.00

3.93

2.03

0.00

1.45

0.061

7.47

Percentage of eachtreatment method(by weight)

75.59%

17.87%

0.07%

5.07%

1.39%

0.00%

100.00%

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Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

6.4 Green products for a better earth
DMA
An explanation of why
the topic is material
Following the trend of energy
saving and carbon reduction,
Tatung has strengthened thedevelopment of environmentallyfriendly, energy saving, and highenergy efficiency green products,
as well as installing solar PV
systems. In addition to slowing
climate change, it can also createbusiness opportunities.

Promotion and management on environmental friendly products
Boundary for the material topic
Tatung and its subsidiaries.

Specific limitation regarding
the topic boundary

Purpose of the
management approach

Performance disclosure is limited
to Tatung Co., TCPC (Tatung 3C
Stores), and solar PV system
related subsidiaries.

Assist enterprises and the country
to achieve goal of net zero
emission with energy saving,energy creation and energy
storage.

Policies

Commitments

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

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

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

142

Goals and targets

Specific actions

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

Apply Design for the Environment,
DfE”, in the design phase to produce“recyclable, low pollution, toxic-free,resource saving, power saving, anddurable” products to benefit theenvironment.

2. Complete the solar photovoltaic powersystems with capacity of 312MWp
accumulatively by the end of 2022.

Apply for EPA’s Green Storesand promote energy saving andenvironmental friendly products.

Mechanisms for evaluating theeffectiveness of the management
approach
Encourage the factories and subsidiaries
to develop environmental friendly products
through 3P Program evaluation.

Related adjustments to the
management approach

Results of the evaluation of the
management approach
In 2021, we had 13 models awarded
with Green Mark, 99 models awarded
with Energy Label, and 8 models
awarded with Water Label.

NIL.

By the end of 2021, Tatung has
completed the solar PV power systems
with capacity of 211MWp.

Respond to green procurement andencourage all units of the company totake environmentally friendly products
into consideration when purchasing
items.
Install solar PV systems.

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2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Establishing solar PV systems to minimize air pollution and
GHG emissions

PV solar system at Metro Taipei Luzhou Depot

PV solar system at Houlong Flood Detention Pond, Miaoli County.

In line with the government’s green energy policy and the changes in the global industrial situation,
Tatung has continued to innovate, steadily cultivated the solar photovoltaic market, combined withintelligent technology and gradually expanded from the early public housing roofs and landfill sites
to the fish-electricity symbiosis power stations, cemetery sites, and photovoltaic stadiums. Tatung
not only has good engineering quality and active innovation, but also be ready in the fields of power
plant operation, green power transfer and renewable energy certificates to work together for theliberalization of Taiwan’s electrical industry. By the end of 2021, Tatung has completed over 1,100
solar photovoltaic power systems with capacity of 211MWp, which can generate nearly 246.45
million kilowatt-hours of electricity per year, with a carbon reduction of 123,718 tons/year, whichis equivalent to the annual carbon reduction of about 318 Daan Forest Park of carbon absorption.
Tatung has invested in the field of renewable energy for more than 10 years. Its long-term hard
work has gradually gained recognition in the country. In 2021, Tatung Forever Energy Company
has won three “2021 Public Construction Commission Golden Quality Award”. Sheng Yang Energy
Co. has won two “2021 Top Solar System Award by Bureau of Energy, MOEA.”
Looking forward to the future, Tatung will adhere to the sustainable development strategy andactively promote the energy transformation in line with the government’s green energy policy.
The goal is to complete 312MWp of solar PV systems accumulatively by the end of 2022. We
are aiming to lead the solar power industry to reciprocate and innovate through various industry
cooperation and to expand setup area for PV solar systems. We will provide more opportunities forcooperation in the solar energy industry. For more details about Tatung PV solar projects, pleasebrowse: https://www.tatung.com/en/solution/detail/16

Sustainable
governanceTarget：312MWp

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

70MWp

Sustainable
environment

Annex

144

2017
2021 Public Construction Commission
Golden Quality Award

91.70MWp

2018

127.15MWp

2019161.73MWp

2020

211MWp

2021

2022

2021 Top Solar System Award
by Bureau of Energy, MOEA

Note 1: Calculated with emission factor: 0.502kg CO2/kwh.
Note 2: One Daan Forest Park can absorb 389 tons of CO2 per year.

Total PV solar systems installed and our target in 2022
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Devote in developing environmental friendly products

Promotion on green consumption

Providing high-quality products with innovative technology, realize energy saving, environmental
protection, and healthy life, and fulfilling the responsibilities of global citizens is our vision. We
tirelessly dedicate to the development of green products and many of them have been awarded
with Green Mark, Energy Label, and Water Label. There were 13 models awarded with Green
Mark, 99 models awarded with Energy Label, and 8 models awarded with Water Label in 2021.
Please refer to Table 6.4-1 and Figure 6.4-1 for more details.

In addition to produce energy-saving, environmentally-friendly
and water-saving products, Tatung also combines its own sales
channel- Tatung 3C to promote green products. In addition toholding energy-saving and environmentally-friendly productpromotion activities from time to time, Tatung also has 29 Tatung
3C Stores3 been registered as Green Store4 by EPA. The GreenStores of Tatung 3C will announce the types of products sold inthe stores with Green Mark, Energy Label, and Water Label tostrengthen consumers’ recognition of Green Mark and Green
Consumption. This is able to promote the development of green
industries and reduce the adverse effect to the environment andto improve the quality of the environment.

Table 6.4-1 Green products within the validity period
2021 CSR
Highlights

Products

Energy Label Green Mark

Water Label

Electric fans
Refrigerators

Identification on
the stakeholders &material topics

Note 3: As of 2022/3/10.
Note 4: https://greenliving.epa.gov.tw/newPublic/Eng/Application/GreenStore

Washing machines
Monitors

Table 6.4-2 Green consumption promoting measures taken by Tatung

Dehumidifiers
Domestic air conditioners

Profile of
Tatung Company

Unit

Amorphous transformers
Cast resin dry type transformers

Tatung Co.

Amorphous cast-resin dry type transformers
Note: as of 2022/4/6.

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Unit:
Models120

Energy Label

99

20

31

9

22
12

9

0

2017

4
2018

2019

13

5
2020

Figure 6.4-1 No. of new certified or renewed green products
146

MeasuresResearching and producing the environmental
friendly, energy saving, and water saving
products.

Applying for Green Mark, Energy Label, Water
Label, or Carbon Label.

Promoting and selling green products.
Tatung 3C Stores

Registered as EPA’s Green Stores
Holds energy-saving and environmentalfriendly products promotion activities fromtime to time.

As for the recycle on the wasted products, Tatung takes great attention on this issue. Tatung pays “Recycling and CleaningFee” to the government agency (Recycling Fund Management Board) to carry out countrywide waste recycling affairs.
Based on the statistics in 2021, the average recycling rate for electric/electronic5 and information devices was 74.94%6.
In addition to paying fees, Tatung proactively informs consumers of the recycling information of large home appliances7
on sales and online shopping sites, and provides consumers with recycling services for large home appliances, waste
batteries and CD disc at Tatung 3C stores to ensure that waste products enter legal recycling system to avoid damage
to the environment.

60

33

Responsibilities

Product and package recycling at the end of life

63

4

Annex

Water Label

74

40

Sustainable
environment

Green Mark

98

100

80

Tatung 3C energy saving products promotions

2021

8

In regarding to the packaging materials of household appliances and consumer products, Tatung believes that the
packaging materials are well recycled. The reason behind this is the recycling channels in Taiwan are well establishedand citizens are highly educated and aware to do recycle in their households. For packaging materials (mainly wood/iron pallets or axles) used on large industrial products such as cables, transformers, power generators, motors, they are
recycled and reused on daily operations.
Note 5: Refrigerators, washing machines, TVs, air conditioners, and electric fans.
Note 6: https://recycle.epa.gov.tw/ConvenienceServices/Downloads
Note 7: Refrigerators, washing machines, TVs, and air conditioners.
147

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Management
Statement

Annex 1: Tatung Co. and subsidiaries notes toconsolidated financial statements
Name investor

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

148

Percentage of ownership

Name of investee

Scope of business

The Company, Chunghwa Chunghwa Picture Tubes,
Electronics Investment
Ltd. (“CPT”)
Co., Ltd., Chih Sheng
RealtyManufacture, researchand sale of picture tubs
and TFTLCD products

39.67%

39.67%The Company, Shan-Chih Tatung System Technologies
Investment Co.,Ltd. and Inc. (“TSTI”)
Shan-Chih Asset
Development Co.

Software and hardware
service and system
integration

43.34%

43.34%The Company, andChunghwa Electronics
Investment Co., Ltd

Forward Electronics Co.,
Ltd. (“FD”)

Manufacture and saleof electronics

18.48%

18.48%The Company

Taiwan Telecommunication
Industry Company Ltd.

Telecommunication
devices

100%

100%

The Company andChunghwa Electronics
Investment Co., Ltd.

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

Manufacture and salesof semiconductors andchips

70.14%

70.14%The Company

Central ResearchTechnology Co.

EMCIRF testing andcertification services

100%

100%

The Company

Tatung Consumer Products(Taiwan) Co., Ltd.

Sales of home
appliances and digitalcomputer products

100%

99.10%The Company, Chunghwa Tatung Fine Chemicals Co.,Electronics Investment
Ltd. (“TFC”)
Co., Ltd. and Chih-Sheng
Investment Co., Ltd.

Industrial coatings,
electrocution coatings
resistor coatings,
photocatalyst, inkjet ink

54.63%

54.63%The Company

Shan-Chih Asset
Development Co. (“SCAD”)

Development andleasing of real estate

100%

100%

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

Chunghwa Electronics
Investment Co., Ltd.

Professional
investment holding

100%

99.99%The Company

Tatung DIE Casting Co.

Manufacturing andsales of casting mold

51.00%

51.00%

Dec. 31, 2021 Dec. 31, 2020

Name investor

Percentage of ownership

Name of investee

Scope of business

The Company

Tatung (Thailand) Co., Ltd.

Manufacturing andsales of IT products,
home appliancesand AI meter

99.99%

99.99%The Company

Tatung Co. of Japan, Inc.

Sales and purchase ofelectronic parts, home
appliances and IT
products

100%

100%

The Company

Tatung Electronics(S) Pte.
Ltd.

Purchases, sales
and services of raw
material

90%

90%

The Company

Tatung Information(Singapore) Pte. Ltd.

Professional
investment holding

100%

100%

The Company

Tatung Electric (Singapore)
Pte. Ltd.

Professional
investment holding

100%

100%

The Company

Tatung Electric Company ofAmerica, Inc.

Manufacture and salesof motor products in
the U.S.

100%

100%

The Company

Tatung Netherlands B.V

Sales of electronic
products

100%

100%

The Company

TATUNG CZECH s.r.o

Manufacture of IT
products

100%

100%

The Company

Tatung Medical
HealthcareTechnologies Co.,Ltd.

Design and sales of
medical instruments.

95.85%

95.85%The Company

Toes Opto-Mechatronics Co.

Manufacture of data
storage and processequipment

100%

86.05%The Company

Chih Sheng Investment Co.,Ltd.

Professional
investment holding

100%

100%

The Company andChunghwa Electronics
Investment Co., Ltd.

Shan Chih Investment Co.,Ltd.

Professional
investment holding

100%

100%

The Company

Absolute Alpha Limited

Professional
investment holding

100%

100%

Dec. 31, 2021 Dec. 31, 2020149

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Management
Statement

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

150

Name investor

Percentage of ownership

Name of investee

Scope of business

The Company

Tatung Forever Energy Co.,
Ltd.

Solar energy related
business

100%

100%

The Company

Tungyang Energy Co., Ltd.

Solar energy related
business

100%

100%

The Company

Chih Kuang Energy Co., Ltd

Solar energy related
business-%

100%

The Company

Shanshin Energy Co., Ltd.

Solar energy related
business

100%

100%

The Company

Yau Yang Energy Co., Ltd.

Solar energy related
business

100%

100%

Dec. 31, 2021 Dec. 31, 2020

The Company

Ting Shin Energy Co., Ltd.

Solar energy related
business

100%

100%

The Company

Zhi Shin Energy Co., Ltd.

Solar energy related
business

100%

100%

The Company

Tung Kuang Energy Co.,Ltd.

Solar energy related
business

100%

100%

The Company

Tung Shin Energy Co., Ltd

Solar energy related
business

100%

100%

The Company

Chuang Shih Neng Co., Ltd.

Solar energy related
business

100%

100%

The Company

Cizhi Power Co., Ltd.

Energy storage service
related business

100%

-%

CPT

Chunghwa Picture Tubes(Bermuda) Ltd. (“CPTB”)

Investment holding andsales of TFT-LCD

100%

100%

CPTB

Chunghwa Picture Tubes(Malaysia) Sdn. Bhd.
(“CPTM”)

Manufacture and saleof CRT

100%

100%

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

Investigation of market
information

100%

CPTB

100%

Name investor

Name of investee

Scope of business

Percentage of ownership
Dec. 31, 2021 Dec. 31, 2020

Forward Electronics
Co., Ltd.

Forward Development Co.,
Ltd.

Investment holding

100%

100%

Forward Development
Co., Ltd.

Forward Electronics
Equipment(Dong Guan) Co.,Ltd

Factory leasing
business

100%

100%

Forward Development
Co., Ltd.

Suzhou Forward Electronics
Technology Co., Ltd.

Manufacture and saleof backlight unit for
TFT-LCD, switch andelectronic lable.

100%

100%

SCSC

Greater Power Limited

Investment holding

100%

100%

SCSC

Chih De Investment Co., Ltd.

Investment holding

100%

100%

Tatung Fine Chemicals
Co. and Shang ChihInternational Chemical
Industry Co., Ltd.

Tatung Coatings (Kunshan)Co., Ltd.

Manufacture and saleof industry coating andelectrodeposition
coating

100%

100%

Tatung Fine Chemicals
Co.

Huaian Tatung Advanced
Technology Materials Co.,Ltd.

Manufacture and saleof positive, printer ink,
electrodepositionhigh performancecoating.

100%

100%

Tatung Fine Chemicals
Co.

Shang Chih International
Chemical Industry Co., Ltd.

Investment holding

100%

100%

Shang ChihInternational Chemical
Industry Co., Ltd.

Dongguan Tongli Trading
Co., Ltd.

Wholesale of painting,coating and chemical
products.

100%

100%

Tatung Information(Singapore) Pte. Ltd.
and Chih Sheng
Holding HK Limited

Tatung Information
Technology(Jiangsu) Co.,Ltd.

Manufacture and salesof various electrical
products

100%

100%

151

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Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

152

Name investor

Percentage of ownership

Name of investee

Scope of business

Tatung Information(Singapore) Pte. Ltd.
and Shan-Chih
International Holding
Corporation

TatungCompressors(ZHONGSHAN)
Co., Ltd.

Manufacture andsales of reciprocating
compressors.

100%

100%

Tatung Electric(Singapore) Pte. Ltd.
And Shan-Chih
International Holding
Corporation

Tatung (Shanghai) Co., Ltd

Manufacture and salesof motors, generatorsand transformers

100%

100%

Shan Chin Investment
Co. Ltd

Shan-Chih International
HoldingCorporatio

Investment holding

Dec. 31, 2021 Dec. 31, 2020

100%

100%

Name investor

Percentage of ownership
Dec. 31, 2021 Dec. 31, 2020

Tatung Forestry andConstruction Co.

Design andconstruction of
structural engineering.

99.87%

99.87%The Company and
Shan-Chih Asset
Development Co.

Taipei Industry Corporation

Manufacturing sale ofconstruction relatedmaterial and property
rental business.

50.61%

50.61%

Shan-Chih Asset
Development Co.

Chih Sheng Realty Co., Ltd.

Realty management

100%

100%

Shan-Chih Asset
Development Co.

Shan-Chih Asset
International Holding
Corporation

Investment holding

100%

100%

Shan-Chih Asset
International Holding
Corporation

Tatung Management
Consultant(Shanghai) Co.,Ltd.

Realty and Leasing
Service

100%

100%

Shan-Chih Asset
International Holding
Corporation

Shan-Chih Asset
International (Hong Kong)
Holding Limited

Realty and Leasing
Service

100%

100%

Tatung Forever EnergyCo., Ltd.

Sheng Yang Energy Co., Ltd.

Solar energy business

-%

100%

Tatung Information(Singapore) Pte. Ltd.

Tatung Myanmar JV Holding
Co., Ltd.

Investment holding

100%

100%

Insured Pharmaceuticals Co.,Ltd.

Pharmaceuticals andwarehousing andtransportation service

-%

100%

Tatung Xinji (Guangdong)Technology Co., Ltd.

Electrical engineeringsysteminstallation service

100%

100%

Chyun Huei BusinessTechnology Inc.

Information software
Service

100%

100%

TSTI

Tisnet Technology Inc.

Software design anddevelopment

100%

100%

TSTI

TSTI Technologies(Shanghai) Co., Ltd.

Information software
Service

100%

100%

Chih Sheng Investment
Co., Ltd.

Chih Sheng Investment(BVI) Co., Ltd.

Investment holding

100%

100%

Chih Sheng Investment(BVI) Co., Ltd

Chih Sheng Holding Co.,
Ltd.

Investment holding

Chih Sheng Holding
Co., Ltd. and CPTB

Goldmax Asia Pacific Ltd

Investment holding

Chih Sheng Holding
Co., Ltd.

Chih Sheng Holding HK
LimitedInvestment holding

100%

100%

Tatung Medical
Healthcare
Technologies Co., Ltd.

Absolute Alpha
LimitedTatung Information
Technologies Corp.

Sales of electronic
products-%

100%

Tatung (Shanghai) Co.,Ltd

51.26%

Scope of business

Shan-Chih Asset
Development Co. andTaipei Industry
Corporation

TSTI

100%

Name of investee

100%

51.26%

153

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Annex 2: Products and services provided by Tatung
Products and services provided by Tatung

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Business Units

Products and Services

Heavy Electrical
Equipment BU

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.

Cable BU

With more than 50 years of technical experience, this business
unit has been specializing in manufacturing and selling the various
wires, cables, fiber optic cables and busways which are widelyused in telecommunication, power transmission, power distribution,
solar photovoltaic(PV) power generation system & various industrial
equipment, household appliances, IT network, wiring harness kits forelectric vehicles and electronic components, etc.

Profile of
Tatung Company

Sustainable
governanceMotor BU
Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

154

Smart Meter BU

Products and services provided by Tatung
ImportantCertifications

Business Units

ImportantCertifications

Strengthen brand operation. We continued to enhance brand value
with innovative design, superior quality and technical services in both
domestic and overseas market. We served a wide range of products
including commercial and residential energy-saving air-conditioners;
Centennial Edition Steam rice cookers, Easy cooker (Fusion cooker),co-branding rice cookers, Smart 4K TFT displays, the new stylish
juicer, electric teapots and other small appliances.

Appliance BUWith more than 70 years of technology and experience, Motor BU
researches and produces all kinds of energy saving high-efficiency,
single phase, and three phase high/low voltage motor from 1/8~50,000
HP, including a variety of special motors and applications systemsuch as premium efficiency motors, electric vehicle motors, hightemperature resistant motors, explosion proof motors, wound rotor
motors, vertical high thrust pump motors, gear reducer, inverter driver
motors, aluminum frame motors, brake motors, oil well pump motors,
water pump motors, immersible pump motors, built-in type spindle
motors, rolling mill motors, elevator motors, crane motors, permanent
magnet motors, IoT connected smart motor monitoring sensor andsystem, railway traction motors, inverters, control panels etc., as wellas provides total solutions for electrical testing equipments and plant
power equipments system engineering projects to serve a variety ofindustries.
Smart Meter BU provides various types of smart meters and AMI
systems. Products including single-phase electric meters, threephase electric meters, CT-type electric meters, communication
modules, HES, and MDMS. The self-developed AMI meters havesuccessfully obtained international certifications including ANSI,
IEC, MID and Japanese JIS. Tatung has the ability of integrating
the systems of smart meter infrastructure and integrating different
communication technologies to develop smart meter application
functions to meet customer needs and improve system performance.
In order to strengthen the supply and competitiveness in theinternational market, Tatung has set up meter factories in Taiwan and
Thailand to meet the growth of smart meter business.

Products and Services

We actively participated in product design compaigns to enhance thebrand’s exposure in the globe. We have successively obtained majorinternational design awards such as German iF Industrial DesignAward, Reddot Design Award, Japanese Good Design, and Taiwan
Excellence Award in the recent years.
To pursue the blooming AIoT trend, we developed smart home
appliances for smart energy saving and living applications. Throughsensing and Internet of Things technology, a variety of terminal
devices can be connected to provide smart living solutions according
to user’s needs, such as power consumption management, remotecontrol, scheduling control, and personalized situational services,
etc. In addition, voice control function has also been integrated in thesmart home system to provide the advanced digital life experienceto the users.

AdvancedElectronics BU

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

155

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Products and services provided by Tatung
Business Units

The Dept. of Information and Communications Technology Services:
we have more than 30 years for helping customers deal withthe computerization and automation of their systems and haveendeavored to meet the needs of the ICT market in the era oftechnology. We’ve been a representative solutions provider of highquality system integration in Taiwan. We specialize in ICT system
integration, network security planning & implementation, andapplication software development. We have rich capabilities andexperience in large-scale system integration solutions. Our service
team members have owned a wide range of IT professional skills,
certificates and service network all over Taiwan by 13 direct branch
offices to provide customers fast services. We will continue to devote
ourselves to deepening the fields of information and communication
integration, cloud applications, information security, outsourcing
services, business intelligence and system development, and thenwill become the leading solutions provider in those fields in the near
future.

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

156

ImportantCertifications

Business Units

System Integration BU is committed to specializing in the fields ofinformation and communication systems as well as electromechanicalsystems.

Table ofContents

Sustainable
governance

Products and Services

Products and services provided by Tatung

SystemIntegration BU

The Dept. of Electromechanical Systems: When Taiwan’s infrastructure
constructions began in the 1960s and 1980s, Tatung Company madean important contribution to the various infrastructure constructions
such as power generation, power transmission as well as power
supply. Electrical and mechanical systems related businesses are:
1. Provide power plants, large substations, transmission &distribution systems, solar power generation and motor related
electromechanical integration services.
2. Residential and factory-built electromechanical engineering,
including planning as well as construction for smart building.
3. Sewage (waste water) treatment, which has reached theindustrial waste water Zero Discharge standard.

Products and Services

ImportantCertifications

In order to cooperate with the professional team promoted by thegovernment policy, the Solar Energy Division invested in domestic
public buildings and various types of solar photovoltaic fields inthe long term. Solar Energy BU provide renewable energy project
development, design, construction and maintenance services.

Solar Energy BU-

The solar team leverages the Group’s supply chain integration
advantages, coupled with rich design planning and project
management experience, the project performance is spread acrossTaiwan. At present, it is actively expanding ground-based landfill
sites and water-based sites, and additionally take mechanics andelectronics in advantage ability to enter the large-scale groundpower station market. In terms of maintenance, we could throughsmart monitoring technology to develop business opportunities formaintenance of power plants, provide quality maintenance services,and promote renewable energy policy.

Smart Energy BU (SEBU) consists of technical and sales teams forbusiness of micro-grid & energy storage system and AIoT-basedenergy management system. Dedicated in energy management
system development and energy storage system integration, theBU specializes in design, implementation, and system integrationof ancillary service and micro-grid system integrated with renewable
and traditional energy sources. Micro-grid system can operate
Smart Energy BU independently or work with the main grid to reduce fuel consumption
and ensure the stability of regional energy supply. Large-scaleenergy storage systems can be applied to Taipower’s automatic
frequency control ancillary service to help maintain grid stability
and power quality when large amounts of renewable energy areconnected to the grid. AIoT-based real-time data collection and cloudinfrastructure provides the micro-grid and energy storage system withthe functions of data monitoring, analyzing, visually presenting, andfacility predictive maintenance.

--

4. Traffic mechanical and electrical engineering for Rails and roads
as well as sign control systems.
We have owned cross-domain professionals, which covers various
functionalities such as power, electronics, mechanics, smart control,
information technology, communications, transportation and project
management. They are responsible for integrating cross-domain
professionals, coordinating cross-organizational interfaces, providing
integrated design, project management and maintenance services.

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Table ofContents

Annex 3: Factories and subsidiaries participated in 3P
Program and Accident Prevention Pays Program in 2021
Factories owned by Tatung
Tayuan Plant

Annex 5: GRI Standards content index
GRI Content Index

Subsidiaries
Tatung Die Casting Co., Ltd.

GRI Standard

Disclosure

Pages/URL

Note

GRI 101: Foundation

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Taoyuan Wires and Cables Plant

Tatung SM-Cyclo Co., Ltd.

San-Hsia Factory

Tatung Fine Chemicals Col., Ltd.

102-1 Name of the organization

Taoyuan 1st Plant

Shan Chih Semiconductor Co., Ltd.

102-2 Activities, brands, products, andservices

Meter Factory

Forward Electronics Co., Ltd.

GRI 102: General Disclosures

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

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

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

22

102-4 Location of operations

22, 23102-5 Ownership and legal form

The amount of GHG emissions in 2020 (verified based on ISO 14064-1)

Taoyuan Wires and Cables Plant

Annex

158

Scope 1

Scope 2413.3034

4,137.4689

1,179.6503

22, 2323

102-8 Information on employees and otherworkers

93

102-10 Significant changes to theorganization and its supply chain

Factory22102-7 Scale of the organization

102-9 Supply chain

Amount of GHG emissions (Unit: tons CO2e) in 2020

San-Hsia Factory
Sustainable
environment

Organization
profile22, 154~157

102-3 Location of headquarters

102-6 Markets served
Sustainable
governance

22, 23102-11 Precautionary Principle or approach

52, 5349~57

102-12 External initiatives

25

6,501.7931

102-13 Membership of associations

24

102-14 Statement from seniordecision-maker

2, 3102-15 Key impacts, risks, andopportunities

2, 3

Taoyuan 1st Plant

15,470.2490

1,451.4467

Total

17,063.2027

12,090.7087

Note: The factories conduct GHG emission inventory and verification for the previous year by the end of each year.
Hence, the amount of emissions for year 2021 will be disclosed on “2023 Tatung Sustainability Report”.

Strategy

Ethics andintegrity

102-16 Values, principles, standards, andnorms of behavior

No significant
change46, 47, 58, 59

159

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Table ofContents

GRI Content Index
GRI Standard

Governance

160

Disclosure

GRI 102: General Disclosures

Sustainable
governanceAnnex

GRI Standard

GRI 102: General Disclosures

Profile of
Tatung Company

Sustainable
environment

Note

GRI 101: Foundation

Identification on
the stakeholders &material topics

Happy workplace& social
participation

Pages/URL

GRI 101: Foundation

2021 CSR
Highlights

Responsible
supply chain,product safety &customer service

Disclosure

GRI Content Index

102-18 Governance structure35102-19 Delegating authority

59

102-20 Executive-level responsibility foreconomic, environmental, and social topics

40, 41, 59

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

8~11

102-40 List of stakeholder groups

Stakeholder
engagement

Pages/URL

8, 9

102-41 Collective bargaining agreements-

102-42 Identifying and selecting
stakeholders

8, 9102-43 Approach to stakeholder
engagement

8, 9102-22 Composition of the highest
governance body and its committees

37, 38, 40

102-23 Chair of the highest governance
body

37

102-44 Key topics and concerns raised

10, 11

102-24 Nominating and selecting thehighest governance body36

102-45 Entities included in the
consolidated financial statements

148~153

102-25 Conflicts of interest

36

102-46 Defining report content and topic
Boundaries

1, 18, 19

102-47 List of material topics

15, 16, 17

102-26 Role of highest governance body insetting purpose, values, and strategy

36, 37, 41

102-27 Collective knowledge of highest
governance body37

102-28 Evaluating the highest governancebody’s performance41

102-29 Identifying and managing economic,
environmental, and social impacts

40, 59102-31 Review of economic, environmental,
and social topics

102-48 Restatements of information
102-49 Changes in reporting

Tatung has not
signedany collective
bargaining
agreements.

1
131, 133

102-50 Reporting period

1102-51 Date of most recent report

1102-52 Reporting cycle

140, 591

102-32 Highest governance body’s role insustainability reporting

102-53 Contact point for questions
regarding the report

1, 12

1

102-35 Remuneration policies

38, 39102-54 Claims of reporting in accordancewith the GRI Standards

102-36 Process for determining
remuneration

38, 39

ReportingpracticeNote102-55 GRI content index

159~167

102-56 External assurance

170~172161

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Management
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Table ofContents

2021 CSR
Highlights

GRI Content Index
GRI Standard

Disclosure

GRI Content Index
Pages/URLNote

GRI Standard

Material topics

Material topics

Corporate governance and ethical practice

Customer privacy management

GRI 103
Management
Approach103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

18, 19,42, 43

GRI 103
Management
Approach

Profile of
Tatung Company

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

18, 19,44, 45

Economic performance
Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

GRI 103
Management
Approach

GRI 201
Economic
performance

GRI 103
Management
Approach18, 19,26, 27
29

GRI 416
Customerhealth andsafety

Annex

162

86

103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

18, 19,68, 69416-1 Assessment of the health and safety
impacts of product and service categories
416-2 Incidents of non-compliance concerning thehealth and safety impacts of products and services

74~77
76

Occupational health and safety

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

52~57403-1 Occupational health and safety
management system

201-3 Defined benefit plan obligations and otherretirement plans

104403-2 Hazard identification, risk assessment, andincident investigation

112~116403-4 Worker participation, consultation, andcommunication on occupational health and safety

112, 113403-5 Worker training on occupational health andsafety112, 113, 117

103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

GRI 403
Management
Approach18, 19,98, 99403-6 Promotion of worker health103-3 Evaluation of the management approach
GRI 202
Marketpresence

18, 19,78, 79103-3 Evaluation of the management approach

Market presenceGRI 202
Marketpresence

103-2 The management approach and its
components

Product quality and safety

103-3 Evaluation of the management approach103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components
103-3 Evaluation of the management approach
201-1 Direct economic value generated anddistributed

Note103-1 Explanation of the material topic and its
Boundary418-1 Substantial complaints concerning breaches
GRI 418
Customer privacy of customer privacy and losses of customer data

Disclosure on non-financial information
103-1 Explanation of the material topic and its
Boundary

Pages/URL

103-3 Evaluation of the management approach

103-3 Evaluation of the management approach
Identification on
the stakeholders &material topics

Disclosure202-1 Ratios of standard entry level wage by
gender compared to local minimum wage

102, 103Disclosure 202-2 Proportion of senior
management hired from the local community

93

GRI 403
Topic-specificdisclosures403-8 Workers covered by an occupational healthand safety management system

112, 113, 114

108~113
114

403-9 Work-related injuries

118, 119403-10 Work-related ill health

118
163

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Table ofContents

2021 CSR
Highlights

GRI Content Index
GRI Standard

Disclosure

GRI Content Index
Pages/URL

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Annex

164

Disclosure

Pages/URL

Material topics

Employment

Promotion and management on environmental friendly products

GRI 103
Management
Approach103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

18, 19, 90, 91

GRI 401
Employment

401-1 New employee hires and employee turnover93

401-2 Benefits provided to full-time employeesthat are not provided to temporary or part-time
employees

97401-3 Parental leave96

GRI 103
Management
Approach103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

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

18, 19,100, 101

103-3 Evaluation of the management approach
GRI 302
Energy302-5 Reductions in energy requirements ofproducts and services

105

103-1 Explanation of the material topic and its
Boundary103-2 The management approach and its
components

GRI 302
EnergyGRI 305
Emissions144~147

GRI Standard

Disclosure

Pages/URL

Note

Other topics
Anti-competitive behavior

Management on energy and GHG emissions

GRI 103
Management
Approach18, 19,142, 143

GRI Content Index

103-3 Evaluation of the management approach
GRI 402 Labor/
402-1 Minimum notice periods regarding
management
operational changes
relationsNote103-1 Explanation of the material topic and its
Boundary

Labor/ management relations

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

80

Comply with social and economic regulations
18, 19,128, 129103-3 Evaluation of the management approach
Sustainable
environment

GRI Standard

Material topics

103-3 Evaluation of the management approach
Identification on
the stakeholders &material topics

Note

GRI 419419-1 Non-compliance with laws and regulations
Socioeconomic
in the social and economic area
compliance118

Supplier management302-1 Energy consumption within the organization

130, 131302-3 Energy intensity

136, 137

302-4 Reduction of energy consumption

134, 135

305-1 Direct (Scope 1) GHG emissions

132, 133305-2 Energy indirect (Scope 2) GHG emissions

132, 133

GRI 308
Supplier
environmental
assessment

308-1 New suppliers that were screened using
environmental criteria

62~65

GRI 414414-1 New suppliers that were screened using
Supplier socialsocial criteria
assessment

62~65

165

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Table ofContents

GRI Content Index
GRI Standard

Disclosure

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Pages/URL

Sustainable
environment

Annex

166

GRI Standard

Disclosure

Other topics

Marketing and labelingComply with environmental regulations

GRI 417417-2 Incidents of non-compliance concerning
Marketing andproduct and service information and labelinglabeling
417-3 Incidents of non-compliance concerningmarketing communications

76, 7776

307-1 Non-compliance with environmental laws
and regulations

Pages/URLGRI 306
Waste

404-2 Programs for upgrading employee skills andtransition assistance programs

106, 107404-3 Percentage of employees receiving regularperformance and career development reviews

102

Human rights, equality, and non-discriminations

127

306-3 Waste generated

140, 141306-5 Waste directed to disposal

140, 141

Management on water and resources
GRI 301
Materials

301-1 Materials used by weight or volume138

301-3 Reclaimed products and their packaging
materials

147

GRI 405
Diversityand equal
opportunity

405-1 Diversity of governance bodies andemployees

36, 92, 93

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

102, 103

GRI 406 Nondiscrimination

406-1 Incidents of discrimination and corrective
actions taken

92

Management on water and air pollutants

GRI 412
Human rights
assessment

412-1 Operations that have been subject tohuman rights reviews or impact assessment

94

GRI 305
Emissions305-7 NOx, SOx, and other significant air
emissions140

GRI 303
Water andeffluents

303-4 Water discharge

139

GRI 407
Freedom of
associationand collective
bargaining

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

NoteManagement on wastes

Performance review and career development
GRI 404
Training andeducation

GRI 307
Environmental
compliance80

Freedom of association and collective bargaining
Happy workplace& social
participation

Note

Other topics

417-1 Requirements for product and service
information and labeling2021 CSR
Highlights

GRI Content Index

GRI 303
Water andeffluents

303-3 Water withdrawal

138, 139

95

Child labor, forced or compulsory labor
GRI 408
Child labor408-1 Operations and suppliers at significant risk
for incidents of child labor95

GRI 409
Forced orcompulsorylabor409-1 Operations and suppliers at significant risk
for incidents of forced or compulsory labor

95

167

AnnexTop
Management
Statement

Table ofContents

Annex 6: SASB Disclosure Index
Resource Transformation Sector:
Electrical & Electronic Equipment
Topic

CODE

Page/URL

Note

EnergyManagement

1. Total energy consumed
2. percentage grid electricity
3. percentage renewable

RT-EE130a.1

130, 131

Amount of hazardous waste
generated, percentage
recycled.

RT-EE150a.1

140, 141

The amount of
hazardous waste
was 7.47 tons andthe percentage
recycled was 0%.

Number and aggregate
quantify of reportable spills,
quantity recovered.

RT-EE150a.2

1270Number of recalls issued, total
units recalled.

RT-EE250a.1-

0Total amount of monetarylosses as a result ofproceedings associated withproduct safety.

RT-EE250a.2

80-Happy workplace& social
participation

Percentage of products byrevenue that contain IEC
62474 declarable substances.

RT-EE410a.1-

Sustainable
environment

Percentage of eligible
products, by revenue, that
Product
meet ENERGY STAR® criteria.
Lifecycle(uninterruptible power supply
Management products, heating and coolingand ventilation equipment, andlighting and fans.)

Responsible
supply chain,product safety &customer service

Annex

168

Disclosure item

CODE

Page/URL

2. The percentage
of energy fromgrid electricity:
85.59%.
3. The percentage
of energy fromrenewable
sources: 0%.

Profile of
Tatung Company

Sustainable
governanceTopic

1. Total energy
consumption:
162,181.33 GJ.

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Disclosure item

Resource Transformation Sector:
Electrical & Electronic Equipment

Hazardous
Waste
Management

Product
SafetyRevenue from renewableenergy-related and energy
efficiency-related products.

RT-EE410a.2

RT-EE410a.3

Materials
Sourcing-

0.88%

Not Applicable

NT$3.189 billions

RT-EE440a.1-

1. Establish amanagement system
for the introduction
and assessment of
suppliers, evaluate
and actively develop
new sources inorder to avoid
supply interruptions
and reserve spot
purchases to flexibly
respond to productionneeds.
2. Collect raw material
market conditions andbusiness conditions,so as to propose
countermeasures andrespond early.

Business
Ethics-Description of the managementof risks associated with the useof critical materials.

Note

Activity
MetricDescription of policies andpractices for prevention of:
1. corruption and bribery
2. anti-competitive behavior

RT-EE510a.1

46, 47,80-

Total amount of monetarylosses as a result of legal
proceedings associated withbribery or corruption.

RT-EE510a.2-

0Total amount of monetarylosses as a result of legal
proceedings associated with
anticompetitive behavior
regulations.

RT-EE510a.3-

0Number of units produced byproduct category.

RT-EE000.A-

176 units (mainly
are diesel engine
generators).

Number of employees

RT-EE000.B

93

2,585 employees

169

AnnexTop
Management
Statement

Annex 7: Assurance statements

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

170

171

AnnexTop
Management
Statement

Table ofContents

2021 CSR
Highlights

Identification on
the stakeholders &material topics

Profile of
Tatung Company

Sustainable
governance

Responsible
supply chain,product safety &customer service

Happy workplace& social
participation

Sustainable
environment

Annex

172

173

Address No. 22, Sec. 3, Zhongshan N. Rd.,
Zhongshan Dist., Taipei City ,Taiwan (R.O.C.)
Tel. 02-25925252 ext.3167
E-Mail csrreport@tatung.com