About This Report“2023 Tatung Sustainability Report” has been preparedaccording to AA1000 AS v3. and with reference to the
GRI Standards. We have also 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
the sustainable achievements done by Tatung in asystematical manner.
Scope
The scope of this report covers Tatung’s operations
within the Headquarter, Tayuan Plant, Taoyuan Wires
and Cables Plant, Meter Factory, Taoyuan 1st Plant, and
San-Hsia Factory. Due to Tatung Consumer Products
Co, Ltd (also known as TCPC or Tatung 3C) is mainly
in charge of the sales of Tatung’s household appliancesand consumer products, part of TCPC’s information(sales, services, and consumer data management) is
also disclosed in this report. The disclosure boundaryof some material topics may include some of thesubsidiaries and will be specifically described in its DMA.
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 from2022.1.1~2022.12.31.
Restatements of information
Tatung completed the GHG inventory for whole
company in 2022 (the emission in 2021). The energy
usages and GHG emissions for year 2021 have been
restated (page 112 and 113) in this report.

Sustainability Report preparation procedures
Gather sustainable topics, reporting
standards, verification standards, etc.
Identify stakeholders and material topicsof the year, and submit to “Sustainable
Development Committee” for approval.
Prepare the report in accordance toreporting standards.

External assuranceThis report has been verified by TUV NORD Taiwan
Co., Ltd. Based on AA1000AS v3 (Type 2, High levelassurance). The assurance statement is enclosed in
Annex 6.
Previous reports
This report is our 22th non-financial report since 2002.
The previous report was published in June, 2022.

Submit the report to Chairman for issuance.

Contact point for questions regarding to the report
This report is prepared by Health & Safety Division andthe contact information is shown below:
Contact point: Han-sheng Chang
Tel.: +886-2-25925252, ext. 3167
E-mail: csrreport@tatung.com
Sustainability Report downloading webpage:https://www.tatung.com/en/info/csr-report

Data measurement techniques
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.

Tatung has done the best to ensure the accuracy of thisreport. If there is any discrepancy, the latest informationfrom the relevant departments of the company shallprevail.

Submit the drafted report to “Sustainable
Development Committee” for approval.
Conduct third party verification.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Message fromthe Chairman

Chairman

Wkang-Hsiang Wang

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Dear Friends,
Since its foundation from 104 years ago, the Tatung
Company, a pioneer in Taiwan’s power system andconsumer business, has been working alongside
the government and its initiatives towards economic
development. In recent years, we have dedicatedourselves to the transformation of energy creation,energy storage and energy saving. Impacted by the
global pandemic, the Russia-Ukraine war and port
congestion, our operations were severely challenged.
However, we have continued to achieve profitability in
2022 through cost optimization, expense control, andrecognition of gains from de-recognition of Chunghwa
Picture Tubes Ltd. We will remain focused on our corebusiness and expand into the energy sector. With
our strong research and development capabilities
and manufacturing capacity, we aim to become asignificant driving force for achieving net-zero carbon
emissions for both the nation and businesses.
In terms of driving ESG initiatives, our management teamembraces sustainable environmental development,social prosperity, and effective corporate governanceas core values. We have formulated a sustainable
development vision that integrates our core business,
focusing on “Operational Innovation, Sustainable
Development, and Global Harmony.” Furthermore,
to address the challenges and opportunities broughtby climate change, we have set a net-zero carbon
emissions target for the company and established aroadmap to achieve it by 2050. Within this framework,
each department is actively promoting ESG-related
operations and business practices.

2022 was a fruitful year for Tatung in terms of ESG
achievements. Through comprehensive ESG initiatives
and continuous improvement, our corporate governanceperformance reached the top 6% to 20% range in the 9th
Corporate Governance Evaluation, showing significant
progress compared to the previous year’s range of 36%
to 50%. Additionally, in May of this year, Tatung wasselected as a constituent of the Taiwan Stock Exchange’s
Taiwan Green Energy and Electric Vehicle Index. Tatung
was ranked the first place in the electrical machinery
category of the Top 100 Carbon Competitiveness Survey
by Business Weekly. In terms of sales and services,
Tatung’s 3C was awarded the Trusted Brand Gold
Award in home appliances customer service category
by Reader’s Digest. Furthermore, in ESG information
disclosure and communication, our sustainability reportonce again received the “TCSA Taiwan Corporate
Sustainability Award - Gold Award (Sustainability
Reporting) in the Traditional Manufacturing Category.”
Looking towards the future, Tatung recognizes
the risks posed by climate change and the rapidchanges in the industry. Tatung will devote to its
management policy focusing on three main aspects:
expansion of our core business, strengthening of
upgrades and transformation, and reinforcement of
our investment business. We will continue to focus onenergy creation, energy storage, and energy saving
as our long-term development directions. Throughenvironmental sustainability, social responsibility, andcorporate governance, we aim to achieve even greateraccomplishments and to create maximum benefits forsociety and all stakeholders.

Table of Contents
About this report

01

Top Management Statement032022 ESG Highlights

06

CH 1 Sustainable Management08

1.1 Sustainable management framework

08

1.2 Identification and Response to Stakeholders and Material
Topics12

1.3 Tatung and Sustainable Development Goals

22

CH 2 Profile of Tatung Company

24

2.1 Company profile24

2.2 Financial performances27

2.3 Services and products29

CH 3 Structure and Governance

CH 4

32

3.1 Corporate structure

34

3.2 Corporate governance38

Responsible Supply Chain, Product
Safety, and Customer Service42

CH 6 Sustainable Environment

92

6.1 Management on the environment

94

6.2 Resources consumption and pollutants management98

CH 7 Climate Change Risks and Management

104

7.1 Climate risk and governance107

4.1 Responsible supply chain

44

7.2 Energy consumption and GHG management112

4.2 Product responsibility

48

7.3 Enabler of net zero emissions

119

4.3 Sales and customer information management56

CH 5 Happy Workplace and Social Engagement

66

Annex

124

5.1 Building a friendly working place

68

Annex 1 Products and services provided by Tatung

124

5.2 Good working conditions and career development

73

Annex 2 Factories and subsidiaries participated in 3P programand Accident Prevention Pays Program in 2022

126

5.3 Health, safety, and disaster free

80

126

5.4 Participation and benefits to the society

90

Annex 3 The risks and opportunities posed by climate change tothe company and the corresponding measures

Annex 4 SASB Disclosure Index

128

Annex 5 GRI Standards content index

129

Annex 6 Assurance statements

1362022 ESG Highlight

HONORS
Tatung 3C

Tatung Company

Multi-Functional Cooker(TAC-11R-M)

Trusted Brand Gold Award inhome appliances customer service
category by Reader’s Digest– Carbon Reduction Competiveness –Top 100 Companies, ranked 1st in electrical andmechanics category by Business Weekly

The 31st Taiwan Excellence Award

Danshui Light Rail
Machine Factory

Tatung 3C
Kaohsiung Yang Min StoreThe Anti-Terrorism
Training Center– 2022 Top Solar System Award –Excellent Rooftop System Selection

Excellent Green Store Award by EPB,
Kaohsiung City Government

Tayuan Plant, Taoyuan Wires and Cables Plant
Received “Encouragement Certificate” from the Taoyuan City
government by participating in the “Taoyuan City Low-Carbon
Technology Industry Subsidy and Incentive Program– 2022 Top Solar System Award –Excellent One-site Multi-purpose
System Selection

2022 Tatung Sustainability Report– 2022 TCSA Taiwan Sustainability Award –Corporate Sustainability Report Gold Award in category 1,
traditional manufacturing group

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Economic-Governance Aspect
Item

Economic
performance

Happy Workplace and Social Engagement

Social Aspect

Performances

Item

Revenue: Individual revenue
was NT$ 16.792 billion, andconsolidated revenue was NT$
34.538 billion.
EPS: NT$ 4.02

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 Corporate Governance Officer
and Chief Information Security Officer.

Corporate governance

1. The performances of the company’sboard of directors and functional
committees were both “GOOD”.
2. Performed the 2022 annual external
performance evaluation of the Boardof Directors.

Ratio between staff’s
basic salary and legalsalary1.21~1.59:1

Percentage of high level
managers from local

100%

Disclosure on nonfinancial information

Published CSR Report for 21
consecutive years.

Sustainable Environment

No. of complaints
about information
leaking received fromthe consumers
Participation in social
welfarePerformances

Climate Change Risks and Management

Annex

Environmental Aspect
Item

Performances

93.92%

Electricity reduced

1,536,823 kw-hr

0.86~0.95:1

GHG emissions
reduced760.73 tons CO2e77.12%

Waste recycling
percentage

76.01%

21,758 hours

Certified green
products

Green Mark: 2 models
Energy Label: 35 models
Water Label: 4 models

100%

Promotion on green
consumption

136 Tatung 3C Stores areregistered as Green Store by EPA.

New introduced suppliers 100%
signed it back.
Maintenance service: 94.8%
Shipping service: 98.3%
0

Supporting green
procurement

Received certificate ofappreciation for promoting green
procurement from EPB, Taipei City
Government (procurement amountabove 5 million dollars).
Green procurement amount:
NT$ 50,027,438.

1. Tatung Co. raised a total of
NT$475,000 in scholarships to“Student Assistance Project”
charity fundraising activity of Taipei
Orphan Welfare Foundation,
which aims to help disadvantaged
and bereaved children to receive
education, regain self-confidence,and embrace their dreams.
2. The Tatung Boy children’s play,
Rescuing Power Kingdom,
incorporated with concepts
of energy conservation andenvironmental protection, made its
tour to 7 elementary schools withaudience of over 4,500 students
watching in person to learn theimportance of protecting the earth.

Solar power systems
capacity on grid

268MWp accumulated, approximately
151,557 tons CO2e reduction peryear.

93.68%

Chapter 1
Sustainable Management

1.1 Sustainable management framework
Top: Governance
Strengthening corporate governance
Enhancing sustainable development

Mid: Management
Organizational realignment
Industrial upgrading and transformation

Bottom: Supervision
Enhancing supervision andmanagement of subsidiaries
Boosting the operational performanceof the fleet

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Tatung embraces sustainable
environmental development,social prosperity, and effective
corporate governance as corevalues. In 2022, we haveformulated a sustainable
development vision that
integrates our core business,
focusing on “Operational
Innovation, Sustainable
Development, and Global
Harmony.”

Happy Workplace and Social Engagement

Responsible Supply Chain
Pollution prevention
Developing
Sustainable
Environment

Energy saving and GHG
reduction

Operational
Innovation

Happy workplace
Practicing Social
Co-prosperity

Risk mgmt.
Implementing
Corporate Governance

Ethical corporate mgmt.
Info-security mgmt.

Core Values

Annex

Supply chain mgmt.
Waste reduction
Air and water pollutant mgmt.
Developing energy efficient products
Expanding renewable energy and energy storage systems
GHG Inventory
Energy management

Improving workplace environment
Talent cultivation

Social care

VisionClimate Change Risks and Management

Occupational health and safety

Sustainable
Development
Global Harmony

Sustainable products

Sustainable Environment

Care for disadvantage groups
Participate in local society
Establishing risk management policy
Strengthen the functions of the board of directors
Improving corporate governance evaluation
Info-security and personal data mgmt.

Aspects
Tatung ESG Vision and Important tasks

Important Tasks

Sustainable Development Committee
Established in 1918, Tatung, formerly known as Xie ChihBusiness Enterprise, has evolved and grown over the
decades into one of Taiwan’s leading conglomerates.
The foundation of Tatung is built on four core values—
Integrity, Honesty, Industry, and Frugality. 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 andprosperity. These are: Industry-education cooperation,
Shareholder responsibility, Employee harmony, andCustomer satisfaction.
In order to implement the company’s sustainable
development, improve the corporate governancesystem, strengthen the board of directors’ supervisionfunction on environmental protection, social
responsibility and corporate governance, and establish
a good functional committee governance system,
Tatung has established “Sustainable Development
Committee” and formulated the organization regulationsof Sustainable Development Committee. The boardof directors elected the following to be members of
the Company’s sustainable development committee:
Sheng-Tsheng Lee (Independent director with expertisein law, risk control and corporate governance), ChungZung Kung (Independent director with expertise infinance, risk control and corporate governance), ChiHusan Liu(Independent director with expertise inlaw, risk control and corporate governance), WkangHsiang Wang (Chairman with expertise in architectural
engineering and operational management), and ChunLung Wu (Vice chairman with expertise in operational
management). Sheng-Tsheng Lee was elected as theConvener.
The missions are list on Table 1.1-1. The Sustainable
Development Committee shall meet at least once aquarter, and may hold other meetings as necessary.
The management of the company should proactively
provide the following complete and sufficient information
to the Sustainable Development Committee to facilitate
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 asdecided by the committee or requested by eachmember of the committee respectively.

To be able to fulfill corporate sustainable development
and contribute to the progress of economy, environment
and the community, Tatung formulated “Tatung
Company Sustainability Development Best PracticePrinciples” to manage the economy, environment andsocial risks and impacts. The principles act as guidance
for implementing sustainable environmental practices,
promoting social welfare, enforcing corporate
governance and strengthening ESG disclosure. The
results and performances will be reported to Board of
Directors every year (Table 1.1-2).

Table 1.1-1 The main tasks and duties of the Sustainable Development Committee
Item

Descriptions

1

To consider experience, expertise, and independence to formulate selection criteria for members of Sustainable
Development Committee and submit to the board of directors for resolution.

2

Responsible for the research and analysis, implementation, planning proposals and regulations of the Sustainable
Development system, regulations, and procedures for Sustainable Development, and submit to the resolution of the boardof directors.

3

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

4

Review the governance relationship between the Company and its subsidiaries and other related companies; put forward
suggestions for improvement and report to the board of directors.

5

Review the effectiveness of the implementation of the Sustainable Development system.

6

Other duties in accordance with the board resolutions.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Table 1.1-2 Tatung sustainable development responsible units
Topic

Sustainable
development

Environmental
management

Responsible unit

Legal Division

Health & Safety
Division

In charge of bringing forward and carryingout the policies, systems, management, andimplementation programs for sustainable
development.
In charge of environmental management including
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
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 Division

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

Ethical corporate
management

Greenhouse gas
emission

Duty

Health & Safety
Division

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

Report to theBoard of Directors

The implementation of sustainability
development and environmental
management results in year 2022
were reported to the Board of
Directors on 2023.03.09.

Sustainable Environment

Climate Change Risks and Management

Annex

ESG Implementation Committee

To promote the implementation of sustainable/ESGrelated initiatives, Tatung has established the ESG
Implementation Committee. The President serves
as the convener, with the Chief Legal Officer as theexecutive supervisor. Under the committee, there aresubgroups dedicated to environmental sustainability,
social responsibility, corporate governance, and risk
management. These subgroups are responsible forplanning and driving initiatives related to their respective
areas, while the Internal Audit Office conducts regular
audits to ensure the implementation of relevant tasks.
This ensures the company’s sustainable development
strategies, goals, and progress are on track.
Board of directors
Sustainable Development
Committee

The implementation of ethicalcorporate management results inyear 2022 were reported to theBoard of Directors on 2022.12.22.

Starting from the second quarterof 2022, a quarterly report on
greenhouse gas inventory will bepresented to the Board of Directors.

Convener: President
Deputy Convener: Chief Operating Officer
Executive Supervisor: Chief Legal Officer(Corporate Governance Officer)
Environmental
Sustainability
Group
SocialResponsibility
Group

Corporate
Governance
Group
Risk
Management
Group

Regular Audits: Internal Audit Office
ESG Implementation Committee

1.2 Identification andResponse to Stakeholders
and Material Topics
Listening and responding to the topics which areconcerned 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, andcorporate 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 with the stakeholders via varietyof channels.

Identification on the stakeholders andengagement channels
The Sustainable Development section on Tatung’s official website

Disclosure on ESG information

In order to proactively and effectively disclose ESG information and showcase Tatung’s achievements in sustainable
development as a communication tool with stakeholders, we have established an “Investor”1 and “Sustainability
Development”2 section on our official website in both Chinese and English. These sections provide disclosureof Tatung’s management measures and performance in the areas of environment, society, and governance. We
also have prepared an annual publication named the “Tatung Sustainability Report” following the guidelines of
GRI Standards and have engaged external verification agencies to verify the format and content to enhance
the credibility of the report. We are committed to continuing the disclosure of Tatung’s ESG information on our
official website and issuing the Sustainability Report annually in June to facilitate effective communication withstakeholders.
1. https://www.tatung.com/en/info/director_committee
2. https://www.tatung.com/en/info/csr-climate

Based on AA1000 standard and GRI Standards,
Tatung identifies the stakeholders by past operation
experiences and based on the principle that any
organizations or persons affected by the operation of
the company or any organization or persons having
impacts to the company. Seven stakeholder groups
such as shareholders, customers, employees, local
communities and parties, authorities, suppliers andconsumers have been identified. Tatung takes great
concern on stakeholders’ opinions. We have direct
engagement channels for all stakeholders to collect
their concerned topics in order to continue improving
our sustainable development performances.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Table 1.2-1 List of stakeholders and engagement channels
Stakeholder
groupsCustomers

Employees

Local communities
and parties

Authorities

Suppliers

Consumers

The investors who
support Tatung.

The companies
having business with
Tatung.

The most valuableassets. With theirinnovated ideas andexperiences, Tatungis capable to counterany challenges.

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

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

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

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

Shareholders’meeting / Once per
year
Irregular
shareholders’meetings / Irregular
Agency department
of Taishin
International
Bank Co., Ltd.:
02-2504-8125 /Irregular
Disclosure offinancial information
on official website
and MOPS (market
observation post
system) / Everymonth

Customer service,
PM / Irregular

Chairman’s
mailbox, HR mailbox, complaint
mechanism,
scheduled educationand training, noticeboard / Irregular

Direct phone lines /Irregular

Onsite audits /Irregular
Hearings, seminars /Irregular

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

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

Shareholders

Meaning to
TatungEngagement
channels andfrequencies

Biweekly HR
newspaper / Onceper 2 weeks
Health and Safety
Committee in theheadquarter andfactories / Quarterly
Labor-management
meeting / QuarterlySocial charity/
donation activities /Irregular

Table 1.2-1 List of stakeholders and engagement channels (cont.)
Stakeholder
groupsConcerned
topicsTatung’s
responses

Shareholders

Customers

Employees

Local communities
and parties

Economic performanceand governance

Product quality andcustomer information
management

Labor rights,
occupational healthand safety, welfares

Pollutant emissions,interaction with local
communities

1. Establishing ISO
1. Expanding core9001, enhancing
businesses,
supplier quality
strengthening upgrade
management,
transformation,
products that passand promoting leanrelated verifications.
investments are thethree main pillars of
2. Establishing ISO
our business.
27001 to enhance
information
2. Energy generation,
management.
energy storage, andenergy saving are ourlong-term development
direction.

1. Complying with
1. Installing air pollutant
occupational healthand wastewaterand safety regulations
treatment facilities.
2. Conducting education 2. Participating
and training programsin community
development and3. Providing reasonablecharities eventssalaries and benefits
through commercial
activities, noncash property
endowments,
volunteer service
and other freeprofessional services.

Authorities

Suppliers

Consumers

Compliance

The quality of partsand products,
the requirements
regarding to hazardous
substances

Product safety
and labeling,
personal information
management

Conducting internal
control systems
and internal audit
mechanisms withinvarious management
systems to ensurethat the company’s
operations compliedwith regulations

Establishing ISO 9001, 1. Complying withenhances supplierproduct safety andquality management,labeling regulations,products that passand establishing
related verifications.
feedback and
In addition, we also
request our suppliers
anti-recurrence
to fulfill corporate social
mechanisms.
responsibility together by:
1. Adding anti-corruption 2. Establishing ISO
27001 to enhanceand human rights(human rights,
information
freedom of association,
management.
child labor, and forcedlabor) clauses in thecontracts.
2. Signing the “SupplierCommitment Letter”,
which includes
health and safety,
environmental
protection, humanrights topics.
3. Issuing “Declarationof Minerals ConflictFree from Tatung
Company” andrequesting the
suppliers to follow.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Table 1.2-1 List of stakeholders and engagement channels (cont.)
Stakeholder
groupsShareholders

Customers

1. No. of products
1. EPS 4.02 dollars.
violated product2. Held shareholders’inspection andmeeting on 2022.06.14
labeling regulations: 0
3. Held domestic
2. No. of incident thatinvestor conference
violated information
on 2022.08.29 andsecurity related
2022.12.28
regulations: 0
4. Published the 169
significant news inboth Chinese andEnglishSummaries of
performancein 2022

Chatpers

2.2, 2.3, 3.2

4.2, 4.3

Employees

Local communities
and parties

1. No. of complaints from 1. No incident
the employees: 0.
that polluting
the surrounding
2. Published 24 bi-weekly
newspaper.
environment.
3. Organized education 2. Organized bloodand trainings withdonation activities
21,758 hours, 7,321
and donated 644
persons in total, andbags of blood.
the after training
satisfactory: 93.61%.
4. Held labormanagement
meetings, laborretirement reserve
supervision
meetings, employee
welfare meetingsand occupational
health and safetycommittees on aquarterly basis.
5. Handled employee
performance review
and assessed morethan 4,798 persons.
6. Maintain theeffectiveness of ISO
45001
5.1, 5.2, 5.3

5.4, 6.1

Authorities

Suppliers

Consumers

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

100% of new suppliers
have signed back theSupplier Commitment
Letter.

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

3.2, 4.2, 5.1, 5.3, 6.1

4.1, 4.2

4.2, 4.3

Identification on the material topics
To ensure the contents of this report comprehensively cover the three dimensionsof environment, society, and corporate governance, Tatung has Sustainability
Report Reporting Committee with the president as the leader, and the members arefrom administrative divisions and BUs. Tatung follows material topics identification
procedure (Table 1.2-2), which integrates past operational experience and futurecompetitive strategies. In addition, Tatung refers to GRI Standards, SDGs, SASB,
and industry practices and concluded 25 possible sustainable topics that may have
impacts to the stakeholders and to the company. The topics are listed on Table 1.2-3.

Table 1.2-2 Material topics identification procedure

Step

1

Identification onsustainable
topicsStep

2

Ranking

Tatung integrates the past operation experiences,
future competitive strategies, and the followings to
identify the sustainable topics that related to ouroperations:
1. GRI Standards’ topic-specific standards;
2. SDGs;
3. SASB Standard;
4. Other companies’ experiences in the industries.

1.Invite stakeholders to take surveys (including
online survey) to collect their opinions inregarding to the sustainable topics.
2.Conduct impact assessment to the company foreach sustainable topic internally.
3.Comprehensively evaluate the internal andexternal results to obtain a ranking of sustainable
topics, and the topics with either (1) the
multiplied score reaches 12 points or more; or(2) the three topics with the highest interestof stakeholders are selected as material topic
candidates list.

Step

3

Confirmation

Step

4

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 theyear.

Sustainability Report Reporting Committee
discusses the contents of the report and theboundaries of the material topics; and inaccordance to GRI Standards to gather and present
the information.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Table 1.2-3 Tatung’s sustainable topics

Economic andgovernancedimension

Social dimension

Economic performance

Supplier management

Market presence

Employment

Corporate governanceand ethical practiceTraining and education

Disclosure on nonfinancial information
Anti-competitive
behavior
Tax
Compliance

Labor/management
relationsOccupational healthand safety
Human rights,
equality, and nondiscriminations
Child, forced orcompulsory labor
Social participation
Product quality andsafetyMarketing and labeling
Customer privacy
management
Freedom of associationand collective
bargaining

Environmental
dimension
Management on theenvironment
Management on waterand resources
Management onenergy and GHG
emissionsManagement on
wastesManagement on waterand air pollutants
Promotion andmanagement onenvironmental friendly
products

Tatung used surveys to collect the degree of interest
from the stakeholders on various sustainable topics(presented by Grade 1 to Grade 5, Grade 5 is themost concerned, Grade 1 is the least concerned). The
target groups of the stakeholders are from those were
contacted by the members of Sustainability Report
Reporting Committee and those who took online survey
on the Sustainability Report section of the company’s
official website during 2022.12.22~2023.2.01. Totally
280 surveys were received and the most concerned
topics were ranked. Please see Figure 1.2-1 andFigure 1.2-2 for more details.
In addition, the Sustainability Report Reporting
Committee analyzed the possibility, severity and levelof impact to the company’s economic, environment andsocial dimensions for the above 25 sustainable topics
and gave different ratings from Grade 1 to 5 (Grade
5 is highest, Grade 1 is lowest). Then, the committee
members comprehensively evaluated and 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 responding the concerns from thestakeholders, the top 3 concerned topics gathered fromthe stakeholders will also be placed on the material
topic candidate list. The candidate list was submitted to
Sustainable Development Committee for confirmation.
The confirmed material topics are located in the dark
blue area on Figure 1.2-3 and No. 11 has also been
identified as one of the material topics (due to its the
2nd most concerned topic by the stakeholders).
25%

7%

24%

8%

24%

1%

11%

Consumers

Figure 1.2-2 Degree of concerns on the sustainable topics by Tatung’s stakeholders
3.400

3.900

4.000

4.100

4.200

4.300

Compliance
Economic performanceOccupational health and safety
Employment
Labor/management relations
Promotion and management
on environmental friendly products
Disclosure on non-financial information
Marketing and labelingManagement on wastes
Management on energy and GHG emissions
Training and education
Management on water and air pollutantsMarket presence
Human rights, equality, andnon-discriminations
Supplier management
Management on the environment

Social participation

Suppliers

Anti-competitive behavior

Table 1.2-1 The percentages of each stakeholder groupfrom the survey

3.800

Product quality and safety

Customers

Shareholders

3.700

Corporate governance and ethical practice

Authorities

Local communities & parties

3.600

Customer privacy management

Management on water and resources
Freedom of association andcollective bargaining
Child, forced or compulsory labor

Employees

3.500

Tax

Economic and governance dimension
Social dimension
Environmental dimension

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Figure 1.2-3 Distribution of the material topics
Hight

3.200
2.700
2.200

Low

1.700
3.650

3.750

Low

3.850

3.950

4.050

Degrees of concerns to the stakeholders

4.150

Hight

4.250

Environmental dimension

Level ofimpact to thecompany

Social dimension

Economic and governance dimension

3.700

Material Topics
Customer privacy
management

Product quality and safety

Market presenceMarketing and labeling

Economic performance

Labor/management relations

Management on energy and
GHG emissions

Promotion and management onenvironmental friendly products

Occupational health andsafetyCorporate governance andethical practice

Other Sustainable Topics
ComplianceManagement on wastes

Disclosure on non-financial
information

Anti-competitive behavior

Training and education

Management on water andair pollutants

Supplier management

Social participation

Employment

Management on water andresources
Management on theenvironment
Tax
Freedom of association andcollective bargaining

Child, forced or compulsory
labor
Human rights, equality, andnon-discriminations

In this report, we have identified 11 material topics. In
terms of economic and governance dimension, thetopics are Economic Performance, Market Presence,and Corporate Governance and Ethical Practice. In
terms of social dimension, the topics are Customer
Privacy Management, Product Quality and Safety,
Labor/Management Relations, Occupational Healthand Safety, Employment, and Marketing and Labeling(new identified this year). In terms of environmental
dimension, the topics are Management on Energy and
GHG Emissions, and Promotion and Management
on Environmental Friendly Products. The detailed
responding to these 11 material topics are disclosed in
the following chapters. The correlation of each material
topic in the value chain is shown in Table 1.2-5.

Table 1.2-4 Material topics in recent 3 years
Material topics in 2021

Material topics in 2022

Material topics in 2023 and their meanings to Tatung

Corporate governanceand ethical practice

Economic performance

Economic performance

Tatung will devote to its management policy focusing on three main aspects: expansion of our core business,
strengthening of upgrades and transformation, and reinforcement of our investment business. Under the
positioning of industrial holdings, we will be fully committed to the development of its power, new energy, consumer
electronics, and real estate businesses. We will continue to focus on energy creation, energy storage, and energy
saving as our long-term development directions to create maximum benefits for society and all stakeholders.

Disclosure on nonfinancial information

Disclosure on nonfinancial information

Market 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, and guarantee the salaries and benefits of employees.

Market presenceMarket presence

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

Customer privacy
management

Corporate governanceand ethical practice

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

Product quality andsafetyEmployment

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

Occupational health andsafetyCustomer privacy
management

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.

Comply with social andeconomic regulations

Occupational health andsafetyIt is our responsibility to provide a safe working environment for employees.

Employment

Product quality andsafetyOccupational health andsafetyEmployment

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

Training and education

Labor/management
relationsMarketing and labelingThis is our corporate social responsibility to ensure that “the marketing and labeling of products and services should
follow the relevant laws and international standards, and should not damage the rights and interests of consumers.”

Marketing and labelingManagement on energy
and GHG emissions

Management 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.

Performance review andcareer development

Promotion & management onenvironmental friendly products

Promotion & management onenvironmental friendly productsThis topic echoes Tatung’s product design concepts: “Environmental friendly, energy saving and water saving.” aswell as Tatung’s sustainable vision “Operational Innovation, Sustainable Development, and Global Harmony.”

Human rights, equality,and non-discriminations
Management on energy
and GHG emissions
Comply withenvironmental regulations
Promotion & management onenvironmental friendly products

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Table 1.2-5 Boundaries of material topics
Dimensions

Economic
andgovernanceMaterial topics

Tatung Co.

Subsidiaries1

Suppliers

Page No.
of DMAGRI indicators

CLIMATEACTION

Economic performances

27

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

Market presence75

GRI 202-1,202-2

Corporate governance andethical practice38, 39Not applicableNot applicable

Customer privacy management56, 57

GRI 418-1

Not applicable

Product quality and safety

48, 49

GRI 416-1,416-2

Labor/management relations

75, 76

GRI 402-1

Occupational health and safety80

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

Employment

68

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

Marketing and labeling50, 58

GRI 417-1, 417-2, 417-3

Management on energy and
GHG emissions

106

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

Promotion and management onenvironmental friendly products

119

GRI 302-5

SocialEnvironment

UN SDGS

WORK AND
8 DECENTECONOMIC GROWTHRESPONSIBLE
CONSUMPTION
AND PRODUCTIONDECENT WORK AND
8 ECONOMICGROWTHWORK AND
8 DECENTECONOMIC GROWTH

WORK AND
8 DECENTECONOMIC GROWTHRESPONSIBLE
CONSUMPTION
AND PRODUCTION

AND
7 AFFORDABLE
CLEAN ENERGY

CLIMATEACTION

AFFORDABLE AND
7 CLEANENERGY

CLIMATEACTION

Note: ■ represents that the information is disclosed in this report; △ represents that the relevant management measures are applied to the subsidiaries but the related information in unable toretrieve and not disclosed in this report; ▲ represents that the relevant management measures are applied to the suppliers, the detailed information in disclosed in Chapter 4.1.
Note 1: Part of subsidiaries with larger scale such as ELITEGROUP Computer Systems, Tatung System Technologies Inc. and Forward Electronics, their sustainable development information
is disclosed in their sustainability reports and/or on their official websites.

1.3 Tatung and Sustainable Development Goals
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 a local company who
has been deeply plowed for a century, Tatung supports SDGs and integrates the goals of “Clean waterand sanitation”, “Affordable and clean energy”, “Decent work and economic growth”, “Reduced inequalities”,“Responsible consumption and production”, and “Climate action” into our sustainable strategies. Among thematerial topics identified this year, most of these are also correspond to SDGs’ goal 7, 8, 12, and 13. The
measures taken for SDGs are listed on Table 1.3-1.

Ensure access towater and sanitation
for all.

Water
6 Clean
AND SANITATION

Description
By 2030, improve water quality by reducing pollution,
eliminating dumping and minimizing release ofhazardous chemicals and materials, halving the
proportion of untreated wastewater and substantially
increasing recycling and safe reuse globally.
Measures
Maintain well function of the waste water treatment
facilities in the factories to ensure the quality of theeffluents are complied with the standards.

Ensure access toaffordable, reliable,
sustainable andmodern energy for all.

AND
7 AFFORDABLE
CLEAN ENERGY

Description
By 2030, increase substantially the share of renewableenergy in the global energy mix.
By 2030, double the global rate of improvement inenergy efficiency.
Measures
Expanding solar power systems and having installed
268MWp capacity accumulatively at the end of 2022.
Establishing energy storage systems to stabilize thenational power grid, achieving a cumulative capacity of
11MW by then end of 2022.
Enhancing product energy efficiency by actively
developing hydroelectric generators, EV powersystems, IE5 motors, etc. and continually applying forEnergy Label, Green Mark, and Water Label.

Promote inclusive
and sustainableeconomic growth,
employment anddecent work for all.

WORK AND
8 DECENTECONOMIC GROWTH

Description
By 2030, achieve full and productive employment
and decent work for all women and men, including foryoung people and persons with disabilities, and equalpay for work of equal value.
Protect labor rights and promote safe and secure
working environments for all workers, including migrant
workers, in particular women migrants, and those in
precarious employment.
Measures
Ensuring the salary paid to the employees is compliedwith the regulations or better.
Conducting “Working condition monitoring”.
Establishing ISO 45001 Health and Safety
Management System in the factories.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Reduce inequality
within and among
countries.

REDUCEDINEQUALITIESDescription
By 2030, empower and promote the social, economic
and political inclusion of all, irrespective of age, sex,
disability, race, ethnicity, origin, religion or economic orother status.
Ensure equal opportunity and reduce inequalities ofoutcome, including by eliminating discriminatory laws,
policies and practices and promoting appropriate
legislation, policies and action in this regard.
Measures
Complying with human rights regulations, supporting
gender equality, and banning discrimination of any form
are set in the clauses of “Tatung Corporate Sustainable
Development Best-Practice Principles”.
Recruiting only on capability. The starting salary ratio
for male and female employees is 1:1.

Happy Workplace and Social Engagement

Ensure sustainableconsumption andproduction patterns.

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

Description
By 2020, achieve the environmentally soundmanagement of chemicals and all wastes throughout
their life cycle, in accordance with agreed internationalframeworks, and significantly reduce their release toair, water and soil in order to minimize their adverse
impacts on human health and the environment.
By 2030, substantially reduce waste generation throughprevention, reduction, recycling and reuse.
Encourage companies, especially large andtransnational companies, to adopt sustainable practices
and to integrate sustainability information into theirreporting cycle.
Measures
Complying with RoHS and REACH regulations toensure a green supply chain.
Implementing waste recycling in the factories.
Paying “Recycling and Cleaning Fee” to thegovernment 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.

Sustainable Environment

Climate Change Risks and Management

Take urgent action tocombat climate change
and its impacts.

Annex

CLIMATEACTION

Description
Integrate climate change measures into national
policies, strategies and planning.
Improve education, awareness-raising and human andinstitutional capacity on climate change mitigation,
adaptation, impact reduction and early warning.
Measures
Formulating Tatung net-zero emissions roadmap, with
2021 as the baseline year, aiming to reduce carbon
emissions by 20% by 2030, 50% by 2040, and achieve
net-zero emissions by 2050.
Carrying out green house gases inventory every year
based on ISO 14064-1.
Announcing 2nd stage energy saving target – theproducts’ energy intensity will be 6% lower in 2023
when comparing to 2018.
Having environmental education courses opened tothe employees, and GHG management course to thespecialties.

Chapter 2 Profile of Tatung Company
Enabler of Digital & Energy Transformation
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 has solid R&D, design and manufacturing capabilities and the business covers power sector, newenergy sector, consumer electronics sector, and real estate sector. The business is comprised with Heavy
Electrical Equipment BU, Cable BU, Motor BU, Smart Meters BU, Appliance Brand BU, Appliance Manufacture
BU, Advanced Electronics BU, System Integration BU, Solar Energy BU, and Smart Energy BU.
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”1 and clip of “Enabler of Digital and Energy Transformation”2.
As a conglomerate, Tatung’s investees involve in some major industries such as optoelectronics, energy,system integration, industrial system, branding retail channel, and asset development. Those that are public
listed on the Taiwan Stock Exchange include ECS EliteGroup (2331), Tatung System Technologies (8099),
Forward Electronics (8085), and Tatung Fine Chemicals (4738: Emerging stock market). The domestic
investments are list on Table 2.1-2 and please refer to Tatung Company 2022 Annual Report p. 142~152 forthe list of consolidated entities.
Tatung received many awards and certifications on operations and products in 2022 (Please refer to 2022
ESG Highlight). Tatung also endorses initiatives in regarding 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.

1. https://www.youtube.com/user/TATUNGTW/featured
2. https://www.youtube.com/watch?v=JX30QB_lTPc

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Figure 2.1-2 Tatung Company global network

CN

Taiwan Tatung Company
Heavy Electrical Equipment BU
Cable BU
Motor BU
Smart Meter BU
Appliance Brand BU
Appliance Manufacture BU
Advanced Electronics BU
System Integration BU
Solar Energy BU
Smart Energy BU

TW

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

JP

TH

Happy Workplace and Social Engagement

Thailand
Tatung (Thailand) Co., Ltd.

SG

Sustainable Environment

Climate Change Risks and Management

Annex

Figure 2.1-1 Information of Tatung Company
Capital (Billion NTD): 23.395
Sales revenue (Billion NTD): 167.92
No. of employees: 2,500
Operation sites:
Headquarter: No.22, Sec. 3, Zhongshan N. Rd., Zhongshan Dist., Taipei City
Tayuan Plant: No.102, Minsheng Rd., Dayuan Dist., Taoyuan City
Taoyuan Wires and Cables Plant: No.106, Minsheng Rd., Dayuan Dist., Taoyuan City
Meter Factory: 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

Japan
Tatung Company of Japan, Inc.

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

USA U.S.A
Tatung Electric Co. of America, Inc.

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

Chinese International Economic Cooperation Association
CNS Certification Mark Association, R.O.C.
Information Service Industry Association of R.O.C.
Industrial Association of Taipei City
Taipei Electrical Commercial Association
Taiwan Telematics Industry Association

MemberTable 2.1-2 The main domestic subsidiaries

Managing
role

Optoelectronics
Energy Solutions Business
Shan Chih Semiconductor Co., Ltd.
Tung Yang Energy Co., Ltd.
Yau Yang Energy Co., Ltd.
Zhi Shin Energy Co., Ltd.
Tung Kuang Energy Co., Ltd.

Taiwan Wind Energy Association

Taiwan Motor Industry Association
Taiwan Environmental Engineering Association
Industrial Safety and Health Association of the R.O.C.
Taiwan Digital Television Committee
Electric-Electronic & Environmental Technology Development Association of R.O.C.
Importers and Exporters Association of Taipei

Tatung Consumer Products (Taiwan) Co., Ltd.

Electronics & Information Business

Tatung System Technologies Inc.*
Tatung Medical & Healthcare Technologies Co., Ltd

Industrial Appliance Business & System

Toes Opto-Mechatronics Co. Ltd.

Chemical Engineering Business

Tatung Fine Chemicals Co., Ltd.*

Asset Development Business

Shan Chih Asset Development Co., Ltd.

Taiwan Electrical Contractors Association
Taiwan Electric Wire & Cable Industries Association
Taiwan Association of Machinery Industry
Taiwan Water Pipe Engineering Industries Association
Taiwan Metal Industry Association

Tatung Forever Energy Co., Ltd.
Shang Shin Energy Co., Ltd.
Ting Shin Energy Co., Ltd.
Tung Shin Energy Co., Ltd.
Chuang Shih Neng Co., Ltd.

Retail Channel BusinessTaiwan Electrical and Electronic Manufacturers’ Association
Taiwan Refrigeration and Air-Conditioning Engineering Association R.O.C.

Elitegroup Computer Systems Co., Ltd.
Forward Electronics Co., Ltd.*

OthersTatung Die Casting Co., Ltd.
Chih Sheng Investment Co., Ltd.

Chunghwa Electronics Development Co., Ltd.
Shan Chih Investment Co., Ltd.

Note: *As of 2022/12/31 Listed/OTC and Emerging companies.

Table 2.1-3 Initiatives endorsed by TatungTaiwan Electric Power Association
Taiwan Association of Energy Service Companies (ESCO)

Organization

Taiwan Association of Information and Communication Standards (TAICS)

Item

Taiwan Smart Grid Industry Association (TSGIA)

Chinese Blood Donation Association

Corporate blood donation

Taiwan Power and Energy Engineering Association (TPEEA)

Health Promotion Administration

Smoke-free/Healthy work place

Note: Managing role such as director or supervisor. Tatung is also the Chairman of TC3. Device Networking Committee in TAICS.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

2.2 Financial performances
DMA
The actual andpotential, negative andpositive impacts on theeconomy, environment,
and people, including
impacts on their humanrightsEconomic Performance
The climate change caused by global warming poses risks andopportunities for businesses. With the global trend of energy
conservation and carbon reduction, Tatung is committed todeveloping its power, new energy, consumer electronics, and realestate businesses. We also integrate investments to enhance
operational efficiency. Our long-term development direction revolves
around energy creation, energy storage, and energy saving.
Through environmental sustainability, social responsibility, andcorporate governance, we strive for outstanding performance andcontribute to Taiwan’s energy transformation, ultimately achieving
Taiwan’s 2050 net-zero emissions goal.

Management process
and targets

Mid-long term target:
Achieve a cumulative installed capacity of 1 GWp for solar
power generation and a cumulative of 300 MW for energy
storage projects.
Performance

Report whether theorganization is involved
with the negative impacts
through its activities or
as a result of its business
relationships, anddescribe the activities orbusiness relationships

NIL

Policies orcommitments

Expanding core businesses, strengthening upgrade transformation,and promoting lean investments to create the most profits.

Actions taken to
manage the topic

Providing comprehensive solutions for energy creation, energy
storage, and energy saving to assist Taiwan’s energy transformation
and achieve Taiwan’s 2050 net-zero goal.

Short-term target:
1.Continuously improving revenue and profitability.
2.Achieve a cumulative installed capacity of 338 MWp for solar
power generation and a cumulative of 55 MW for energy storage
projects.

In 2022:
1.Revenue: Individual revenue of NTD$ 16.792 billion andconsolidated revenue of NTD$ 34.538 billion. EPS: 4.02 dollars.
2.Cumulative installed capacity of solar power systems: 268 MWp.
Cumulative completion of 11 MW of energy storage systems.

Related adjustments
to the management
approach

NIL

Impacted by the global pandemic, the Russia-Ukraine war and port congestion, ouroperations were severely challenged in 2022. However, benefits from the expansion of
our power and energy businesses coupled with the consolidated statements integrated
by Elitegroup Computer Systems Co., Ltd. since October 2022, overall revenue
increased by 16.67% from the previous year. The revenue totaled NT$34.538 billion
with a net income after tax NT$7,299 million. In addition, Tatung’s overall profitability
improved through cost optimization, expense control and recognition of gains fromde-recognition of Chunghwa Picture Tubes Ltd.
For significant investment business, Elitegroup Computer Systems Co., Ltd. brokethrough its stereotype and continued to create new results. Its management core
was strengthened through organizational restructuring, lean production planning, andthe introduction of risk control mechanisms. ECS focused on three major directions:stabilizing our core, building trust, and sharing a common vision, and has made great
progress in finance, inventory, production and sales management, and corporate
governance. Consolidated revenue in 2022 totaled NT$31.364 billion with earnings
per share at NT$1.57. Tatung System Technologies Inc. has continued to makeprofits and distribute dividends for consecutive 21 years. In recent years, assisting thegovernment and private companies in digital transformation have been the center ofattention for TSTI. TSTI’s expertise is increasing operational efficiency and decision
analysis by strengthening the deployment of network information security solutions,covering intelligent solutions, consulting services, big data platforms, cloud computing,information and communication system integration, data security, and uninterrupted
operation services. The consolidated revenue in 2022 totaled NT$4.347 billion withearnings per share at NT$2.02. For Shan-Chih Asset Development., Ltd., the 490 unitsof Tatung Smart Manor Phase 1 and the 41 units of The Green House (joint construction
project) have all been sold out, recognizing a total revenue of NT$1.23 billion in 2022.

Pre-sales of the 177 units of Tatung Smart Manor Phase 2 were completed in Q3 2020,
with a total sales amount of approximately NT$ 2.5 billion, and delivery is expected
to take place in Q3 2023. By making good use of the core competitiveness, Forward
Electronics Co., Ltd. has expanded its sales of variable resistors, encoders, noncontact position sensors, and modular products in terms of precision components. As
well as this, production equipment was also integrated to expand production scale andoptimize manufacturing processes. In 2022, consolidated revenue totaled NT$890
million with earnings per share at NT$1.23. On August 29, 2022, the Taiwan Taoyuan
District Court declared Chunghwa Picture Tubes Ltd., bankrupt and its registration of
bankruptcy was granted by the Department of Commerce, MOEA. After assessment,
Tatung lost control over Chunghwa Picture Tubes and its subsidiaries from September
30, 2022, and recognized the relevant gains derecognized.
Tatung operates normally on a daily basis and it has received a government
subsidy of NT$13,295 thousand for a scientific and technological project. For moredetailed financial performances, please refer to “Tatung 2022 Annual Report” or visit
our official website. Facing rapid changes in the industry, Tatung will devote to its
management policy focusing on three main aspects: expansion of our core business,
strengthening of upgrades and transformation, and reinforcement of our investment
business. Under the positioning of industrial holdings, Tatung will be fully committed
to the development of its power, new energy, consumer electronics, and real estatebusinesses, while integrating investment in a bid to boost operational efficiency. The
long-term development direction of Tatung is energy creation, energy storage, andenergy saving, and we aim to deliver better results and create maximum benefits forshareholders through environmental sustainability, social responsibility, and corporate
governance.

Table 2.2-1 Financial income and expenses of Tatung

Unit: NT$
Thousand ( )represents
negative values

Item

2018

2019

2020

2021

2022

Operating revenue
Realized gross profit
Employee benefits*
Income from operations
Non-operating income and expenses
Income tax benefit
Net loss attribute to equity attributable to owners of parents
Earnings per share (NT$)
Dividends per share (NT$)

19,138,488
2,064,017
2,305,903(391,692)(10,313,757)(62,543)(10,642,906)(4.75)
0

17,825,749
1,789,027
2,269,620(863,857)
3,466,194(273,542)
2,875,879
1.24
015,863,678
1,129,220
2,323,250(1,809,817)
792,008
58,528(1,076,337)(0.46)
0

16,176,127
2,319,193
2,463,007
207,552
3,435,899(28,668)
3,672,119
1.57
0

16,792,440
2,631,754
2,293,479
837,8098,591,576
52,032
9,377,353
4.02
0Note: Employee benefits include salary, labor and health insurance, pension, remuneration of directors and others.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

2.3 Services and products
Over the years, Tatung has been actively supporting
the economic development of the country and has
been a pioneer in Taiwan’s power, system, andconsumer businesses. In recent years, we have been
dedicated to national energy transformation throughenergy creation, energy storage, and energy saving.
Tatung will continue to focus on core businesses while
expanding into the energy sector. With strong researchand development and manufacturing capabilities, we
aim to play a significant role in helping the country
and enterprises achieve net-zero carbon emissions.
For detailed product information, please refer to theofficial website. The operational priorities for 2023 are
as follows:

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Power
Business

As the only equipment supplier in Taiwan to have a full range of transformers, reactors, distribution panels,
GIS, and cables, we strive for business opportunities in relation to power equipment in line with Taipower’s
10-Year Grid Reinforcement Program. Aligning with the government’s efforts to promote renewable energy
and the 2050 Net zero target, we purse business opportunities with respect to wind power, solar power, energy
storage systems, and booster stations. As for smart meters, we are gradually producing good results in Japan,
Thailand, and Malaysia, and are making an effort to expand into the ASEAN market. In terms of motors, withmore than 70 years of technology and experience, we continue to provide motor products and services in avariety of fields alongside the development trends in the industry. Our products include ROT motors, highpressure maintenance motors, ultra-high efficiency motors, explosion-proof motors, spindle motors, and EV
power systems.

New Energy
Business

The scope of new energy business covers solar power, energy storage, green power trading, other renewableenergy sources, and net zero solutions. By combining the Tatung’s strengths, our team has expertise in green
power supply resources and energy management technologies, upstream and downstream vendors arevertically integrated, completing the layout of the energy system value chain. At the end of 2022, we installed
more than 268MW of solar panels with a goal of 338MW by the end of 2023, while also proactively pursuinglarge-scale energy storage system construction projects and energy storage EPC projects.

ConsumerElectronics
Business

We will focus on inverter energy saving and intelligent commercial/household products to enhance consumers’
daily life experiences via the Internet of Things. As electric cookers remain the No.1 product in Taiwan, we
will take a proactive approach to expand the complete product seriation of kitchen appliances and develop
overseas markets. In addition, we will continue to deepen our professional acoustic field and expand to smart
home products. To do this, we will integrate advanced technology and intelligent functions to constantly provide
professional design and manufacturing. With our stores winning the 2022 and 2023 Trusted Brands Gold Awards,
and in addition to reinforcing brand channels and after-sales services, we will make an effort to strengthen
E-commerce platforms, providing consumers with full-time services and better shopping experiences.

Real EstateBusiness

To create maximum value for company assets, we accelerate asset revitalization through strategic allianceand cooperation, supplemented by multiple resource revitalization approaches, such as urban renewal, therebuilding of dangerous and old buildings and changing the nature of land use. At the same time, we will try todevelop new projects, continuing to expand the business. The Shuanglian Urban Renewal Project is the firstcase of successful integration of land externally purchased. The construction is set to take place in Q3 2023,
with public sales expected in Q1 2024. The construction permit for Zhonghe MRT, a joint development project,is expected to be obtained in Q3 2023 and public pre-sales are scheduled in the same year.

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

Table 2.3-1 Tatung production output and amount
2021

2022

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

0

0

0

0

New energy of electric power segment

1,071,076

8,755,453

1,616,084

10,175,984

Consumer electronics segment

3,959,970

4,537,140

3,885,276

8,943,090

Real estate segment

0

0

0

0

Other operating segments

238,313

1,299,290

96,7701,007,664

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

The sales values for the past 5 years are shown on Figure 2.3-1.

Optoelectronics segment
New energy of electric power segment
Consumer electronics segment
Real estate segment
Other operating segments

Unit: NT$Thousand
40,000,000

19,665,384

18,304,862

7,338,450

2021

2022

Export1,100,365

0

0

0
2021

2,725,089

998,922

2,343,323

0

0
2020

2,300,742

767,383

3,329,546

0

0
2019

2,287,647

1,109,253

4,359,505

2018

2,908,970

001,416,591

1,722,949

4,837,812

5,000,000

4,409,731

10,000,000

7,601,314

20,000,000
15,000,000

668,179

2,908,1390

2020

754,2173,624,040

8,399,755
2,747

766,603

5,677,949

9,446,041

1,524

792,8362019

23,041,902

25,000,000

99,4982018

Unit: NT$Thousand
40,000,000

30,000,000

835,829035,000,000

966,800

5,000,000

978,103

10,000,000

4,108,390

15,000,000

16,077,201

20,000,000

9,266,499

12,573,065

25,000,000

19,449,050

30,000,000

Domestic

25,266,665

35,000,000

2022

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

Annex

Governance

Chapter 3
Structure andGovernance

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

Performances in 2022
The board of directors appointed Chief Legal
Officer as Chief Corporate Governance Officer.
Sustainable Development Committee had 4
meetings to discuss corporate governance related
issues.
Completed the performance evaluations for theboard of directors and the functional committees.
The results were all “Good”. Tatung appointed
the Taiwan Corporate Governance Association to
perform the 2022 annual external performance
evaluation of the Board of Directors.
The official website is updated in both English andChinese versions.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Governance
Mid-Term Targets
Each operation follows the corporate governancerelated codes formulated by the company, and isin line with the corporate governance evaluation
project, with the goal of being in the top 6-20% of thecorporate governance evaluation

Long-Term Targets
Continue to strengthen corporate governance andimprove information transparency. The company’s
managers and all employees abide by the ethicalcorporate management to avoid illegal incidents
and ensure the company’s sustainable operationand performance, and continue to care for theenvironment, consider social and culture factors,
and strengthen corporate governance to fulfill
corporate social responsibility.

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

3.1 Organization structure
Under the Shareholders’Meeting, the governancestructure of Tatung includes Board of Directors, Chairman,
Vice Chairman, President, and Chief Operating Officer.
There are three functional committees under Boardof Directors, such as Audit Committee, Remuneration
Committee, and Sustainable Development Committee
to enhance the operation of the board. The Chairman
is Wkang Hsiang Wang. Apart from the administrative
divisions, Tatung is also consisted with Heavy Electrical
Equipment BU, Cable BU, Motor BU, Smart Meter
BU, Appliance Brand BU, Appliance Manufacture BU,
Advanced Electronics BU, System Integration BU, Solar
Energy BU, and Smart Energy BU. The governancestructure is shown on Figure 3.1-1.

Shareholders’ Meeting
The shareholders’ meeting is composed of allshareholders. Tatung follows the Company Act, Securities
and Exchange Act and other relevant laws to hold aregular 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 theshareholders’ meeting and fully communicate withshareholders. The director nomination system adopts
the candidate nomination system and the term of officeis three years. The independence of the candidates
for independent directors also complies with theprovisions 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 thetotal issued shares of Tatung in accordance with the law.
Tatung has appointed the stock agency department of
Taishin International Bank to handle the affairs of theshareholders meeting. Tatung also has “Investors”section
on the company’s official website to disclose financial
and corporate governance related information, and also
immediately announces the information that need tobe disclosed at “Market Observation Post System” forshareholders to acquire information at any time. On theother hand, Tatung maintains a good relationship withinvestment institutions and has established a system of
spokespersons and deputy spokespersons as a window
for dialogue and connection between the two parties.
In addition, Tatung participates in the domestic legal
person briefing every year to provide the latest operation
information.

Figure 3.1-1 Tatung operation structure
Shareholders’Meeting

Board ofDirectors

Audit
Committee

ChairmanCompensation
Committee

Sustainable
Development
Committee

Vice Chairman

President

Chief Operating
Officer

Board Secretariat
of Directors

Administration
President’s Office, Finance & Accounting Division Human Resources Division Procurement Division
General Administration Division
Central Research Institute Health & Safety Division
Management Information System Division Legal Division
Product Verification Department

Heavy Electrical Equipment BUPower BG

Internal Audit Office

Cable BU
Motor BU
Smart Meter BU

Home Appliance BG

Appliance Brand BU
Appliance Manufacture BU

Advanced Electronics BU
System Integration BU
Solar Energy BU
Smart Energy BU
Note: As of 2023.3.31.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Board of directors
Tatung has 8 directors1, including 3 independent directors,

accounting for 37.5% of the total board members. 0%of the directors concurrently serve as managers of
Tatung; in addition, Tatung also emphasizes genderequality in the composition of the board of directors
and the percentage of female directors has reached12.5%. The Board of Directors in Tatung guides thecompany’s strategy, oversees the management team,and is responsible to the company and its shareholders.
Directors receive reports from the management teamduring board meetings and provide guidance andrecommendations. They maintain good communication
with the management team. The corporate governancesystem, as well as various arrangements, comply
with legal requirements, the company’s measures,

Happy Workplace and Social Engagement

and resolutions of the shareholders’ meeting to create
maximum benefits for the shareholders.
As Tatung’s business sectors are diversified, thedirectors of Tatung shall be selected based on theirknowledge and skills as well as their professional
backgrounds. Some of the directors of Tatung are thechairman or directors of public companies. All the board
members have extensive knowledge and experience,
personal perspective and business judgment andare highly valued by Tatung for their leadership anddecision-making abilities. In order to balance theoperational and developmental needs of the company,
Tatung stipulates in its “Corporate Governance BestPractice Practices” that the composition of the Board of
Directors should consider diversity, without restrictions
based on gender, age, nationality, or culture. In addition

Sustainable Environment

Climate Change Risks and Management

Annex

to possessing the necessary knowledge, skills, andqualities required to perform their duties, the Board of
Directors aims to achieve the ideal goal of corporate
governance by having a diverse range of professional
backgrounds and capabilities (Table 3.1-1).
The board of directors had held 11 meetings in 2022.
The attendance rate of directors (including independent
directors) is 97.64%. When there is event of conflictsof interest during board of directors’ meeting, Tatung
follows related regulations to resolve it. There were 6
cases of directors’ withdrawing from motion, pleaserefer to p. 30 and p. 31 of 2022 Tatung Annual Report.
Regarding the director’s participation in other company
boards, please refer to p. 18 to 21 of the same annual
report for detailed information.

Table 3.1-1 The policy to diversify the membership of the Board
Basic requirements and values
Name/Job Title
Wkang-Hsiang Wang,
Chairman
Chun-Lung Wu,
Vice Chairman
Ruey-Long Chen,
Director
Da-Ho Yen,
Director
Bao-Huei Huang,
Director
Sheng-Tsheng Lee,
Independent Director
Chi-Husan Liu,
Independent Director
Chung-Zung Kung,
Independent Director

Nationality
Republic ofChina (ROC)
Republic ofChina (ROC)
Republic ofChina (ROC)
Republic ofChina (ROC)
Republic ofChina (ROC)
Republic ofChina (ROC)
Republic ofChina (ROC)
Republic ofChina (ROC)

Professtional Knowledge and Skills

Gender

EmployeestatusProfessional
background

Male

-

Architectural engineering &operational management-

Operational management-

Media &
operational management

Male
Male
Male
Female
Male
Male
Male

-

Accounting Industrial
Operational International
Risk
financial knowledge
management market management &analysis

Operational management

Legal

Legal
Legal & finance
Finance & accounting

The directors’ term of office is 3years, and the shareholders’ meeting to elect new directors will take place in June 2023.

Legal

ESG

Decisionmaking ability

Internal Audit Office
The Internal Audit Office is under the Board of Directors
and assists the board and managers to check andreview the lack of internal control systems and to provide
timely recommendations for improvements to ensure thecontinuous and effective implementation of internal control
systems. The head of the Internal Audit Office regularly
attends board meetings to report on audit matters.

Audit Committee
The Audit Committee of the Board of Directors assists theBoard in fulfilling its responsibility and duty for oversightof the Company Act, Securities and Exchange Act, andsuch other related laws and regulations. The focus of
the work of the Audit Committee in 2022 is to review thequarterly 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 and management;
corporate risk management, etc.

Compensation Committee
In view of the compensation program is as an important
aspect of corporate governance and risk management.
The Board of Tatung has established the Compensation
Committee and approved the Compensation Committee
Charter for intensifying corporate governance andconsolidating the director and executive compensation
programs.
The Board of Directors is authorized to determine thetransportation allowance and compensation to directorsof Tatung based on their contribution to the company’s
operation and by taking into consideration the local

Unit: NTD$ Thousand

Table 3.1-2 Remuneration to directors in 2022
Remuneration to directors

Business execution
Retirement pension (B) Remuneration on allocatedfrom earnings (C)expenses (D)
All
All
All
All
companies
companies
companies
companies
The
The
The
included in Company included in Company included in Company included in
Financial
Financial
Financial
Financialstatements
statements
statements
statements

Remuneration (A)Name/Job Title
The
Company
Wkang-Hsiang Wang,
Chairman
Chun-Lung Wu,
Vice Chairman
Da-Ho Yen,
Director
Bao-Huei Huang,
Director
Ruey-Long Chen,
Director
Sheng-Tsheng Lee,
Independent Director
Chung-Zung Kung,
Independent Director
Chi-Husan Liu,
Independent Director
Rong-Chuan Chen,
Director
I-Wen Chung,DirectorChin-Lai Wang,
Director

1,421

2,021

0

0

0

0

65

85

0

240

0

0

0

0

15

15

0

0

0

0

0

0

55

55

0

0

0

0

0

0

40

40

0

0

0

0

0

0

55

55

1,400

1,400

0

0

0

0

75

75

1,400

1,400

0

0

0

0

75

75

788

788

0

0

0

0

60

60

0

240

0

0

0

0

15

15

0

0

0

0

0

0

15

25

1,017

1,017

0

0

0

0

25

45

Gindon Investment Co

2,000

2,000

0

0

0

0

0

0

Xin Tong Investment
Consultancy Co.

1,000

1,000

0

0

0

0

0

0

Note: This Table is cited from 2022 Tatung Annual Report. Please refer to page 28 and page 29 for more information.
Note 1: Director Chun-Lung Wu was newly appointed on 2022.10.24, the board of directors approved him to serve as vice chairman on 2022.10.24;
Director Bao-Huei Huang was newly appointed on 2022.06.16; Independent Director Chi-Husan Liu was newly appointed on 2022.06.14; Directorof Rong-Chuan Chen was changed on 2022.06.16 (change of representative); Director I-Wen Chung was changed on 2022.06.29 (change ofrepresentative); Director Chin-Lai Wang was newly appointed on 2022.06.29, changed on 2022.10.24 (change of representative).

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

and foreign standards as applied in the same industry.
Compensation is based on everyone’s respective
expertise and competencies, corporate performance,and other special contributions, while considering theoperational risks that Tatung may face in the future and inaccordance with the professional norm and the relevant
management regulations to seek the balance between
the sustainable operation and risk control in the company.

Internal evaluation of the performance ofthe board and functional committees

2. https://www.tatung.com/tw/info/comp-grade

Sustainable Environment

Climate Change Risks and Management

Annex

Table 3.1-3 Implementation situation of Board of Directors’ and functional committee evaluation in 2022
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 at least once every three years.

Evaluation period

2022.01.01~2022.12.31

Evaluation scope

The Company’s board and functional committees’ evaluation scope covers the evaluation of the board asa whole, individual directors, functional committees and individual committees.

Evaluation method

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

Evaluation content

To implement corporate governance and enhance thefunctionality of the Board of Directors and functional
committees, Tatung conducts annual evaluations of theBoard of Directors and functional committees basedon the “Guidelines for Performance Evaluation of theBoard of Directors and Functional Committees”. The
evaluation scope includes the overall Board of Directors,
individual directors, and the performance evaluation ofeach functional committee and its individual committee
members.
As stipulated in Article 3 of the “Guidelines for
Performance Evaluation of the Board of Directors andFunctional Committees”, Tatung’s board performance
evaluation shall be conducted by an external
independent professional institution, a panel of external
experts and scholars, or other appropriate means atleast once every three years. The board performance
evaluation shall be completed before the end of thefollowing year. In August 2022, Tatung appointed the
Taiwan Corporate Governance Association to performthe 2022 annual external performance evaluation of theBoard of Directors. Tatung completed self-assessmentsof Board performance in 2022 and reported the results to
the Board of Directors at its first quarter meeting in 2023
for review and improvement. The evaluation results canbe found on the company’s official website2.

Happy Workplace and Social Engagement

The criteria forevaluating the
Performanceof the board 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
Performanceof the board
members (onthemselves)

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
Performanceof functional
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

3.2 Corporate Governance
DMA

Corporate governance and ethical practice

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

Corporate governance refers to the framework that regulates
the relationships among a company, its management, boardof directors, shareholders, and other stakeholders such as
suppliers, customers, consumers, community residents, andgovernment agencies. Through this mechanism, it establishes
corporate operational objectives and ensures the achievementof these objectives and the monitoring of operational
performance. It enforces the responsibilities of the operators,
safeguards the legitimate rights and interests of shareholders
and other stakeholders. Effective corporate governanceshould enable the board of directors and management toachieve operational goals in the best interests of the company
and its shareholders. It assists in managing the operationsof the enterprise, provides effective oversight mechanisms,
encourages the efficient use of resources, enhances
efficiency, improves competitiveness, fulfills corporate social
responsibility, and promotes the social welfare of the publics.

Report whether the organization is
involved with the negative impacts
through its activities or as a result of its
business relationships, and describe
the activities or business relationships

NIL

Policies or commitments

Tatung upholds the core values of integrity, honesty, industry,
and frugality in its operations. Integrity and honesty are thefundamental commitments of our company to shareholders,customers, suppliers, and society. Based on the principles ofintegrity, honesty, industry, and frugality, we have establishedrelevant policies grounded in integrity. These include EthicalCorporate Management Best Practice Principles, Procedures for
Ethical Management and Guidelines for Conduct, Regulationsfor Handling Whistleblowing Illegal Cases and Unethical or
Dishonest Conduct Cases, Policy on Insider Trading. Tatung
has also implemented management regulations such as
employee rewards and penalties and complaint procedures forour employees. Through education and training, we strive tofoster consensus and promote our corporate culture of integrity,honesty, industry, and frugality among all employees, aiming forsustainable business growth.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

DMA

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Corporate governance and ethical practice

Actions taken to manage thetopic

Tatung has established the “Corporate Governance Best
Practice Principles” in accordance with the Financial
Supervisory Commission’s Corporate Governance 3.0- Sustainable Development Blueprint. We are graduallypromoting and revising our company’s corporate governancepolicies to strengthen the functions of the board of directors,
enhance information transparency, improve stakeholder
communication, and proactively implement governance andsustainable development initiatives.

Management process andtargets

Short-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 of corporate governanceat any time in accordance with the latest publishedversion from the authority.
4. Enhancing corporate information disclosure in English(e.g. English official website).
Mid-term targets:
Each operation follows the corporate governance-related
codes formulated by the company, and is in line with thecorporate governance evaluation project, with the goal of being
in the top 6-20% of the corporate governance evaluation.
Long-term targets:Continue to strengthen corporate governance and improveinformation transparency. The company’s managers and all
employees abide by the ethical corporate management toavoid illegal incidents and ensure the company’s sustainable
operation and performance, and continue to care for theenvironment, consider social and culture factors, andstrengthen corporate governance to fulfill corporate social
responsibility.

Management evaluation
mechanism

In addition to establishing Guidelines for Performance
Evaluation of the Board of Directors and Functional Committees,
Tatung conducts annual performance evaluations for the boardof directors and each functional committee. Furthermore, anexternal independent organization conducts a performance
evaluation every three years.

Performance

Performances in 2022:
1. The board of directors appointed Chief Legal Officer as
Chief Corporate Governance Officer.
2. Sustainable Development Committee had 4 meetings to
discuss corporate governance related issues.
3. Completed the performance evaluations for the boardof directors and the functional committees. The results
were all “Good”. Tatung appointed the Taiwan Corporate
Governance Association to perform the 2022 annual
external performance evaluation of the Board of Directors.
4. The official website is updated in both English and Chineseversions.

How engagement withstakeholders has informed theactions taken and how it has
informed whether the actions
have been effective

Tatung has established “Employee Complaint Procedure”
and “Regulations for Handling Whistleblowing Illegal Casesand Unethical or Dishonest Conduct Cases. We havealso set up a section for stakeholders on our company
website. Any related issues or feedback are handled by the
responsible departments, following the specified procedures
for accepting and investigating complaints.

Related adjustments to the
management approach

Tatung follows the check items of “Corporate GovernanceEvaluation” implemented by TWSE to review and improve
the practice of each aspect of the company and fully improve
the quality of corporate governance.

Good corporate governance and ethical management
are the keystones for a corporate to achieve sustainable
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 PracticePrinciples”, “Procedures for Ethical Management andGuidelines for Conduct”, “Ethical Conduct Principles”,
and “Sustainable Development Best PracticePrinciples”. We keep abreast of global trends and adjust
with the times to follow our various businesses. On theother hand, through the implementation of the internal
control system, the company’s policies and regulations
are ensured. In addition to playing the role of a productand 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 PracticePrinciples
In order to establish sound corporate governancesystem, Tatung adopted the principles of Taiwan
Stock Exchange Corporation (TWSE) and the GreTai
Securities Market (GTSM) and published “Corporate
Governance Best Practice Principles”. The principles
are agreed by board of directors and aiming to achieve
the followings:
1. Protect the rights and interests of shareholders.
2. Strengthen the powers of the board of directors.
3. Fulfill the function of supervisors.
4. Respect the rights and interests of stakeholders.
5. Enhance information transparency.

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

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

Employees’ code of ethics
Iatung 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 thecompany. The statement states that employees must
not doing fraud or receiving gifts from others in duties,
and shall not disclose the company’s technologies andbusiness contents. Relevant control measures havealso been established in this regard. For example, theCompany 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, the Company Law and other social and economic
laws, Tatung has also formulated the “Ethical Corporate
Management Best Practice Principles”, “Proceduresfor Ethical Management and Guidelines for Conduct”,
and “Ethical Conduct Principles”, etc., to regulate all
the employees (including management level). Whenestablishing business relationships with others, thecompany should first evaluate the legality, businessintegrity policies, and a history of dishonesty of
the agents, suppliers, customers or other business
partners to ensure that they conduct business in afair and transparent manner and do not ask, offer or
accept bribes. In case of corruption, bribery or otherrelated 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 behandled in addition to the Company Rules and will be
investigated for legal responsibility to prevent corruption
or leakage of secrets.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Internal control system

Risk management

In order to promote the effective operation and ethical management of the company,
Tatung established “Internal Control System”. The mission is to:
1. Ensure the enforcement of company policies and rules.
2. Avoid the waste, lost and non-efficient use of assets.
3. Ensure the accuracy of accounting and operating information.
4. Evaluate the performances for each division.

To cope with the rapidly changing industry landscape, Tatung has established a risk
management organization (Table 3.2-1) dedicated to conducting risk assessment andanalysis of significant matters. Measures are formulated to address each identified
risk. For detailed information, please refer to pages 109-112 of 2022 Tatung Annual
Report. Additionally, for information on climate-related financial risks, opportunities,
and response measures, please refer to Chapter 7 of this report.

Internal control system covers all operations of Tatung, including accounting,finance, planning, organization, control and management, and information aboutsales, production, purchasing, materials, engineering, personnel and research anddevelopment. In addition, internal control should prepare, distribute, report and analyze
data to the management level, so that the highest management level can keep trackon the execution and control of Tatung’s various work and business.
Internal control system is not only applied in Tatung but also applied to Tatung’s
subsidiaries. The subsidiaries are graded into different levels according to their scales.
Different levels of subsidiaries have different internal control frequencies to effectively
optimize the corporate governance of subsidiaries. Figure 3.2-1 shows Tatung’sinternal control system statement.

Table 3.2-1 Structure of risk management

In addition to internal control system, Tatung
has introduced and maintained several ofmanagement systems in the factories for
specific topics, such as ISO 14001, ISO
45001, ISO 9001, ISO 27001, TTQS andothers. The factories follow the proceduresof the management systems to review andupdate the related laws and regulations.
At the same time, the factories conduct
internal audit and management review toensure the operations can comply with thelaws and regulations. The administrative inheadquarter also announce the latest andrelated 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 andavoid breaching them at work.

Figure 3.2-1 The internal control
statement of Tatung in 2022

Risk management

Bodies in charge

Responsibilities

Strategy &operation risk

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

Stipulation & implementationof management policies andassessment & analysis of operation
performanceMarket & Liquidity risk

Sales of each plant and division,
Purchasing Division, andManagement Information Division

Business & sales promotion, market
research evaluation promoting
information security management

Financial risk

Finance & Accounting Division

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

Image risk

Human Resources & Public
Relations Division

Enhancement of Corporate Image
and response of crisis management

Legal risk

Legal Division

Domestic and foreign policies andRegulatory developments

Environmental, Health Health & Safety Division& Safety risk

Environment Management,
Environment Performance, Safety
Performance, and Job Safety
Analysis

Climate Change risk

GHG inventory and Product
Carbon Footprint enhancing theperformance of environment,
energy and carbon reduction

Management of each plant and
Health & Safety DivisionSupply chain management

Chapter 4
Responsible
supply chain,product safety
and customer
service

Targets
All new suppliers sign back the SupplierCommitment Letter.

Performance in 2022
100% of new suppliers have signed back theSupplier Commitment Letter.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Product responsibility

Sales

Targets

Targets

Short-term targets:
1. All the products are complied with productinspection regulations and customer
requirements.
2. Strive for product awards or certification.
3. Continue to run ISO 9001 and TAF certified
laboratories in the factories.

Ensure the contents of advertisements or
promotions are complied with regulations.

Performance in 2022
No. of advertisements or promotions violated related
regulations: 0.

4. Meet annual quality KPI.
5. No violation against product inspection andlabeling regulations.

Mid-Long term targets:
Treat zero defects as the only standard for
management and operation.

Performance in 2022

Customer management
Targets
1. Continue to manage customer information inaccordance to the regulations.
2. Satisfaction for repairing service > 94%,
satisfaction for shipping service > 97%.

1. All the factories passed ISO 9001 annual audit.
2. No. of products violated product inspection andlabeling regulations: 0.

Performance in 2022

3. Multi-functional Cooker (TAC-11R-M) was won
the 31st Taiwan Excellence Award.

1. No. of complaints in regarding to violating customer
privacy or losing customer information: 0.

4. No. of product inspection and labeling related
violations: 0.

2. Satisfaction for repairing: 94.8%, satisfaction forshipping: 98.3%.

Sustainable Environment

Climate Change Risks and Management

Annex

4.1 Responsible supply chain
Tatung firmly believes that establishing a trusting andmutually beneficial relationship with excellent suppliers
can achieve competitive cost, reliable quality, on-time
delivery, and improved productivity. We aim to sharethe outcomes with consumers worldwide. Therefore,
we implement internal control system and follow theregulations stipulated in the “Supplier Introduction andManagement Measures” to introduce and manage
suppliers. Regular audits are conducted to assess the
supplier management status of each business unit andthe subsidiaries, ensuring the effective implementationof supplier management within the group.
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 alsoprefers purchase from local suppliers in Taiwan in orderto support local business and fulfill social responsibility.
The main suppliers are from Taiwan, followed by China.
The details are list in Figure 4.1-1. Meanwhile, in orderto maintain excellent product quality, Tatung requests
suppliers to use brand new materials in providing mainmaterials, parts, and products. Tatung supports theconcept 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 2022 were recognized
by EPB, Taipei City Government (Received certificate ofappreciation for promoting green procurement, Figure
4.1-2). In 2022, Tatung’s green procurement amountreached NT$50,027,438, representing an increase of

approximately NT$1.3 million compared to the previous
year (Figure 4.1-3).
On the other hand, Tatung requests suppliers to fulfill
corporate social responsibility together by adding
confidential, anti-corruption and human rights (humanrights, freedom of association, child labor, and forcedlabor) clauses in the contract. Also from 2015, westarted to request suppliers to sign the “SupplierCommitment 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 conflictminerals internationally, Tatung has issued “Declarationof Minerals Conflict-Free from Tatung Company” andpassed to the suppliers to follow since 2019.

Figure 4.1-1 Suppliers’ geographic distribution
in 2022 (by numbers)

Taiwan 90.79%
China/ Hong Kong 4.91%
Japan 0.60%
South Korea 0.62%
Others 3.08%

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

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

Happy Workplace and Social Engagement

NTD $50,500,000

Sustainable Environment

Climate Change Risks and Management

Annex

50,027,438

50,000,000
49,500,000
49,000,000

48,701,781

48,500,000
48,000,000

2021

2022

Figure 4.1-3 Tatung’s green procurement amounts

Declaration of Minerals Conflict-Freefrom Tatung Company

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 and labor conditions

Comply with national and international regulations, policies, or guidancein regarding to human rights.

Environmental protection

Comply with environmental protection regulations.

Anti-conflict minerals

Comply with Tatung anti-conflict mineral policy.

Corporate social responsibility

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

Introduction and management on suppliers
Tatung groups its suppliers into four categories; each category has its own
introducing procedures and management standards. The introduction of the
new supplier in Category I requires on site assessment by evaluation team.
The assessment content mainly includes design, technical capabilities, quality
management, manufacturing capabilities and management capacity. The
introduction of the new supplier in Category II requires only document review.
For construction category, the introduction of the new supplier requires on site
assessment. Starting from 2018, CSR related contents were incorporated into onsite assessment for all BUs. In addition, Tatung also evaluates the managementof hazardous substances (RoHS and REACH), conducting safety measures forhazardous job, and implementation of environmental management system as
an extra evaluation for introduction of a new supplier. The detailed management
measures are shown on Table 4.1-2 and Figure 4.1-4 (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.
For suppliers (construction category not included) who already cooperate with
Tatung are implemented monthly assessment in aspect of quality, delivery, price,and service (Figure 4.1-5). Any non-conformities found will be requested tocorrect. An annual re-evaluation is periodically implemented for main components
suppliers, listed component suppliers, and outsourcing suppliers (Figure 4.1-6).
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 allthis type of suppliers can follow it to reduce the risk from accidents.

Table 4.1-2 Category of suppliers andintroducing/management measures
Category

Classification criteria

Introducing
procedureManagement

Category 1

1. Important materials (parts,
components, half-readyproducts, and products).
2. ODM/OEM
3. Outsourcing (including full case,manufacture only, product only).
4. Significant to product quality thatneed intensive management andtutoring.

On-siteassessment
Sign procurement
contract
Sign commitment
letter

1. Monthly
assessment
2. Annual
re-evaluation

Document review
Sign procurement
contract
Sign commitment
letterMonthlyassessment

Category 2

1. Suppliers, who provide raw
materials, ready to sale products,
imported components, with lessquality risks.
2. Suppliers who are world famous
company with top capability inproduct and QA/QC.
Suppliers who build factory,
apartment, office building, systeminstallation, or repair project.

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

Evaluation after thecase is completed

1. Suppliers who provide officeappliances, hard wares,
software, waste disposal,
verification, etc.
2. Suppliers who provide
instruments or equipment.
3. Technical maintenance service.

Sign procurement
contract
Sign commitment
letterMonthlyassessment

Construction

OthersTop Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Figure 4.1-4 Supplier introducing and managing procedures (Category I)

Supplier

Provide Samples forinspection

Procurement Division

Top manager in BU

PASS

Evaluation based on
document review andon-site assessment

On-site assessment

PASS

Input into supplier
database and undermanagement

BUs

Procurement(Including CSR
topics)

QA/QC(Including CSR
topics)Manufacturing

Removingfrom supplier
database

Yearly re-evaluation(including CSR topics)

Monthly assessment

FAIL

Re-examing

PASS

R&D

FAIL

PASS

Grade A: 95.31%

Grade A: 18.33%

Grade B: 4.39%

Grade B: 81.67%

Grade C/D: 0.30%

Grade C/D: 0.00%

Note: Grade A and B are qualifi ed
suppliers; Grade C/D is failed frommonthly assessment and required to
be improved within limited time.
Figure 4.1-5 Result of suppliers’ monthly assessment in 2022

Figure 4.1-6 Result of suppliers’ annual re-evaluation in 2022

4.2 Product responsibility
DMA

Product quality and safety

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

Positive impacts: Enhancing the company’s credibility and brandimage, thereby increasing trust and loyalty among customers
and investors, and promoting innovation and efficiency within
the organization. Reducing the environmental impact andcarbon footprint of the company, minimizing pollution and waste.
Improving employee welfare and working conditions, thereby
increasing employee satisfaction and productivity.
Negative impacts: Increasing the costs and burdens on thecompany.

Report whether the organization
is involved with the negative
impacts through its activities
or as a result of its business
relationships, and describe
the activities or business
relationships

1. Environmental impact: The organization’s activities andbusiness relationships have no negative impact on theenvironment.
2. Social impact: The organization’s activities and business
relationships have also no negative impact on the local
community, employees, or other relevant stakeholders.
3. Corporate governance: The organization’s corporate
governance practices are legal, transparent, responsible,
and ethical, with no issues of conflicts of interest,
corruption, or misconduct.

Policies or commitments

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

Actions taken to manage thetopic

1. By obtaining ISO 9001 certification, each factory ensures
the production of products with stable quality, enhancing
brand image, strengthening customer confidence, andexpanding the market to enhance competitiveness, thusachieving the goal of sustainable business operations.
2. To continuously improve and enhance product quality, theorganization utilizes the management technique of Key
Performance Indicators (KPIs) for quality. Each year, quality
objectives are set as targets for quality achievement.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

DMA

Happy Workplace and Social Engagement

Sustainable Environment

Annex

Product quality and safety
Internal audits of quality control measures are conducted
regularly within the year, following the Plan-Do-Check-Act
management cycle, aiming for continuous improvement
at every stage of the quality process to achieve various
quality objectives.

Management process and targets

How engagement withstakeholders has informed theactions taken and how it has
informed whether the actions
have been effective

Short-term targets:
1. All the products are complied with product inspection andsafety regulations as well as customer requirements.
2. Strive for product awards or certification.
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.

We value the voices of stakeholders and have establisheddirect two-way communication channels. This allows us
to continuously improve our performance in executing
corporate social responsibility. The following are theidentities of stakeholders, their concerns, communication
channels, and response methods:
Customers/Owners/Dealers:Collect satisfaction feedback to serve as a basis forcontinuous improvement.
Conduct regular visits to customers/owners/dealers
to communicate sales strategies.
Consumers:
Set up telephone and online service centers for
product and service-related issues as direct contact
points for end consumers.
Conduct follow-up phone interviews through thecustomer service center to understand and enhanceservice satisfaction for post-sales service cases.

Short-term targets:
Treat zero defects as the only standard for management
and operations.
Management evaluation
mechanism

Performance

Climate Change Risks and Management

1. Regular or irregular quality meetings are held within eachfactory to review internal and external quality issues.
If any defects occur, improvement plans are promptly
proposed and implemented.
2. Internal controls conduct regular audits to assess thequality management status in each factory.
3. The implementation of KPIs management approach for
quality is enforced. Quality objectives are set annually,
and monthly reviews are conducted to address any
items that have not met the targets. Specific measuresto achieve the goals are proposed, leading to theaccomplishment of annual quality objectives.
Performance in 2022:
1. All the factories passed ISO 9001 annual audit.
2. No. of products violated product inspection and labeling
regulations: 0.
3. Multi-functional Cooker (TAC-11R-M) was won the 31st
Taiwan Excellence Award.

Government regulatory agencies:
Ensure compliance with regulations through internal
control systems.
Suppliers:
Manage quality of parts and products and handle
hazardous substance requirements.
Maintain an open channel for supplier complaints.
Continue supplier introduction and annual
evaluations.
Related adjustments to the
management approach

NIL

DMA

Marketing and Labeling (Labeling)

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

In 2022, there were no reported cases of non-compliancewith labeling requirements.

Report whether the organization is
involved with the negative impacts
through its activities or as a resultof its business relationships, anddescribe the activities or business
relationships

There were no incidents involving negative impacts.

Policies or commitments

Products are clearly labeled, and there is absolutely no
intention to deceive the public.

Actions taken to manage thetopic

Safety certification organizations, such as TAF (Taiwan
Accreditation Foundation), regularly visit the factories to
conduct inspections on product labeling.

Management process and targets

Product labeling errors are considered significant violations
as they not only lead to consumers having a false
understanding of the product but also breach relevant
regulations. Tatung sets a target of zero violations regarding
product labeling regulations.

Quality management

Product quality and safety are the lifelines of our company’s sustainable operations.
Only by providing high-quality and safe products, we can build a strong brandimage, enhance competitiveness, create a high-profit, low-risk business model,
and achieve a win-win situation for both consumers and the company. Based on
this business philosophy, all of the factories bases have obtained ISO 9001. To
continuously improve and enhance product quality, we utilize the management
technique of Key Performance Indicators (KPIs) for quality. Each year, quality
objectives are set as targets for quality achievement. Every month, internal audits ofquality control measures are conducted within Tatung’s factories, following the PlanDo-Check-Act management cycle. We continuously strive for excellence at every
stage of the quality process, aiming to consistently improve product quality, enhancebrand image, strengthen customer confidence, expand the market, and increase
competitiveness, ultimately achieving our goal of sustainable business operations.
As to ensure the quality of the products and management of hazardous substances,
Tatung has its own Calibration Lab in H.Q. to provide accurate measuring and calibration

Management evaluation
mechanism

1. Relevant design and management personnel undergo
training on product labeling laws and electrical productlabeling standards.
2. Products are labeled in accordance with relevant
specifications and regulations, and regular inspections
are conducted to ensure compliance.
3. Cooperation is provided to the BSMI under the Ministryof Economic Affairs for regular and irregular market
inspections.

Performance

No. of products violated labeling regulations: 0.

How engagement withstakeholders has informed theactions taken and how it has
informed whether the actions
have been effective

Product users or government customs authorities in import/
export countries must verify whether the products arelabeled in accordance with the local national regulations. It
is through these labels that the compliance of products with
relevant requirements can be ensured. During the initialstages of product planning, design should be carried out inaccordance with regulatory instructions to incorporate thenecessary and accurate labeling. Regular product labelinginspections should be arranged by verification organizations
to ensure compliance.

Related adjustments to the
management approach

NIL

testing services. In the factories, Tatung has Transformer Testing Lab, Switchgear
Testing Lab, Motor Testing Lab, Air Condition Facility Testing Lab, Generator Set
Testing Lab, Tatung Taoyuan Wire and Cable Testing Lab, and Tatung Meter Lab in
the factories (as shown in Table 4.2-2) to provide the assurance of excellent quality.
Setting Annual
Quality Targets

Quality
Performance
Review

Confirm Quality
Improvement
Activities

Measure Annual
Quality Results

Figure 4.2-1 Quality KPI management flowchart

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Table 4.2-1 Tatung products that acquired ISO 9001
Factories

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

Tayuan
Plant

TaoyuanWires and
Cables Plant

Meter
Factory

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

Sustainable Environment

Climate Change Risks and Management

Annex

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

Testing items

RegisterCalibration 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 Cooling Electrical Power Consumption
2270
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 Generator testing2442

2011.10.12

Tatung Motor Testing Lab
2613

Motor testing

2012.07.01

Power wires and cables (including cross-linked polyethylene insulated shielded
power cable rated 161 KV and below), bus-way, electronic wires, and opticalfiber cables.

Tatung Taoyuan Wire and Cable
Testing Lab
2964

Wires, cables, and busway testing.

2015.04.29

Design, manufacturing and sales of Electricity Meters.

Tatung Meter Laboratory
3773

Meter testing.

2021.01.20

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), Drytype transformers (below and including 36KV), Dry type reactors (below andincluding 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 andincluding 72.5KV), Metal-clad switchgear (below and including 36KV), Motor
control center (below and including 15KV), Metal-enclosed low voltage power
circuit breaker switchgear(below and including 600V), Distribution board (panel)(below and including 600V), Rectifier (below and including 600V), Amorphous
metal transformers (below and including 36KV), Gas insulated switchgear,
Capacitors.

ISO 9001 certificates

Product safety
Most of the countries make the laws and regulations in regarding to product’s quality and safety in order toprotect their citizens. Brand owners must pass all the tests and acquire certifications then can put their products
into markets. In order to comply with related regulations among the world, Tatung designs and manufactures
the products (including ODM/OEM products and accessories) to meet the requirements of the regulations. At
first, the samples must pass the tests and managed by SAP management system. After all test results have
met the requirements, bulk production and sales then can be arranged. Table 4.2-3 lists the relevant regulation
requirements, standards and verification internationally adopted by Tatung.
In the hazardous substance management section, apart from sending samples to third-party for testing (suchas RoHS and REACH regulations), Tatung has a laboratory specializes in the testing of restricted hazardous
substances, specifically for electrical and electronic materials, components, and finished products. Internally,
Tatung also conducts monitoring of hazardous substances to ensure the safety and health of its customers.

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

Certificates of TAF certified laboratories

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 Brand/
Appliance
Manufacture 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 Energy BU: Focus on case development, system planning and construction, and maintenance. System Integration
BU: Provide products or information integration services, mainly based on colleagues’ personal technical certificates.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

In addition, for the defected products that have beensold, Tatung makes recall on BSMI official website1
and TCPC website2 to prevent the consumers being
harmed from further using of such products. For the
problem occurred, Tatung will strengthen overall
quality control in supply chain, also conduct Design/
Process Failure Modes and Effects Analysis (DFMEA/PFMEA) and incorporated into Design Guideline
Check List measures to prevent recurrence. Tatung
will do the best for providing consumer healthy,
energy-efficiency, and safe products.
In response to some defected dehumidifiers, BSMI
announces recall messages every year. Somemodels of Tatung’s dehumidifiers are on the recalled
list (Models: TWD-500B, TWD-510B, TWD-511B,
TWD-711B, TWD-710B, TWD-660B, TDH-200HB,
TWD-1400B, and TWD-1400BL). Consumer who
has these particular models can make a phone callto Tatung or TCPC and the specialist will visit yourplace for service free of charge.

The defected dehumidifier replacement campaign on the company’s official website
TWD-500B

TWD-510B

TWD-511B

TWD-711B

TWD-660B

TWD-200HB

TWD-1400B

TWD-1400BL

1. https://safety.bsmi.gov.tw/wSite/
lp?ctNode=4735&CtUnit=2583&BaseDSD=7&mp=65
2. https://tcpc.tatung.com/Home/Index

Figure 4.2-2 Dehumidifiers that need to be recalled

TWD-710B

Annex

Product labelingTo ensure that consumers have accurate andsufficient information when purchasing products(such as energy efficiency labeling) and can use theproducts safely and correctly, thereby avoiding safetyissues or inefficient use due to improper operationor maintenance, Tatung complies with relevant local
regulations by labeling the necessary informationon the product itself or its packaging, including
outsourced products. Additionally, instructions forsafe use, maintenance methods, precautions, andother relevant information are provided in the productpackaging and user manuals enclosed within, as
shown in Figure 4.2-3. Furthermore, information
regarding the recycling and disposal of televisions,washing machines, refrigerators, and air conditioning
units is made available on the shopping website3 for
consumers’ awareness.
Taking Taoyuan 1st Plant as an example, for the
management of product labeling, the responsible
personnel checks the labeling content in the designand verification stage, relevant functional personnel
will also be arranged to participate in the productlabeling seminars to understand the latest regulatory
requirements and ensure that product labeling is in linewith regulations and customers. We also cooperatewith the BSMI to conduct regular/irregular market spot
checks to ensure the correctness of product labeling.
In 2022, we did not have any violations against productlabeling related regulations. We will continue to aim
to comply with the relevant regulations on productlabeling and carry out relevant control operations.
3: https://www.etungo.com.tw
Figure 4.2-3 Product labeling and instruction (e.g.
Electric Kettles)

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

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

Figure 4.2-4 Hazardous substances containing
information (e.g. Electric Kettles)

Figure 4.2-5 Hazardous substances in products section on the official siteAnnex

4.3 Sales & customer information management
DMA

Customer privacy management

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

1. Following relevant laws and regulations, ensuring the proper
protection of customers’ personal data, preventing theft,
alteration, damage, loss, and leakage of personal information.

Report whether the organization
is involved with the negative
impacts through its activities
or as a result of its business
relationships, and describe
the activities or business
relationships

Organizational activities require compliance withmanagement requirements by business partners andsuppliers to ensure the full protection of customers’
personal data. Additionally, it is necessary to clearly informbusiness partners and suppliers about the organization’s
privacy protection policies and procedures to ensure theircompliance with the corresponding requirements.

Policies or commitments

The organization formulates a personal data protection
policy, ensuring compliance with the “Personal Data
Protection Act” and other relevant regulations to ensures theproper protection of customers’ personal data throughout
the collection, processing, and utilization processes.

Actions taken to manage thetopic

2. Avoiding negative impacts that could harm corporate
image and customer rights.

Conducts annual inspections to ensure compliancewith the laws and contractual obligations listed in theregulatory compliance checklist, avoiding any actions
that may result in penalties or unfavorable judgments byregulatory authorities or courts.
Annual reviews are conducted to verify the inclusion ofconfidentiality clauses in information contracts.

Management evaluation
mechanism

Tatung Information Security Promotion Team isestablished, and monthly meetings are held.
Regular information security and personal data awarenesstraining courses and assessments are conducted.
Internal audits are conducted periodically.
External consultants are engaged periodically for
guidance and improvement.
The effectiveness of the management review meeting
report is assessed annually.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

DMA

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Customer privacy management

Management process and targets

New employees are required to sign confidentiality andnon-compete agreements.
Unless authorized by a supervisor, personnel who haveaccess to customer or consumer personal information
are prohibited from privately contacting customers or
consumers to avoid privacy infringements.
Regular personal data and information security awarenessand training courses are conducted, followed byassessments to evaluate the effectiveness of learning,
ensuring that all employees have a thorough understandingof the importance of personal data and operational protocols.
Website information security is strengthened through theimplementation of appropriate protective mechanisms,
monitoring software, regular penetration testing, and sourcecode inspections, preventing unauthorized access to customer
or consumer personal data and ensuring its security.
Confidentiality clauses are included in system development,
maintenance, and cybersecurity service contracts.
Measures are implemented to safeguard and manage
the security of personal data, preventing theft, alteration,
damage, loss, and leakage of personal information.

Performance

In 2022, there were no complaints related to the violationof customer privacy or loss of customer data.
Incidents of impersonation of official social media accounts
for the purpose of personal data fraud were promptly
announced as warning messages on the company’s official
website and Tatung’s social media platforms to prevent
consumers from falling victim to scams.

Related adjustments to the
management approach

To ensure the security of IT and network infrastructure,
efforts are made to strengthen the security architecture anddesign.
Data protection measures are implemented to prevent
internal employees from misusing or stealing data.

How engagement withstakeholders has informed theactions taken and how it has
informed whether the actions
have been effective

Customer privacy management involves various
stakeholders, such as customers, authorities, business
partners, and employees. Therefore, companies should
engage with these stakeholders to ensure that their customer
privacy management practices comply with relevant
regulations and standards, and obtain their consent andcooperation. Effective actions to be taken include:
Customers: Customers are the core stakeholders incustomer privacy management. Organizations need torespect customers’ privacy rights when collecting, using,storing, and sharing their personal data. Building trust
and a good relationship with customers can be achieved
through transparent privacy policies, customer education,and complaint handling mechanisms.
Authorities: Authorities are responsible for supervising
the organization’s customer privacy management practices.
Companies need to comply with applicable regulations
and standards and cooperate with authorities to enhance
regulatory risk prevention and control.
Business partners: Companies need to ensurethat the flow and sharing of customer personal datawith business partners comply with relevant laws andstandards. It is important to establish data confidentiality
agreements with business partners. By improving business
partners’ awareness and capabilities in privacy protection,
overall customer privacy management standards can beelevated.
Employees: Employees are internal stakeholdersof the organization. Companies should provide relevant
training and guidance to enhance employees’ awarenessand capabilities in privacy protection. Establishingappropriate monitoring and evaluation mechanisms will
ensure that employees adhere to relevant laws andstandards.

DMA

Marketing and labeling (Marketing)

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

Business advertisements must accurately label products
or services to avoid misleading consumers. Failure to
do so not only leads to personal misunderstandings
among consumers but also provides an opportunity formalicious individuals to create deceptive one-page scamadvertisements to collect personal information and deceive
people into giving away money.

Report whether the organization
is involved with the negative
impacts through its activities
or as a result of its business
relationships, and describe
the activities or business
relationships

In order to avoid consumer misunderstandings regarding
commercial advertisements due to improper wording,misleading layouts, or gender-specific limitations, Tatungis committed to ensuring that its business advertisements
are accurate, lawful, and fair. Efforts are made to prevent
consumers from having any doubts or concerns about thecontent of the advertisements.

Policies or commitments

The content of advertisements is accurate, lawful, and fair.

Actions taken to manage thetopic

Tatung adheres to the requirements set by government laws
and agencies such as the Fair Trade Act, Personal Data
Protection Act, and National Communications Commission
when conducting activities related to advertisement creationand promotion.

Management process and targets

Marketing and advertising content is reviewed by the Legal
Division of the company before publication. Only after
ensuring compliance with requirements will the content bemade available to the public.

Management evaluation
mechanism

1. Tatung’s customer service hotline: 0800-052-666.
2. The status of fan comments regarding relevant topics on
Tatung’s official social media platforms.

Performance

In 2022, there were no violation against marketing relevant
regulations.

How engagement withstakeholders has informed theactions taken and how it has
informed whether the actions
have been effective

NIL

Related adjustments to the
management approach

NIL

Note: The scope of this DMA includes TCPC.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Fair trade and anti-trust behavior
Companies engaging in business activities shallcomply with fair trade laws and relevant regulations,and shall not fix prices, rig bids, limit production andquotas, or share or divide the market by allocating
customers, suppliers, operating areas or businesstypes. Directors or managers shall treat the company’spurchase (sale) customers, competitors and employees
fairly, and shall not use manipulation, concealment,
misuse of information they have collected based on
their duties, misrepresentation of important mattersor other unfair dealing methods. Tatung has relevant
regulations in “Ethical Corporate Management Best
Practice Principles” and “Procedures for EthicalManagement 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 ensure that
there is no anti-competitive behavior. In 2022, Tatung
has no violation against fair trade or sales related laws
and regulations.

Climate Change Risks and Management

Annex

Table 4.3-1 Tatung consumer protecting measures
Items

Descriptions

Customer health andsafety1.When providing products or services, it should be ensured that the products orservices meet the safety requirement that can reasonably be expected by thetechnology or professional standards at the time.
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 be labeled 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 the services should be terminated immediately.

Customer privacy

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.

Product marketing andlabeling

1.Advertising contents and marketing information shall be clear and shall not conduct
misleading, fraudulent or unfair commercial, advertising and marketing activities.
2.Providing consumers with channels and methods for terminating or canceling
contracts, returning products and refunds.
3.If the terms of the contract stipulate that the consumer must pay cancellation
money when canceling the contract, the amount should be proportional to thedamage that may be caused by the cancellation of the contract.
4.If the trial period of products or services is provided, consumers should beclearly and fully 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 toprotect the rights and interests of consumers.

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

Protecting consumer rights
Tatung has a policy to protect the rights and interestsof consumers. The policy has appropriate regulatory
measures for customer health and safety, customer
privacy, product marketing and labeling. 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 2022,
Tatung has no major customer complaints. Table 4.3-1
shows Tatung’s consumer rights protection measures.

Sustainable Environment

Wide-spread service locations andconvenient shopping experiences
Tatung upholds “customer first”, “having only one
phone call, the service is to” and aims to provide
fast and excellent services to customers. Tatung
lists the service channels on the official website4 for
all the business, including TCPC, information (OA),
commercial air conditioners, power equipment, smart
grid business, system solution business, and etungo
online shopping, etc. Tatung entrusts her subsidiarycompany “TCPC” to provide a comfortable shopping
environment (Tatung 3C Store) as well as excellent
after-sale services to consumers. TCPC currently
has 140 Tatung 3C Stores spreading from cities tocountries, providing professional recommendations
on purchasing house appliances and repairing
services. In addition, TCPC launched “etungo” online
shopping website5 and Tatung Fans App to provide
wide variety of product in 3C, house appliances, andliving products. Besides, Tatung runs Tatung Fanssite6 and Tatung Rice Cooker Fans site7 on Facebook
to provide instant news and living tips.
Due to market trends and the COVID-19 pandemic, it
restricted the scope of people’s activities, and shopping
behaviors may occur online and offline at any time andit 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 seamlessand complete digital life experience. We hope to help
the world and make users enjoy a convenient life.

4. https://www.tatung.com/tw/info/service
5. www.etungo.com.tw/
6. https://www.facebook.com/tatung.tw/
7. https://www.facebook.com/ricecooker50/

etungo online shopping
websiteFB forTatung fans

FB forTatung Rice Cooker fansTop Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

In order to provide a more convenient customer service,
TCPC has online service that the consumers can accessto official website8 making service request (Figure 4.3-1).
The system will assign the service request to theaccordance service station and provide rapid and highquality services. The consumers can also check the
repairing progress by assessing online webpage9 (Figure
4.3-2). At the end of each case, customers are able toprovide any positive or negative feedbacks by filling theonline survey which will be used for future improvement.
To extend the channels for listening to the customers,
Tatung also provides a service phone-line10 and an
online feedback service11 which customers can ask
questions, express their opinions and give positive
feedbacks to us (Figure 4.3-3).
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 andinterview 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 tobe not lower than 97%, repairing service to be notlower than 94%. The results (Figure 4.3-4) in 2022
are 98.3% satisfied for shipping service and 94.8%
satisfied for repairing service. The set targets wereachieved. Tatung will continue to listen to the voicesof consumers, respect and serve customers.

Happy Workplace and Social Engagement

Figure 4.3-1 Product online service
form

99.0%
98.0%

97.6%

97.0%
96.0%
95.0%

96.2%

94.0%

Sustainable Environment

Figure 4.3-2 Inquiry page forrepairing progress

97.0%

95.3%

97.4%

95.9%

Climate Change Risks and Management

Annex

Figure 4.3-3 Online feedback form

98.3%
97.2%

95.72%

94.80%

93.0%
92.0%
8. https://e-logistic.tatung.com/tatungcp/agent/cust_100.asp
9. https://e-logistic.tatung.com/tatungcp/agent/cust_200.asp
10. Free service phone line: 0800-052-666, for mobile
phone, please dial:02-25915068.
11. https://www.tatung.com/home/suggestion

2018

2019

2020

2021
Shipping service

Figure 4.3-4 Results of consumer satisfaction

2022
Repairing service

Information security management
In 2022, Tatung designated information security
directors and personnel to oversee policy formulation,
implementation, risk management, and compliance
auditing related to information security and protection. In
order to distinguish its operational mode and functional
committees, it was renamed the “Information Security
Promotion Team”. Tatung continues to obtain BSI ISO/IEC 27001:2013 certification and in accordance withthe requirements of the BS10012 Personal Information
Protection Standard to ensure the security of our personnel,
data, information systems, equipment, and networks.
Tatung has established an information security policy as
the guiding principle to achieve the goals of “uninterrupted
services, no data loss, no personal information
leakage, and sustainable business operations”. Tatung
implements an information security management
system, following a cyclic and progressive process of
P-D-C-A to ensure the effectiveness and continuityof information operations. In addition to implementing

multi-layered security measures, Tatung also conducts
risk assessments and management based on threat
intelligence provided by various collaborative defense
organizations, such as TWCERT, to proactively preventand mitigate risks. Monthly security meetings and ad-hoc
meetings for emergency response are held to discuss
emerging internal and external security issues andreview countermeasures, which are then incorporated
into the annual plan’s activities.
Annual activities include the evaluation, review, andrevision of information security policies and procedures,
handling of significant risks and high-risk vulnerabilities
identified from host vulnerability scans, regular
information security management and personal dataprotection education and training, and social engineering
testing. Audit activities include an external audit
conducted by a consultant each half-year, two pre-audit
counseling sessions with an external consultant, and aninternal audit review conducted by the audit department

each year, to determine the implementation status of theinformation security management system and whether
the confidentiality, integrity, availability, and complianceobjectives set for each service have been achieved.
In response to changes in the social environment, laws
and regulations, and technological advancement, Tatung
has formulated a privacy protection statement. The
collection, processing and use of customer data are incompliance with the “Personal Data Protection Law” andrelated regulations and properly protect the personal dataof customers. The summary of key control measures isshown in Table 4.3-3. In 2022, there was no complaint
related to infringement of customer privacy or loss ofcustomer information. In addition, in recent years, there
have been cases of fake official community accounts forfraudulent use. When we were informed of such news,
we immediately went to the company’s official website
and our social group to announce warning messages toprevent consumers from being victimized.

Information Security Policy

Uninterrupted services, no data loss, no personal information leakage, andsustainable business operations

ActionMaintenance & Continuous Improvement

Information security protection and control measures
Information security policy promotion/ advocacy
Education, Training, and AwarenessCorrective action handling

Check

Plan

Plan

ActionDo

Information Security Performance Evaluation
Internal security audit
Management Review Report
Third-party external audit verification
Information Security Management System (ISMS) supports
continuous improvement of cybersecurity through the PDCA cycle.

Information Security Policy and Objectives.
Risk assessment and management
Information Security Incident Management
Third-party management

Do

Audit & Review

Check

Establishing ISMS

Ensuring the confidentiality, integrity,
availability, and legality of all services.

Information Security Asset Management
Risk assessment and treatment
BCP drills and exercises
Security monitoring, notification, and response
Security education, training and awarenessTop Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Table 4.3-2 Tatung Information Security Management

Convener

CISO

Executor

Risk
management
group

Documentation
management
group

Audit group

Departmental
Information
Security
Personnel

Tatung Information
Security Promotion
Team

Members including convener, CISO, Executor, Risk
management group, Documentation management group,
Audit group, Departmental Information Security personnel.

Security Policy andProcedures Manual

Review and assess at least once a year.

Security meeting

Monthly cybersecurity meeting.
Annual Management Review Meeting.
Irregular information security project meetings.

Audit activities

Annual internal audit and bi-annual external audit.
Twice a year, external consultant counseling will bearranged.

Cybersecurity
education andtraining

Online learning cybersecurity courses (including
mandatory courses for new employees and information
security education and training courses).
Two information security and personal data protection
education and training sessions will be held each year,
one in the first half and one in the second half.

Social engineering
email test

Initial and retesting twice a year, once in the first half andonce in the second half.

Asset inventory for
information security

At least one annual information security asset inventory.

Vulnerability
scanning of hostAnnual vulnerability scanning for initial and follow-up
scans.

Security monitoring,alert notification,and cybersecurity
awareness.
Figure 4.3-5 Structure of Tatung Information Security Promotion Team

Daily cybersecurity monitoring and alert notification tousers.
Dissemination of cybersecurity news andannouncements will be conducted through the employee
portal and biweekly employee newsletters.

Security protection concrete management plan andcontinuous improvement
Network Security
Management

System Security
Management

Endpoint Security
Management

Firewall & IPS defense
Control over carious
network service
application processes
TWCERT/CC threat
intelligence sharing &blocking
Using MFA
Abnormal notification &processing of internal
network patrols

Syslog abnormal alert
tracking
Advanced threat
analysis & abnormal
alert handling
Regular tracking ofabnormal system logs
Physical environment
security management
System access control

Regular antivirus
software scans
System security updates& patches
Host vulnerability scans
Registration &management of network
Equipment assets
Management ofauthorized software
installations
Network equipment
authentication

Data
Security Management

BCM Continuous
Certification

Education, Training
and Awareness

Digital rights
management for
documents
Host data backup &redundancy
Office 365 defender
Review of accountauthorization
management

Information security
incident management
Business impact
analysis & disasterrecovery exercise
Compliance management
Information security
objective & performance
management
Third-party management
Corrective action
management
Internal audit management
ISO27001 certification
remains effective

Internal sudit
External audit
Outsourced consulting &coaching
Information security
education & training
Bi-weekly newsletter &promotion
Social engineering
testing
ISO27001 lead auditor
certification
BS10012 personal
information protection
audit certification

Strategy
Aspectscore:

83

100.00
80.00
60.00
40.00
20.00
0.00

Technical
Aspectscore:

82
Information Security GovernanceMaturity Rating:Management
Aspectscore:

82

82.29

Figure 4.3-6 2022 Information security governance maturity result

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Table 4.3-3 Key personal data protection management andcontrol measures
Management
systems

Tatung has passed ISO 27001 certification and complies
with the BS 10012 personal data protection standard.

Management andcontrol measures

1. New employees are required to sign a non-disclosureand non-competition agreement.

Sustainable Environment

Climate Change Risks and Management

An anti-fraud awareness announcement
was posted on Tatung 3C website

2.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 ofimportant personal information.
3.Strengthen information safety awareness: Regularly holdpersonal information and information security training
courses and implement tests after class to ensure theemployees fully understand the importance of personal
information.
4.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.
5. Confidentiality clauses shall be included in systemdevelopment, maintenance, and information security
service contracts.

An anti-fraud awareness announcement
was posted on etungo website

Annex

Employment

Chapter 5
Happy workplaceand social
engagement

Targets

Short-term targets:
1.The retention rate of new recruits after the 3-monthtrial period is over 80%.
2. No major labor dispute.

Mid-term targets:
Actively encouraging employees to set up morediversified activity clubs, allowing employees tofreely assemble and participate in associations,communicate with each other, and promoting theefficiency of cross-departmental communication.

Long-term targets:
Follow labor-related laws and regulations, continue
to work hard to create a happy working environment,
and care all employees equally.
Performances in 2022
1.The retention rate of Tatung’s new recruits after the
3-month trial period is 87.4%, which has reached
the target.
2.No major labor dispute.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Human rights, equality,and non-discriminations

Market presence

Employee performance
management

Education and training

Health and safety

Targets

Targets

Targets

Targets

Targets

Short-term targets:

Short-term targets:

Short-term targets:

Short-term targets:

Short-term targets:

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

Continue to ensure the basic
salary is better or equal to legalsalary.

Through performance review
to ensure that employees pay
attention to correct performanceprojects and review the daily
work performance to link withcompany strategies.

The total training time is morethan 21,000 hours and training
satisfaction higher than 90%.

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

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

Long-term targets:
Tatung regards all employees
as an important asset forthe company’s sustainable
development, and follows laborand other related laws andregulations regarding laborrights and human rights.

Performances in 2022
No violation against Act
of Gender Equality in
Employment.

Mid-Long term targets:
Using long-term performance
review system to identify
potential talents, and link withpromotion or salary adjustment.

Performances in 2022

Performances in 2022

The ratio of basic salary forfemale and male is 1:1; theratio of basic salary and legalsalary for migrant workers andtechnicians are 1:1 and 1.06:1;
for staffs is from 1.21~1.59:1
based on different job types,
specialty and qualifications.

94.33% of employees was
conducted with performance
review (employees in probation
period, leave of absence, andshort-term contract were notincluded).

Mid-term targets:
Aims to enhance the transfer
of professional knowledge,
technical expertise, andexperiences among different
business units. Continuously
reinforcing training programs
related to organizational
management and development tofoster a sustainable competitive
advantage and increase thevalue of human capital.

Annex

1.All 4 factories pass ISO
45001 annual re-audit.
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 targets:
Zero disaster.

Long-term targets:

Performances in 2022

Optimizing employees throughtraining to drive organizational
performance and achieve
company goals and vision.

1.Factories with ISO 45001
passed annual certification.

Performances in 2022
1.Total training hours was
21,758 hours.
2.Education and training
satisfaction was 93.68%.

2.The correction rate of
Accident Prevention Pays
Program is 100%.
3.The FR and FR haveincreased compared to the2021 and have not met thetarget.

5.1 Building a friendly working place
DMA

Employment

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

Employees are vital assets for the sustainable developmentof the company. Therefore, Tatung respects fundamental
human rights, ensuring that all individuals, both internal andexternal to the company, are treated with fairness, equality,and dignity. Tatung actively cares for employees’ well-being
and work conditions, ensuring a safe, satisfying, and healthy
working environment for all.

Report whether the organization
is involved with the negative
impacts through its activities
or as a result of its business
relationships, and describe
the activities or business
relationships

In order to implement the human rights policy effectively,
Tatung actively promotes various concrete management
measures, education and training initiatives, and establishessmooth communication channels. We aim to prevent any
violations or infringements of human rights, and places
significant emphasis on protecting all employees. We arecommitted to creating a safe, healthy, and friendly work
environment.

Policies or commitments

1. Tatung complies with the Labor Standards Act, the Act ofGender Equality in Employment, the Occupational Safety
and Health Act and other related laws and regulations toachieve harmony in labor and employment, and coexist
and prosper together.
2. Keep up with the latest trend and revise Company Rules,
welfares, salaries, allowances, vacations, compensationfor occupational accidents, etc. to give equal care among
employees.

Actions taken to manage thetopic

1. Expanding recruitment channels.
2. Optimizing the salary and compensation system.
3. Implementing diverse employee welfare measures.

Management process and targets

Short-term targets:

1. The retention rate of new recruits after the 3-month trial
period is over 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 to create a happy working environment, and care all
employees equally.
Performance

Performances in 2022:
1. The retention rate of Tatung’s new recruits after the
3-month trial period is 87.4%, which has reached thetarget.
2. No major labor dispute.

Related adjustments to the
management approach

NIL

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

An equaled working environment
Tatung values human rights and ensures that all
employees, applicants, and supplier personnel aretreated fairly and with dignity, regardless of race,
ideology, religion, political affiliation, birthplace, gender,
sexual orientation, marital status, appearance, disability,or union membership. Commitments of respect andensure the benefits of labors, fulfill social responsibility
and comply with regulation are clearly stated in ourLabor 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 places in Tatung. There was no discrimination
and anti-human right incident in 2022.

Employee diversity
The recruitment and promotion policy of Tatung isbased on the principle of meritocracy without any
discrimination based on age, gender, or race. Recruits
are selected based on their performance and suitability
for the position, ensuring that the company’s strategyaligns with a well-designed organizational structure
and talent deployment at all levels. The recruitment
process follows relevant regulations and operates with
fairness and transparency to select suitable talents.
As shown in Table 5.1-1, Figure 5.1-1, and Figure5.1-2, approximately 94% of Tatung’s employees are
locals, and the company has exceeded its hiring quota
for employees with disabilities (constituting 1.84% of
the total workforce) to safeguard their employment
rights.

Local Employee
100.00%90.00%

93.23%

93.00%

94.25%

95.01%

Migrant Worker
93.92%

80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

7.00%

2018

6.77%

2019

5.75%

2020

6.08%

4.99%

2021

2022

Figure 5.1-1 Percentages of local employee and migrant worker

AnnexTable5.1-1大同公司員工組成一覽(依年齡區分)Employee compositions (by ages)
表5.1-1Younger than 30
years old

30~50 years old

Over 50 years old

Male

FemaleMale

FemaleMale

Female

2018

273

105

1,289

439

644

208

2020

209

78

1,218

436

649

225

Year

No. ofemployees

2019

2021
2022
2018

No. ofmanagers

2019

2020

173
186
8
4
4
6
5

86
57
47
6
7
7
3
4

1,274
1,130
1,046
448
438
438
420
404

436
398
378

105
119
130
122
110

657
613
618

225
241
242
241
263

217
214
225

2018

2019

2020

2021

2022

4

3

2

2

2

61

1.49

0.46

2019

2020
2021
2022

3.52
2.58
3.98
2.28
1.40

0.60
0.88
0.69
2.42
0.85
0.68

2.72
6.52
5.81
4.80
5.38
6.12

1.24
1.96
2.41
2.13
2.48
1.92

1.28
3.99
3.26
3.77
6.34
3.68

0.34
0.15
0.24
0.88
0.69
0.96
1.47
0.84

Note 1: The number of employees is based on the statistical data as of 2022.12.31.
Note 2: In 2022, there were 162 male and 52 female new employees; 280 male and 86
female employees left the company.
Note 3: The retention rate of newly hired employees after the 3-month trial period in 2022 was
87.4%.

752

8

739

11

739

10

669

10

650

10

Type ofemployment

Type ofemployment

Type ofemployment

Type ofemployment

Type ofemployment

Full-time:726
Part-time:
26

Full-time:699
Part-time:40

Full-time:699
Part-time:40

Full-time:649
Part-time:
20

Full-time:636
Part-time:14

Job Title

Job Title

Job Title

Job Title

Job Title

Managers:
154
General staffs:
568Managers:
172
General staffs:
567Managers:
188
General staffs:
551

Managers:
180
General staffs:
489

Managers:
175
General staffs:
475

Note 1: The number of employees is based on the statistical data as of 2022.12.31.
Note 2: Management positions include those at the level of foreman and above. There are also
7 employees with disabilities holding management positions, accounting for 0.8% of the total
management positions.
Note 3: All senior executives (deputy plant/general manager and above) are Taiwanese.

No. of disabled employees

2018

2.48

2.13

Full-time:
1,612
Part-time:
238

Full-time:
1,623
Part-time:
293

55

51

1.88
0.89

Type ofemployment

46

43

2.95
2.28

36

Job Title

2.45
0.46

Type ofemployment

150

Managers:
672
General staffs:
1,178

3.91
1.90

Full-time:
1,717
Part-time:359

35

Job Title

2020
2021

Type ofemployment

127

Managers:
667
General staffs:
1,249

0.14

2019

Full-time:
1,786
Part-time:385

38

Job Title

1.39
1.48

Type ofemployment

160

Managers:
684
General staffs:
1,392

1.25
1.65

Full-time:
1,822
Part-time:
384

43

1,850

Job Title

5.85
5.12

Type ofemployment

194

1,916

Managers:
683
General staffs:
1,488

1.12
0.62

54

2,076

Job Title

5.38
2.58

203

2,171

Managers:
681
General staffs:
1,525

2018

2022
Percentage of
employee leaving
(%)

240

2,206

No. of migrant workers

2021
2022

Percentage of
new recruits (%)

Figure5.1-2 大同公司員工組成一覽(依性別區分)Employee compositions (by genders)圖5.1-2

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Human rights training

Tatung is committed to fulfilling its global citizenshipresponsibility. Through general and managerial
education and training, the company implements
narrative, interactive, and experiential teaching methods
to help employees clarify their values and respecthuman dignity. Emphasis is placed on workplace
ethics, interpersonal interactions, gender equality,and embracing diversity. By doing so, all employees
understand and practice the essence of human rights.
Tatung also emphasizes the importance of balancing
company rules and human rights for security personnel,
respecting and resolving differences to ensure smoothand efficient work operations.

78.00%

Freedom of association and collective
bargaining

66.00%

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 themember of the union. Currently Tatung has totally 5labor unions distributed in the HQ and factories. Tatung
does not interfere with the wills of the employees tojoin labor unions. In 2022, 77.12% of employees are
the members of labor unions (Figure 5.1-3). Tatung
fosters smooth labor-management communication andwill continue its efforts to sign a collective bargaining
agreement.

Tatung’s labor union participated in the beach clean-up event

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

77.12%

77.30%

76.00%

75.24%

74.00%
72.00%

70.65%

70.00%

72.01%

68.00%
2018

2019

2020

2021

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

Tatung’s labor union has been honored with the title of “Excellent Union” in Taoyuan City

2022

Annex

Child 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 fora week. If there is necessary to adjust or prolong theworking hours, the practice only can be implemented
after getting the agreement from the labor union or theemployee. There was no forced labor situation in 2022.

Parental leave

Tatung takes great concern on employees’ family lifeand care for next generation. Tatung not only provides
cash gifts for giving birth but also offers all employeesmaternity and parental leave in accordance toregulations. The statistics on parental leave is shownin Table 5.1-2.

Employees’ welfare

Tatung Welfare Committee handles a broad rangeof employee welfare issues for full-time employees,
including: daily activities, financial assistance foreducation, and funeral assistance. Table 5.1-3 shows
employees’ welfare implemented in Tatung. In addition,
Tatung provides staff dormitories with convenienttransportation and beautiful environment, so that
employees are not only financially trouble-free, butalso enjoy safe and convenient living environment.
Besides, in order to provide female employees a more
comfortable and more convenient way to nurture thenext generation without having to sacrifice their own
work, or to increase their physical or psychologicalunnecessary burden, Tatung set up a nursery room
for postnatal breast-feeding employees. It is also thecompany’s most intimate birth gift for female employees.
Although the company is affected by the global Covid-19
pandemic in 2022, Tatung has not reduced its welfare
measures for this reason, and continues to work hardto create a happy workplace and handle diversified
welfare measures.

Table 5.1-2 Tatung employees parental leave statistics
Male

Female

2
1
0
0%

10
5
4
80%

1
0

3
3

0%

100%

Application and return to work from parental leave
No. of employees that took parental leave in 2022
No. of employees that shall end parental leave in 2022
No. of employees who returned to work after parental leave ended in 2022
Return to work rate
Retention rate
No. of employees that applied and returned to work in 2021
No. of employees who returned to work after parental leave ended who were still
employed 12 months after their return to work in 2021
Percentage of employees who returned to work after parental leave ended who
were still employed 12 months after their return to work in 2021
Note: The reason for not returning to work is they changed jobs due to personal career planning.

Table 5.1-3 Employees’ welfare
Employees’ welfare

Implementations

Stock ownership

The Company subsidized employees to buy corporate stocks since 1992 as part oftheir savings.

Subsidies

Education subsidies for employees’ children in senior high school and college/
university; funeral subsidies for colleagues or their spouses and immediate relatives;
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(1) Employee Cafeteria provides delicious and a good deal on food. (2) Pricediscounts on groceries in corporate stores. (3) Clock and watch repair. (4) The serviceof laundry. (5) Exclusive discount or privileges from stores.

Health and safety plan

Labor insurance, health insurance, group insurance, retirement pension, free healthcheckup (upon completing one year of employment).

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

5.2 Good working conditions and career development
DMA

Market Presence

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

Tatung considers its employees as essential assets forthe company’s sustainable development. In recent years,
due to the challenging job market, the starting salaries for
new graduates have generally decreased. As a company
with a century-long history in Taiwan, Tatung ensures thatits employees’ salary and benefits are well protected andmeet or exceed the legal requirements to cope with these
economic challenges.

Report whether the organization
is involved with the negative
impacts through its activities
or as a result of its business
relationships, and describe
the activities or business
relationships

Tatung places great importance on recruitment andpromotion policies, all based on the principle of meritocracy.
The company does not discriminate based on age, gender,or race and selects candidates based on their performanceand suitability for the role. Additionally, Tatung ensuresthat employees’ salary and benefits are well protected andappropriately provided.

Policies or commitments

1. Respecting labor, safeguarding labor rights, and fulfillingsocial responsibilities.
2. The labor management system must comply with laborrelated laws and other regulatory requirements.
3. Tatung upholds the spirit of gender equality andensures that gender does not affect starting salaries.
Moreover, all job positions offer salaries that exceed legal
requirements.

Actions taken to manage thetopic

1. Optimizing the salary and compensation system toprovide the best and most reasonable rewards.
2. Reviewing and revising the company’s business strategy
to recruit suitable and qualified senior executives to meetthe manpower needs.

Management process and targets

Short-term targets: Continue to ensure the basic salary is
better or equal to legal salary.
Mid-long term targets: Designs a reasonableorganizational structure and deploy talents of all levels
according to the company’s strategic development direction.

Performance

Performances in 2022:
1. The ratio of basic salary for female and male is 1:1; theratio of basic salary and legal salary for migrant workers
and technicians are 1:1 and 1.06:1; for staffs is from
1.21~1.59:1 based on different job types, specialty andqualifications.
2. All senior executives (deputy plant/general manager andabove) are Taiwanese (71 persons in total)

Related adjustments to the
management approach

NIL

DMA

Labor/management relations

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

Tatung has upholds the spirit of labor and management
unity and industrial autonomy. It adheres to various laborand gender equality laws and regulations promulgated by
the government, formulating work norms, benefits, salaries,
allowances, etc. The company reviews and implements
performance annually to ensure that employees receive
appropriate and fair compensation for their services,
allowing them to feel content and satisfied in their respective
positions, providing for their basic living needs, and further
achieving their personal goals.

Report whether the organization
is involved with the negative
impacts through its activities
or as a result of its business
relationships, and describe
the activities or business
relationships

The company has established work rules and laborrelated regulations, creating a workplace environment thatvalues human rights and safeguards labor rights. Througheducation and training, employees achieve personal
growth and gain a clearer understanding of their rights andobligations. Company activities and policies are alignedwith ESG goals, aiming to achieve overall objectives. By
nurturing a sense of responsibility and duty towards theenvironment and the global community, the company fosters
a culture where individuals are influenced and connected,
leading to the incorporation of responsible practices into
their personal lives and business behaviors.

Policies or commitments

1. Employees are one of the company’s important assets.
Human rights, equality, and anti-discrimination areimportant core values in our labor policies.
2. Tatung’s labor and management relation is harmony. The
employees and the company work together, coexist andprosper. The employees contribute to their own company
and factory, and the employees and management are wellcoordinated.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

DMA

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Labor/management relations

Actions taken to manage thetopic

Tatung utilizes various opportunities and methods such as
gatherings, emails, newsletters, and internal documents
to promote and strengthen awareness among employees
regarding anti-discrimination measures, preventionof sexual harassment, protection against unlawful
infringement while performing duties, and the availabilityof complaint channels.
Both male and female employees have the right toapply for the parental leave and return to work after the
expire of the parental leave in accordance to relevant
regulations. For employees who need to personallybreastfeed for children under two years of age, Tatung
provides dedicated lactation rooms and time, andnegotiates flexible working hours based on individual
needs.

Management process and targets

Management evaluation
mechanism

Held 16 Labor-management Meetings among 4 BUs;
audited by the authorities 2 times; administrative penalty 1
time.

Performance

No. of significant labor-management disputes: 0

How engagement withstakeholders has informed theactions taken and how it has
informed whether the actions
have been effective

1. Through labor-management meetings and feedback
from the labor union, the company will use this input as areference to adjust its policies. Practical actions include
initial salary adjustments and raising salary levels to alignwith or exceed industry market standards. This ensuresthat employee performance is fairly and justly evaluated.
2. Integrating employee donation activities with ESG
initiatives allows employees to not only enhance thecompany’s reputation through social engagement but
also connect personally to society and global issues. This
fosters a sense of spiritual fulfillment and contributes toachieving social justice, thus forming a strong corporate
culture.

Tatung has “Chairman Mailbox” and “HR e-mail” for theemployees to communicate with management level.
Organizing Labor-management Meetings to communicate
with the employees and solve the problems.

3. The formation of a positive corporate culture not
only enhances the physical and mental well-being of
employees but also extends this positive energy to
stakeholders. By fostering close connections beyond
business partnerships, the company enhances its brandimage and generates a sense of brand identity among
employees, fostering mutual trust between labor andmanagement.

Tatung has “Measure of processing employees’complaints” and other practices in place for theemployees to complain about any dispute and provides achannel to deal with.
HR is responsible for re-appealing of labor incidents suchas sexual harassment and labor relations cases.
Targets:
1. Short-term: Promote labor-management harmony andresolve labor-management disputes.
2. Medium-term: Continuously strive to sign collective
bargaining agreements.
3. Long-term: Foster seamless labor-management
cooperation for mutual prosperity and coexistence.

Related adjustments to the
management approach

NIL

Salary and performance management
In recent years, due to the challenging job market,
the starting salaries for new graduates have generally
decreased. As a company with a century-long history in
Taiwan, Tatung ensures that its employees’ salary andbenefits are well protected and meet or exceed the legal
requirements to cope with these economic challenges.
Tatung enacts its rules and internal control to ensure
the minimum salary is complied with regulation. Tatung
discloses the structure of the salary and methods of
payment on “Company Rules”, so that all the employees
understand their rights and interests. Furthermore,according to Article 24 of the Articles of Incorporationof Tatung Company, when the company has surplus
earnings each year, the company shall set aside no lessthan 1 percent of them as remuneration for the employees.
At Tatung, employee salaries are determined based on
individual capabilities, contributions to the company,
and performance evaluations. The salary package
includes basic salary, bonuses, employee benefits, andother welfare benefits. The basic salary is determinedin accordance with company policies, employee
qualifications, and industry standards. Bonuses andemployee rewards are linked to the achievement of
individual, departmental, or company-wide goals.
Welfare benefits are designed to comply with legal
regulations while also considering the needs of
employees, providing them with shared benefits.
Based on the concept of gender equality, the basic salary
between female employees and male employees is 1:1.
For different employment types, the ratio of basic salaryand legal salary for migrant workers and technicians are
1:1 and 1.06:1; for staffs is from 1.21~1.59:1 (Figure5.2-1) based on different job types, specialty andqualifications. In average salary, the female employee tomale employee is 0.86~0.95:1 in 2022 (Figure 5.2-2); theaverage annual salary is NT$762,698 and the median
1. Employees who were in trial period, leave of absence,and short-term contract were not included.

annual salary is NT$679,792 for non-management
employees (2,393 employees in total). Please refer toFigure 5.2-3 for details.
Tatung takes great concern to the overall performanceof individuals, departments and organizations, andencourages employees to perform better. Throughthe performance review counseling mechanism andcareer development, it helps to enhance and affirm theperformance of employees. Employees are assessed
according to the “Performance Management Method”
regardless of gender. The purpose of the assessment
is to identify talents with high performance potential andpoor performance and effectively links the performancewith bonuses, rewards or promotions. The employee
ratio for performance review in 2022 is 94.33%1.

1.80
1.60
1.40
1.20

1.00

1.06

Migrant workers

Technicians

1.00
0.80

1.21

1.36

1.36

Research staffs(bachelor)

Staffs (master)

1.59

0.60
0.40
0.20
0.00

Staffs (bachelor)Research staffs(master)

Figure 5.2-1 Ratio between basic salary and legal salary for different employment types
1.02
1.05
1.00
0.95
0.90

1.00

1.00

0.89

0.89

0.85

1.00
0.85

1.00
0.86

1.00
0.86

0.80
0.75

2018

2019

2020

Staffs

2021

2022

1.00
0.98

1.00

1.00

0.96
0.94
0.92
0.90

0.90

0.90

2018

2019

1.00

0.92

1.00
0.93

1.00
0.95

0.88
0.86
0.84

2020

Technicians

2021

Figure 5.2-2 Salary ratio between female and male employees (by employment type)2022

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social EngagementNT$

No. of employees

800,000

3,100

700,000

3,000

600,000

2,900

2,833

500,000

2,800
2,692

400,000

2,701

2,700

2,572

300,000

2,600

200,000

No. of employees

679,792

2021

762,698

Median salary

645,306

2020

730,052

Average salary596,3012019

676,401

566,8902018

645,975

569,127

02,393

627,213100,000

2,500

2022

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

2,400

2,300

Sustainable Environment

Climate Change Risks and Management

Annex

Post-employment benefits
Tatung adopts “Defined contribution plan” and “Defined
benefits plan” as its post-employment benefits. For“Defined contribution plan”, Tatung makes monthly
contributions of no less than 6% of the employees’monthly wages to the employees’ individual pension
accounts in accordance with the Labor Pension Act.
The cost of the pension contributions to the Labor
Insurance Bureau for 2022 amounted to $70,735
thousand.
For “Defined benefits plan”, Tatung makes contributes
deposited at the Bank of Taiwan on a monthly basis inaccordance to Labor Standard Act. For detailed postemployment benefits, please refer to Tatung 2022
Annual Report page 392~395.

Labor-management relations
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 2022.
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.

Education and career development
Business’ success is relied on talented employees.
Tatung believes that only each employee fully shows“TATUNG DNA” in their work can help the company
to achieve goals and vision. Therefore, Tatung takes“TATUNG DNA” as basic to develop an educationand training system which provides skill/profession
oriented training courses to the employees to help thecompany to cultivate the talents that fit into businessand achieve sustainable development.
Tatung plans training courses by taking company’s
human resource policy into account and identifies theannual capacity gap of organizational functions. In
December each year, a survey of the training needsof senior managers and all employees is collected.
Based on the survey results and the company’s
annual business strategy, the next annual training
course is planned. The training target is to capacity
building of employee management, professional skills,
and performance improvement. Figure 5.2-4 shows
the structure of Tatung HR development. Tatung
has formulated the “Tatung Company Education andTraining Manual” as a norm for education and training,
including: education and training management
manuals, procedures, specifications, various forms,
etc., and managed through various operations such as
Plan, Design, Do, Review, and Outcome. The manualis published on internal website to let employees
retrieve freely. We arrange class tutors for each course
to be assistance and students with any questions
can respond to them. After the class, we conductsatisfaction survey and the results and responses will
be feedback to the students and relevant managers
to improve the quality of education and training in the
future.
In 2022, the number of training hours was similar tothe previous years due to the severe COVID-19 andwork-from-home measures, a total of 572 classes
were still held, with a total training hours of 21,758
hours. The average satisfaction rate of personnel
training is 93.68%.

Training
performances

Vision / Destiny

Performanceelevation

Strategy / Target

Behavior
modification

Operation Plan

Professional
learning
Reaction

Designing
unsatisfied
performances
Analysis on
insufficientworking ability
Plan

Review

Review /MonitorDesignTable 5.2-1 The shortest notice period
Types of employees

Shortest notice
periodWorked for 3 months~1 year

10 days

Implement

Worked for more than 3 years

30 daysFigure 5.2-4 Tatung human resource strategic
development system

Worked for 1~3 years

20 days

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Education courses in season 3, 2022

hrs
25
20

Manager
23.14
18.11

15
10
5
0

Employee

8.46

2018

12.40

10

11.33

12

14.94

10.11

10.85

2019

2020

8.55

8.77

7.93

8.57

2021

2022

Male

hrs
14

8

12.69
11.80

Sustainable Environment

Climate Change Risks and Management

Annex

Front-line Supervisor Development ClassClass for new recruits

Strategic and Innovation Competency Class

Information Security Officer Training Classs

Female

12.81

10.18

8.45
7.21

6
4

9.45

6.59

2
0

2018

2019

Figure 5.2-5 Training hours per employee

2020

2021

2022

5.3 Health, safety, and disaster free
DMA

Occupational Health and Safety

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

Treating the employees as an valuable asset, Tatung andit’s subsidiaries consider creating a safe and healthy work
environment as a driving force for progress. While certain
factors may cause injuries in the work place during the
production process, however, reducing the severity of
injuries to a minimum remains a significant challenge forcompany supervisors. Reducing accidents and minimizing
the extent of injuries are essential goals for ensuring thecompany’s sustainable operations. The frequency andseverity of disability injuries serve as permanent indicatorsof the company’s workplace performance.

Report whether the organization
is involved with the negative
impacts through its activities
or as a result of its business
relationships, and describe
the activities or business
relationships

Tatung and it’s subsidiaries adhere to the Occupational
Health and Safety Management System, clearly declaring
and implementing improvements in the health and safetyof the employees. Health and Safety Division conducts anannual “Accident, Prevention, Pays Program” to identify
areas for improvement in the work environment and provide
recommendations for rectification.

Policies or commitments

Tatung has committed to improve the working environment
for occupational health and safety. It considers theoccupational health and safety management system as astandard requirement and strives to reduce occupational
accidents, working towards the goal of achieving “zerodisaster”

Actions taken to manage thetopicContinuously promoting the ISO 45001 and to instill thefundamental concepts of occupational health and safety into
every employee.

Management process and targets

Short-term target:
1. All 4 factories pass the ISO 45001 annual certification.
2. At least 95% correction rate for non-conformities found in
Accident Prevention Pays Program.
3. FR and SR are reduced by 10% each year.
Mid-long term target:
Zero disaster.

Management evaluation
mechanism

Conducts Accident, Prevention, Pays Program on-site
audit and records down non-conformities. The factories arerequested to improve these and Health & Safety Division
will track the improvement results.

Performance

Performances in 2022:
1. Factories with ISO 45001 passed annual certification.
2. The correction rate of Accident Prevention Pays Programis 100%.
3. The FR and FR have increased compared to the 2021
and have not met the target.

Related adjustments to the
management approachContinuing to review and improve using the P-D-C-A cycle.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

To prevent occupational disasters and ensure the health and safety of employees,
Tatung issues “Tatung Health and Safety Guidebook” for them to follow. The
guidebook clearly states that the company should comply with the Occupational
Health and Safety Act and related regulations, and conduct regular employee
health check-ups, with the company bearing the full cost. At the same time, Tatung
setups occupational safety and health management units and occupational safety
and health management personnel in accordance with regulations to implement
automatic inspections, strengthen occupational safety and health education andtraining, and promote laws and regulations to enhance employees’safety awarenessand responsibility to reduce the incidence of occupational disasters.

Sustainable Environment

Climate Change Risks and Management

In addition, Tatung holds “Health and Safety Committee” meetings in headquarterand factories to communicate and review the contents and progress of health andsafety issues (Figure 5.3-1). The percentage of labor representatives is better than
the requirement of regulation (at least 33%). 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%

38.89%

38.00%
37.00%
36.00%
35.00%
33.00%
32.00%
31.00%
30.00%

38.46%

35.00%

34.00%

35.00%

33.33%

H.Q.

Tayuan Plant

Annex

Taoyuan Wires andCables Plant

Taoyuan 1st Plant

Figure 5.3-1 Percentage of labor representatives in Health and Safety Committees

San-Hsia Factory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. Throughthe implementation of improvement plans
and regular audits, and then reviewed by the
management to continuously improve healthand safety performance, so that the goal of“zero disaster” can be achieved. So far, all
the factories have established ISO 45001 andpassed the certification. San-Hsia Factory has
also established CNS 45001 (TOSHMS) andpassed the certification. Table 5.3-1 shows
the status of occupational health and safety
management systems.

San-Hsia Factory
ISO 45001 Certificate

Tayuan Plant
ISO 45001 Certificate

Table 5.3-1 The status of occupational health and safety management systems
The percentage of
The percentage of all workers
Name of
who are not
employees
coveredbymanagement systems management systems employees* coveredby management

Effective 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

89%

11.00%

ISO 45001
San-Hsia Factory

CNS 45001(TOSHMS)

2023.01.17~2026.01.09
2023.01.17~2026.01.08

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

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

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:
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 havenot been improved in the current year, we will continue
to track them and list them as non-conformities in
the next year’s evaluation. 47 non-conformities were
found in 2022’s Accident, Prevention, Pays Program
on-site audit. The non-conformities were mostly due
to imperfect prevention measures for electric shockdisasters, lack of shields or covers on the mechanicalequipment which has risk of coiling hazards, and or
failure of fire evacuation and emergency response
equipment. By the end of 2022, all the non-conformities
have been corrected and the target has beenachieved. For 2023’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.

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Chemical hazard identification and risk
assessment
In order to let the employees to understand the potential
hazards of the working environment, and to ensurethat the concentration of harmful gases, vapors, anddusts in the workplace does not exceed the standards
for labor workplaces, and to protect the health andsafety of employees, all the factories in Tatung haveestablished a “Working environment monitoring plan”
and appointed Ministry of Labor certified monitoringorganizations to implement the monitoring. The
monitoring plan and monitoring results will be posted
in obvious workplaces for employees to refer to.
Tatung has implemented a “Hazard Communication
Program” to ensure employees understand chemicalhazards. Hazardous chemical containers are labeled
following regulations, including hazard symbols, warnings,
and precautionary measures. Safety data sheets areavailable for easy access. Moreover, Tatung adheres tothe Ministry of Labor’s regulations by creating a “Grading
Management Plan” for hazardous chemicals, assessing
risks, and implementing appropriate management
measures.

Accident, Prevention, Pays Program onsite audit

The labeling of containers with hazardous chemicals

Tatung chemical grading evaluation table

Annex

Health and safety training and regulation promotion
To enhance the awareness of employee health and safety prevent occupational disasters, Tatung holds annual
educational training sessions for new employees, existing workers, and supervisors. These training sessions cover
the introduction of occupational health and safety regulations. In addition to educating about relevant regulations,the courses also emphasize workplace precautions, including preventing hazards caused by machinery, equipment,or tools, hazardous chemicals, falling objects, high temperatures, noise, etc. The training also covers the properuse of personal protective equipment, workplace ventilation and lighting management, job safety analysis, andprevention of unlawful attacks during work duties. Regarding specialized training, Tatung arranges specialized
training classes for new and existing employees based on the specific business needs. For smaller groups of
employees with specialized operations, such as those involving organic solvents or dust, individual employees
are trained in government-approved training institutions to comply with legal requirements. Detailed outcomes ofsafety and health education training can be found in Table 5.3-2 and Table 5.3-3.

Table 5.3-2 Health and safety training
targets and results (internal training)
No. ofparticipantsin 2021

No. ofparticipantsin 2022

Health and Safety Training Class(general employees and managers)
662

808

Target No.
in 2023

1,000

Table 5.3-3 Health and safety training targets
and results(training by authorized institutions)No. ofparticipantsin 2021

No. ofparticipantsin 2022

Target No.
in 2023

Occupational Health and
Safety Business Supervisor Training Class
60

30

Health and Safety Training Class (construction contractors)

First-Aid Class (including re-training)

Training Class for Preventing Workplace Violence

Forklifters Training Classes (including re-training)

12

137

Emergency Training Class
526

21
40

408

20
40

400

27
42

83

169

100
100
0

Stationary Cranes Training Class (including re-training)0273

High-Level Work Vehicle Operator Training Class
0

41

0

10

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Health and safety performances
Tatung continues to establish safety culture, reduce
occupational disaster risk and provide a safe working
environment. When an occupational disaster isoccurred, root-cause analysis will be conducted andcountermeasures will be implemented to prevent
such case happening again. In 2022, there was nooccupational disease case and death incident, nor
major incident2; however there were 4 non-complianceand fined NT$270,000 in total. Please refer to Table
5.3-4 for details. The non-compliances have beencorrected. Tatung will strengthen the management
on health and safety operations to avoid recurring in

Happy Workplace and Social Engagement

order to jointly protect the safety of the employees.
In terms of health and safety indicators, from Figure
5.3-2 and Figure 5.3-3, it can be found that female
employees have not experienced occupational
accidents for 5 consecutive years. The Disabling
Frequency Rate (FR) for male employees in 2022 ishigher than in 2021 as well as the Disabling Severity
Rate (SR). The main reasons for these disasters
within the factory are employee falling from heights,
incidents involving machinery entanglement during
operations, and electrical accidents. However, there
were no workplace accidents involving non-employees
in the year 2022.

Table 5.3-4 The violation of occupational health and safety regulationsin the past two years
Disposition (NT$)

Taoyuan Wires andCables Plant (project
outside the factory)

When employers assign workers to perform tasksin oxygen-deficient hazardous environments, theyshould ensure proper confirmation or maintain aregister of the workers entering and exiting thoseareas.

60,000The machine equipment lacks the required antientangled guards, and workers operating forklifts
fail to fasten their seat belts as mandated.

100,000

Workers standing on the top plate of a ladderduring operations resulted in a fall and injuries.

100,000

Workers operating a circular saw during cutting
operations without safety guards.

40,000Workers approaching high-voltage power lines
during operations without wearing insulated
protective equipment

30,0002021

2022

Taoyuan Wires andCables Plant

2. Major incidents refer to incidents that require thedisclosure of significant information.
2.90

2018

0.00

2019

2.10

0.00

2020

2.17

0.00

2021

0.00

2022

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
120.00100.00
80.00

96.03

40.00
20.00
0.00

0.00

0.00

40.14

0.00

0.00

0.00

2018
2019
2020
2021
2022
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

Female

57.35

60.00

106.91

87.07

Male

San-Hsia Factory

In 2022, Tatung did not achieve the target of reducing
the FR by 10%, and the SR exceeded the expected
target. To address this, we will continue to strengthen
safety awareness and education during operations.
We will also enhance auto inspection for machinery
to prevent accidents caused by the removal of safety
protection by the employees. Moreover, we will request
the supervisors in the factories and the subsidiaries towalk around the workplaces more often to strengthen
the work safety requirements, and continue to movetowards the established targets.

2.08

0.00

Annex

FemaleDescription of the violation

2.73

Climate Change Risks and Management

Male

BU

3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00

Sustainable Environment

Health promotion and disease prevention
In promoting employee health, Tatung firmly believes that the well-being of employees
and their families is an invaluable asset to the company. Therefore, every year, thecompany organizes various health-related seminars, workshops, and health checkup events to raise employees’ awareness of the importance of personal and family
health. The specific practices include:
1. Fresh Air in the Workplace
Tatung strictly enforces a no-smoking policy across all its premises. Clearly marked
no-smoking signs and announcements are placed in meeting rooms and at various
entrances/exits, creating a fresh and healthy working environment for employees
and visitors.
2. Regular Employee Health Checkups
Every year, the company arranges high-quality health checkups for employees tofacilitate early detection, treatment, and prevention, ensuring their well-being.
3. Health Promotion Activity - Weight Management ClassTo address health issues related to overweight, obesity, and large waist
circumference among employees, the company promotes weight control activities,
dietary management, exercise, and healthy habits, helping employees achieve
weight management goals and preventing the onset of chronic diseases.
4. Health Lectures and Information Dissemination
The company conducts health lectures and disseminates information about majordiseases through internal web pages and electronic publications. It also provides
employees with channels for health management, disease prevention, and medical
consultations.
5. Promoting Breastfeeding
Tatung encourages postpartum female employees to continue breastfeeding by
providing breastfeeding rooms for a friendly environment that facilitates breastfeeding
after returning to work.
6. Fire and First Aid Training
Each year, the company conducts fire and first aid training courses to enhance
employees’ emergency response capabilities and improve their first aid knowledge.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Blood donation activities

Happy Workplace and Social Engagement

Health promotion activity – body weight management

Sustainable Environment

Climate Change Risks and Management

Fire and first aid Training

Annex

Table 5.3-5 Health promotion and disease prevention activities in 2022
Month

Activity

Location

All year

Dissemination of Covid-19, influenza, and otherinfectious disease prevention information, along withhealth tracking and caring assistance.

All Company

1

Blood donation activities – 156 bags in total.

H.Q.

Health and safety seminar/training on wound care.

H.Q.

Implementation of Covid-19 rapid testing.
Conduct special job health check.
Implementation of Covid-19 rapid testing for migrant
workers.
Covid-19 vaccination.

2

3

Month

Taoyuan 1st Plant
MacKay Memorial Hospital
Tayuan Plant
Dayuan Industrial Park
Service Center“Preventing Abnormal Workload” Interviews

Tayuan Plant“Preventing Human Factor Hazards” Interviews

Tayuan Plant

Conduct special job health check.

MacKay Memorial HospitalFire and emergency medical training.

H.Q.

“Preventing Abnormal Workload” Interviews, healtheducation

Tayuan Plant“Preventing Human Factor Hazards” Interviews

Tayuan Plant

Personal health guidance - noise and dust

Tayuan Plant

Health seminar - easily overcome metabolic
syndrome.

Tayuan Plant

Interviewing employees experiencing exceptional
workload and those in special operations with secondlevel management and above.

Taoyuan Wires andCables Plant

Noise tracking check

Taoyuan Wires andCables Plant

4
6

7

Activity

Location

Flu Vaccination

H.Q.

Health seminar –skin care

H.Q.

Health and safety seminar / Health risk management.

H.Q.

Blood donation activities – 77 bags in total.

San-Hsia Factory

Noise Special Inspection Review.

Taoyuan 1st Plant

Blood donation activities – 62 bags in total.

Taoyuan Wires andCables Plant

Health seminar - High Cholesterol.

Health seminar - Gastrointestinal Health for OfficeWorkers.

H.Q.

San-Hsia Factory

Blood donation activities – 145 bags in total.

H.Q.

Health and safety seminar - understanding 21stcentury diseases through health check-ups.

H.Q.

Health and safety seminar/CPR+AED

H.Q.

Weight Loss Class - Session 1(Psychological Stress and Overweight)

H.Q.

New employee health and safety training(including first aid).

San-Hsia Factory

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Table 5.3-5 Health promotion and disease prevention activities in 2022

8

Month

Activity

Location

Weight Loss Class - Activity Schedule (Healthy Eatingfor Diners, Traditional Chinese Medicine Approachto the Three Highs, Aerobic Exercise, and Recent
Popular Weight Loss Methods).

H.Q.

First aid training

H.Q.

Blood donation activities – 70 bags in total.
“Workplace Maternal Health Protection” Interviews

10

San-Hsia Factory

11
Month

Tayuan Plant

Health check for cafeteria staffs

CH. Health Service

New employee health and safety training(including first aid).

San-Hsia Factory

Conduct annual health check and special job healthcheck.

San-Hsia Factory

Conducting surveys on musculoskeletal disorders,abnormal workload, and unlawful infringements.

San-Hsia Factory

Health seminar - metabolic syndrome.

Taoyuan 1st Plant

Blood donation activities – 137 bags in total.

Taoyuan 1st Plant,
Tayuan Plant,
Taoyuan Wires andCables Plant

Weight Loss Class - Session 6 (Aerobic Exercise).

H.Q.

“Fire Prevention and Disaster Management CPR+AED Training”

H.Q.

Health and safety seminar/training on wound care.

H.Q.

Conduct annual health check and special job healthcheck.

Taoyuan 1st Plant

Conduct annual health check and special job healthcheck.

Tayuan Plant,
Meter Factory

Health seminar – cancer preventing through dietTaoyuan Wires andCables Plant

12

Activity
Conduct special job health check.

Location
Meter FactoryFlu vaccination

H.Q.,
Tayuan Plant,
San-Hsia Factory,
Taoyuan 1st Plant

Health seminar - three high-risk factors for
cardiovascular diseases

San-Hsia Factory

Health seminar - Prevention and healthcare for
hidden diseases and human factor injuries.

Taoyuan Wires andCables Plant“Preventing Abnormal Workload” nterviews, healtheducation

Tayuan Plant

Conduct annual health check and special job healthcheck.

Taoyuan Wires andCables Plant

5.4 Participation and benefits to the society
Educating through fun, enhancing environmental awareness in society
The Tatung Boy children’s play, Rescuing Power Kingdom, incorporated with concepts of energy conservation andenvironmental protection, made its tour to 7 elementary schools with audience of over 4,500 students watching inperson to learn the importance of protecting the earth. Tatung aims to cultivate the next generation of warriors forenvironmental protection through this lively educational performance.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Supporting underprivileged education,embracing dreams

Blood donation

In 2022, Tatung raised a total of NT$475,000 in
scholarships to “Student Assistance Project” charity
fundraising activity of Taipei Orphan Welfare Foundation,
which aims to help disadvantaged and bereaved
children to receive education, regain self-confidence,and embrace their dreams.

Tatung and its factories held 8 rounds of blood donation
campaigns in 2022 and 644 bags of blood were donatedas a result.

Sustainable Environment

Climate Change Risks and Management

Annex

Environmental management andcomply with regulations

Chapter 6
Sustainable
environment

Targets
1. Correction percentage over 95% for the nonconformities from 3P Program.
2. Maintain ISO 14001 in the factories.
3. No. of violations against environmental regulation
remains 0.

Performances in 2022
1. Correction percentage was 88.2% and the target
was not achieved.
2. All the factories’ ISO 14001 passed annual
certification.
3. Two violations against environmental regulations
and have been corrected.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Waste reduction management
Targets
Reduce the amount of wastes by 5% every year.

Performances in 2022
Compared with 2021, the amount of wastes was
4.94% increased, which failed to meet the target.

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

6.1 Management on the environment
1990

1993 3P

program1996 ISO14001 2009 ISO14064-1

2010 Product Carbon
Footprint

Energy Audit

2014
2015 ISO50001“Economic development should not create pollution to the environment but try toforge a marriage between corporative development and environmental protection”
is a sentence that Tatung’s employees familiar with. We set up “Pollution Prevention
Education Center” in 1988 to promote environmental education in the factories andsubsidiaries. At this time, our management measures for sustainable environment
are through the implementation of “Pollution, Prevention, Pays (3P) Program” and“ISO 14001 Environmental Management System” in the factories and subsidiaries.

2 Energy Saving Target2018 Stage
Baseline Year2023 Target: 6%

Tatung environmental management roadmap

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Pollution, Prevention, Pays (3P) Program
Tatung started to implement “Pollution Prevention
Pays, 3P” program in the factories and the subsidiaries
which have manufacturing function since 1993 to help
Tatung to develop environmentally sound operations.
Ten factories and subsidiaries participated in 2022
(Annex 2). The elements of 3P program are listed on
Table 6.1-1.
When there any non-conformity found againstcompany rules or with potential to cause environmental
pollution, we will list such incidents and request thefactories and the subsidiaries to correct them. We
also set yearly correction target to be 95%. For the
non-conformities which can not be corrected by theend of year, we will track them and make them to becorrected next year. In 2022, the correction rate was
88.2% and did not meet the target.

Sustainable Environment

Climate Change Risks and Management

Annex

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

Performances

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

Apply Design for the Environment,
DfE”, in the design phase to
produce “recyclable, low pollution,
toxic-free, resource saving, powersaving, and durable” products tobenefit the environment.

In 2022, we acquired Green
Mark: 2 models; Energy Label: 35
models; Water Label: 4 models.

Manufacturing
aspectPromote Clean Production
technology, fully utilize resources
and materials and to reduce thewastes and the production costs.

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

In 2022, 76.01% of industrial
wastes were reused.

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

The results can benefit
management in their review ofenvironmental performances anddraft of new policy and objectives.

Ten factories and subsidiaries
participated in 3P program.

Conduct internal audit.

Conduct internal audit on
regulation compliance in order tofind out problem at first place andmitigate it.

Non-conformity correction
percentage was 88.2% in 2022.

Aspects

Product design
aspectConformity

3P Program onsite audit

Happy Workplace and Social Engagement

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

Taoyuan 1st Plant
ISO 14001 Certificate

Tayuan Plant
ISO 14001 Certificate

Table 6.1-2 Tatung factories ISO 14001 status
Factories

Implementation year

Effective and expiry date

Tayuan Plant

1998

2022.08.06~2025.08.05

Taoyuan Wires and Cables Plant

2000

2021.09.17~2024.09.16

Taoyuan 1st Plant

1998

2022.09.01~2025.08.31

San-Hsia Factory

1999

2020.09.05~2023.09.05

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Compliance and major leaks
Tatung takes great concern on the development ofenvironmental protection regulations. When there are
public hearings or 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 major environmental incident1
but there were 2 violations against environmental
regulations in 2022 (fined NT$106,000 in total). Taoyuan
1st Plant has appointed waste disposal professional
technical personnel and completed record. In the eventof professional technical personnel changes, the agent
will be reported at the same time as the cancellationof the existed one to prevent recurrence. San-Hsia
Factory has completed the inspection and obtained
approval from EPB, New Taipei City. In the future, it will

strengthen the management and arrange for inspections
6 months before the expiration of the operating permit to
avoid equipment replacement or malfunction of related
pollution sources, which may result in failure to complete
the inspection within the deadline.

Internal control audit

Improvement
H.Q.

ISO14001

Audit

Factory Audit

Authority

3P program on-site
Evaluation

1. Major incidents refer to incidents that require thedisclosure of significant information.

Figure 6.1-1 Measures practiced to ensure the compliance

Table 6.1-3 The violations against environmental regulation in recent 2 years
BU

Description of the violation

Disposition (NT$)

Taoyuan 1st Plant

The professional technical personnel for waste disposal at
Taoyuan 1st Plant resigned and it failed to report to the local
competent authority for record in 15 days after the resignation.

6,000

San-Hsia Factory

The regular inspection and reporting were not completed as
required due to changing the air pollution treatment facility.

10,000

2021
NIL

2022

6.2 Resources consumption and pollutants management
Consumption and management on themain materials

Consumption of water and managementon the wastewater

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 6.2-1
shows the consumption amount of main materials
and the percentage from local purchase.

The sources of water for Tatung are from tap water,
ground water, and river water. Tatung consumed
530,493 M3 (Figure 6.2-1) of water in 2022 which was
8,802 M3 less than the consumption in 2021. In viewof the long-standing problem of fresh water resources
shortage in Taiwan, other than installing water-saving
taps for the employee’s daily usage, we will continue
to conduct water saving projects in order to reducewater consumption.

“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 inaccordance to the prevention measures and theamount and quality of the effluent are regularly tested
and reported to the authorities. The rest results are
all below the effluent standard, therefore the effluent
from Tatung will not have significant impacts to thebiodiversity of the nearby habitats and the recipientwater bodies. The detailed effluent information isdisclosed on Table 6.2-2.

As for the wastewater management, all the factories
and subsidiaries have granted government approved

Table 6.2-1 Amount of main materials andthe percentage from local purchaseM3700,000

Main materials

Amount ofconsumption
7,917 tons

Copper4,948 tons

89%

500,000
400,000

282,917300,000
200,000
100,000
0

211,879

Aluminum

440 tons

100%

Insulation oil

1,170 kilo-liters

98%

2018

262,064
153,696

238,1962019259,533

255,513

105,826

99,423

173,936

175,557

107,879

212,695
2020

2021

Figure 6.2-1 Amount of water consumption (by sources)

2022

Tap
Water

9.6%

138,640

269,390

GroundWater

Steel(including
silicon steel)

River
Water

600,000

Local purchased
percentage(by purchasevalues)Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Table 6.2-2 Wastewater treatment and effluent status in 2022

Factory

Treatment
methodSan-Hsia Factory
Factories setup
wastewater
treatment facilities
Taoyuan Wires and in accordance tothe requirements ofCablesregulations.
Tayuan Plant

Taoyuan 1st Plant
Total

Average COD
concentration(mg/L)

Average
Suspended
substances
concentration(mg/L)

Amount ofeffluent(M3/year)

Recipient
water body

19.24

6.39

5,173

Heng River

12.92

4.18

1,484

New Street River

Effluent reusedby others

None
16.39

9.59

29,363

New Street River

14.75

12.39

7,885

Old Street River

43,905

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

Annex

Management on the air pollutant emissions
The main air pollutants from the factories are NOx, SOx, and VOC. Tatung
declares the amount of emissions and pays air pollution control fees to theauthority. Tatung sets up and operates air pollutant treatment facilities in thefactories in accordance to the regulation. Pollutant concentration is regularly
tested and met the standard. In addition to optimize the air quality and reducethe impact to the surrounding environment around the factories, we have
implemented pollutant treatment facilities with higher VOCs removal efficiency,such as RTO (Regenerative Thermal Oxidizer) in the past few years.

kg
3,500

3,000

kg
50,000
2,825

3,048

NOx

2,464

2,500

2,516

SOx

45,00040,0002,407

34,68035,00030,000

2,000
2,049

2,153

1,991

1,500

25,00020,000

1,500
1,000

46,26820,471

15,0001,097

19,371

19,780

2021

2022

10,000
500

5,000

0

0
2018

2019

2020

2021

2022

2018

2019

2020

Note: Data is from EPA Air pollutant declaration system.

Note: Data is from EPA Air pollutant declaration system.

Figure 6.2-2 Amount of NOx and SOx emissions

Figure 6.2-3 Amount of VOC emissions

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Waste reduction and management
In 2022, Tatung generated 3,215.80 tons of industrial wastes, of which 3,207.42
tons were general industrial wastes and 8.38 tons were hazardous industrial
wastes (Figure 6.2-4). Compared with the amount of wastes in 2021, theamount was increased by 4.94% and failed to meet the target (5% reduction
each year). We will continue our commitment to waste sorting and utilization
design and process improvement to reduce waste generation.

Product design &process improvement to
reduce waste

Classified, labeled,stored in the factory

Seven methods were used for wastes treatment in 2022 (as listed on Table
6.2-3). The factories also have been working hard to recycle and/or reuse thewastes in order to minimize the impact to the environment. 2,444.49 tons ofwastes were reused (76.01% of total wastes) in 2022.

Entrust qualified waste
treatment & re-use
companies

Audit the entrusted
waste treatment & re-use
companies

Wastes clean up and treatment process

Obtain waste being
proper treated documentfrom entrusted
companies

Table 6.2-3 Waste treatment methods in 2022
Reuse

Incinerate

Solidify

Landfill

Physicaltreatment

Heat
treatment

Chemicaltreatment

Total

General industrial wastes (tons)

2,444.49

622.201.56

0.00

133.215.96

0.00

3,207.42

Hazardous industrial wastes(tons)

0.00

6.27

2.04

0.00

0.01

0.00

0.06

8.38

Percentage of each treatment
method (by weight)

76.01%

19.54%

0.11%

0.00%

4.14%

0.19%

0.00%

100%

Tons
4,000.00

General industrial wastes

Hazardous industrial wastes

90.00%

3,500.00

56.85

3,000.00

8.38

7.47

30.08

2,500.00

65.51

80.00%
70.00%

72.47%

76.55%

76.01%

2021

2022

69.42%
63.94%

60.00%
50.00%

2,000.00

40.00%

1,500.00

30.00%

1,000.00
500.000.00

100.00%2,832.90

20183,241.57

20192,502.80

2020

3,057.00

2021

Figure 6.2-4 Amount of wastes generated

3,207.422022

20.00%
10.00%

0.00%

2018

2019

2020

Figure 6.2-5 Waste reuse percentages

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Product and package recycling at the end of life
As for the recycle on the wasted products, Tatung takes great attention on this issue.
Tatung pays “Recycling and Cleaning Fee” to the government agency (Recycling
Fund Management Board) to carry out countrywide waste recycling affairs. Basedon the statistics in 2022, the average recycling rate for electric/electronic andinformation devices was 70.99%2. In addition to paying fees, Tatung proactively
informs consumers of the recycling information of large home appliances3 on sales
and online shopping sites, and provides consumers with recycling services for waste
batteries and CD disc at Tatung 3C stores to ensure that waste products enter legal
recycling system to avoid damaging to the environment.
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 established and 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 suchas cables, transformers, power generators, motors, they are recycled and reusedon daily operations.

2. https://recycle.epa.gov.tw/ConvenienceServices/Downloads
3. Refrigerators, washing machines, TVs, and air conditioners.

Sustainable Environment

Climate Change Risks and Management

AnnexEnergy and GHG management

Chapter 7
Climate Change
Risks andManagement

Targets
1. Energy intensity of represented products in 2022
will be 4.5% less than in 2018.
2. Energy saving rate will be at least 1% in theheadquarters and the factories from 2019~2022.
3. Promote ISO 50001 energy management
system.
Short-term: Factories with ISO 50001 passannual certification.
Mid-long term: Implement ISO 50001 in
Taoyuan 1st Plant.
4. Carry out ISO 14064-1 GHG inventory.
Short-term: Carry out GHG inventory based on
ISO 14064-1 every year among all company.
Mid-long term: Carry out GHG inventory every
year among the company and the subsidiaries
since 2025.
5. Promote net-zero emission roadmap
Short-term: The amount of GHG emissions(scope 1+2) in 2023 is 6% less than in 2021
(baseline year)
Mid-long term: 20% less emissions in 2030,
50% less in 2040, and achieve net-zero in 2050.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Energy and GHG management

Green product management

Performances in 2022

Targets

1. 4 out of 7 represented products have met thetarget. The target achieve rate was 57.14%.

Actively striving for solar PV and energy storage
system projects.

2. The average energy saving rate in the factories
and the headquarters was 3.53%.

Short-term:
Achieve total installed capacity of 338MWp forsolar PV system and 55MW for energy storage
system by 2023.

3. Tayuan Plant, Taoyuan Wires and Cables Plant,
and San-Hsia Factory have passed ISO 50001
annual certification.
4. Completed ISO 14064-1 GHG inventory (year2021) and passed the verification.
5. The amount of GHG emission is 34.51% higher
than in 2021. The target is not achieved.

Continue to produce environmental
friendly, energy saving, and watersaving products and apply for Green
Mark, Energy Label, or Water Label.
Performances in 2022
New applied Green Mark: 2 models,
Energy Label: 35 models, Water Label: 4 models.

Mid-long term:
Aim to reach a total installed capacity of 1GWp
for solar PV systems and 300MW of energy
storage systems.

Performances in 2022
We have accomplished a cumulative installedcapacity of 268MWp for solar PV systems and
11MW for energy storage systems.

Sustainable Environment

Climate Change Risks and Management

Annex

DMA

Energy and GHG management

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

The greenhouse gas emissions caused by human activities
have led to global warming and climate change. The
extreme weather conditions triggered by these changes
have had a significant impact on the environment and theeconomy.

Report whether the organization
is involved with the negative
impacts through its activities
or as a result of its business
relationships, and describe
the activities or business
relationships

Tatung and its subsidiaries’ operations may generate
greenhouse gas emissions. In response to this, Tatung has
undertaken measures to reduce greenhouse gas emissions.

Policies or commitments

1. Tatung has established the ESG vision of “ Operational
Innovation, Sustainable Development, and Global
Harmony.”
2. Tatung has set a carbon reduction target to achieve netzero emissions by 2050.

Actions taken to manage thetopic

Tatung continues to promote ISO 14064-1 greenhouse gas
inventory and ISO 50001, as well as implementing energysaving projects to mitigate global warming.

Management evaluation
mechanism

Through the annual energy-saving audit, we will trackenergy intensity and progress towards achieving the netzero emission target.

Management process and targets

Short-term targets:
1. Energy intensity of represented products in 2023 will be
6% less than in 2018
2. Energy saving rate will be at least 1% each year in the
H.Q. and the factories.
3. The amount of GHG emissions in 2023 will be 6% lessthan in 2021 (baseline year).
Mid-term targets:
Starting from 2025, we will conduct annual greenhousegas inventories (Scope 1 and Scope 2) for all subsidiarycompanies included in the consolidated financial report.
Long-term targets:
In alignment with Tatung’s goal of net-zero emissions by
2050, Tatung has set a target to reduce greenhouse gas
emissions by 20% by the year 2030 compared to thebaseline year of 2021.

Performance

Performances in 2022:
1. The company completed ISO 14064-1 GHG inventory(year 2021) and passed the verification.
2. Tayuan Plant, Taoyuan Wires and Cables Plant pass ISO
50001 annual certification.
3. 57.14% of the represented products have met the energy
intensity target (4.5% less than in 2018).
4. The average energy saving rate in the factories and theheadquarters was 3.53%.
The amount of GHG emissions in 2022 increased 34.51%
when compare to 2021 which failed to meet the target.

Related adjustments to the
management approach

NIL

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

7.1 Climate risk andgovernanceIn response to the threats posed by extreme weather
events resulting from global warming, Tatung has
incorporated climate-related risks into its “RiskManagement Policy and Procedures.” This framework
includes risk identification, risk assessment, risk
monitoring and response, and risk reporting anddisclosure. The Board of Directors serves as thehighest authority for risk management in the company.
They are responsible for approving risk management
policies and significant risk management systems,
as well as overseeing their implementation to ensure
the effective operation of the risk management
mechanisms.
Tatung has established a Sustainable Development
Committee under the Board of Directors, whichis responsible for reviewing the implementation
effectiveness of corporate governance and risk
management outcomes. Under the Sustainable
Development Committee, a Risk Management Teamis established to execute the responsibilities of risk
management. Climate-related risks and opportunities
are identified and assessed by each Business Unit,
Finance & Accounting Division, and Health & Safety
Division. These units propose risk response measuresand regularly adjust control mechanisms. Table
7.1-1 and Table 7.1-2 present the climate risks andopportunities identified by Tatung.
The Risk Management Team reports the overall risk
management results to the Sustainable Development
Committee on a regular basis. The operational

Board ofDirectors

status of risks is reported to the Board of Directors
annually by the Risk Management Team. Additionally,in compliance with the regulations, Tatung has beenreporting greenhouse gas inventory and verification
status to the Board of Directors on a quarterly basis
since the second quarter of 2022.
Apart from the Risk Management Team, Tatung has
established the ESG Implementation Committee.
The President serves as the convener, with the Chief
Legal Officer as the executive supervisor. Under
the committee, there are subgroups dedicated toenvironmental sustainability, social responsibility,
corporate governance, and risk management. These
subgroups are responsible for planning and driving
initiatives related to their respective areas (pleaserefer to Chapter 1).

Annex

Sustainable
Development
Committee

Internal Audit
OfficeConvener:
Independent Director

Risk Management
Team
Top management:
President

Risks for climatechange (physical &transition)

Risks for market,
finance, regulation,
etc.

Tatung Company Climate Risks Framework

Table 7.1-1 The identified climate risks, financial/operation impacts and measures
Type
Risk descriptions

Physical risk
Potential financial andoperation impacts

Typhoon, flooding,
1. Plants, operating bases, andequipment are damaged due
extreme weather event.
to climatic disasters which
increasing financial expenses.
2. Climatic factors may affecttransportation, causing
supply chain disruptions
and subsequent production
stoppages.
3. Employees are unable toattend work, and productivity isaffected, resulting in reduced
revenues and increased
occupational health and safety
costs.
4. The rise in temperature has led
to increased air conditioning
usage at the operational sites,
resulting in higher operating
costs.

Type
Measures
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 powersystems), and set appropriate
support strength and height;
take out natural disasterinsurance to transfer risks andreduce losses.
2. Pay attention to information on
natural disasters, and prepare
sufficient materials in advance if
traffic disruptions are expected.
3. Refer to the announcementfrom the government, if thescale of the natural disasterthreatens the safety of
employees, the work will be
reduced or suspended.
4. Replace old air conditioning
systems and control theoperation time to manage
energy consumption effectively.

Risk descriptions

Transition risk
Potential financial andoperation impacts

Measures1. Taoyuan Wires and Cables Plant
Policies and regulations 1. The Renewable Energy
Development Act stipulates thatwill installed solar power systems
power users above a certain
to the obligatory capacity before
contracted capacity should
2025.
install renewable energy power
generation equipment. Taoyuan 2. Tatung will continue to disclosethe company’s complete GHG
Wires and Cables Plant isemissions and assist therequired to meet the obligatory
subsidiaries to carry out GHG
capacity before 2025, which will
increase operating costs.
emission inventory.
2. The Financial Regulatory
3. Continuously track changes in
Commission requires that listed
regulations and master first-handcompanies of a certain scale
information.
should complete the greenhousegas inventory in 2023, theexternal verification in 2024, thegreenhouse gas inventory of theconsolidated subsidiary in 2025,
and the external verification of theconsolidated subsidiary in 2027.
3. It may be affected by the potential
carbon tax, carbon trading system,and the cost of purchasing raw
materials and parts in compliancewith regulations to increase
operating costs.
Reputation

The company’s environment,
energy and carbon reduction
practices and performance havebecome the focus of stakeholders’concerns. Failure to implement
management may affect brand trust.

Continue to operate ISO 14001,
ISO 14064-1, ISO 50001 to
improve the performance ofenvironment, energy and carbon
reduction.

Market

The awareness of sustainability
is enhanced, and customers maypurchase lower-carbon products
or services in the market, which
will affect revenue.

Introduce sustainable product design,
focus on improving energy efficiency,
product recycling and reduction ofharmful substances, such as highefficiency amorphous transformers
and energy-saving motors and highenergy efficient air conditioners.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Table 7.1-2 Climate related opportunities, financial impacts and targets
Type

Energy saving market

Type

Risk descriptions

Potential financial andoperation impacts

Measures

Targets

1. The market
demands for the
products withfeatures of energy
saving and highenergy efficiency.
2. The increasing
demand for energy
monitoring in themarket has led to arise in demand for
power meters.

Match to market
trends and expand
revenue.

1. Introduce productswith Energy Label toincrease selling andincrease profits. For
example, in 2022,
the product split-type
air conditioners with
Energy Label has
been well received by
the market, with totalof 49,896 units sold.
2. Launched IE4 gradeenergy-saving
motor, amorphoustransformers, andsmart meters

Short-term: Products
continue to apply for
Energy Label, GreenMark or first-classenergy efficiency
label.
Mid-term: In 2025,
IE4, Super Premium,GB2 and MEPS highefficiency motor series
will be launched.
Long-term: In 2030,
IE5 and GB1 highefficiency motor series
will be launched.

Type

Energy creation and storage

Risk descriptions

Potential financial andoperation impacts

Measures

Targets

1. The industry is inurgent need of lowcarbon energy, andthe demand for solar
power systems has
greatly increased.
2. In response to
the increase in
the number ofrenewable energy
installations, in orderto stabilize the power
grid, the market
demand for energy
storage equipment
has increased.

The increase inlarge-scale solar
power systems
and energy storage
equipment projects
has resulted in higher
profitability throughincreased participationin bidding. Whilethe investments
yield stable profits,
they also require
substantial upfront
capital expenditures.

To assess financial
risks, we will prioritize
investment in projects
with lower risk profiles.

Short-term: Achieve
total installed capacityof 338MWp for solar
PV system and 55MW
for energy storage
system by 2023.
Long-term: Aim toreach a total installedcapacity of 1GWp forsolar PV systems and
300MW of energy
storage systems.

Risk descriptions
1. Switch to more
efficient electricalequipment.
2. Promote energysaving projects.

Improve on resources and energy efficiency.
Potential financial andoperation impacts

Measures

Reduce energy cost
1. Purchasingenergy-saving
and carbon emissions.
equipment andoffice appliances.
The green purchaseamount in 2022
reached NT$
50,027,438.
2. Support green
procurement andreceive a certificate
of appreciation forgreen procurementfrom Taipei
Environmental
Protection Bureau in2022.
3. Promote energysaving projects inthe factories throughthe “Annual Energy
Audit” program.

Targets
1. Continue to support
green procurement
and try to use more
efficient equipment.
2. The energy intensityof the represented
products in 2023 will
be reduced by 6%
compared to 2018.

Enhancing GHG inventory and management capability
To enhance the greenhouse gas inventory and management capabilities of ouremployees, we have established ISO 14064-1 greenhouse gas internal verification
training class at the H.Q. It aims to nurture individuals within the corporate whoare proficient in greenhouse gas inventory. Starting from 2023, Tatung will assist
subsidiary companies in conducting greenhouse gas inventories, with the goal of
having all subsidiaries included in the consolidated financial report complete theirgreenhouse gas inventory by 2025.

GHG internal verification training classes held at the H.Q.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Net Zero Emissions Roadmap
Human-induced greenhouse gas emissions
have led to global warming, significantly
increasing the frequency of extreme weather
events and posing substantial risks tocompanies. In fulfilling its corporate social
responsibility and mitigating operationalcosts and risks, Tatung has established theTatung Net Zero Emissions Roadmap. With
the baseline year set as 2021, Tatung aims
to reduce greenhouse gas emissions by
20% by 2030, 50% by 2040, and achieve
net-zero emissions starting from 2050.
To monitor the progress of carbon reduction,
Tatung will conduct annual energy-saving
audits to assess compliance with the targets.
This ensures a comprehensive understandingof the carbon reduction trajectory and allows
necessary adjustments to achieve the set
goals.

Tons
CO2e40,00037,76035,000

Short-term target:
Reduced by 10%

Mid-term target:
Reduced by 20%

Long-term target:
Reduced by 100%

33,98430,00030,208

Pillars of carbon
reduction

25,00024,544

Energy Saving
Implementing ISO 50001
Implementing energy-saving projects toenhance energy efficiency.

20,00018,880Control of high GWP substances

15,000

Reducing the leakage of refrigerants and SF6 inmanufacturing processes.
Assessing the adoption of low-GWP substances.

10,0009,440

Energy creation and using renewable energy
Installing self-use renewable energy systems, primarily solar power.
Purchasing renewable energy certificates or carbon credits.

5,000

0
2021

2025

2030

2035

2040

Tatung Company’s Net Zero Emissions Roadmap

2045

2050

7.2 Energy consumption
and GHG management
Global warming caused by human activities’
greenhouse gas emissions poses a significant threat
to the sustainable development of human being.
Corporates’ commitment to energy conservation andcarbon reduction not only contributes to society but
also reduces operating costs by improving energy
efficiency. Since 2009, Tatung has been conducting
ISO 14064-1 greenhouse gas emissions inventories
and external verifications for San-Hsia Factory,
Taoyuan Wires and Cables Plant, and Taoyuan 1st
Plant. To comply with the regulations of the Financial
Supervisory Commission, Tatung has expanded
the greenhouse gas inventory1 to cover the entire
company since 2022 (the emissions from 20212),
thus gaining a comprehensive understanding of thegreenhouse gas emissions situation.

Energy consumption
Based on the inventory results, Tatung primarily uses
four main direct energy sources: natural gas, liquefied
petroleum gas (LPG), gasoline, and diesel. Indirect energy
sources include purchased electricity. In 2022, the totalenergy consumption was 16,237.958 GJ, as shown in
Figures 7.2-1 and 7.2-2. The largest energy consumption
comes from purchased electricity, amounting to
37,965.75 kWh, equivalent to 136,676.69 GJ, accounting
for approximately 84.17% of the total energy usage. The
second-largest energy source is LPG, with a consumptionof 231.31 tons, equivalent to 11,673.81 GJ, representing
about 7.19% of the total energy usage. In comparison to2021, Tatung’s energy consumption decreased slightly by
6,378.95 GJ, representing a reduction of approximately
3.78% in 2022.
1. The gases are: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3. The
GWP are cited from IPCC AR4(2007). The emissions include Scope
1 and Scope 2.
2. Baseline year: 2021.

Purchased Electricity: 84.17%
LPG: 7.19%
Natural Gas: 0.03%
Gasoline: 1.43%
Diesel: 7.18%

Figure 7.2-1 The energy consumption breakdown by source in 2022
GJ
180,000.00
160,000.00
140,000.00

Purchased
Electricity

120,000.00
100,000.00

LPG

80,000.00
60,000.00
40,000.00
20,000.00
2021

142,437.67

136,676.69

11,990.37
2,256.20
157.12
11,927.18

11,659.39
2,314.73
54.96
11,673.81

2022

Figure 7.2-2 Tatung Company energy consumption trend

Gasoline
Natural Gas
DieselTop Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

GHG emissions
In 2022, Tatung emitted a total of 50,791.85 tons
CO2e greenhouse gas emissions 3. The emissions
from Scope 1 were 31,998.82 tons CO2e, and fromScope 2 were 18,793.03 tons CO2e. This represents
an increase of 13,031.88 tons CO2e compared to2021, which is a 34.51% increase. Unfortunately, we
did not achieve our annual reduction target of 4%. The
main factor contributing to the increase in emissions
was the use of refrigerants in the production process at
Taoyuan 1st Plant, which occurred abnormal leakage
during production. To address this, Tatung has
developed improvement measures and will implement
control measures to reduce refrigerant leakage. The
summary of improvement measures is presented inTable 7.2-1.

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Tons CO2e60,000.00
50,000.00
18,793.03

40,000.00
30,000.00

20,137.69

20,000.00

Scope 1

10,000.00

17,622.28
2021

31,998.82

Scope 2

2022

Figure 7.2-3 Tatung GHG emissions

Table 7.2-1 Improvements in refrigerant leakage during the manufacturing process
Measures

3.The gases are: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3.
The emissions were calculated using the GWP values fromthe IPCC AR6 (2021), as required by FSC. The emission
factor for electricity was 0.495 kg CO2e/kWh. The emissions
data has not yet undergone external verification, but it isplanned to be conducted in the Q3 2023. Once verified, theupdated emission data will be made available on the Tatung
official website.

Descriptions

Material substitution

Improve the leak inspection methods and switch to non-refrigerant gases

Strengthen leak detection

Increase the frequency of finished product leak detection and promptly repair any
leaks found.

Process simplification

Reduce redundant installation processes and enhance testing and recovery ofrefrigerants.

Energy management system
Tatung has 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 Table 7.2-2 for more details.
In addition, we conduct annual energy audit and report the energy consumption
information to the government as well as implement energy saving projects in H.Q.
and the factories.

Table 7.2-2 Status of Tatung’s ISO 50001
Factory

Implementation year

Effective and expiry date

Tayuan Plant

2016

2023.01.05~2026.01.05

Taoyuan Wires andCables Plant

2016

2023.01.18~2026.01.17

San-Hsia Factory

2015

2021.12.24~2024.12.24

Tayuan Plant
ISO 50001 Certificate

Taoyuan Wires &Cables Plant
ISO 50001 Certificate

San-Hsia Factory
ISO 50001 Certificate

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Energy saving and GHG reduction performance
In 2022, we utilized four major methods for energy saving as shown in Table 7.2-3,
resulting in a total reduction of 1,536,823 kWh of electricity, equivalent to 5,532.56
GJ, which is approximately 760.73 tons CO2e. Figure 7.2-4 illustrates the carbon
reduction trend over the past five years.
Tons CO2e
1,800.00
1,600.00
1,400.00
1,200.00
1,000.00
800.00600.001,432.85

930.33486.70760.73200.001,614.52

400.00

2018

2019

2020

2021

2022

Figure 7.2-4 Amount of GHG reduction

Sustainable Environment

Climate Change Risks and Management

Annex

Table 7.2-3 Tatung energy saving projects and results in 2022
Energy saving projects(by categories)

Amount ofelectricity saved(kwh)

Amount ofelectricity saved(GJ)

GHG reduction(tons CO2e)

Optimized manufacturing
process to reduce
operation time.

374,997

1,349.99

185.62

Replaced with higher
energy efficient andenergy saving equipment.

977,1113,517.60

483.67

Centralized operatingareas and shut down
unnecessary air
conditioners and lightings.

30,675110.43

15.18

Increased the frequency
of maintenance andinspection from majorenergy using equipment,
as well as controlled theoperating time to avoid
leakage or wasting ofpressured air or cooled air.

154,040554.5476.25

1,536,823

5,532.56

760.73Total

Note: 1 kwh of electricity emits 0.495 kg CO2e.

After the expiration of the first phase energy saving
target, we established the second phase energy saving
target in 2019. The target is still based on production
plants and utilizes the unit product energy intensity
as the indicator. The target is to achieve a further
reduction of 6% in energy intensity of represented
products by 2023, using the energy intensity of 2018as the baseline.
The energy intensity of represented products in
2022, 4 of the 7 represented products reached thetarget of reducing energy intensity by 4.5%, and theachievement rate was 57.14%. The achievement
status of each represented product is listed in Table
7.2-4. Products that did not meet the target areTransformer/Switchgear, Lan cable, and Power cable.
The energy intensity of Tatung’s operations is shownin terms of revenues; the energy intensity in 2022
is 966.98 GJ/100 million dollars. In terms of electricsaving rate, the individual electric saving rate of the
H.Q. and all factories exceeds 1%, and the average
electric saving rate of the whole company is 3.53%,
which has achieved the target. The summary of ourenergy saving projects in 2023 is as follows:

Tayuan Plant
For the large transformer drying furnace, wewill replace the old and outdated vacuum drying
machine and combustion control system toenhance combustion efficiency. We will replace
the fixed-frequency vacuum pump with IE3 highefficiency motors and introduce energy-saving
variable frequency devices. Through sensor
detection of various process parameters required
inside the furnace, the variable frequency device
regulates the frequency and speed of the vacuum
pump to achieve optimal energy-saving operation.
We will replace 800 T6 fluorescent tubes in theoffice with energy-saving LED flat panel lights.
Additionally, in the factory, we will replace 169
mercury lamps with 125 energy-saving LED
lighting fixtures. We will improve air conditioning
by replacing 32 old box-type water-cooled chillers
with high energy efficient models. Additionally, we
will replace the cooling water tower system withnew heat dissipation materials and conducted
regular maintenance on the pipelines to ensure
optimal performance and energy efficiency.

San-Hsia Factory
We will replace two old 100HP fixed-frequency
air compressors with variable-frequency ones
and replace the old 5000kW transformer witha new one.

Taoyuan Wires & Cables Plant
We will participate in the Taoyuan City
Government’s program and conduct a power
analysis and temperature measurement before
and after energy-saving improvements to thecable drying oven in our manufacturing process.
This will help us establishing energy performanceindicators. We plan to replace the drying ovento enhance insulation and airtightness, allowing
for more precise temperature control during thebaking process and thereby improving energy
efficiency.

Taoyuan 1st Plant
The aluminum pot processing area will betransformed into a fully automated production
line, integrating the previous four stationsof sawing, outer processing, single-axis
drilling, and inner processing into a single
automated station. We will introduce roboticarms to replace manual labor and invested in
CNC machine tools to reduce standby power
consumption and minimize inefficiency in work
hours, thereby cutting down on operating costs.

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Table 7.2-4 Achievement status of Stage 2 Energy Saving Target (Year 2023 ↓ 6%)
Represented
products

Energy intensity inbaseline year (2018)

Motor/Generator

51.8 MJ/hp

Energy intensity
in 2022

Target achievement
status in 2022 (↓4.5%)

60
50
40
30

2018

2019

39.02 MJ/hp
Represented
products

Energy intensity inbaseline year (2018)

Electric cooker

35.22 MJ/set

Energy intensity
in 2022

Target achievement
status in 2022 (↓4.5%)

35.5
35
34.5
34
33.5

2018

2019

Trend

2020

2021

2022

Represented
products

Energy intensity inbaseline year (2018)

Commercial air
conditioner

55.78 MJ/kw

2021

2022

Energy intensity
in 2022

Target achievement
status in 2022 (↓4.5%)

50
2018

2019

2020

Transformer/
Switchgear

7,389.51 MJ/ MVA

Energy intensity
in 2022

Target achievement
status in 2022 (↓4.5%)

10,000.00
8,000.00
6,000.00

2018

2019

Represented
products

Energy intensity inbaseline year (2018)

Watt-hour meter(Mechanical & digital)

8.85 MJ/set

Energy intensity
in 2022

Target achievement
status in 2022 (↓4.5%)

10
8
6
4

2018

2019

2021

2022

Trend

Note: The baseline year is 2018. ✓ represents the result meets the target, X represents theresult does not meet the target.

Represented
products

Energy intensity inbaseline year (2018)

Lan cable

0.130 MJ/Meter

Energy intensity
in 2022

Target achievement
status in 2022 (↓4.5%)

0.155
0.150
0.145
0.140
0.135
0.130

2018

2019

2021

2022

2020

2021

2022

2021

2022

2021

2022

Trend

2020

Trend

0.149 MJ/Meter
Represented
products

Energy intensity inbaseline year (2018)

Power cable

15.59 MJ/Meter

Energy intensity
in 2022

Target achievement
status in 2022 (↓4.5%)

15.56 MJ/Meter

2020

Trend

6 MJ/set

60
40

Energy intensity inbaseline year (2018)

8,584.81 MJ/ MVA

Trend

33.48 MJ/set

39.96 MJ/kw

2020

Represented
products

20
15
10

2018

2019

2020

Trend

Mutual benefit and experience sharing
In 2021, Tayuan Plant was honored with the Energy Conserving Award Gold Award”
by the Bureau of Energy. In line with the principles of mutual benefit and experiencesharing, Tatung co-organized enterprise visits on July 1st and November 9th, 2022.
During these visits, the energy-saving and carbon-reducing experiences of Tayuan
Plant were shared with the public and government agencies. We hope that throughcollaboration and cooperation from all sectors, we can contribute our efforts towards
achieving the goal of net-zero carbon emissions.

Tayuan Plant participated in energy saving award seminar

Hualien County Government visited Tayuan Plant

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

7.3 Enabler of net zero emissions
DMA

Promotion and management on environmental friendly products

The actual and potential,
negative and positive impacts
on the economy, environment,
and people, including impacts on
their human rights

In response to global warming and the trend of energy
efficiency and carbon reduction, Tatung is dedicatedto energy-saving, energy creation, and energy storage
businesses. We continuously develop eco-friendly, energyefficient, and high-performance home appliances andindustrial products. We also extensively establish solar
power systems and energy storage systems. By doing
so, we not only help our customers and consumers saveenergy and reduce carbon emissions but also assist the
government in lowering the carbon emission coefficientof electricity and stabilizing the power grid, creating morebusiness opportunities in the process.

Report whether the organization
is involved with the negative
impacts through its activities
or as a result of its business
relationships, and describe
the activities or business
relationships

The carbon emissions during the usage stage of motors,
electric cookers, air conditioners, and other industrial
and household appliances produced by Tatung are quite
significant. Tatung will continue its efforts to enhance theenergy efficiency of its products and reduce their impact on
the natural environment.

Policies or commitments

The ESG vision of Tatung is “Operational Innovation,
Sustainable Development, and Global Harmony.”

Actions taken to manage thetopicManagement process and targets

Mid-Long term targets:
Aim to reach a total installed capacity of 1GWp for solar PV
systems and 300MW of energy storage systems.

Management evaluation
mechanism

Encouraging BUs to develop environmental friendly
products through 3P Program.

Performance

1. New applied Green Mark: 2 models, Energy Label: 35
models, Water Label: 4 models.
2. Accomplished a cumulative installed capacity of
268MWp for solar PV systems
3. Accomplished a cumulative capacity of 11MW for energy
storage systems.
4. Currently we have 136 Tatung 3C Stores register as
EPA’s Green Store.

Related adjustments to the
management approach

NIL

Apply Design for the Environment, DfE”, in the designphase to produce “recyclable, low pollution, toxic-free,resource saving, power saving, and durable” products tobenefit the environment.
Install more solar PV systems and energy storage systems.
Respond to green procurement and encourage all unitsof the company to take environmentally friendly products
into consideration when purchasing items.
Apply for EPA’s Green Stores and promote energy saving
and environmental friendly products.

Short-term targets:
1. Continue to produce environmental friendly, energy
saving, and water saving products and apply for Green
Mark, Energy Label, or Water Label.
2. Actively striving for solar PV and energy storage systems
and achieve total installed capacity of 338MWp for solar
PV system and 55MW for energy storage system by2023.
3. Continue to register as EPA’s Green Store for Tatung 3C
Stores.

Note: This material topic includes the targets and performances of our solar-pv related subsidiary companies and TCPC (Tatung 3C Stores).

Reducing air pollution and GHG emissions, deployment of solar
PV systems and energy storage systems
In alignment with the government’s green energy policies and global trends, Tatungis continuously innovating with a steady pace to expand its presence in the solar PV
market. Integrating intelligent technologies, Tatung has evolved from early rooftop
installations and landfill projects to new frontiers such as fishery and electricity
symbiosis, cemetery lands, and sports fields. Not only ensuring engineering quality
and proactive innovation, Tatung but also is well-prepared to venture into power
plant operations, green energy supply, and green energy certificates.

2022 Top Solar System Award- Excellent One-site Multi-purpose System Selection.
Danshui Light Rail Machine Factory won the 2022 Top Solar System Award- Excellent
Rooftop System Selection.

As of the end of 2022, Tatung has achieved a cumulative installed capacity of 268
MWp for solar photovoltaic systems, approaching 1,500 plants. The total electricity
generated has reached 1.05 billion kWh, resulting in a carbon reduction of 519,750
tons4, equivalent to the annual carbon reduction of 1,336 Daan Forest Parks5.
Tatung has been deeply involved in the field of renewable energy, adhering to theprinciples of honest operation and gradually building a reputation. In recent years,
it has received continuous awards. The Anti-Terrorism Training Center won theBoth of the solar PV systems at AntiTerrorism Training Center and Danshui
Light Rail Machine Factory won
the 2022 Top Solar System Award

4. Calculated based on emission factor of 0.495 kg CO2e per kWh of electricity.
5. Calculated based on one Daan Forest Park absorbs approximately 389 tons CO2e annually.

Solar PV system at Danshui Light Rail Machine Factory

The first E-dReg energy storage system (6MW) in Taiwan

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Since 2018, Tatung has been actively involved in large-scale energy storage
systems, and by 2022, it has completed a cumulative of 11MW. In 2022, a 6MW
energy storage system was launched, making it Taiwan’s first enhanced dynamic
frequency regulation auxiliary service E-dReg energy storage system. It is also
the first E-dReg energy storage system to obtain IEC/CNS 62933-5-2 certification.
With its frequency adjustment and peak-off-peak transferring capability, this systemeffectively strengthens grid resilience and alleviates peak power supply pressure,marking a significant milestone in Taiwan’s energy storage development. Tatung
aims to complete the construction of over 55MW of energy storage systems by theend of next year, contributing to the enhancement of power supply quality in Taiwan.
The trend towards achieving net-zero carbon emissions by 2050 at the national
level has increased society’s strong demand for energy efficiency, carbon reduction,and green energy. With active innovation in the solar energy industry and expertisein energy storage systems and micro-grids, Tatung will assist businesses inshowcasing their energy efficiency and carbon reduction achievements from anenergy management perspective. Tatung can tailor energy management systems
to businesses, integrating various types of energy-saving equipment needs forcomprehensive planning, becoming a vital core in electricity usage and carbon
management. In terms of green electricity trading services, Tatung successfullycompleted the transfer of green electricity to meet the index cases of financial
enterprise users in 2022. Looking forward to 2023 years, it will expand the scopeof green electricity services, extending from finance to the semiconductor industry
and electronics manufacturing industry satisfying the ESG net-zero demands ofbusinesses and society.

Sustainable Environment

Climate Change Risks and Management

TARGET

MW
400
350

300
250
200
150
100

Annex

92

127

162

211

268

50
0

The cumulative installed capacity and target of
Tatung’s solar PV system338

Devote in developing environmental friendly products

Green Mark fordomestic air conditioner

Energy Label fordomestic air conditioner

Tatung tirelessly dedicates to the development of environmental friendly products
and many of them have been awarded with Green Mark, Energy Label, and Water
Label. There were 2 models awarded with Green Mark, 35 models awarded with
Energy Label, and 4 models awarded with Water Label in 2022. Please refer toTable 7.3-1 and Figure 7.3-1 for more details.

Table 7.3-1 Green products within the validity period
Products
Electric fans
Refrigerators
Washing machines
Monitors
Dehumidifiers
Domestic air conditioners
Amorphous transformers
Cast resin dry typetransformers
Amorphous cast-resin dry
type transformers
Note: As of 2023/3/27.

Energy Label

Green Mark

Water Label

Energy LabelNO. ofModels
120

80

63

60
40

33 31

20
0

Water Label

99

98

100

Green Mark

31
2018

35

22
4
2019

5
2020

12

13

8

2021

Figure 7.3-1 No. of new certified or renewed green products

2

2022

4

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

Promotion on green consumption
In addition to produce energy-saving, environmentally-friendly and watersaving products, Tatung also combines its own sales channel- Tatung
3C to promote green products. In addition to holding energy-saving andenvironmentally-friendly product promotion activities from time to time,
Tatung also has 136 Tatung 3C Stores6 been registered as Green Store7 by
EPA. The Green Stores of Tatung 3C will announce the types of products soldin the stores with Green Mark, Energy Label, and Water Label to strengthen
consumers’ recognition of Green Mark and Green Consumption. This is able
to promote the development of green industries and reduce the adverse
effect to the environment and to improve the quality of the environment.
Thus, Tatung 3C “Kaohsiung Yangmin Store” was commended as “GreenStores of Year” by EPB, Kaohsiung City Government in 2022.
6. As of 2023/3/2.
7. https://greenliving.epa.gov.tw/newPublic/Eng/Application/GreenStore

Table 7.3-2 Green consumption promoting measurestaken by Tatung
Unit

Responsibilities

MeasuresTatung Company Researching andproducing theenvironmental friendly,
energy saving, and watersaving products.

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

Tatung 3C Stores Promoting and sellinggreen products.

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

Tatung 3C organized energy saving products
promotions

Tatung 3C was commended as “Green Stores ofYear”

Annex 1
Products and services provided by Tatung
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 up to 161kV class, 36kV series ofswitchgear, 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 widely used in telecommunication, powertransmission, power distribution, solar photovoltaic (PV) power generation
system & various industrial equipment, household appliances, IT network, wiring
harness kits for electric vehicles and electronic components, etc.
In response to global warming, energy efficiency and net zero carbon emissions
have become an international consensus. Cable factory actively introduces ISO
50001 Energy Management System as well as IATF 16949 Automotive Quality
Management System and have passed verification. At the same time, we arepromoting suitable products for electric vehicle industry, offshore wind powertransmission and distribution lines and other needs, fulfilling social responsibility
for the goals of energy conservation, carbon reduction and environmental
sustainability.
1. Motors:With more than 70 years of technology and experience, Motor BU
researches and produces all kinds of energy saving high-efficiency, single andthree phase high-low-voltage motor from 1/8~50,000 HP, including a variety of
special motors and applications such as premium efficiency motors, electricvehicle traction motor(EVTM), high temperature resistant motors, explosion
proof motors, automatic brush lifting device equipped in wound rotor motor,
vertical high thrust pump motors, gear reducer, inverter motors, aluminum frame
motors, brake motors, oil well pump motors, water pump motors, immersible
pump motors, built-in type spindle motors, rolling mill motors, elevator motors,
crane motors, permanent magnet motors, IoT connected smart motor
monitoring sensor, railway traction motors, inverters, control panels etc., aswell as provides total solutions for electrical testing equipment and power plant
equipment system engineering projects to serve a variety of industries.
2. Generators:Diesel generator set for land and marine usages, hydroelectric
generator, Motor Generator set (M-G set) for special purposes.
3. Other products:Various kind of cast iron parts.

Motor BU

Smart Meter Smart Meter BU provides various types of smart meters, AMI systems, andEnergy Management Systems. Products including single-phase electric meters,
BU
three-phase electric meters, CT-type electric meters, communication modules,
HES, and MDMS. The self-developed AMI meters have successfully obtainedinternational certifications including ANSI, IEC, MID and Japanese JIS. Tatung
has the ability of integrating the systems of smart meter infrastructure andintegrating different communication technologies to develop smart meter
application functions to meet customer needs and improve system performance.
To strengthen the supply and competitiveness in the international market, Tatung
has set up meter factories in Taiwan and Thailand to meet the growth of smart
meter business.

ImportantCertifications

Business
Units

Products and Services

Appliance
Brand BU &Appliance
Manufacture
BU

The main products include commercial/household energy-saving and smart airconditioners and home appliance products with inverters which adopt the IoT technology
to provide consumers with situational scheduling control and personalization services
and improve their daily life experience. Moreover, the products extend to home airconditioners self-cleansing function and improve customer’s life experience andproduct durability. The steam cooker product remains a market leader and expands
positively the complete series of kitchen appliances by developing synchronize small
household & living appliances as well as Disney co-branded, high quality and goodlooking products to change life experience of customers and expand to the overseas
market. The Company 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 2023 Taiwan Excellence Award. In addition, the Company
has continued to cultivate the professional acoustic field and smart home products
and incorporated advanced technology and smart functions to provide design andmanufacturing services for world’s well-known brands. Our stores strengthen thebrand image of serving as a distribution channel for multiple brands and offering aftersales service, in addition to repairing the equipment of stores to provide our customers
better shopping experiences. We won 2022 and 2023 Trusted Brand Golden Award
continuously, increasing the number of customers and sales per square meter. We
also reinforce the operation of e-commerce platforms to provide customers witharound-the-clock services.

Solar Energy The solar energy business department is a professional photovoltaic system provider
that cooperates with the energy policy of the Ministry of Economic Affairs. It has long
BU
invested in domestic public buildings and various types of solar photovoltaic fields,
providing renewable energy project development, design planning, professional
construction, and high-efficiency and high-quality green power solutions. Solutions,from initial project development to follow-up maintenance services, provide the highest
quality service and competitive strength in solar field. The solar energy team has been
deeply involved in the domestic green power market for a long time. With the group’s
supply chain integration advantages, coupled with rich experience in design planningand system integration, the project performance has spread all over Taiwan. The
operation and maintenance team combines Datong’s electromechanical backgroundand home appliance repair capabilities, plus the cloud real-time monitoring platform, toprovide the best quality operation and maintenance services for solar field. At present,
it is actively expanding the operation of charging stations, providing household,public and commercial charging infrastructure, and customized services, including
AC charging piles, DC charging piles and charging station energy management
systems (EMS). In the future, solar energy, wind energy, energy storage, etc. can also
be combined with energy management systems to optimize charging services andenergy efficiency. The solar energy division has abundant green power resources andcould ensure stable and sufficient power supply with multiple green power plants. At
present, through various matchmaking platforms, a green electricity trading platform
is being established to meet the needs of different types of users, to assist corporate
customers to match the best green electricity solutions, to quickly complete the transfer
process, and to provide power consumption analysis and energy management witha smart energy management system. services, and accurately implement the RE
100 green electricity target. Provide a complete carbon trading mechanism service,refer to the GHG Protocol, and provide solutions for carbon reduction planning for theemission category classification of greenhouse gas inventory specifications.

ImportantCertifications

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Business
Units

Products and Services

AdvancedElectronics
BU

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

Smart
Energy BU

The Smart Energy Business Unit is a professional power system integration
service provider, offering efficient and high-quality energy storage, micro-grid,and energy management solutions. It provides one-stop project management
services, professional consulting, site surveys, document applications,construction design, and operation and maintenance management. The microgrid and energy storage technologies are integrated with AIoT-based energy
management systems to form a dedicated technical and business team. The
core focus lies in the development of energy management systems and theintegration of energy storage equipment systems. The team designs andintegrates power auxiliary service systems. In terms of large-scale energy
storage systems, they can be applied to Taiwan Power Company’s Automatic
Frequency Control (AFC) auxiliary service to assist in maintaining grid stability
and power supply quality when integrating a large amount of renewable energy
into the grid.
Tatung Group was one of the earliest companies to invest in micro-grids andenergy storage applications, making it one of the few companies in the industry
with the technical expertise and achievements in constructing micro-grids andenergy storage systems. The Smart Energy Business Unit team plays a crucialrole in stabilizing the power system, engaging in AFC frequency modulation
auxiliary services, grid-connected energy storage equipment, and micro-gridsystems.
The technical team has been involved in research and development projects
in collaboration with the government, industry, and academia for many years.
They have invested in building demonstration sites for energy storage systems
in Kaohsiung Yongan and Taiwan Power Company’s Changbin Industrial Zone,
demonstrating their technical expertise. They were also the first team in Taiwan
to participate in the bilateral contract frequency modulation auxiliary service
with a 1MW system scale.
Currently, the group’s investment in AFC day-ahead auxiliary service capacity
has begun to contribute revenue through commercial transactions. In the future,they will expand their presence in external markets, extending their reach into
energy storage and renewable energy integration, and seize opportunities in
the post-metering market to provide comprehensive services.

Happy Workplace and Social Engagement

ImportantCertifications

Sustainable Environment

Climate Change Risks and Management

Business
Units

Products and Services

SystemIntegration
BU

System Integration BU is committed to specializing in the fields of informationand communication systems as well as electromechanical systems. The Dept.
of Information and Communications Technology Services: we have more than
30 years for helping customers deal with the computerization and automationof their systems and have endeavored to meet the needs of the ICT market in
the era of technology. We’ve been a representative solutions provider of highquality system integration in Taiwan. We specialize in ICT system integration,
network security planning & implementation, and application softwaredevelopment. We have rich capabilities and experience in large-scale system
integration solutions. Our service team members have owned a wide range ofIT professional skills, certificates, and service network all over Taiwan by 13
direct branch offices to provide customers fast services. We will continue todevote ourselves to deepening the fields of information and communication
integration, cloud applications, information security, outsourcing services,business intelligence and system development, and then will become theleading solutions provider in those fields soon. The Dept. of Electromechanical
Systems: When Taiwan’s infrastructure constructions began in the 1960s
and 1980s, Tatung Company made an important contribution to the various
infrastructure constructions such as power generation, power transmission as
well as power supply. Electrical and mechanical systems related businessesare:
1. Provide power plants, large substations, transmission & distribution
systems, solar power generation and motor related electromechanicalintegration services.
2. Residential and factory-built electromechanical engineering, including
planning as well as construction for smart building.
3. Sewage (wastewater) treatment, which has reached the industrial
wastewater Zero Discharge standard.
4. Traffic mechanical and electrical engineering for Rails and roads as well assign 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 crossorganizational interfaces, providing integrated design, project management
and maintenance services.

Annex

ImportantCertifications

Annex 2
Factories and subsidiaries participated in 3P Program and
Accident Prevention Pays Program in 2022

Annex 3
The risks and opportunities posed by climate change to thecompany and the corresponding measures

Factories owned by Tatung

Subsidiaries

No.

Item

Tayuan Plant

Tatung Die Casting Co., Ltd.

1

Please refer to P. 107.

Taoyuan Wires and Cables Plant

Tatung SM-Cyclo Co., Ltd.

Describing the supervision and governance of the Boardof Directors and management on climate-related risks
and opportunities.

San-Hsia Factory

Tatung Fine Chemicals Col., Ltd.

2

Please refer to P. 108,
P. 109.

Taoyuan 1st Plant

Shan Chih Semiconductor Co., Ltd.

Describe how the identified climate risks and opportunities
can impact the company’s business, strategies, and financesin the short, medium, and long term

Meter Factory

Forward Electronics Co., Ltd.

3

Describe the financial impact of extreme weather eventsand transformational actions on the company.

Please refer to P. 109.

4

Explain how the process of identifying, assessing, andmanaging climate risks is integrated into the overall risk
management system.

Tatung has established risk
management policies andprocedures. Please refer to P. 107.

5

If using scenario analysis to assess resilience against
climate change risks, it is essential to explain the
scenario, parameters, assumptions, analysis factors
and main financial impacts.

Tatung has not utilized scenario
analysis to assess climatechange risks.

6

If there is a transformation plan to address climaterelated risks, please describe the contents of the plan,
as well as the indicators and goals used for identifying
and managing physical risks and transition risks

Please refer to P. 109, P. 111,
P. 116, P. 119.

7

If using an internal carbon pricing as a planning tool, thebasis for price determination should be explained.

Tatung has not yet established
an internal carbon pricing
mechanism.

8

If climate-related goals are established, activities covered,
GHG emission scopes, planning timeline, and annual
progress should be described. If carbon offsets orRenewable Energy Certificates (RECs) are used toachieve the related goals, an explanation should be
provided regarding the source and quantity of the carbon
offsets or the number of RECs acquired for renewableenergy usage.

Tatung has established a netzero carbon emission roadmap,
using 2021 as the baseline year.
The target is to reduce emissions
by 20% by 2030, 50% by 2040,
and achieve net-zero carbon
emissions by 2050. Please refer
to P. 111 and 113 for more details.

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

Measures

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex

GHG Emission in 2022
Information of the Company

According to the sustainable development roadmap of listed companies, thefollowing information should be disclosed at a minimum:

Companies with a capital of over 10 billion NTD, Steel Industry, and Cement Industry

GHG inventory for the company

GHG inventory verification for the company

Companies with a capital of over 5 billion NTD but less than 10 billion NTD

GHG inventory for the subsidiaries in
the consolidate report

GHG inventory verification for the subsidiaries
in the consolidate reportCompanies with a capital less than 5 billion NTD

Scope 1The Company
Subsidiaries

Emissions (tons CO2e)

Intensity(tons CO2e/thousand dollars)

31,998.82

0.00191--

31,998.82

0.00191

Emissions (tons CO2e)

Intensity(tons CO2e/thousand dollars)

The Company

18,793.03

0.00112

Subsidiaries--

18,793.03

0.00112

-

-

Total
Scope 2

Total
Scope 3
(Voluntary disclose)

Verification agency

Description of the verification

The company will cooperate with the verification
agency’s schedule and is expected to complete theverification process in Q3.

Verification agency

Description of the verification

The company will cooperate with the verification
agency’s schedule and is expected to complete theverification process in Q3.

Annex 4
SASB Disclosure Index
Resource Transformation Sector: Electrical & Electronic Equipment
Topic

CODE

Page/URL

Note

Topic

Disclosure item

CODE

Page/URL

Note

Energy(1) Total energy consumed,
Management (2) percentage grid electricity,(3) percentage renewable

RT-EE-130a.1

112

Materials
Sourcing

Description of the managementof risks associated with the use ofcritical materials.

RT-EE-440a.1

112

Amount of hazardous waste
Hazardous
generated, percentage recycled.
Waste
Management

RT-EE-150a.1-

1. Total energy
consumption:
162,379.58 GJ.
2. The percentage
of energy from gridelectricity: 84.17%.
3. The percentage ofenergy from renewablesources: 0%.
The amount of
hazardous waste
was 8.38 tons andthe percentage
recycled was 0%.

Number and aggregate quantify ofreportable spills, quantity recovered.

RT-EE-150a.2-0Number of recalls issued, total units
recalled.
Total amount of monetary losses as aresult of proceedings associated withproduct safety.

RT-EE-250a.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.

RT-EE-250a.2

49, 52, 53-

Business
Ethics

RT-EE-510a.1

40, 41, 59-

RT-EE-410a.2-

Description of policies and practices forprevention of: (1) corruption and briberyand (2) anti-competitive behavior
Total amount of monetary losses as aresult of legal proceedings associatedwith bribery or corruption.

RT-EE-510a.2-

0Total amount of monetary losses as aresult of legal proceedings associatedwith anticompetitive behavior
regulations.

RT-EE-510a.3-

0Number of units produced by productcategory.

RT-EE-000.A

40, 41, 59

130 units (mainly
are diesel engine
generators).

Number of employees

RT-EE-000.B-

2,500 employees

Product
SafetyDisclosure item

Resource Transformation Sector: Electrical & Electronic Equipment

Product
Percentage of products by revenue
Lifecyclethat contain IEC 62474 declarable
Management substances.

Percentage of eligible products, by
revenue, that meet ENERGY STAR®
criteria.(uninterruptible power supply
products, heating and cooling andventilation equipment, and lighting
and fans.)
Revenue from renewable energyrelated and energy efficiency-related
products.

RT-EE-250a.2

49, 52, 53

1. 0
2. The products soldin domestic by thecompany have allactively applied forGreen Mark, Energy
Label, or WasterLabel. Please refer toP. 122 for more details.
-

RT-EE-410a.3

49, 52, 53

NT$2.718 billions

Activity
Metric

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex 5GRI Standards content index
Statement of use

Tatung Company has reported the information cited in this GRI content index for the period 2022.01.01~2022.12.31 with reference to the GRI Standards.

GRI 1 used

GRI: Foundation 2021

Applicable GRI Sector Standard(s)Not Applicable. GRI has not published the Sector Standards suitable for Tatung’s industry sector.

GRI Standard/
Other source

Disclosure

Page

General disclosures
GRI 2:
General Disclosure
2021

2-1 Organizational details

24,25

2-2 Entities included in the organization’s sustainability reporting25

2-3 Reporting period, frequency and contact point

1

2-4 Restatements of information

1

2-5 External assurance
2-6 Activities, value chain and other business relationships

1, 13624~26, 29, 44, 124

2-7 Employees

70

2-8 Workers who are not employees

82

2-9 Governance structure and composition

35, 36

2-10 Nomination and selection of the highest governance body35

2-11 Chair of the highest governance body35

2-12 Role of the highest governance body in overseeing the management of impacts

35, 41, 107

2-13 Delegation of responsibility for managing impacts

102-14 Role of the highest governance body in sustainability reporting

1, 16

2-15 Conflicts of interest

35

Note

Annex

GRI Standard/
Other source

Disclosure

Page

Note

General disclosures
GRI 2:
General Disclosure
2021

2-16 Communication of critical concerns

102-17 Collective knowledge of the highest governance body35

2-18 Evaluation of the performance of the highest governance body37

2-19 Remuneration policies

36

2-20 Process to determine remuneration36

2-21 Annual total compensation ratio-

2-22 Statement on sustainable development strategy

3, 92-23 Policy commitments

92-24 Embedding policy commitments

9

Please refer to Tatung Company 2022 Annual Report P. 28.

2-25 Processes to remediate negative impacts

13~15

Tatung setup “Stakeholder section” on the official website.

2-26 Mechanisms for seeking advice and raising concerns

13~15

Tatung setup “Stakeholder section” on the official website.

2-27 Compliance with laws and regulations

85, 97

Please refer to Tatung Company 2022 Annual Report P. 90~92.

2-28 Membership associations26

2-29 Approach to stakeholder engagement

12~15

2-30 Collective bargaining agreements

71

GRI 3:
3-1 Process to determine material topics
Material Topics 2021
3-2 List of material topics

16

Material Topics

20

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

GRI Standard/
Other source

Happy Workplace and Social Engagement

Disclosure

Page

Economic performance
GRI 3:
3-3 Management of material topics
Material Topics 2021

27

GRI 201: Economic 201-1 Direct economic value generated and distributed
performance
201-2 Financial implications and other risks and opportunities due to climate change

28201-3 Defined benefit plan obligations and other retirement plans

108, 109
77

Market presence
GRI 3:
Material Topics 2021 3-3 Management of material topics73

GRI 202:
Market presence

202-1 Ratios of standard entry level wage by gender compared to local
minimum wage76

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

70

Corporate governance and ethical practiceGRI 3:
Material Topics 2021 3-3 Management of material topics
Customer privacy management38, 39

GRI 3:
Material Topics 2021 3-3 Management of material topics

56, 57

GRI 418:
Customer privacy

418-1 Substantial complaints concerning breaches of customer privacy andlosses of customer data

Product quality and safety
GRI 3:
Material Topics 2021 3-3 Management of material topics
GRI 416: Customer 416-1 Assessment of the health and safety impacts of product and service
health and safety
categories
416-2 Incidents of non-compliance concerning the health and safety impacts
of products and services

62

49
50~52
53

Sustainable Environment

Climate Change Risks and Management

Note

Annex

GRI Standard/
Other source

Disclosure

Page

Occupational health and safety
GRI 3:
Material Topics 2021

3-3 Management of material topics

80

GRI 403:403-1 Occupational health and safety management system
Management Approach82

GRI 403:
Topic-specificdisclosures403-2 Hazard identification, risk assessment, and incident investigation

83, 85403-4 Worker participation, consultation, and communication on occupational
health and safety81403-5 Worker training on occupational health and safety84403-6 Promotion of worker health86, 88403-8 Workers covered by an occupational health and safety management system

82

403-9 Work-related injuries

85403-10 Work-related ill health85

3-3 Management of material topics

68

Employment
GRI 3:
Material Topics 2021

GRI 401: Employment 401-1 New employee hires and employee turnover70

401-2 Benefits provided to full-time employees that are not provided totemporary or part-time employees

72

401-3 Parental leave

72

Labor/management relations
GRI 3:
Material Topics 2021

3-3 Management of material topics

GRI 402 Labor/
management relations 402-1 Minimum notice periods regarding operational changes

75
78

Note

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

GRI Standard/
Other source

Happy Workplace and Social Engagement

Disclosure

Page

Labor/management relations
GRI 3:
Material Topics 2021

3-3 Management of material topics

GRI 417:
Marketing and labeling 417-1 Requirements for product and service information and labeling50, 5854417-2 Incidents of non-compliance concerning product and service
information and labeling54417-3 Incidents of non-compliance concerning marketing communications

59

Management on energy and GHG emissions
GRI 3:
Material Topics 2021

3-3 Management of material topics

106

GRI 302 Energy

302-1 Energy consumption within the organization

112

302-3 Energy intensity

GRI 305 Emissions

116, 117

302-4 Reduction of energy consumption

115

305-1 Direct (Scope 1) GHG emissions

113

305-2 Energy indirect (Scope 2) GHG emissions

113

305-4 GHG emissions intensity

127

305-5 Reduction of GHG emissions

115

Promotion and management on environmental friendly products
GRI 3:
Material Topics 2021

3-3 Management of material topics

GRI 302 Energy

302-5 Reductions in energy requirements of products and services

119120~122

Sustainable Environment

Climate Change Risks and Management

Note

Annex

GRI Standard/
Other source

DisclosurePage

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

59

Other Sustainable Topics
Anti-competitive behavior
GRI 206:Anticompetitive behavior

Compliance (please refer to GRI 2-27
Supplier management
GRI 308:Supplierenvironmental assessment 308-1 New suppliers that were screened using environmental criteria
GRI 414:Supplier social
414-1 New suppliers that were screened using social criteria
assessment

44~46
44~46

Performance review and career development
GRI 404:
Training and education 404-2 Programs for upgrading employee skills and transition assistance programs

404-3 Percentage of employees receiving regular performance and careerdevelopment reviews

78, 7976

Human rights, equality, and non-discriminations
GRI 405: Diversity and 405-1 Diversity of governance bodies and employees
equal opportunity
GRI 406:
Non-discrimination

35, 70405-2 Ratio and basic salary and remuneration of women to men

76406-1 Incidents of discrimination and corrective actions taken

69

Freedom of association and collective bargaining
GRI 407:Freedomof association andcollective bargaining

407-1 Operations and suppliers in which the right to freedom of associationand collective bargaining may be at risk

71

Child labor, forced or compulsory labor
GRI 408: Child labor408-1 Operations and suppliers at significant risk for incidents of child labor72

GRI 409: Forced orcompulsory labor409-1 Operations and suppliers at significant risk for incidents of forced orcompulsory labor

72

Note

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

GRI Standard/
Other source

Disclosure

Happy Workplace and Social Engagement

Page

Other Sustainable Topics
Management on wastes
GRI 306: Waste

306-3 Waste generated

101, 102306-5 Waste directed to disposal

101, 102

Management on water and resources
GRI 301: Materials

GRI 303:
Water and effluents

301-1 Materials used by weight or volume98301-3 Reclaimed products and their packaging materials

103

303-3 Water withdrawal

98

Management on water and air pollutants
GRI 305: Emissions

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

100

GRI 303:
Water and effluents

303-4 Water discharge

99

Sustainable Environment

Climate Change Risks and Management

Note

Annex

Annex 6
Assurance statements

Top Management Statement Table of Contents 2022 ESG Highlights Sustainable Management Profile of Tatung Company Structure and Governance
Responsible Supply Chain, Product Safety, and Customer Service

Happy Workplace and Social Engagement

Sustainable Environment

Climate Change Risks and Management

Annex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