2018

TatungCSR Report︱

The firs
t PV solar syst
em installedat landfill inTaiwa
n – Fudekeng
Restoration Park, Ta
ipei City

About this report

We follow GRI Standards (Core Option) and AA1000 AS: 2008 to compose ''2018 Tatung Corporate
Social Responsibility Report''. We expect this report is able to present a more focused content to
the needs of the stakeholders, as well as sharing the sustainable achievements done by Tatung ina systematical manner.

Scope

The contents of this report cover Tatung's activities from the headquarter, Tayuan Plant, Taoyuan
Wires and Cables Plant, Taoyuan 1st Plant, and San-Hsia Factory. Part of TCPC’s information (sales
activity and consumer data management) is also included.

Restatements of information

Due to the factories completed greenhouse gas emission verifications for year 2016 by the end of
2017, thus the energy consumption data and greenhouse gas emission data for 2016 are restatedin this report. The detail information is disclosed in Chapter 6.2.

Reporting cycle and reporting period

Tatung Corporate Social Responsibility Report is published by the end of June annually. Unlessotherwise stated, the data and activities in this report are gathered from 2017.1.1~2017.12.31.

Previous reports

2018 Tatung Corporate Social Responsibility Report is our 17th non-financial report since 2002. The
previous report was published in June 2017. All the reports are available on: http://www.tatung.
com/Content-EN/csr-report.asp.

Data measurement techniques

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

External assurance

The contents of this report were verified by TÜV Asia Pacific Ltd. Taiwan Branch (TUV NORD) basedon AA1000AS: 2008 (Type 2, high level assurance) and GRI Standards. The assurance statement is
enclosed in Annex 4.

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

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

About this reportTop management statement

UN proposed Sustainable Development Goals (SDGs) in 2015 to act as aroadmap towards to sustainable development for the next 15 years. Oneof the goals, Climate Action, indicates all nations should take immediate
measures to counter the effects brought by climate change. Meanwhile,
Climate change has also been identified as the top 1 risk in "The Global Risk
Report 2018" released at World Economic Forum, WEF, in January, 2018. The
impact of climate change upon nations, corporations, or even individuals
will come as an unavoidable challenge for all. Tatung has always
shouldered environmental protection, including energy saving, carbon
emission reduction, and water conservation, as part of our corporate
responsibilities by manufacturing eco-friendly products and providing
solutions to environmental issues. As a matter of fact, we have beenworking on the solar power system for more than 5 years, completing over
70 mega Watts in capacity. Meanwhile, as the pioneering manufacturer ofsmart grid in Taiwan, we have developed the first AMI system in the country.
From this year on, we will go further to become a large-scale solar powersystem company where we design and construct micro-grid systems, smart
surveillance systems, energy saving systems, etc. All these developments
display our vision for the challenges as well as opportunities that come withclimate change because we have been tapping talents for developing
technology, systems, and products in relation to environmental protection
as we turn these challenges into profitable opportunities.

Centennial Tatung –Smart and Sustainable

2018

TATUNG CSR

Chairman

Tatung will have its centennial anniversary in November, 2018. In retrospect, Tatung has been playing
a significant role in every stage of Taiwan's development to the benefits of the country's economic
development. The founder of the company Lin Shan Chih started his career in civil engineering,accomplishing more than 600 public constructions in his life. Our late President Lin Ting Sheng successfully
expanded the business scope to home appliances, industrial appliances, electronics, and other business
investments to serve the needs of consumers and the country as a whole. Moreover, our former president
Lin Wei Shan went further to incorporate information technology, mechanical and electrical engineering,and photoelectric engineering (for example, panels and solar cells) into the business.
The centenary of Tatung marks the company's historical significance in the past and for the future as
well. The views of the community and investors have also reached new level in corporate environmental
sustainable development and governance. Tatung will turn into a leading business group in the fieldsof green energy and smart energy systems. Therefore, Tatung will be devoted to amalgamating
environmental sustainability and corporate management apart from manufacturing best quality
products and services. In terms of further deepening corporate governance, we formed a board of
directors that more than half of the members are independent directors and external directors last year.
We also formed "Corporate Governance Committee" in March this year and will continue to upholdthe core values of "Integrity, Honesty, Industry, and Frugality" to enhance corporate governance in thehope that we will obtain "EPS" (Earnings Per Share) for shareholders and manage "ESG" (Environmental,
Social, Corporate Governance) well for the eco-friendly environment, the company's sustainability, andthe corporate responsibilities. We have witnessed a good page in the company's development and wewill continue to recruit staff and partners who share the same values with us to work together in order tostrengthen our operating results so as to arrive at more profit for our shareholders and to maintain thecompany's sustainable development and growth.

2018 TATUNG CSR

Top management statement

Table of Contents

2018

TATUNG CSR

About this report
Top Management Statemen

Tatung CSR milestone and summaryof 2017 CSR performances

19

Chapter 1 Identification of the
stakeholders and material topics

CH1

1.1 Identification of the stakeholders
1.2 Communication channels with the stakeholders
1.3 Identification of the material topics
1.4 UN Sustainable Development Goals

Chapter 2 Profile of Tatung
Company.

CH2

15 CH32018 TATUNG CSR

2.1 Company profile
2.2 Financial performances
2.3 Services and products

Chapter 3 Corporate structureand governance
3.1 Corporate structure
3.2 Governance

Chapter 4 Supply chain
management, product responsibility
and customer services

CH4

27

CH5

39

CH6

57

ANNEX

75

4.1 Supply chain management
4.2 Product responsibility
4.3 Sales and customer service

Chapter 5 Social performances
5.1 Human rights and anti-discrimination
5.2 Employees' code of ethics
5.3 Employee compositions, career development
and benefits
5.4 Health, safety and disaster free
5.5 Participates and benefits to the society

Chapter 6 Environmental
performances
6.1 Environmental management
6.2 Energy consumption and GHG management
6.2 Resource consumption and pollutants
management
6.3 Green products for a better earth

Annex 1 Subsidiaries notes to consolidated financial
statements
Annex 2 List of Tatung products and services
Annex 3 Factories and subsidiaries participated in 3P
program and Occupational Accident Prevention
Pays program in 2017
Annex 4 Third-party assurance statements
Annex 5 GRI standards content index
Annex 6 Feedback survey form

Table of Contents

2018

Tatung CSR milestone – centennial review

TATUNG CSR

2005

1996
■ Implemented ISO
14001 environmental
management system
to continue improving
environmental
performances. ★

1952
Provided
housingloans to theemployees
to help thempurchasing
their houses.

★ All the factories have

1960
1943

1918
Establishmentof Xie ChihBusiness
Enterprise, theforerunner of
TatungCompany,
built four
fundamental
values—Integrity,
Honesty,
Industry, andFrugality.

Implemented"StockOwnership"program toencouragetheemployees tobecome thecompany's
shareholders.

Establishmentof Tatung HighSchool.

Mass
production of
Tatung ricecookers, arevolutionary
step forhousewives in
Taiwan.

The Company
becamepublicly
listed on the
Taiwan Stock
Exchange.

1992
1977
Participated in
the Ten Major
Infrastructure
Projects with theconstruction ofa slag treatment
facility for China
Steel Corp. andprovision of theturnkey solution
for the CKS
International
Airport's power
control station.

The Company
subsidized employees
to buy corporate
stocks since 1992 aspart of their savings.

1963
Founded Tatung
Soccer Team whichis the only teamthat supported by a
private company.

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

2018 TATUNG CSR

1988
1956
Establishmentof Tatung
University.

Establishedthe "Pollution
Prevention
Educational
Center" topromoteenvironmental
education andto spread correctideas of pollution
prevention.

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

■ Established "Tatung

Environmental ResearchCenter" to provide thecompany with the mostprofessional environmental
analysis systems and tocomply with environment
regulations.
■ Started to publish "Tatung
Corporate Environmental
Report" to disclose
environmental information
and act as a tool tocommunicate with thestakeholders.

2008■ Ranked No.1 in Taiwan by

the Environmental Protection
Administration as the most
proactive corporation forthe promotion of green
consumption.
■ Introduced its luxury
condominium, "Tatung
Tomorrow World", a masterpieceof green architecture, tocommemorate Tatung's 90th
anniversary.
■ Started to publish "Tatung
Corporate Sustainability Report".

2010
2007
2004
2001
1993

1947
1942

established the system.

1962

2002

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

■ Implemented ISO 9001
quality management
system to continue
improving quality
performances. ★
★ All the factories haveestablished the system.

■ Implemented"Pollution, Prevention,
Pays, 3P" programin the corporation
to incorporate theconcepts of Clean
Production and Designfor the Environment into
Tatung's culture. ★
★ 1. 17 factories and

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

All the factories haveestablished the system.

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

Carry out greenhousegases inventory
voluntarily in thefactories andsubsidiaries basedon the requirementsof ISO14064-1. The
emission information
is disclosed in thecompany website andCSR report.

■ Started to carry out
product carbon
footprint to disclose
carbon emission
information for
products. ★
★ 1 model of motors, 1

model of amorphoustransformers, and 1
model of rice cookers
completed productcarbon footprint
inventory.

■ Organized "Tatung
Charity Soccer
Summer Camp"
since 2010. In aneffort to help theunderprivilegedchildren to cultivatea proper and healthy
hobby, and also togain happiness andsatisfaction as well as
positive attitude. ★
★ Organized for 8

consecutive years.

subsidiaries participatedin 3P program in 2017.
2. Currently there are 175
models that having
effective Green Mark,
Energy Label or Water.

Tatung CSR milestone – centennial review

2018

Tatung CSR milestone – centennial review &Summary of 2017 CSR performances

TATUNG CSR■ Sales revenues....................................................... NTD$ 17.483 billions■ EPS.......................................................................................... 0.03 dollars■ Awards................................................................................... 13 awards■ Percentages of external/independent directors in Board of2014■ Co-organizing "Smart

2012
Won the bid of
Hualien-Taitung
Railway Electrification
Project by the Ministryof Transportation andCommunications
taking part in thenational momentous
infrastructure project
for the green
transportation of theEast. ★
★ Won the 2016

Excellence inEngineering ProjectAward by the
Chinese Institute ofEngineers.

City Summit and Expo" topromote Tatung's uniquetotal solution for smart
energy saving system.

★ Participated for 4 consecutive

years.
■ Acquired the certificate

of registration of ISO / IEC
27001 by British Standards
Institution for the information
security management
system of both Tatung andeTungGo, Tatung's online
shop.
■ Established the social
responsibility policies andthe social responsibility
practice principles. ★

Directors............................................................................................ 56%■ Governance.......... Revised "Tatung Corporate Governance Best2016
The Company
engaged in a multiple
academia-industrial
cooperation projectwith the Soochow
University marking
a new milestone for
the Company's crosscampus cooperation.

ance
n
r
e
gov

and
c
i
m
no
Eco
Social dimension：
En
vir
on
me
nta
l di
men
sion
:

2015
■ Establishing eTungGo, Tatung's

online shop, to involve in
e-commerce business.

■ Started to purchase Green2011
New Energy BU
won Taiwan Power
Company's first bidof Low Voltage
AMI Pilot Project,a revolutionary
milestone forthe intelligent
management systemof electricity usage forhouseholds in Taiwan.

2013

Power issued by Bureau ofEnergy in order to support
renewable energy policy in
Taiwan since 2015. ★

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

★ By the end of 2017, Tatung has★

★ San-Hsia Factory, Taoyuan Wires

By the end of 2017, Tatung
has installed 70MW of solar
power system in Taiwan
which is able to cut off
41,000 tons of CO2e.

purchased 1,391,100 kw-hr ofGreen Power which is able to cut
off 735 tons of CO2e.

■ Implemented ISO 50001

energy management system
to continue improving energy
performances. ★
and Cables Plant, and Tayuan
Plant have established thesystem.

■ Started to publish "Tatung

Corporate Social Responsibility
Report". ★

:
sion
n
e
dim

Practice Principles", "Tatung Corporate EthicalPrinciples", and "Tatung Corporate Social
Responsibility Best Practice Principles".
■ Ratio between company's basic salary and legal salary.......................................................................................... 1.27 ∼ 1.64：1■ Percentages of managers from local in high level management.......................................................................................................... 100%
■ Disclosure on non-financial information...............................................
Publishes CSR report for 16 consecutive years.

labor incident......................................................0■ Percentage of local employees............. 94.82%■ Salary ratio between female and male
employees......................................... 0.88 ∼ 0.9:1■ Percentage of employees who are labor

union members......................................... 79.35%■ Average education/training hours... 8.32 hours■ Return to work percentage for............................
Male：33%, Female：80%■ Correction percentage of "Occupational

Accident Prevention Pays" program........... 98%

2017■ No. of non-competitive behavior incident..... 0■ No. of product that violated product safety■ Formed a board of

directors that more thanhalf of the members are
independent directors
and external directors tofurther enhance corporate
governance.
■ Established "Tatung
Shan Chih Education
Foundation" (temporarilytranslated), aiming at
cultivating professional
technology talents.

■ No. of discrimination, forced, or compulsory■ The factories that have implemented ISO 14001: 2015......

Tayuan Plant, Taoyuan Wires and Cables Plant, and SanHsia Factory■ Correction percentage of 3P program................... 96.67%■ Electricity reduced.................................... 2.35 million kw-hr■ Amount of GHG emission reduced.....1,024.85 tons CO2e
■ The percentage of product which achieved energy
intensity goal.................................................................... 56%■ Amount of industrial waste reduced.....................................
13.49% less than in 2016
■ Waste recycling percentage ................................... 75.45%■ No. of green product which were certified..........................
Green Mark: 4 models
Energy Label: 74 models
Water Label: 9 models
Carbon Footprint Label: 1 model■ No. of incident that violated environmental regulation.....................................1 incident and fined NTD$ 30,000

regulation............................................................ 0■ No. of incident that violated advertisement/

promotion regulation......................................... 0■ Customer satisfactory.............................. 95.30%■ No. of complaint about information............... 0★ Won Taiwan Corporate

Sustainability Report Awards foryear 2008, 2013~2017.

2018 TATUNG CSR

Summary of 2017 CSR performancesChapter 1
Identification of the stakeholders andmaterial topics

Note 1：http://www.tatung.com

Stakeholder
groups

1.2 Engagement with the stakeholders
Tatung takes great concern on stakeholders' opinions. We have direct engagement channels for all
stakeholders to collect their concerned topics in order to continue improve our CSR performances.
▲▲

Stakeholder
groups- Onsite audits / Irregular
Instructors of Tatung. Following- Hearings, seminars / Irregular
the government policies andcomplying with regulations is thebasic principle of Tatung.

Suppliers

Suppliers are partners that Tatung -Supplier complaint mailbox
supplier@tatung.com / Irregular
has grown up with. With theirhigh quality materials, products, -Supplier evaluation, annually re-evaluation / Once per year
and services, Tatung successfully -Supplier assessment / Once per month
expanded the business year by
year.

Consumers

TCPC phone lines (+886-800052666), Tatung 3C Stores, official
Supporters of Tatung products.
For the past 60 years, Tatung has websites, etungo online shopping website / Irregular
accompanied countless households -Satisfactory survey / Upon shoppingin their growing family time.

Table 1.2-2 The concerned topics by the stakeholders and Tatung's responses

Shareholders

Communication channels and frequencies

The investors who support
Tatung.

-Shareholders' meeting / Once per year
-Irregular shareholders' meetings, direct phone line (+886-225925252 ext. 3258/3259), shareholder e-mail / Irregular-Disclosure of financial information on official website and MOPS
(market observation post system) / Every month

Customers

The companies having businesswith Tatung.

Customer service, PM / Irregular

Employees

The most valuable assets. With
their innovated ideas andexperiences, Tatung is capable
to counter any challenges.

-Chairman's mailbox, HR mail box, complaint mechanism,
scheduled education and training, notice board / Irregular-Biweekly HR newspaper / Once per 2 weeks-Health and Safety Committee in the headquarter and factories /Once per 3 months-Labor-management meeting / Once per quarterly

Localcommunities
and parties

Tatung's good neighborhood. By -Direct phone lines / Irregularcommunicating with them, Tatung is -Social charity/donation activities / Irregularable to find out what more we cando to carry out corporate social
responsibility.

1 2018 TATUNG CSRStakeholder
groupsConcerned topics

Tatung's responses

Chapters

Shareholders

Governance and financial
performances

1. Strengthening the brand image.
2. Focusing on the overall solution of green energy,
energy creation and energy conservation.
3. Activating assets.
4. Adjusting the investment portfolio.
5. Focusing on corporate governance and internal
control.

2.2、2.3、3.2

Customers

Product quality

Establishing ISO 9001, enhances supplier quality
management, products that pass related verifications.

4.2

Employees

Labor rights, welfares

Complying with labor and health and safety regulations. 5.3、5.4

Local
communities
and parties

Pollutant emissions,interaction with local
communities

1. Installing air pollutant and wastewater treatment
facilities.
2. Participating in community development andcharities events through commercial activities, noncash property endowments, volunteer service andother free professional services.

Authorities

Compliance

Carrying out internal control and internal audit to ensure 3.2、6.1
conformity.

Suppliers

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

Establishing ISO 9001, enhances supplier quality
management, products that pass related verifications.

Consumers

Product safety and labeling, 1. Establishing feedback and anti-recurrence
mechanisms.
personal information
2. Continue to manage customer information in
management
accordance to regulations.

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

Communication channels and frequencies

Authorities

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

Meaning to Tatung▲▲

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

2018

TATUNG CSR

5.5、6.3

4.1、4.2

4.2、4.3

Chapter 1 Identification of the stakeholders and material topics

2

2018

Chapter 1
Identification of the stakeholders and material topics

TATUNG CSR

1.3 Identification of material topics
Tatung concluded 27 possible topics that may have impacts to the stakeholders and to thecompany based on the operation experiences, future competitive strategies, and the latest
global trends on sustainability such as GRI Standards indicators and UN SDGs (Sustainable
Development Goals). The topics are listed on Table 1.3-1.

Futurecompetitive
strategies

High

Latest global
trendsSocialdimension

Environmental
dimension

Internal meetings,
discussions, andconfirmation

Prioritizing topics internallyMaterial topics deciding process
Responding the Material topics
in CSR report

Concern Level↓

Evaluating and prioritizing
topics based on theopinions gathered fromstakeholders and thecompany

Economic and governancedimension↑

Topic generating process
Invite stakeholders to express theirconcerns on the topics by survey

In order to receive opinions from wide range of stakeholders, Tatung invited stakeholders to fill insurveys which included the 27 topics mentioned above during 2017.12.22~2018.1.12. In addition,
there were also some opinions received from online survey on the company's official website. The
data collected was analyzed and the most concerned topics by the stakeholders were ranked in
Figure 1.3-2 .

▲ Figure 1.3-1 Material topics identifying process▲▲

Table 1.3-1 Tatung's sustainable topics

Training and education

Customer relation
management

Comply with environmental
regulations

3 2018 TATUNG CSRChild labor, forced or compulsory labor

Environmental friendly
products

Freedom of association and collective bargaining

Marketing and labeling

Disclosure on non-financial information

Occupational health andsafetyPerformance review and career development

Anti-competitive behavior

Anti-competitive behavior

Management on the waterand resources

Social participation

Product quality and safety

Human rights, equality, and non-discriminations

Labor/management
relations

Supplier management

Market presenceTraining and education

Wastes management

Management on the water and resources

Social participation

Occupational health and safety

Performance review andcareer development

Market presence

Disclosure on non-financial
information

Energy and green house gases management

Management on the waterand air pollutants

Risk management

Child labor, forced orcompulsory labor

Environmental management

Employment

Labor/ management relations

Risk management

Management on the water and air pollutants

Environmental
management

Wastes management

Freedom of associationand collective bargaining

Customer relation management

Supplier management

Marketing and labelingCorporate governanceand ethical practice

Employment

Energy and green housegases management

Comply with environmental regulations

Human rights, equality, andnon-discriminations

Environmental friendly products

Comply with social andeconomic regulations

Comply with social and economic regulations

Economic performance

Low
Corporate governance and ethical practiceEnvironment dimension

Economic performance

Social dimension

Product quality and safety

Economic andgovernance dimension▲ Figure 1.3-2 The ranking of concerned topics by the stakeholders

Chapter 1 Identification of the stakeholders and material topics

4

2018

Chapter 1
Identification of the stakeholders and material topics

TATUNG CSR

During the identiﬁcation process, CSR Reporting Group evaluated the probability, the inﬂuence,and the level of impacts that brought by the topics and graded them (grade 1~5). At the sametime, the grades from inside and outside the company were evaluated and discussed by CSR
Reporting Group and the combination grading (12 and above) for the topics that located onblue color region in Figure 1.3-3 were identiﬁed as the material topics.

High

Economic and governancedimension

5.00

Socialdimension

Environmental
dimension↑

Corporate governance and ethical practiceThis year, we identified 12 material topics from total 27 topics. They are "Corporate governance and ethicalpractice", "Disclosure on non-ﬁnancial information", "Product quality and safety", "Comply with social andeconomic regulations", "Customer relation management", "Labor/management relations", "Occupational
health and safety", "Comply with environmental regulations", "Environmental friendly products", "Managementon the water and air pollutants", "Wastes management", and "Energy and green house gases management".
From Table 1.3-2, we can see that the material topics have shifted from labor related topics to environmental
topics in 2018. This indicates that our efforts put into labor rights management in 2017 have earned the trustfrom the employees and the stakeholders. Nevertheless, as the air quality is getting worse and the stress ofenergy shortage is getting higher in recent years, the public is paying a great concern on air pollution andenergy issues. The detailed management measures and performances in regarding to these 12 material topics
will be disclosed in next chapters. Table 1.3-3 shows the relevancy of the material topics amongst our value
chain.
▲▲

Significance of economic,
environmental, and social impacts

Disclosure on non-financial information

4.00

Labor/ management relations
Occupational health and safety
Energy and green house gases management
3.00

12

9

6

2

1

Management on the water andair pollutants
Comply withenvironmental regulations
Product quality
Wastes management Comply with social and and safety
Customer relation economic regulations
management
Environmental friendly products
13

5
4

↓

10
3

2.00

15

14
11

Table 1.3-2 Comparison of material topics for year 2017 and 2018
2017

Recruitment
Marketing communications
Education and career
Product labelingdevelopment
Occupational health and safety Product quality and safety

Corporate governance andethical practiceDisclosure on non-ﬁnancial
information
Product quality and safety
Comply with social andeconomic regulations
Customer relation management

Labor/management relations

Labor/management relations

Corporate governanceLabors right

Forced labor

WelfareGlobal warming

8

7

▲
▲

Low 0.00
3.30

3.20

3.40

↑

Low

3.50
3.60
3.70
Influence on stakeholder assessments
and decisions

↓

3.80

3.90

4.00

High

▲ Figure 1.3-3 Visual representation of material topics

No.

Economic andgovernancedimension

Anti-competitive4
behavior
10 Market presence
11 Risk management
15

Economic
performance

5 2018 TATUNG CSR

Dimensions

Social dimension

Child labor, forced or
1
7 Training and education
compulsory labor
Freedom of association2
8 Supplier management
and collective bargaining
Performance review and3
13 Marketing and labelingcareer development
5 Social participation
Human rights, equality,
6
and non-discriminations

14 Employment

No.

Environmental
dimension

Management on the9water and resources
Environmental
12
management

SocialEnvironment

Occupational health and safety
Comply with environmental
regulations
Environmental friendly productsManagement on the water andair pollutants
Wastes management
Energy and green house gases
management

Table 1.3-3 The boundaries of material topics

Material topics

Corporate governance andEconomic and ethical practice
governance Disclosure on non-ﬁnancial
information

Other topics
No.

2018

Tatung Co.

SigniﬁcantSubsidiaries DMA pages
subsidiaries1

GRI indicators

UN SDGs
Not Applicable

■

■

△

15、17、23

Not Applicable

■

■

△

25、26

Not Applicable

Product quality and safety
Comply with social andeconomic regulations
Customer relation management

■

■

△

31、33

GRI 416-1、416-2

Not Applicable

■

■

△

23、42

GRI 419-1

Not Applicable

■

■

△

38

GRI 418-1

Not Applicable

Labor/management relations

■

■

△

45

GRI 402-1

Occupational health and safety

■

■

△

51、52、53

GRI 403-1、403-2

■

■

△

23、61

GRI 307-1

Not Applicable

■

■

△

72、73

GRI 302-5

Not Applicable

■

■

△

68、69

GRI 305-7、306-3、306-5

Comply with environmental
regulations
Environmental friendly productsManagement on the water andair pollutants
Energy and green house gases
management
Wastes management

■

■

△

63、65、66

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

■

■

△

70

GRI 306-2

Note: ■ represents that the information is disclosed in this report.
△ represents that the relevant management measures are applied to the subsidiaries, however the related information is unable to retrieve.
Note 1: Represents CPT, GET, and Elite Groups. Their information in regarding to these material topics is disclosed in their CSR reports and/or their ofﬁcial websites.

Chapter 1 Identification of the stakeholders and material topics

6

2018

Chapter 1
Identification of the stakeholders and material topics

TATUNG CSR

SDGs

1.4 UN Sustainable Development Goals
UN announced Sustainable Development Goals (SDGs) in September 2015 to be a roadmap
to sustainable development for the next 15 years. Corporations are playing important roles tothe success of SDGs. As a local company who has been deeply plowed for a century, Tatung
supports SDGs and integrates the goals of "Responsible consumption and production", "Reduced
inequalities", "Decent work and economic growth", "Affordable and clean energy", "Clean
water and sanitation", and "Climate action" into our sustainable strategies. In the material topics
identified this year, "Management on the water and air pollutants", "Environmental friendly
products", "Occupational health and safety", "Product quality and safety", "Wastes management", and "Energy and green house gases management" are also consistent with goals mentioned
above. The measures taken for SDGs are listed on Table 1.4-1.
▲
▲

SDGs

Table 1.4-1 The measures taken for UN SDGs

Description

Measures►By 2030, improve water quality by★ Maintain well function of the waste
Ensureaccess to
reducing pollution, eliminating dumping
water treatment facilities in the factories
water andand minimizing release of hazardous
to ensure the quality of the effluents are
sanitation forchemicals and materials, halving thecomplied with the standards.
allproportion of untreated wastewaterand substantially increasing recycling
and safe reuse globally.

Ensureaccess toaffordable,
reliable,sustainable
and modern
energy for all

7 2018 TATUNG CSR►By 2030, increase substantially the share ★ Expanding solar power system and aimof renewable energy in the global
energy mix.
►By 2030, double the global rate of
improvement in energy efficiency.

to achieve 100MWp capacity by theend of 2018.
★ All motors are met with IE3 standard andworking hard to develop IE4 motors.
★ Raising energy efficiency on the
products and continually applying forEnergy Label, Green Mark, and Water
Label.
★ Providing consumers Tatung Smart HEMS
which offers users total managementof home energy consumption withappliance control, energy consumption
monitoring, and self-monitoring
functions.

Description

Measures► By 2030, achieve full and productive★ Ensuring the salary of employees is complied
Promoteinclusive andemployment and decent work for allwith the regulation or better.
★ Conducting "Working condition
sustainable
women and men, including for young
economic
people and persons with disabilities,
monitoring" and running health andgrowth,and equal pay for work of equal value.
safety management systems like OHSAS
employment ► Protect labor rights and promote safe
18001 and CNS 15506.
and decent
and secure working environments for all
work for all
workers, including migrant workers, inparticular women migrants, and thosein precarious employment.
► By 2030, empower and promote theEnsuresustainablesocial, economic and political inclusion
consumptionof all, irrespective of age, sex, disability,
andrace, ethnicity, origin, religion or
production
economic or other status.。
► Ensure equal opportunity and reduce
patterns
inequalities of outcome, including
by eliminating discriminatory laws,
policies and practices and promoting
appropriate legislation, policies andaction in this regard.

★ Complying with human rights► By 2020, achieve the environmentally
Ensuresustainablesound management of chemicals andconsumption
all wastes throughout their life cycle, inandaccordance with agreed international
production
frameworks, and significantly reduce
patterns
their release to air, water and soil inorder to minimize their adverse impacts
on human health and the environment.
► By 2030, substantially reduce waste
generation through prevention,
reduction, recycling and reuse.
► Encourage companies, especially large
and transnational companies, to adopt
sustainable practices and to integratesustainability information into theirreporting cycle.

★ Complying with RoHS and REACH

Take urgent
action tocombatclimatechange andits impacts

regulations, supporting gender equality,and banning discrimination of any
form are set in the clauses of "Tatung
Corporate Social Responsibility BestPractice Principles".
★ Recruiting only on capability.

regulations to ensure a green supply
chain.
★ Implementing waste recycling in thefactories and aiming the recycling rate
higher than 75%.
★ Paying "Recycling and Cleaning Fee"to the government agency (Recycling
Fund Management Board) to carry out
countrywide waste recycling affairs.
★ Recycling wasted large home
appliances, batteries, and CDs in
Tatung 3C Stores.
★ Publishing Tatung CSR Report in Juneevery year to disclose company's
sustainable information.

► Integrate climate change measures★ Carrying out green house gases
into national policies, strategies andinventory every year based on ISO
planning.
14064-1.
★ Announcing energy saving target – the► Improve education, awarenessraising and human and institutional
products' energy intensity will be 6%
capacity on climate change mitigation,
lower in 2018 when comparing to 2013.
adaptation, impact reduction and early ★ Having environmental education courses
warning.
opened to the employees, and GHG
management course to the specialties.

Chapter 1 Identification of the stakeholders and material topics

8

Chapter 2
Profile of Tatung Company

2018

TATUNG CSR

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 isdedicated to manufacturing energy-saving products, systems and services with three business groups
working on smart grids, smart communities and smart households to produce a number of energy-saving
and highly efficient electronic products, household appliances, high-efficiency smart motors, power supply
facilities and automatic control products. They are fully integrated with information and communication
systems as well as well-rounded and instant services in relation to their products and solutions.
Our smart grids rely upon our system solutions and power business groups for the supply of smart electricity
meters, communication modules, concentrators, FTU/FRTU, high-efficiency and energy-saving motors andtransformers and switch/control gears, etc. We also provide such fully integrated system solutions andtechnological services as AMI communication and system control stations, advanced power distribution
automation, smart transformer stations and power plants.
Insofar as our smart community is concerned, our business groups of system solutions have integrated solar
power systems, energy-saving systems, other recyclable micro-grid systems, the SHMS system (for householdenergy saving, security, and health care), and the SBMS system (for corporate smart buildings to manage
energy saving) into our well-rounded solutions and technological services.
▲▲

Figure 2.1-2 Tatung Co. global network

For smart homes, we have integrated the Company's
manufactured appliances and system solutions into anadvanced solution for smart home applications which
can be used on cell phones or tablets. Together withour cloud services, in order to provide an energy-saving,
convenient, safe and healthy smart life we offer smart,energy-saving and environment-friendly household
appliances, IP cameras, surveillance systems, smart
gateways, energy-saving sensors, environmental sensors,etc.
As a conglomerate, Tatung's investees involve in somemajor 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 Chunghwa Picture
Tubes (2475), Forward Electronics (8085), Shan Chih
Semiconductor (3579), Green Energy Technology (3519),
Tatung Fine Chemicals (4738: Emerging stock market),
Elitegroup Computer Systems (2331), and Tatung System
Technologies (8099). Please refer to Annex 1 for the list of
consolidated entities.

Capital (Billion NTD) :NT$233.95

No. of employees:
3,070
Operation sites:• Headquarter: No.22, Sec. 3, Zhongshan N. Rd., Zhongshan Dist.,
Taipei City

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

• Taoyuan 1st Plant: No.38, Ln. 1119, Daguan Rd., Dayuan Dist.,
Taoyuan City

• San-Hsia Factory: No.352, Xidong Rd., Sanxia Dist., New Taipei City

▲ Figure 2.1-1 Information of Tatung Co.

U.S.A.

Japan

Czech

Sales revenue (Billion NTD):
NT$174.83

China
Dubai

MexicoMyanmarThailandSingapore

Taiwan Tatung Co.
Headquarter
San-Hsia Factory
Tayuan Plant
Tayuan Wires and Cables Plant
Tayuan 1st Plant

Power BG
Consumer BG
System BG
INVESTMENTS

9 2018 TATUNG CSRPower Equipment BU

Motor BU

Advanced Electronics BU
Smart Meter BU

Solar Energy BUElectrical Engineering Division
Appliance BU
System Integration BU

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

Chapter 2 Profile of Tatung Company

10

2018

Chapter 2
Profile of Tatung Company

TATUNG CSR

2.2 Financial performances

Tatung received many awards and certifications on operations and products in 2017 (Table 2.1-3). Tatung also endorses
initiatives in regarding care disadvantaged groups and employee's health (Table 2.1-4). All these acknowledgementsfrom all sides are certainly the drive behind the growth of Tatung.
▲▲Member

The Third Wednesday Club
Chinese International Economic
Cooperation Association
Chinese National Association of Industry
and Commerce, Taiwan
CNS Certification Mark Association, R.O.C.
Information Service Industry Association of
R.O.C.
ROC-USA Business Council
Industrial Association of Taipei City
Taipei Electrical Commercial Association
Taiwan Telematics Industry Association
Taiwan Wind Energy Association
Taiwan Electrical and Electronic
Manufacturers' Association
Taiwan Refrigeration and Air-Conditioning
Engineering Association R.O.C.
Monte Jade Science & Technology
Association of Taiwan
Taiwan Institute for Climate Change andEnergyTaiwan Motor Industry Association■

Managing
role1

■
■
■
■
■
■
■
■
■
■

■

■

■
■
■
■

▲
▲

✽

Industrial Appliance
Tatung SM-Cyclo Co. , Ltd.
Business and System
Chemical Engineering ✽ Tatung Fine Chemicals Co. , Ltd.
Business
Asset Development
Shan Chih Asset Development Co. , Ltd.
Business

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

Managing
role1

■
■
■
■
■
■
■

■

■
■
■
■
■

■

■

Note 1: Managing role includes director and supervisor.

Table 2.1-3 Awards received in 2017
Award

Description

Taiwan Excellence Award
2017

Silver Award: Fusion Cooker (TSB3016EA).
Excellence Award: Multi-Functional
Cooker (TAC-06HT), Tatung Smart
Appliance, Harvest Series WPI Motor(5~75HP 2P / 5~300HP 4P / 10~100HP
6P), Water-cooled Package (TC30LNXF), Cooking Pot (TEK-1016EA),
Tatung Smart Partial Discharge Analyzer(OOPDT-2), Cooling Air Recovery Air
Source Heat Pump (THAF-8HK1A / TFP8HK1), Tatung Cooker Recipes APP.

Energy Conserving Award
by Bureau of Energy

The headquarter

Energy Saving Model by
The headquarter
Bureau of Energy
Taiwan Corporate
Sustainability Award –2017 Tatung Corporate Social
Corporate Sustainability
Responsibility Report
Report Silver Award
Health and Safety Model by
Industrial Safety and Health Association of the R.O.C.

Table 2.1-4 Initiatives endorsed
by Tatung Co.

Organization

Item

Chinese Blood Donation
Association

Corporate blood donation

Health Promotion Administration

Smoke-free work place

Health Promotion Administration

Healthy work place▲▲

Chunghwa Picture Tubes, Ltd.
Forward Electronics Co. , Ltd.
✽
Shan Chih Semiconductor Co. , Ltd.
✽Green Energy Technology Inc.
Energy Solutions
Tatung Forever Energy Co., Ltd.
Business
Tung Yang Energy Co., Ltd.
Tatung Consumer Products (Taiwan) Co.
Retail Channel Business , Ltd.
✽
Tatung System Technologies Inc.
Electronics &Central Research Technology Co. , Ltd.
Information Business✽

MemberTaiwan Environmental Engineering
Association
Taiwan Smart Grid Industry Association
Industrial Safety and Health Association of
the R.O.C.
Taiwan Digital Television Committee
Chinese Institute of Engineers
Taiwan Society of Heating, Refrigeratingand Air-Conditioning Engineers
Electric-Electrionic & Environmental
Technology Development Association of
R.O.C.
SINOCON Industrial Standards Foundation
Importers and Exporters Association of
TaipeiTaiwan Electrical Contractors Association
Taiwan Electric Wire & Cable Industries
Association
Taiwan Association of Machinery Industry
Taiwan Water Pipe Engineering Industries
Association▲▲

Table 2.1-2 The main domestic
subsidiaries of Tatung

Association/organization▲▲

Association/organization

Optoelectronics

In 2017, owing to the stable recovery of major
economies in the world, while Tatung continues toengage in corporate transformations and operational
advancement, the operation of the subsidiaries have
improved significantly, overall business operating results
have turned profitable. 2017 Tatung standalone revenue
was NT$17.48 billion, operating loss was NT$0.17 billion,
together with non-operating income from investments,
the net profit after tax was NT$74 million which resulted
in a capital gain of NT$0.03 per share.

Table 2.1-1 Membership status in the associations

Tatung's operating profit had risen by 1.29% in 2017
compare to 2016. Regardless of the declination in
Consumer BG as its home appliance business in mature
markets, the System BG and the Power BG gained
revenue growth with smart meter, solar power andcable projects, thus, the individual revenue had risen
than that of the last year. With respect to the investment
businesses, CPT had turned loss into profit compared toyear 2016, GET's reduction of losses had recognized, ECS
had also turned losses caused by bad debt into profit,
and the reduction of loss or the rise of profit of several
other investment businesses have also recognized.
Therefore the profits increased compared to year 2016
which led to NT$1 billion net profit in investments in 2017.
Tatung operates normally on a daily basis and accepts
no financial support from the government. For moredetailed financial performances, please refer to "Tatung2017 Annual Report " which can be downloaded at:
http://www.tatung.com/Content/annual-report.asp

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

Item
Operating revenue
Realized gross profit
Personnel expenses1
Unit:
NT$ Thousand Income from operations( )represents Non-operating income and expenses
negative
Income tax benefit
valuesNet loss attribute to equity attributable toowners of parents
Earnings per share (NT$)
Dividends per share (NT$)

2013

2014

2015

2016

2017

24,087,818
2,394,002
2,810,058(257,408)(1,490,473)
136,473

21,295,466
1,846,739
2,700,133(874,725)
1,209,308
28,95618,151,104
1,581,503
2,518,948(966,334)(2,107,282)(1,399)17,259,632
2,404,376
2,403,307(51,462)(2,363,313)
70,83017,482,835
2,164,903
2,379,086(177,326)
214,72136,675(1,611,408)

363,539(3,075,015)(2,343,945)

74,070(0.70)
00.16
0(1.35)
0(1.03)
00.03
0Note 1: Personnel expenses include salaries, staff labor and health insurance, pension, and others.

Note: * Listed/OTC and Emerging companies.

11 2018 TATUNG CSR

Chapter 2 Profile of Tatung Company

12

2018

Chapter 2
Profile of Tatung Company

TATUNG CSR

2.3 Services and products

The production values and sells information are shown on Figure 2.3-1 and Figure 2.3-2.

27,827,274
12,041,919

13,850,160

350,216

390,640

5,475,033

12,677,808

399,245

2016

2017

▲ Figure 2.3-1 Tatung's production values

60,000,000

53,993,039

57,553,252

NT$
Thousand

Domestic

2015

Overseas Domestic

2016

Overseas Domestic

2017

326,537
3,577,037
9,057,769

Overseas

33,567,544

2014

3,821,659
13,432,551
19,084,084
1,172,276

Domestic

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

Overseas32,655,577

2013

Others3,582,593
14,543,661
17,995,465
414,068

Domestic

Consumer products sector

Machinery and energy sector

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

0

5,308,973
14,987,003
19,932,691
330,267

296,077

10,000,000

11,942,798
11,290,607

20,000,000

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

30,000,000

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

40,000,000

Optical sector

36,964,275

50,000,000

11,129,715
10,054,574

13 2018 TATUNG CSR

2015

Note: Data from consolidate report

1,107,232

In 2017, the Power BG continued its adjusted strategy to develop smart, energy-saving and highly efficient products.
Based on the IE3 technology and incorporated with various special application needs, we developed ultra-highefficiency motors such as explosion-proof motors, TSMS, and TiMS, which can be applied in either cable or wirelessIoT data transmission. In addition, after a long-term verification, our transformer products were accredited with
KEMA certification in April 2018, which will promote the sales in the international market. Meanwhile, we adjusted theconfiguration of production line and appropriately replaced old equipment to enhance the cost competitiveness oftransformers.

Others5,573,671

2014

24,421,043

Power Business Group

406,645

2013

System Business Group
Tatung will advance its development of solar energy generating systems from small sized rooftop panel into large
ground-based or water-based power plants. We have continuously obtained the land needed for the power plant in
Yu-guang special district, Qigu, Tainan, and we expect to obtain the related licenses and can start construction on thedevelopment by the end of 2018; in early 2019, the construction will be completed and start to generate electricity. To
conform to the expansion of large scale solar and wind power constructions in Taiwan, we will provide the constructionplans for full range of large transformer stations to meet business needs, and in the future, we will make good use of
our equipment and electromechanical integration capabilities to gain access to power plant business opportunities inoperational and maintenance products. In 2017, Tatung Smart Meter had obtained the government contracts while
it continues to expand in foreign markets such as Japan and Thailand. With respect to Smart Microgrid, by integrating
solar photovoltaic power generation systems, energy storage, smart meters, and distributed grids, we provide the mostcomplete smart energy solutions and services. We are confident that we will become the leading company in smart
energy management in Taiwan, and we expect that AI and system businesses to be an important measure of the
profitability of the company.

3,188,6710註：合併報表數字484,033

10,000,000

14,466,940

17,367,687

20,000,000

Consumer products sector

Machinery and energy sector

26,999,522

40,000,000

30,000,000

Optical sector

38,095,214

50,909,666

50,000,000

4,150,419

In order to improve customer experience and enhance appliance product value, we autonomously succeeded in
integrating the R&D of Smart Home Devices and Smart Home Cloud services, such as AI rice cooker and various kindsof home appliances, all the smart products services are provided through Smart Home Cloud services, customers caneasily control the operation of equipment remotely by the functions of scheduling, situation, and power management.
Therefore Tatung and the foreign affiliates have strived to pursue the overseas markets including America, Japan, andSoutheast Asia. We're looking forward to watching Consumer BG continue to grow in revenue from global sales.

60,000,000

21,117,249

Consumer Business GroupNT$
Thousand

54,464,666

Tatung holds three business groups. To sustain strong and long-term growth, Tatung focusesparticularly on the development of advanced technologies and global network of operation.
With her overseas branches expanding into 12 countries, Tatung is in a solid position to deliverproducts more efficiently and render customer services more effectively.
Global warming caused by climate change has brought risks to the operation of the business,but also created opportunities. In view of energy saving and carbon reduction has become
the subject of global attention; Tatung is dedicated to manufacturing energy-saving products,
systems and services with three business groups working on smart grids, smart communities andsmart households to produce a number of energy-saving and highly efficient electronic products,
household appliances, high-efficiency smart motors, power supply facilities and automatic
control products. They are fully integrated with information and communication systems as well as
well-rounded and instant services in relation to their products and solutions (please see Annex II
for product information). Tatung's future development priorities as follows:

Overseas

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

Chapter 2 Profile of Tatung Company

14Chapter 3
Organization structure and governanceTarget and performances
Governance
Short-termtarget

1. Organize Corporate Governance Committee in 2018.
2. Draft principles regarding to corporate governanceand modify them when receiving new request from
authorities.

Mid-term
target

All the operations follow related governance principles andindicators in Corporate Governance Evaluation.

Long-term
targetManagers and employees of Tatung follow ethical principle
to avoid breaching regulations and ensuring company's
sustainable operation and performance, as well as
concerns about social issues and practices corporatesocial responsibility.

Performance

3.1 Corporate structure
The governance structure of Tatung is shown on Figure 3.1-1. The top manager is Chairman& General manager Wen-yen Kuo Lin. Apart from the administrative divisions, Tatung is also
consisted with Power BG, Consumer BG, System BG, and domestic/overseas subsidiaries.
1

Amending "Corporate Governance Best PracticePrinciples", "Corporate Social Responsibility
Best Practice Principles", and "Corporate EthicalManagement Best Practice Principles".

Publish CSR report every year.

Published 2017 Tatung Corporate Social
Responsibility Report in June 2017 (for the
16th consecutive year) and disclose it on
Tatung official website and MOPS.

Consumer BG

Advanced Electronics BU
3Appliance BU

4Smart Meter BU
System BG

Shareholders'Meeting

Board ofDirectors

ChairmanPresidentInternal Audit Committee

Mid-long
term target

2

Motor BU

Electrical Engineering DivisionCorporate Governance Committee

Follow GRI Standards to publish CSR Report from 2019.

Power BG

Remuneration Committee

Short-termtargetPower Equipment BU

Audit Committee

Disclosure on non-financial information

Performance

2018

TATUNG CSRSolar Energy BU
System Integration BU

HumanResources &GeneralAdministration
Division
Finance &Accounting
Division

Human Resources Division
Administration Division
Central Research InstitutePublic Relation Department
Finance Division
Accounting Division
Investment Division

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

Note: The chart is updated to April, 2018.
Note 1: Owns Tayuan Plant and Taoyuan Wires and Cables Plant at
Dayuan Industrial Park in Taoyuan City.
Note 2: Owns San-Hsia Factory in Sanxia district, New Taipei City.
Note 3: Owns Taoyuan 1st Plant in Dayuan district, Taoyuan City.
Note 4: Owns Electrical Meters Center at Tayuan Plant.

Quality and Customs Department
Domestic Subsidiaries
Overseas Subsidiaries▲ Figure 3.1-1 Tatung operation structure

3.2 GovernanceGood corporate governance and ethical management are the keystones for a corporate toachieve sustainable development. Since 1918, Tatung has taken "Integrity, Honesty, Industry, Frugality"
as her corporate values. In addition to complying with the regulations, continuing to observe thepulse of global trends, and striving to build a sound corporate governance structure. In recent years,
Tatung has faced severe challenges in operation. Other than continuing organizational reform,
focusing on operations and integrating group resources, Tatung also reviewed and revised corporate
governance procedures to improve and implement more stable supervision and management toeffectively handle the environmental, economic and social impacts, and improve the operational
efficiency of corporate governance and ethical management.

15 2018 TATUNG CSR

Chapter 3 Organization structure and governance

16

2018

Chapter 3
Organization structure and governanceTatung corporate governance best practice principles

In order to establish sound corporate governance system, Tatung adopted the principles of Taiwan Stock Exchange
Corporation (TWSE) and the GreTai Securities Market (GTSM) and published "Tatung corporate governance bestpractice 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.

Tatung corporate code of ethics

In order to guide the directors and managers of ethical conduct, for example, prevent conflicts of interest, to avoid thechance of personal interests and fulfill the duty of confidentiality, fair dealing, protection and proper use of company
assets, to follow the laws and regulations, to encourage the reporting of any violations of law or ethical behavior andconduct of disciplinary measures, Tatung has developed "Tatung corporate code of ethics" and agreed by the boardof directors.
In order to establish an ethical and sound management of corporate culture development to build up a good businessmode of operation, risk control mechanism and sustainable business environment, Tatung published "Tatung corporate
ethical principles". The principles prohibit director, supervisor, manager, employees, and mandataries or persons having
substantial control shall not conduct unethical behavior. Ethical training and education are conducted among thementioned personnel regularly. Persons and companies who have business with Tatung are invited to attend theeducation to fully understand the commitment made by Tatung.

Shareholders' meeting

The shareholders' meeting is consisted with all shareholders. The annual shareholders' meeting is held regularly andthe extraordinary shareholders' meeting is held irregularly according to relevant regulations. In order to improve theinformation disclosure and fully communicate with the shareholders, during the shareholders' meeting each case will
be voted each by each. In order to provide shareholders a more convenient way to exercise their rights, Tatung has
implemented the electronic voting system for the first time since the 2007 shareholders' meeting. As of 2017, the numberof electronic voting attendances in the shareholder's meeting has reached 40.63%.
Tatung has Spokesman and Stock Affairs Division which is responsible for gathering/disclosing company's information andresponding to shareholders. Tatung also setup company's official site in both Chinese and English to disclose the related
governance news and company activities and to act as a communication channel between the company and shareholders1.
Regarding to the dispute arising from the elimination of the candidate list of directors proposed by the market before the 2017
shareholders meeting, Tatung fully complied with the provisions of the Company Act to conduct a review of the nomination of
directors. There was no such thing as abuse power to review like media reported. Tatung also published material information on
2017.9.18: "The relevant litigation regarding to director nomination has been tried by the local court and the high court. On 2017.5.4,
the High Court has clearly stated: "Tatung Company adopts the same standard for formal review. It is necessary to maintain thefairness of the election of directors and has a public interest. "It is believed that Tatung Company has indeed taken a formal review
to confirm that the nomination documents required by the company law are lacking."
Note 1: Contact window for shareholders
http://www.tatung.com/home/contactus

Board of directors
The highest governance body in Tatung is board of directors. After the re-election of directors in 2017, Tatung has five
directors made up from three independent directors and two external directors, forming a board of directors organized
by a majority of independent directors and external directors. The information of the board is listed on Table 3.2-1. All
the directors have professional qualifications in many fields and continuously to take trainings to enhance their ability
to run a company (Table 3.2-2). In 2017, the board held 9 meetings and the major resolutions are listed on Table 3.24. In addition, when there is event of conflicts of interest during board of directors' meeting, Tatung follows related
regulations to resolve it. The board made amendment of the company's compensation/remuneration mechanism forindependent directors in 2017, therefore three independent directors were avoided from the discussing and voting due
to conflict of interest reason.
In accordance with the resolutions made by the board of directors on March 15th, 2018, Tatung has established theregulations for assessing the performance by the board of directors and the other functional committees of Tatung.
Accordingly, the board of directors and other functional committees shall each conduct, at least once a year, aninternal performance evaluation. Meanwhile, at least once every two years, the board performance evaluation
shall be conducted by an external, independent, professional institution or a panel of external experts and scholars.
Internal and external board performance evaluations shall be submitted to the board of directors three months before
the first board meeting in the following year. Tatung will establish the procedures for the compensation of directors inaccordance with the following: the articles and operating rules of the incorporation, the above-mentioned regulations
and the related regulations set up by functional committees of Tatung. Their performance evaluation and reasonable
compensation need to be supervised by related functional committees and the board of directors. Meanwhile, theadopted compensation system for directors is, at any time, subject to change as a result from Tatung's operational
performance and changes made in related regulations.
▲▲

Tatung corporate ethical principles

TATUNG CSR

NameNationality or
corporate seat

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

Audit
Compensation
Gender committee
committee

Job title assumed in the Company and any other company
President of Tatung Company, Chairman of Tatung Information(Singapore) Pte. Ltd., Chairman of Tatung Mexico S.A. de C.V.,
Chairman of Tatung Czech s.r.o., Chairman of Elitegroup Computer
Systems Co., Ltd.
Chairman & President of Shan Chih Asset Development Co., Ltd., Directorof Tatung Industry Company, Director of Cheng Sheng Broadcasting
Corp., Director of Chunghwa Electronics Development Co., Ltd.
Chairman & President of Chih Sheng Realty Co., Ltd., Director of Tatung
Consumer Products (Taiwan) Co., Ltd.,Director of Kuender Co., Ltd.

Wen-Yen K. Lin

Republicof China(Taiwan)Chairman Female--

Tatung University(Representative
I-hua Chang)

Republicof China(Taiwan)Director

Male

-

-

Director

Male

-

-

Managing Director & Attorney at-law, Peace & Grace International
Attorneys at Law.

Director

Male

-

-

Practicing Accountant Fortune & Co., CPAs.

Shou-Huang
Chen
Sheng-Wen Tsai

Lung-Ta Lee

Peng-Fei Su
Tzong-Der Liou
Chi-Ming Wu

Republicof China(Taiwan)Republicof China(Taiwan)Republicof China(Taiwan)Republicof China(Taiwan)Republicof China(Taiwan)Republicof China(Taiwan)Director

Male

-

-

Director

Male

◎

◎

Director

Male

◎

◎

Director

Male

◎

◎

Director & President of Shan Chih Semiconductor Co., Ltd., Director of
Tatung Fine Chemicals Co., Ltd., Director of Green Energy Technology
Inc., Director of Greater Power Ltd., Chairman & President of Chih De
Investment Co., Ltd., Chairman of Ultra Energy Holdings Ltd., Chairmanof Ultra Energy (Weifang) Technology Co. Ltd., Chairman of Shang
Chih International Chemical Industry Co., Ltd., Chairman of Huaian
Tatung Advanced Technology Materials Co., Ltd., Chairman of Wujiang
Shanghua Material Technology Co., Ltd., Chairman of Wujiang Shang
Huah Plastic Co., Ltd., Chairman of Dongguan Tongli Trading Co., Ltd.
Director of Chih Sheng Investment Co., Ltd., Director of Chunghwa
Electronics Development Co., Ltd., Director of Gintung Energy Co., Ltd.
Senior Vice General Manager in Investment Department, ChengYe Assets Management Co., Ltd., Independent Director, San Chih
Semiconductor Co., Ltd.
Distinguished Professor, College of Law, National Chengchi University,
Director, JinWen University of Science & Technology,
Chairman, Teacher Grievances Committee of Ministry of Education.
Associate Professor, Department of Finance, National Chengchi
University, Independent Director, TSC Auto ID Technology Co., Ltd.

Note: Chairman Wei-Shan Lin resigned and the board elected director Wen-Yen K. Lin to take up chairmanship on February 1, 2018.

17 2018 TATUNG CSR

Chapter 3 Organization structure and governance

18

2018

Chapter 3
Organization structure and governance

TATUNG CSR

Basic requirements
and values

Professional knowledge and skills

Educational background

Ability toAnAbility to
Ability
Ability toKnowledge international
Ability toperform
conduct conduct
to make accounting
crisisofthepolicymarket Ability to lead make
operational and financial management management industry
decisionsperspective.
judgments
analysis. administration

Wen-Yen K. Lin Female R.O.C. Master of Economics,
Chairman
Maryland University
Representative Male R.O.C. Bachelor ofof TatungMechanical
University
Engineering, Tatung
I-Hua Chang
University
Director































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

Attendance inpersonAttendance by
proxy

Attendance rate(%)

Wei-Shan Lin

9

0

100

Wen-Yen K. Lin

9

0

100

Tatung University /I-Hua Chang

9

0

100

Shou-Huang Chen

4

0

80

Elected on May 11, 2017

Sheng-Wen Tsai

5

0

100

Elected on May 11, 2017

Lung-Ta Lee

9

0

100

Wei-Tung Lin

9

0

100

Resigned on March 10, 2017

Tatung University /Huo-Yen Chen

9

0

100

Terminated on May 11, 2017

Peng-Fei Su

9

0

100

Name

Professional background

Name / Title
Gender Nationality

▲
▲

▲
▲

Table 3.2-2 The professional knowledge and skills of the board of directors

Male R.O.C. Doctor of Philosophy,
LLD Institute of the Lawof the Sea National
Taiwan Ocean
University

















Sheng-Wen
Tsai Director

Male R.O.C. Bachelor of
Accounting Fu-Jen
University

















Lung-Ta Lee
Director

Male R.O.C. Ph.D. of Chemical
Engineering, Tatung
UniversityMale R.O.C. Administration,
National Chengchi
University

















Tzong-Der Liou Male R.O.C. Ph. D. of Law Nagoya
Independent
University, Japan
Director

















Tzong-Der Liou

2

0

100

Chi-Ming Wu
Independent
Director

















Chi-Ming Wu

4

0

100

Peng-Fei Su
Independent
Director

Male R.O.C. Ph.D. in Finance,
University of Mississippi,
U.S.A.











Resigned on February 1, 2018
(Chairman & Director)

Shou-Huang
Chen
Director



Notes



25%
Under 50

50%

25%
50~60

▲

Over 60

19 2018 TATUNG CSR

Figure 3.2-1 Age distributionof the board of directors

Chapter 3 Organization structure and governance

20

2018

Chapter 3
Organization structure and governance

TATUNG CSR▲▲

Remuneration committee

Table 3.2-4 Major resolutions of the board of directors

2017/2/17

The Board of Directors resolved to convene the 2017 Regular Shareholder's Meeting.
The Board resolved to issue new common shares for cash in private placement (or issue newshares in public)…the shares) issued no more than 600,000,000 shares.
The Board of Directors' resolved no dividend distribution in year 2017.
The Reviews of 2017 "Director / Independent Director" nominees by Tatung Board of
Directors.
Election of new Chairman.
Tatung Co. releases its Board resolution that resolved the acquisition of shares of Green
Energy Technology Inc. through a Private Placement.
Report the Board resolution of setting up a new company to operate solar system projects.
Report the Board resolution of capital increase to Tatung Forever Energy Co., Ltd.
Tatung Co. on behalf of Chunghwa Picture Tubes Ltd. for endorsements / Guarantees.
The Board resolved to issue new common shares for cash in public offering.
The Board approved to invest and install Tainan Chi-Gu solar plant project.
Supplementary information on the Board resolution of Tatung Co. that resolved theacquisition of shares of Green Energy Technology Inc. via a Private Placement.
The Board resolved to acquisition of shares of Tatung Vietnam Co., Ltd.
The Board resolved to acquisition of private placement common stock of CPT from Tatung
Global Strategy Investment and Trading (BVI) Inc.
Tatung Co. waive receivables of Tatung Global Strategy Investment and Trading (BVI) Inc.
The Company's assignment of creditor's rights of Tatung Infocomm Co., Ltd.

2017/3/9
2017/3/29
2017/5/11
2017/8/8
2017/9/19
2017/11/14

2017/12/21

The Remuneration committee is responsible for approving the Remuneration Committee Charter for
intensifying corporate governance and consolidating the director and executive remuneration programs.
Table 3.2-6 shows the status for the attendance of Remuneration Committee members.
The Board of Directors is authorized to determine the transportation allowance and remuneration to
directors of Tatung based on their contribution to the company's operation and by taking into consideration
the local and foreign standards as applied in the same industry (please refer to Table 3.2-7). Presidents andvice presidents manage the company's business on the order of the Board of Directors. The appointment,
dismissal and remuneration of presidents and vice presidents shall be subject to the Company Law.
Furthermore, remuneration will also be allocated from the company's earnings, if any, in accordance with
Article 24 of the Company Regulations.
Table 3.2-6 status for the attendance of Remuneration Committee members

Name & Title
Convenor, Peng-Fei Su
Committee, Tzong-Der Liou
Committee, Chi-Ming Wu

Internal audit committee

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

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

Name & Title
Convenor, Peng-Fei Su
Committee, Tzong-Der Liou
Committee, Chi-Ming Wu

21 2018 TATUNG CSR

Attendance in person Attendance by proxy Attendance rate (%)
10
10
10

0
0
0

100
100
100

2
2
2

0
0
0

100
100
100

Table 3.2-7 Remuneration paid to directors in 2017
Unit: NT$ Thousnad

Name

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

Attendance in person Attendance by proxy Attendance rate (%)▲▲

Major resolutions

▲
▲

Date

Remuneration
TatungAll companies
includedin financial
statements

Remuneration allocatedRetirement pensions
from earnings
All companies
All companies
includedincluded
TatungTatungin financial
in financial
statements
statements

Business execution
expenses
All companies
included
Tatungin financial
statements

Wei-Shan Lin

12,08013,320

-

-

-

245

-

2,042

Wen-Yen K. Lin

-

7,140

-

-

-

2,245

120

1,380

Wei-Tung Lin

-

-

-

-

-

45

30

30

I-Hua Chang

-

-

-

-

-

45

120

120

Lung-Ta Lee

-

100

-

-

-

-

120

600

Huo-Yen Chen
Shou-Huang
Chen
Sheng-Wen Tsai

-

-

-

-

-

-

50

50

383

383

-

-

-

-

80

80

383

383

-

-

-

-

80

80

Peng-Fei Su

3,700

4,132

-

-

-

-

-

-

Tzong-Der Liou

3,120

3,120

-

-

-

-

-

-

Chi-Ming Wu

2,900

2,900

-

-

-

-

-

-

Note: This Table is cited from 2017 Tatung Annual Report page 19-20, please refer to it for completed data.
Note 1: Director of Wei-Tung Lin had resigned on March 10, 2017. Director of Huo-Yen Chen had terminated by re-election on May 11,
2017. Director of Shou-Huang Chen and Sheng-Wen Tsai had elected on May 11, 2017. Chairman of Wei-Shan Lin had resigned on
February 1, 2018.

Chapter 3 Organization structure and governance

22

2018

Chapter 3
Organization structure and governance

TATUNG CSR▲ Figure 3.2-2 Tatung internalInternal control system and internal control committee

control system statement

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

Bodies in charge

Responsibilities

Strategy and operation risk

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

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

Market risk

Sales unit of each factory and division.

Financial and liquidity risk

Finance & Accounting Division.

Legal risk

Legal Division

Category

Internal control system is not only applied in Tatung but also applied to Tatung's subsidiaries. The subsidiaries
are graded into different levels according to their scales. Different levels have different audit frequencies.
In addition to internal control system, Tatung has introduced and maintained various of management
systems in the factories for specific topics, such as ISO14001 (environment), OHSAS18001 (health and safety),
ISO9001 (quality) and others. The factories follow the procedures of the management systems to review
and update the related laws and regulations. At the same time, the factories conduct internal audit andmanagement review to ensure the operations can comply with the laws and regulations. The administrativein headquarter also announce the latest and related regulations to the employees by publishing on theinternal website and/or through e-mails. In this way, the employees will gain the knowledge of regulations
and avoid breaching them at work.

Operation

Finance▲ Figure 3.2-3 Regulation promotions on internal website

23 2018 TATUNG CSR

Table 3.2-8 Structure of risk management

Risks

▲
▲

Internal control system covers all operations of Tatung, including accounting, finance, planning, organization,
control and management, and information about sales, production, purchasing, materials, engineering,
personnel and research and development. Tatung follows "Regulations Governing Establishment of Internal
Control Systems by Public Companies" proclaimed by Financial Supervisory Commission, dividing the business
operations to Sale and receipt cycle, Purchase and payment cycle, Production cycle (environment, healthand safety issue included), Labor and wage cycle, Finance cycle, Fixed asset cycle, Investment cycle, andResearch and development cycle, as well as setting out the management controls for data access andother activities. Tatung monitors and controls the system and operation procedures continuously by carryingout the internal auditing and review meetings of Internal Control Committee. Such practice can enhance
the internal control system and optimize the efficiency of corporate governance. Figure 3.2-2 shows Tatunginternal control system statement.

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

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

Risk management

Item

Business and sales promotions as well as market researchand evaluation.
Final accounting of cost, funds allocation and control,and hedging of interest and exchange rates.
Process of litigation and non-litigation cases

Table 3.2-9 Risks and counter measures of Tatung
Countermeasures

Change in management Tatung has a strong and stable management team, and there is no risk from the change in theof the company
management of the company.
■ Tatung states that the employees are prohibited to perform malpractices or accept gifts ofothers in regarding to their jobs on company rules, ethical corporate management best practiceprinciples, and business ethics statement for group employees. Tatung Co. also establishes rigorousand effective accounting system and internal control system to prevent bribery and acceptanceof bribes, illegal campaign contributions.
■ Tatung has established effective accounting and internal control systems for ensuring theNon-ethical behavior
implementation of policies, and the internal auditors formulate annual audit plans based on the
results of the risk assessment and report to the Board its audit report.
■ Tatung has a mechanism of processing employees' complaints for employees' unethical conducts.
The company maintains secrecy and inspects the reported contents as well as protects informants'rights and interest.
■ With the mass demand for energy efficiency & carbon reduction technique to cope with global
warming, Tatung has developed deep technical foundation, kept putting efforts on research &development, and expanded the business of key products as well as system aggressively in smart
grid to ensure its technology and market leading position in domestic electricity generation, power
Changes in technologies
transmission & distribution and energy management.
on the financial position ■ Tatung has strived to carry on fine tradition, and reinforced to develop high-quality green home
appliances with health, environment protection, energy saving and high efficiency concepts toand operation of theincrease the sales performance and profit.
company■ Tatung's focus is on developing visual products, such as LCD TVs and LCD monitors, which offer
bright market prospects.
■ With the coming of age of personal high-frequency radio communication, Tatung is actively
exploring opportunities in 4th generation wireless communications business.
■ Derivatives can be used as a hedge against interest rate fluctuations for Tatung's long-term debts.
■ When considering mid to long-term bond issues, Tatung carefully sets its target interest rate to lower
Interest rate
its interest rate risks as much as possible. For example, Tatung's offshore exchangeable corporatebond issue offers a fixed interest rate, while its domestic secured convertible bond offers a zero
coupon rate.
Tatung has a natural hedge against currency fluctuation as its business involves imports and exports.
It also utilizes derivatives to hedge the remainder of its foreign exchange position that is exposed to
Exchange ratecurrency exchange risks. The management of risks involving such derivatives are set forth in Tatung's"Operational Procedures for Derivatives Treading." Tatung also has an internal control system tosupervise the loss limit of foreign currency transactions.

Chapter 3 Organization structure and governance

24

FR

Chapter 3
Organization structure and governance

UG

AL

IND

Category

Item

Countermeasures

Legal

Changes in policies andlawsMarketConcentration of sales
Concentration ofpurchase
Environment

Environment/
health andsafetyClimatechangeHealth and safety
Carbon emission
Water resource

Tatung carefully monitors any changes in local and foreign policies and makes appropriate
adjustments in Tatung's internal control system and operations when necessary. Tatung's R&D units
and financial department continues to avail of and seek various investment incentives, such as tax
credit, granted by the Ministry of Economic Affairs and other government agencies.
Tatung will diversify its customer base in order to reduce the concentration of sales.
Tatung will arrange for alternative sources for purchase in order to reduce the concentration ofpurchase.
■ Continue to run environmental management system to elevate environmental performance.
■ Conduct "Pollution Prevention Pays" program and internal control system to prevent the violationsof regulation.
■ Continue to run occupational health and safety management system to elevate health and safety
performance.
■ Conduct "Disaster Prevention Pays" program and internal control syste++m to prevent the violationsof regulation.
■ Conduct monitoring on operation site, job safety analysis and establish safety S.O.P.
Conduct GHG emission inventory and energy saving projects.
Promote water saving projects.

Corporate social responsibility
Policy and management

Established in 1918, the foundation of the company is built on four fundamental values – integrity, honesty,
industry, and frugality. They are represented as the essence of the company's commitments to ourstakeholders. Mr. T. S. Lin, Chairman Emeritus of the company further extended the precepts behind thesecore values to serve as the guidelines for the company's continued success and prosperity.
To be able to fulfill corporate social responsibility and contribute to the progress of economy, environment
and the community, Tatung stipulated "Tatung corporate social responsibility best practice principles" tomanage the economy, environment and social risks and impacts in 2014 (amended on 2018.5.15). The
principles act as guidance for implementing corporate governance, sustainable development and theenvironment, the maintenance of social welfare, strengthening CSR disclosure. The results and performances
will be reported to board of directors every year.
▲
▲

Topic

T
IN

Y

HO

TR
US

NE

ST

ITY

2018

TATUNG CSR

YIndustry-educationcooperation

Shareholder
responsibility

Employeeharmony

Customersatisfaction

To cultivate young engineering
talent and to lend efforts toresearch and development
through cooperation between
the company and TatungHigh School as well as Tatung
University. Realizing theimportance of education in asociety with a knowledge-based
economy, Tatung sponsors theschools' major projects while
also contributing industrial
experience to the teaching. As
a responsible corporate citizen,
Tatung regards its dedication toeducation as a manifestation of
long-term commitment to social
well being.

To pursue maximum returns
for our shareholders and tomaintain a stable dividend
policy.

To encourage selfmotivation and cooperation
amongst employees
through the organization of
proﬁt centers to ensure faircompensation, incentives,
welfare beneﬁts, as wellas to provide on-the-job
training.

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

Disclosure on non-financial information

In order to actively and effectively disclose company information and show the achievements in sustainable
development, Tatung followed GRI (Global Reporting Initiative) framework and started to publish "Tatung
Corporate Environmental Report" since 2002. Starting from 2008, the environmental report was renamed to"Tatung Corporate Sustainability Report" due to the balance of disclosed information. From 2015, with therequest from the authority, we once again changed its name to "Tatung Corporate Social responsibility
Report".
In order to implement the implementation of corporate social responsibility and information disclosure, we
promise to issue a CSR Report after approval by the general manager in June each year to disclose Tatung's
economic, social and environmental performance and serve as a tool for communication with stakeholders.
Tatung also encourages her subsidiaries to issue CSR Report. Currently CPT, GET and Elite Group issue their
CSR Reports every year. GRI issued a new GRI Standards in 2016, which will make the presentation of
information more comprehensive and understandable, and facilitate communication with stakeholders. We
originally planned from "2019 Tatung Corporate Social Responsibility Report" to use GRI Standards to discloseand verify, and after the efforts of CSR Reporting Group, it was adopted in advance in this report.

Table 3.2-10 Tatung CSR responsible units
Responsible unit

Reporting issue

Legal Division

Tatung has reported to the board of directors
the implementation of CSR for 2017 on
2018.3.15.

Environmental
management

Environment & Safety Division

Tatung has reported to the board of directors theimplementation of environmental management for2017 on 2018.3.15.

Ethical management

Human Resources & General Administration
Division

Corporate social
responsibility

ITY

R
EG

◎ Renamed to “Corporate◎ Rename to “Corporate

Sustainability Report”

2002◎ Published non-financial
report for the first time
(Corporate Environmental Report)

2008

Social Responsibility
Report”

2012◎ Started to implement

third-party verification

2015

2018
◎ Adopted GRI Standards

to make CSR Report

Tatung has reported to the board of directors
the implementation of ethical management for2017 on 2017.12.21.
Note: Previous reports can be downloaded here: http://www.tatung.com/Content-EN/csr-report.asp▲ Figure 3.2-5 Evolution of Tatung CSR report

25 2018 TATUNG CSR

Chapter 3 Organization structure and governance

26

Chapter 4
Supply chain management,
product responsibility and customer service

2018

TATUNG CSR

Target and performances
Supply chain management
Target1. 100% of new supplier signs back the supplier commitment letter.
2. Incorporate CSR related topics into Supplier Introducing
Procedure from 2018.

Performance

In 2017, 100% of new supplier signed back the supplier commitment
letter.

Product responsibility
Short-termtargetPerformance

1. Complete establishment of ISO 9001:2015 in the factories.
2. All the products are complied with product inspection andlabeling regulations.
In 2017
1. All of the 4 factories have already passed ISO 9001:2015
certifications.
2. No. of products violated product inspection and labeling
regulations: 0.

4.1 Supply chain management
Tatung believes that with good relationship with decent suppliers can make sure getting high quality parts/
products to raise productivity to share the benefits to the customers around the world. Hence, Tatung
conducts internal control and related management procedures to manage and introduce new suppliers.
Regular auditing is conducted in BUs and subsidiaries.
Good quality, competitive price, on time delivery, and service are the first consideration when Tatung
purchases raw materials, parts and products. Tatung also prefers purchase from local suppliers in Taiwan inorder to support local business and fulfill social responsibility. The main suppliers are from Taiwan, followed by
China. The details are list in Figure 4.1-1. Meanwhile, in order to maintain excellent product quality, Tatung
requests suppliers to use brand new materials in providing main materials, parts, and products.
In addition, Tatung requests suppliers to fulfill corporate social responsibility together by adding anticorruption and human rights (human rights, freedom of association, child labor, and forced labor) clausesin the contract. Also from 2015, we started to request suppliers to sign a commitment letter, which includes
health and safety, environmental protection, human rights topics. The commitment letter is a must havedocument to become Tatung's supplier. In 2016 and 2017, all the new suppliers have signed back thecommitment letters.

1. Continue to run ISO 17025 in testing labs and pass certification.

Mid-long
2. Continue to run ISO 9001 in the factories and pass certification.
term target 3. Zero defection in quality.

Sales
TargetPerformance

1. Aware of change in regulation and avoid violation uponsales.
2. Maintain online shopping platform and establish auto
correction measure.

0.56%

Taiwan

0.63%

China

1.50%
3.23%

Hong Kong

3.25%

Japen

90.83%South Korea
OthersNo. of advertisements or promotions violated related
regulations: 0.

▲ Figure 4.1-1 Suppliers' geographic distribution in 2017 (by numbers)

Customer management

Performance

1. Continue to manage customer information in accordance
to regulation.
2. Satisfaction above 94% for repair service.
In 2017:
1. No. of complaints in regarding to violating customer privacy
or losing customer information: 0.
2. Repair service satisfaction: 95.30%.

27 2018 TATUNG CSR▲▲

TargetCategory

Table 4.1-1 CSR contents in the commitment letter
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.

Corporate social responsibility

Comply with Tatung's and the supplier's ethical and CSR policies.

Chapter 4 Supply chain management, product responsibility
and customer service

28

Chapter 4
Supply chain management,
product responsibility and customer service

2018

TATUNG CSRIntroduction and management on suppliers
Tatung groups her suppliers into four categories; each category has its own introducing procedures andmanagement standards. The introduction of the new supplier in Category I requires on site assessment
by evaluation team. The assessment content mainly includes design, technical capabilities, quality
management, manufacturing capabilities and management capacity. The introduction of the new supplierin Category II requires only document review. For construction category, the introduction of the new
supplier requires on site assessment. Starting from Feb, 2018, CSR related contents were incorporated into
on site assessment for all BUs (it was only for Consumer BU before). In addition, Tatung also evaluates the
management of hazardous substances (RoHS and REACH), conducting safety measures for hazardous job,
and implementation of environmental management system as an extra evaluation for introduction of a new
supplier. The detailed management measures are shown on Table 4.1-2 and Figure 4.1-2. The supplier withassessment result above B grade can then be introduced. All suppliers are requested to sign procurement
contract and commitment letter.
For suppliers who already cooperate with Tatung are implemented monthly assessment in aspect of quality,
delivery, price, and service (Figure 4.1-3). Any non-conformity will be requested to correct. An annually reevaluation is periodically implemented for main components suppliers, listed component suppliers, andoutsourcing suppliers. The annually-re-evaluation is focusing on suppliers' operation policy, CSR policy, quality
management, R&D capability, manufacturing management, servicing ability. Tatung wishes the suppliers
who collaborate with us can grow together. As for the safety of the service-providing suppliers (construction,
waste disposal, repairing) who operate in the factories and subsidiaries, Tatung stipulated "Tatung Healthand Safety Management Method for Contract Suppliers" to make sure all this type of suppliers can follow it
to reduce the risk from accidents.
▲▲

Classification criteria

Introducing procedure

Category I

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 that need intensive
management and tutoring.

1. On-site assessment
2. Sign procurement
contract
3. Sign commitment letter

Management
1. Monthly
assessment1
2. Annually reevaluation2

Evaluation
based ondocument review
and on-site
assessment

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

1. On-site assessment or
document review forexisted cases
2. Sign procurement
contract
3. Sign commitment letter

Evaluation after
the case iscompleted

1. Sign procurement
contract
3. Sign commitment letter

Monthlyassessment

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

Pass

Input into
supplier databaseand under
management

BUs

YearlyMonthly re-evaluationassessment (including
CSR topics)

Fail

Removingfromsupplier
database

Fail
Re-examing

Pass
R&D

Procurement QA/QC(including CSR (including CSR Manufacturing
topics)Pass

topics)▲ Figure 4.1-2 Supplier introducing and managing procedure

1.68%

Grade: A

3.20%

Grade: C/D

95.12%

1.49%
4.48%

Monthlyassessment

Note 1: Increase or decrease procurement amount based on the result of monthly assessment.
Note 2: Maintain business or search for second source based on the result of re-evaluation.

29 2018 TATUNG CSR

Pass

On-siteassessment

Procurement
division

Grade: B

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

Construction

OthersProvidesamples forinspection

Table 4.1-2 Category of suppliers and introducing procedures

Category

Category IITopmanager
in BU

Supplier

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

▲ Figure 4.1-3 Result of supplier monthl

Grade: A
Grade: B
Grade: C

94.03%

assessment in 2017

Note 1: Grade A and B are qualified suppliers; Grade C is failed
from Yearly re-evaluation. If BU managers require them tobe re-examined, the failed suppliers have to be improved
with limited time and to be re-examined again.
Note 2: Grade C disqualified suppliers was 1.49% in 2017. The main
reason was due to those suppliers relocated to new sites
and failed to pass Yearly re-evaluation.

▲ Figure 4.1-4 Result of supplier annually

re-evaluation in 2017

Chapter 4 Supply chain management,
product responsibility and customer service

30Chapter 4
Supply chain management,
product responsibility and customer service

2018

TATUNG CSR

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

Q
1993

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

Registered productRegister
date

▲
▲

▲
▲

Factory

Table 4.2-1 Tatung product acquired ISO 9001

2017.09

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

▲ Figure 4.2-1 Status of ISO 9001

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

1994

Taoyuan Wires and Cables
Plant and Tayuan Plant
established ISO 9001 andpassed certification.

Table 4.2-2 TAF certified laboratories in Tatung Co.

Name of laboratory andcertification number
Calibration Lab
L0003-120207

Testing item
Measuring and calibrating of products

Date of certification
1990.06.01

Tatung Environmental Research Center Waster quantities and quality, hazardous
L1697-131009
substances of electric and electrical products

2007.10.24

Tatung Transformer Testing Lab
L2306-130411

Transformer testing

2010.12.27

Air Conditioning Facility Testing Lab
L2270-140417

Cooling capacity and EER of air conditioners

2011.01.20

Taoyuan 1st
Plant

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

1993.12.09

Switchgear testing

2011.03.23

San-Hsia
Factory

Tatung Switchgear Testing Lab
L2308-140316

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

1993.12.14

Tatung Motor Testing Lab
L2613-120701

Motor testing

2012.07.01

Oil-immersed transformers (below and including 345KV), Oil-immersed reactors (below
and including 345KV), Oil-immersed potential & current transformers (below andincluding 69KV), Dry type transformers (below and including 36KV), Dry type reactors(below and including 36KV), Cast resin dry type transformers (below and including
36KV), Cast resin dry type potential & current transformers (below and including
36KV), High voltage & low voltage metal-enclosed switchgear & control gear (below
1994.08.03
Tayuan Plant
and including 72.5KV), Metal-clad switchgear (below and including 36KV), Motor
control center (below and including 15KV), Metal-enclosed low voltage power
circuit breaker switchgear(below and including 600V), Distribution board (panel)(below and including 600V), Rectifier (below and including 600V), Amorphous metaltransformers (below and including 36KV), Gas insulated switchgear, Capacitors,
Watt-hour meters.
Power wires and cables (including cross-linked polyethylene insulated shielded power
Taoyuancable rated 161 KV and below), bus-way, electronic wires, telecommunication wires 1994.07.23
Wires and
Cables Plant and cables, optical fiber cables, bare copper wire.

31 2018 TATUNG CSR

ISO 9001 certificates

ISO 17025 certificates

Chapter 4 Supply chain management,
product responsibility and customer service

32Chapter 4
Supply chain management,
product responsibility and customer service

2018

TATUNG CSR

Product safety and labeling

TWD-500B

TWD-510B

TWD-511B

TWD-711B

Product safety光觸媒
抑菌

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

▲▲

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

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

System BG

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

Consumer BG

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

Although we have such measures to ensure the quality of products, we still have 4 types of products thatneed to be recalled or inspected in the past few years:★ The pc board is likely to be damaged for window type air conditioner with model number TW-252DCN due to water

could go into air conditioner along power cord. TCPC has made recall on official site and offered free inspection
service;★ Dehumidifiers (with model numbers TWD-500B, TWD-510B, TWD-511B, TWD-711B, TWD-710B, TWD-660B, TDH-200HB, TWD1400B, and TWD-1400BL, as shown in Figure 4.2-2) are recalled since 2007 due to one defected part provided by asupplier. Such defected part will cause unexpected accident while the machine is running. Consumer who has theseparticular models, please make a phone call to Tatung or TCPC and the specialist will visit your place for service freeof charge;★ One of the fluoresced lamps (Model: LS-3U21WD) (Figure 4.2-3), batch number 0904, 0905 and, 0906, is recalled due toparts problem. All the consumers will have the defected lamp replaced with a new one when they bring the defected
one to any of Tatung 3C Stores;★ Two models of electric water boilers (TLK-52Y and TLK-56Y) with the production number list on Table 4.2-4, some parts
has quality issue and the customers can take the boiler to TCPC to replace the part for free of charge.
Note 1: BSIM official website
http://www.bsmi.gov.tw/wSite/xslgip/chinese/index.html
Note 2: TCPC official website
http://tcpc.tatung.com

TWD-660B

TWD-200HB

TWD-1400B

TWD-1400BL▲ Figure 4.2-2 Dehumidifiers that need

▲ Figure 4.2-3 Fluoresced lamp

to be recalled▲▲

In addition, for the defected products from the design or manufacture stage, Tatung makes recall on BSMI official
website1, medias and TCPC website2 to prevent the consumers getting harmed from further using of such products.
For the problem occurred, Tatung will strengthen overall quality control in supply chain, also conduct Design/Process
Failure Modes and Effects Analysis (DFMEA / PFMEA) and incorporated into Design Guideline Check List measures toprevent recurrence. Tatung will do the best for providing consumer healthy, energy-efficiency, and safe products. In
2017, no violation occurred against Regulations Governing Registration of Product Certification.

Business group

TWD-710B

that need to be recalled

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

Model No.

TLK-52Y

TLK-56Y

Production No.

3AY7094*****

3AY8094*****

Production No.

3AY7097*****

3AY8097*****

Production No.

3AY7098*****

3AY8098*****

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

Yes

No

請勿使機身吸入可燃性氣體，更勿在這類氣體停滯的地方使用。

＊－－

Safety instruction＊－

Disposal treatment＊－

請勿放置在日光直接照射或面對熱
源的地方。

型名

Declaration of thePresenceCondition of the
Restricted Substances Marking
3

190
(112
CFM)
TACR-1900PE/ TACR-1900PE-WI(Clean Air Delivery
Rate)
空氣清淨機

Equipment name Type designation (Type)操作溫度

請勿將手指或物品插入排氣口或吸
氣口內。

風量

請裝置在距離電視、空調、電腦等
電器產品一公尺以上之處。

PM2.5去除率

unit

適用面積
淨重量 電路板

有電波干擾之虞。

請絕對不要在浴室等濕氣較重的地方使用。

請勿在抽風機，微波爐附近使用。

0℃～40℃3
symbols
Restricted substances and its chemical

故障或變形的原因之一。

故障和觸電的原因之一。

Index

TACR-1900PE / TACR-1900PE-WI

限用物質含有情況標示聲明書
110V~ 0.34A 60Hz

額定輸入潔淨空氣量 CADR值

造成起火或爆炸的原因。

＊

9 . RoHS聲明書
2. 產品規格1. 安全注意事項

高速210±10 (

Lead

(Pb)

Mercury(Hg)

Cadmium
99% (1小時)
Hexavalentchromium(Cd)
約8~9坪(Cr+6 ))

Polybrominated Polybrominatedbiphenyls
diphenyl ethers(PBB)(PBDE)

5.0 kg超出0.1wt%

機體尺寸機殼

長356x寬190x高460(mm)附屬品 濾網濾網耗材x1

馬達

超出0.1wt%

Note 2: ”O”indicates that the percentage content of the restricted substance does notexceed the percentage of reference value of presence.

降低機器壽命，造成故障的原因。

請勿妨礙吸氣口和排氣口的通暢。

清理機身時請勿使用去污粉、揮發
油、酒精等。

造成故障的原因之一。

以免傷害機身。

2

2. Product Specifications ..............15
3. The Name of Each Parts ............16
4. Preparation Before Use .............17
5. Operational Instructions .............18
6. Filter Replacement .................21
7. Cleaning and maintenance ..........23
8. Troubleshooting ....................24

電源線
Note 1: ”Exceeding 0.1 wt %“and”Exceeding 0.01 wt %“ indicate that the percentage
content of the restricted substance exceeds the reference percentage value ofpresence condition.

可能造成故障和觸電。

1. Safety Precautions .................14

9. RoHS Declaration ..................25
10. Note...............................26

Note 3: The”-”indicates that the restricted substance corresponds to exemption.

Maintenance services MUST use the original parts, and if any
replacement of the NON-original parts results in any damage for thisproduct or for the surrounding property, the TATUNG is not responsible
for the maintenance of warranty and the responsibility of all damage
conditions.
When this product occurs any abnormal conditions, please turn off thepower, unplug the power plug, and send to the TATUNG's service stations
for fix. To avoid any danger, please DO not repair this product by yourself.

3

12

13

▲ Figure 4.2-4 Product labeling andinstruction (e.g. air purifier)33 2018 TATUNG CSR

Chapter 4 Supply chain management,
product responsibility and customer service

34

Chapter 4
Supply chain management,
product responsibility and customer service

2018

TATUNG CSR

4.3 Sales and customer service
NG

Product researchand develop

Review thetest result fromsampleSample making
and testing

Fair trade and anti-trust behavior
Pass

Research stage
trial-run,verification andcertification offunction andreliability

The commercial advertisements and promotions that made by Tatung are all complied with the regulations.
There was no violation against the regulations regarding to advertisements and on sale promotion in 2017.
Besides, Tatung requests her dealers to avoid malicious price competition behavior or intent to harm theimage of Tatung. Tatung also encourages the employees to participate in seminars regarding to anti-trustand fair trade topics.

Wide-spread service locations and convenient shopping experiences
Tatung upholds "customer first", "having only one phone call, the service is to" and aims to provide fast andexcellent services to customers. Tatung lists the service channels on the official website for all the business,
including TCPC, information (OA), large-size air conditioners, power equipment, smart grid business, andsystem solution business. Tatung entrusts her subsidiary company "TCPC" to provide a comfortable shopping
environment as well as excellent after-sale services to consumers. TCPC has more than 200 3C Storesspreading from cities to countries, providing professional recommendations on purchasing house appliancesand repairing services.

NG
Pass

Review
before mass
production

NG
Sample making
for certificationand verification
before mass
production

Pass

In addition, TCPC launched "etungo" online shopping website to provide wide variety of product in kitchen,
3C, living room and make up. Besides, Tatung runs a fan site on Facebook and LINE group to provide instantnews and living tips.

Review for preproduction

FB for Tatung fans

Mass production
and release onto
marketMonitor thequality of
product on themarket

FB for Tatung multi-function
cooker fans

Correct thedefected partand prevent reoccurrence

etungo online shopping mall

35 2018 TATUNG CSR

Chapter 4 Supply chain management,
product responsibility and customer service

36Chapter 4
Supply chain management,
product responsibility and customer service

2018

TATUNG CSR

In order to provide a more convenient customer service, TCPC has online service that the consumers can accessto official website1 make service request (Figure 4.3-1). The system will assign the service request to the accordanceservice station and provide rapid and high quality services. The consumers can also check the repairing progressby assessing online webpage2 (Figure 4.3-2). At the end of each case, customers are able to provide any positive or
negative feedbacks by filling the online survey which will be used for future improvement. To extend the channels forlistening to the customers, Tatung also provides an online feedback service3 which customers can ask questions, express
their opinions and give positive feedbacks to us (Figure 4.3-3).
Note 1：http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_100.asp
Note 1：http://tcpcvm01.tatung.com.tw/tatungcp/agent/cust_200.asp
Note 1：http://www.tatung.com.tw/home/suggestion

Management on customer information and satisfaction
Tatung follows regulations to protect the information that customers provided during purchasing or servicing.
The information will not be delivered to other organizations without having consent from the customers. In
order to enhance information security, Tatung has established associated management system and passed
ISO/IEC 27001. There was no complaint about information leaking from the customers in 2017.
Tatung takes great concern about the customer satisfaction. When a customer makes purchase orapproaches Tatung 3C Stores to repair products, Tatung will make his/her information to phone interview
list and interview about repairing experience. If the feedback is unsatisfied, Tatung will conduct a second
service and make improvement. We set targets for repairing satisfaction (for consumers) to be not lower
than 94%. The result was 95.3 satisfied in 2017. Tatung will continue to listen to the customers.

☆ Tatung reminds her consumers to pay attention to fraudon the official website and social network sites. ☆

▲ Figure 4.3-2 Inquiry page for repairing
progress▲ Figure 4.3-1 Product online service form

98.00%

96.80%

96.81%

97.09%
94.34%

96.00%
94.00%▲ Figure 4.3-3 Online feedback form

95.50%

Target: 94% and above

92.00%
90.00%
88.00%

2013

2014

2015

2016

2017

▲ Figure 4.3-4 Results of customer satisfaction

37 2018 TATUNG CSR

Chapter 4 Supply chain management,
product responsibility and customer service

38

Chapter 5
Social performance

2018

TATUNG CSR

Target and performances
Labor-management relations
TargetPerformance

Continue to put efforts towards the harmonious between
employees and the company.
0 losses due to labor relation disputes in 2017.

Health and safety
1. Maintain health and safety management systems in the factories.
Short-termtarget

Maintain OHSAS 18001 and CNS 15506 management systems in the factories.

Performance

In 2017, all 4 factories pass OHSAS 18001 and/or CNS 15506 certification.

Mid-term
targetImplement ISO 45001 in all 4 factories and pass certification before 2021.

Anti-corruption
TargetPerformance

Continue to against improper behavior, to prohibit improper financialtransactions, and to emphasize the company's core values, performance
review system in each course. At last, implement these in the work place.

0 corruption case in 2017.

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

Employment
TargetPerformance

Continue to comply with employment related regulations.
1. 0 discrimination case in 2017.
2. Parental leave return to work rate: Male 33% / Female 80%.
Retention rate: Male 100% / Female 67%.

Performance

In 2017, the correction percentage is 98%.

3. 10% lower each year for FR and SR.

Performance

Did not meet the target: In 2017, FR for female and
SR for male were higher than in 2016.

Education and training

39 2018 TATUNG CSR

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

Mid-term
targetMake the employees to practice the key behavior on daily
basis by learning from their managers.

Long-term
TargetMake the employees to work hard and raise performanceto help the company to achieve her targets.

Performance

Average training hours per employee in 2017: 8.32 hours.

Chapter 5 Social performance

40

2018

Chapter 5
Social performance

TATUNG CSR

5.1 Human rights and anti-discrimination

5.2 Employees' code of ethics

An equaled working environment

Tatung upholds the principles of "integrity, honesty, industry, and frugality" and prohibits any improper
behavior and financial dealings. Tatung has established "Tatung ethical corporate management bestpractice principles" to prohibit every member in the company from doing non-ethic behaviors. Tatung
requests the employees not to take advantages in any form at work, nor make external leakage of thetechnical and business content in the Company Rules. Tatung also established internal control measures
such as internal control system, scheduled and unscheduled audits of the Internal Control Committee andInternal Audit Committee. The contracts signed with the suppliers are added the requirements such as shallnot bribe or provide improper benefits to Tatung employees. If there is any corruption case, Tatung will
pursue its legal responsibility to put an end to the corruption.

Tatung takes great concern on human rights. All employees, applicants and contract workers are treatedwith dignity, fairness and respect regardless of their race, religion, skin colors, genders, marriage status,
disables, member of union, birth place, and nationalities etc. Commitments of respect and ensure thebenefits of labors, fulfill social responsibility and comply with regulation are clearly stated in our Labor Policy.
Tatung hires one handicapped worker per every 100 workers and provides equal opportunities for minority
groups.
Tatung also stipulated "Anti-sexual harassment Regulation" and published on the internal website. Sexual
harassment in any forms is strictly prohibited in any working places in Tatung. There was no discrimination andanti-human right incident in 2017. Tatung will continue to promote anti-discrimination policy in the company
to prevent discrimination.

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

Freedom of association

TatungLabor Union

San-Hsia Factory
Labor Union

Tatung Co.
Labor Union

Tayuan Plant
Labor Union

82.03% 2013

Tayuan 1st Plant
Labor Union

82.29% 201481.59% 2015

Tatung Labor Union was funded 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 5 labor unions distributed in the HQ and factories. Tatung
does not interfere with the wills of the employees to join labor unions; hence the percentages of employees
joining labor unions are always over 80%. In 2017, 79.35% of employees are the members of labor unions(Figure 5.1-1).

80.39% 201679.35% 2017Child labor and forced labor
Tatung's recruiting policy is in line with the regulations. Hiring child labor is not allowed by Tatung. In"Company Rules" we defined the working hours for a day and for a week. If there is necessary to adjust or
prolong the working hours, the practice only can be implemented after getting the agreement from thelabor union or the employee. There was no force labor situation in 2017.

Excellent labor union award▲ Figure 5.1-1 Percentage of employees who

are labor union member

41 2018 TATUNG CSR

Chapter 5 Social performance

42

2018

Chapter 5
Social performance

TATUNG CSR

5.3 Employee composition, career development and benefits
Employee diversity
The recruitment policy of Tatung holds equality as the central concept; only capability is taken into accountwhen recruiting an employee. Every division/factory evaluates the potential developed situation to proposea human resource budget and authorized by the president. When there is an empty position, the division/
factory proposes a request to HR department based on the human resource budgets. HR department
will then start to process the recruiting procedure from different channels. Every recruiting procedure iscomplied with the regulations. Table 5.3-1, Figure 5.3-1, Figure 5.3-2 demonstrate the employee compositionsof Tatung. Tatung has more than 94% of local employees and 2.25% of disable employees which is than therequirement by the regulation.
▲▲

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

Year
No. ofemployees

No. ofmanagers

Less than 30

30s~50s

Male Female

Male

Female Male Female

456
362
356
226
279
23
26
20
15
14

1,727
1,606
1,534
1,280
1,342
611
610
588
555
493

574
530
516
497
460
127
123
121
124
106

2013
2014
2015
2016
2017
2013
2014
2015
2016
2017

141
122
121
118
112
3
0
6
3
5

Over 50
813
739
704
641
670
263
242
231
253
247

Less than 30

Year

191
2013 3.49
Percentage 2014 3.93
176
of new
1752015 7.90
employee
183
2016 4.61
hires (%)
2072017 5.80
27
2013 4.20
Percentage 2014 5.77
28
of
6.82%
30
2015 6.31
employee
32
2016
4.45
leaving (%)
40 93.18%
2017
4.72
93.75%

2013
6.82%
93.18%

6.25%

93.75%

2013

6.81%

93.19%
2015

2014

Over 50

1.05 4.10 1.18
1.24 5.04 1.27
2.70 5.96 1.61
2.21 3.98 1.20
1.27 4.92 1.30
0.56 7.38 1.69
2.18 9.00 2.29
2.146.25%
7.90 2.20
1.74 7.51 1.52
0.85 6.25
1.50
93.19%

0.21 0.03
0.57 0.03
1.91 0.29
1.11 0.09
0.94 0.16
2.51 0.67
4.02 1.05
6.81%0.94
4.84
2.81 0.41
2.54 0.75

Type of employeement

2,996
4|6

906

897

2,099
General staff

Title

Type of employeement

Full-time867

39
Part-time
Manager
749
157
General staff

2013

Title

Type of employeement

Type of employeement

Domestic employeeFull-time 428
Full-time
368
2017
2,339
2,166
219|49 ManagerPart-time
227|45 ManagerPart-time

2,707
2|6

828

878

1,829
General staff

Title

Type of employeement

Full-time785

43
Part-time
Manager
677
151
General staff

Title

2014

No. of total employees

2,594
5|9

812

839

1,755
General staff

Title

Type of employeement

164|46 ManagerPart-time

2,357

Full-time755

57
Part-time
Manager
655
157
General staff

2015

Title

4|8

810

No. of overseas employees

823

Type of employeement

Full-time
1,953

309

1,534
General staff

Title

Type of employeement

155|58 ManagerPart-time

2,291

Full-time759

51
Part-time
Manager
651
159
General staff

Title

2016

4|11

779

754

0.90

1.0

0.89

0.90

2016

2017

0.92

1.0

0.82

1.0

1.0

1.0

0.89

0.87

0.88

Male
Female

0.6

0.20

0.00

0.4
0.2
Staffs

2014

2015

Technicians

2014

2015

2016

2017

▲ Figure 5.3-4 Ratio between salary for female and malelegal salary for different employment types

employees (by employment type)

338

Table 5.3-2 Tatung parental leave statistics

Title

Male Female

Type of employeement

Full-time731

48
Part-time
Manager
628
151
General staff

Title

2017

No. of disable employees▲ Figure 5.3-2 Employee compositions of Tatung (by genders)

Tatung takes great concern on employees' family life and care for next generation. Tatung not only provides
cash gifts for giving birth but also offers all employees maternity and parental leave in accordance toregulations. The statistics on parental leave is shown in Table 5.3-2.

1,537
General staff

Note: The members of senior managers (deputy plant/general manager and above) are all Taiwanese. There were 10
disabled managers in 2017 (1.10%) in Tatung.

43 2018 TATUNG CSR

0.8

1.0

1.0

Parental leave

Type of employeement

Full-time
2,048

1.0

1.0

Overseas employees

0.60
0.40

▲
▲

Full-time
458
2016
2,538
262|52 ManagerPart-time

1.2

Domestic employee

2017

Overseas employee

94.82%

Research staffs (master)

1.64
Staffs (master)
1.80
1.55
1.36 1.27
1.60
Research staffs (bachelor)
1.00 1.00
1.40
Staffs (bachelor)
1.20
Senior high school
1.00
and under
0.80▲ Figure 5.3-3 Ratio between basic salary andOverseas employee

94.82%▲ Figure 5.3-1 5.18%
5.30%
Percentages of domestic and overseas employees

94.70%

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

0.0

5.18%

2016

Due to the deterioration of the employment environment, the starting salary for freshmen is generally low
in recent years. Tatung, as a deep plowing corporation for nearly a century in Taiwan, well protects thesalaries and benefits for her employees. Tatung enacts her 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. Based on the conceptof equality among genders, the basic salary between female employees and male employees is 1:1. For
different employment types, the ratio of basic salary and legal salary for technicians is 1:1; for staffs is from
1.27~1.64:1 (Figure 5.3-3) based on different job types, specialty and qualifications. The above calculation
does not include allowances and/or bonuses. In average salary, the female employee to male employee is0.88~0.90:1 in 2017 (Figure 5.3-4).

2015

2014
5.30%

94.70%

30s~50s

Male Female Male Female Male Female

Basic salary and performance review

Application for parental leave

Total number of employees that took parental
leave in 2017.

10

19

Total number of employees that shall end parental
leave in 2017.

6

5

Total number of employees who returned to work
after parental leave ended1 in 2017.1

2

4

33%

80%

Return to work rate

Male Female
Retention rate

Total number of employees that applied and3
6
returned to work in 2016.
Total number of employees who returned to work
3
4
after parental leave ended who were still employed
12 months after their return to work in 2016.
Percentage of employees who returned to work
67%
after parental leave ended who were still employed 100%
12 months after their return to work in 2016.
Note 1: Changed job due to personal career planning.

Chapter 5 Social performance

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2018

Chapter 5
Social performance

TATUNG CSR

Post-employment benefits

Education and career development

Tatung adopts "Defined contribution plan" and "Defined benefits plan" as her post employment benefits.
For "Defined contribution plan", Tatung makes monthly contributions of no less than 6% of the employees'
monthly wages to the employees' individual pension accounts in accordance with the Labor Pension Act.
Expenses under the defined contribution plan for 2017 were NTD 68,595 thousand.

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

For "Defined benefits plan", Tatung contributes an amount equivalent to 4% of the employees' total salaries
and wages on a monthly basis in accordance to Labor Standard Act to the pension fund deposited at
the Bank of Taiwan in the name of the administered pension fund committee. Before the end of eachyear, Tatung assesses the balance in the designated labor pension fund. If the amount is inadequate topay pensions calculated for workers retiring in the same year, Tatung will make up the difference in one
appropriation before the end of March the following year. Pension costs recognized in profit or loss for 2017
were NTD 39,444 thousand. For detailed post-employment benefits, please refer to Tatung 2016 Annual
Report1 page 337~339.

Tatung DNA

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

Procedure for complaints and shortest notice period
Tatung has "Measure of processing employees' complaints" and other practices (Table 5.3-3) in place for theemployees to complain about any dispute and provides a channel to deal with. Tatung sets the minimum
notice periods (Table 5.3-4) regarding to operational changes on "Company Rules". When there is any majorchange in operation and may affect employees, Tatung shall notify the employees according to it and give
severance pay.

Management of labor
relations

Channels for employees
to voice dissent orcommunicate withmanagement

▲
▲

▲
▲

Table 5.3-3 Labor-management relation measures

Table 5.3-4 Losses due to labor-management
disputes

Honesty

Tatung awarded with
TTQS Silver Medal

Tatung plans training courses by taking company's human resource policy into account and indentifies theannual capacity gap of organizational functions. The training target is to capacity building of employee
management, professional skills, and performance improvement. Figure 5.3-5 shows the structure of Tatung
HR development.

Measures

Year

Losses in NTD

Measure of processing employees' complaints

2013

0

Employees' mail box

2014

0

Voice out opinions in training courses

2015

0

Training performances

Present proposals during Q.C. activities

2016

0

Performance elevation

Communication during regular/special meetings
between management and the labor unions

2017

0

Vision / Destiny

Strategy / Target

Operation plan

Defining unsatisfied performances

Behavior modification▲▲

Table 5.3-5 The shortest notice period對象

Shortest notice period

Work for 3 months~1 year

10 daysWork for 1~3 years

20 days

Professional learning

Input

Input

45 2018 TATUNG CSR

30 days

Review /Monitor2 Design
OutputInput

OutputWork for more than 3 years

OutputOutput4 Review
Reaction

1 PlanAnalysis on
insufficientworkingability

3 Implement

Input▲ Figure 5.3-5 Tatung strategic human resource development system

Chapter 5 Social performance

46

2018

Chapter 5
Social performance

TATUNG CSR

In 2017, we organized 18 general courses which covered from recruits training, environmental protection, occupational
health and safety, information safety, etc. For advanced courses we organized 23 specialized courses in each field, 12
courses for managers, 29 business operating related lectures, 5 health lectures, 4 law lectures, and 2 financial lectures.
In total there were 25,529 training hours and each employee was given 8.32 hours in average. The detailed training
statistics are shown in Figure 5.3-6. Tatung's education and training system also won TTQS (Taiwan TrainQuali System)
Silver Medal in 2017 and was invited to share our experiences at official organized seminars.

Staffs25

Employees' welfare

14.35

12.06
8.82

10

0
Hour

FemaleBesides, in order to provide female employees a more comfortable and more convenient way to nurture the next
generation without having to sacrifice their own work, or to increase their physical or psychological unnecessary
burden, Tatung set up a nursery room for postnatal breast-feeding employees. It is also the company's most intimate
birth gift for female employees.

20.14

15

5

Male

Tatung Welfare Committee handles a broad range of employee welfare issues including: daily activities, financial
assistance for education, funeral assistance, and interest free installment loans. Table 5.3-6 shows employees' welfare
implemented in the factories and subsidiaries.

▲
▲

20

Managers

Welfares

4.61
2013

6.50
2014

6.21
2015

8.73
8.40

2016

8.14

2017

9.52
6.04
2013

10.76
8.25

7.21

7.27

8.74

6.21

2014

2015

2016

Table 5.3-6 Employees' welfare
Implementation

Stock ownership

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

8.50

Subsidies

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

7.78

Benefits

Employees can purchase Tatung products with interest-free installments and price discounts on groceries incorporate stores, free movies, train service on Chinese New Year.

Club activities

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

Health and safety plan

Labor insurance, health insurance, group insurance, retirement pension, free annual health check-up,
oversea business trip insurance.

2017▲ Figure 5.3-6 Training hours per employee

Health promotion and disease prevention
Training class for new recruits

Mid-level manager training class2017 Q3 Training schedule

Professional training-information safety

47 2018 TATUNG CSRProfessional training-question analysis

Tatung believes that the health of the employees and their families is a valuable asset to the company. Tatungorganizes numerous health speeches, seminars, health checks to let the employees understand the importance of theirhealth and promote to their families. The concreted measures are follows:
1. Clean air, healthy and happy workplace environment
Smoking has been proven to have negative effects to the health and smoking in workplace increases the risk of fireincidents. Smoking within the boundary of the companies/factories has always been prohibited. The employees,
contractors, and visitors are not allowed to bring cigarettes, matches and lighters into the company. Tatung also
clearly posts/marks "NO SMOKING" notice in the meeting room, at entrances and exits. The reason for Tatung doing
this is to build a clean air and healthy workplace for everyone.
2. Welfare Committee regularly organizes the physical and cultural activities to encourage the employees having
healthy living. It also establishes aerobic fitness club to provide employees physical activities to stretch and relievepressures in their spare time.
3. Health examination fair
Tatung works with Health Center of Zhongshan District of Taipei City to organize Health examination fair on a yearlybasis. The specialists from Taipei City Hospital are invited to the company to do high blood pressure, hyperlipoidemia
and high blood sugar screening, oral cancer screening, and cervical smear, breast cancer screening for women.
Tatung also arranges high-quality health check annually in order to find out any premature diseases and treat themin advance to protect employees' health.
4. Tatung organizes health promotion seminars and also publishes information about serious diseases on the company
website and e-publications. The information contains not only about the diseases but also the preventions andtreatment channels.
5. Tatung runs first-aid/CPR courses every year to enhance employee's ability.

Chapter 5 Social performance

48

2018

Chapter 5
Social performance▲▲

Table 5.3-7 Health promotion and disease prevention activity in 2017Time
2017.012017.012017.012017.01 ∼ 122017.022017.032017.032017.032017.032017.04
2017.04
2017.04 ∼ 122017.04 ∼ 122017.052017.052017.052017.052017.052017.062017.072017.072017.07 ∼ 09
2017.082017.082017.082017.092017.092017.092017.102017.102017.112017.112017.112017.112017.112017.112017.112017.11 ∼ 2018.01
2017.122017.122017.122017.1249 2018 TATUNG CSRTATUNG CSR

Activity

Location

Blood donation
Noise tracking check

H.Q.
Min-Sheng Hospital

Health seminar – metabolic syndrome

San-Hsia Factory

Pressure relief massage
Health seminar – hearing protection
Health seminar – cardiovascular protection
Health seminar – Three-Hypers

H.Q.
Taoyuan Wires and Cables Plant
H.Q.
Tayuan Plant

Blood donation

Taoyuan Wires and Cables Plant

Risk evaluation for female health protection

Taoyuan Wires and Cables Plant

Health fair
Health seminar
Risk assessment for abnormal workload triggereddiseaseMuscle and skeleton disease identification
Health seminar – cardiovascular disease and CPR
Pressure relief activity

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

Blood donation

San-Hsia Factory

Health seminar – deep breath

H.Q.

Health seminar – pressure relief by doing sport

H.Q.

Blood donation

Taoyuan Wires and Cables Plant

Health check

H.Q.

Health seminar – yoga pressure relief

H.Q.

Blood donation

H.Q.

Health check

Tayuan Plant

CPR and AED training

Taoyuan 1st Plant

Health seminar – Three-Hypers

Taoyuan 1st Plant

Health check and special health check

San-Hsia Factory

Health check

Taoyuan 1st Plant
Tayuan Plant

CPR and AED training

H.Q.

Health seminar – importance of health check

H.Q.

Influenza vaccination

H.Q.

Influenza vaccination

Tayuan Plant

Pressure relief activity

Taoyuan Wires and Cables Plant

Blood donation

San-Hsia Factory

Influenza vaccination

San-Hsia Factory

Health seminar – healthy diet

Cardiovascular disease seminar

Taoyuan Wires and Cables Plant

San-Hsia Factory

CPR and AED training

Health seminar

H.Q.

CPR training

Health check

First-aid training

Taoyuan Wires and Cables Plant

Health seminar – stroke and diabetes

Health seminar – metabolic syndrome

First-aid training

Health fairThree-Hypers seminar

H.Q.
H.Q.
Tayuan Plant

Health check and special health check

Taoyuan Wires and Cables Plant

Health seminar – gastrointestinal disease

San-Hsia Factory

Influenza vaccination

Health check

Chapter 5 Social performance

50

2018

Chapter 5
Social performance

In the case that recognition of dangerous materials is
unsatisfactory, or that safety management has not beensatisfactorily accomplished in the factories, there may beeffects of varying degree to the health and safety work,and as a result, causing frequent disasters. This will not only
threaten the safety of employees, but also the safety ofthe publics, as well as adversely impact the surrounding
environment. Therefore, Tatung stipulates that the company
shouldbe in accordance with relevant health andsafety regulations in "Company Rules" andholds employees' health examination (freedh anof charge to the employees). Tatung
Healt ook
g
n
b
Tatu
ide
ty Gu
also issues "Tatung Health and Safety
Safe
Guidebook" to employees in order toraise their awareness regarding to
occupational risks.

60.00%
55.00%
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

33.33%

H.Q.

35.00%

TayuanPlant

40.00%

TayuanWires and
Cables Plant

35.71%

Tayuan
1st Plant

40.74%

San-Hsia
Factory▲ Figure 5.4-1 Percentage of labor representatives
in Health and Safety Committees

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

104 年

8 月修

Occupational health and safety management

OHSAS

5.4 Health, safety, and disaster free

TATUNG CSR

Tayuan Plant
passed CNS
15506
certification

San-Hsia
Factor passed
CNS 15506
certification

2010

2013

2007

2008

2009

2010

2011

Started to
implement

Tayuan Plant
passedOHSAS 18001
certification

Taoyuan Wires
and Cables
Plant passed
OHSAS 18001
certification

Taoyuan 1st
Plant passed
OHSAS 18001
certification

San-Hsia
Factor passed
OHSAS 18001
certification

2018

2021

ISO 45001
Target: All 4
released factories passed
ISO 45001
certification▲ Figure 5.4-2 Status of occupational health and safety management systems and goals

Forty-four incidents against company rules were found (subsidiaries not included) in 2017's Occupational
Accident Prevention Pays on-site audit. The incidents were major focused on lacking proper preventative
measures for electric shock and lack of protection cover for machinery equipments. By the end of 2017, 43
incidents were corrected (98%) which met our target. For that had not been corrected, we will follow up thecorrection status. In this year's Occupational Accident Prevention Pays program, we will focus on regulation
compliance, implementation of working environment monitoring, and confined space prevention to protect
employees' health and safety.

Focusing on the issue of health and safety is one of the long standing policies in Tatung. With a regulated system andculture based strategy, Tatung has aggressively participated in education training, regulation consulting, and risk
assessing, and has established the procedures to improve the issues of health and safety, as well as setting objectives
and reforming projects. These are accomplished through the execution of reform projects and periodical assessments,
as well as reviewed by to management, and aided in the continued improvement of health and safety performances,and hence assist Tatung to achieve the goal of a disaster free working environment. International Standard
Organization (ISO) published ISO 45001 Health and Safety Management System in 2018. We are now managing totransform current OHSAS 18001 to ISO 45001 in the factories. The goal has been set to pass the certification by 2021.
Figure 5.4-2 shows the status of occupational health and safety management systems and goals in Tatung.
Other than relying on the management systems, Tatung also carries out "Occupational Accident Prevention Pays"
program every year and works hard to achieve the final target "disaster free in 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 and safety issues, and
ESD reviews the performances and provides feedbacks.
2. An annual Accident Prevention Pays seminar is organized to exchange the health and safety experiences between
factories and subsidiaries.
3. Recommends outstanding factories or subsidiaries to compete governmental awards.

51 2018 TATUNG CSR

Occupational Accident Prevention Pays on-site audit (1)Occupational Accident Prevention Pays on-site audit (2)Chapter 5 Social performance

52

2018

Chapter 5
Social performance

TATUNG CSR

Health and safety training andregulation promoting

Health and safety performances
Tatung continues to establish safety culture,
reduce occupational disaster risk and provide asafe working environment. When an occupational
disaster is occurred, root-cause analysis will
be conducted and counter-measures will be
implemented to prevent such case happening
again. There was no occupational disease caseand death incident in 2017. From Figure 5.4-3 andFigure 5.4-4, FR for male in 2017 is higher than in
2016, but FR for female in 2017 is slightly higher thanin 2016. As for SR in 2017, male is slightly higher andfemale is greatly lower in 2016 which indicates thatthe degree of severity is relatively minor. As for AR,
there is no significant change between 2017 and2016.

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

TATUNG Corporate OHS Seminar

In addition, Tatung complies with "Labor's Working
Condition Monitoring Methods" and sets working
environment monitoring and conducts monitoring.
The results from monitoring are available to theemployees. Tatung also educates the employees
the potential hazards in the working environment
and the necessary prevention measures.

1.98

2.00
1.81

1.75

1.6

1.30

1.2

1.05

1.25

1.29

0.92

0.8
0.4
0

0.00
2013

2014

2015

2016

2017

Note: FR is one of the indicators selected by MOL foroccupational disaster statistic purpose. The formula is (No.
of disability/Total working hours) x 1,000,000▲ Figure 5.4-3 Trend of FR

Health and safety notice board
in the factories
70▲▲

Table 5.4-1 Health and safety training results and targets

60

2015
No. ofparticipants

2016
No. ofparticipants

2017
No. ofparticipants

2018
Targeting No.
of participants

50

Health and Safety Training Class (new recruits)

256

168

256

200

30

Health and Safety Training Class (general employees)

687

773

796

800

Health and Safety Training Class (managers)

213

41

191

180

Emergency training class

41

436

927

1,030

10

Fire fighting class

365

172

132

100

0

Stationary Cranes training class (over 3 tons)

48

403

24

80

Forklifters training class (over 1 tons)

55

192

53

70

Health and Safety Training Class (construction contractors)

26

31

15

20

First-aid training

-

94

89

50

53 2018 TATUNG CSR

2.0

Tatung has set a target to lower 10% for FR and SR
each year. From the statistics in the past 5 years,
Tatung did not meet the target. The main reason
was the employees in the factories having injury
due to the factories relocated production lines andoffice areas, so the employees were not familiar
with the new environment. We have enhanced
the promotion of safety awareness in the factories
and requested supervisors on-site to audit more
frequently to reduce the accidents.

As for regulation promotion, Tatung organizes"Tatung Corporate OHS Seminar" every year. The
seminar was held in March 2017 and the topic
was introducing labor health protection act
amendment.

Training item

2.4

0.0120620.01000.01010.00910.00970.008040

200.01050.009635
0.0060
18

22 24
15

17

2014

2015

0.0040 0.0030
5

0
2013

18

2016

2017

Note: SR is one of the indicators selected by MOL foroccupational disaster statistic purpose. The formula is(Total lost days/Total working hours) x 1,000,000▲ Figure 5.4-4 Trend of SR

0.00240.00300.00270.00270.0020
0

2013

2014

2015

2016

2017

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

Chapter 5 Social performance

54

2018

Chapter 5
Social performance

5.5 Participation and benefits tothe society
Participation in infrastructure
projects, serving the country
through industry
Tatung always actively gets involved in government's
infrastructure projects with the spirits of serving thecountry through industry and fulfilling corporate social
responsibility. In recent years, we support government's
policy to develop solar PV systems and have provided
the solar PV system plan and professional technology
of installation to promote renewable energy all out. Up
to now, Tatung has successfully finished PV solar systems
in kinds of place, such as residential area, community,
factory, dormitory, and commercial building. We areoffering the solutions of rooftop, ground mounted andfloating types. Since 2018, Tatung has stepped into the
new territory of large-scale round-mounted PV power
plant. Major achievements of solar PV systems in 2017
were Fudekeng restoration park, Houzhuang landfill
rehabilitation sites, Taoyuan City farm ponds floating
PV solar system, Tainan City Water Resources Bureau,
Solar Tree in Taoyuan Agriculture Expo, New Taipei City
fruit and vegetable market, Benzhou sewage treatment
plant, Hsinchu County Stadium, etc. The total capacity
installed in 2017 was 27MWp which is able to generate
25,000,000 kW-hr electricity and cut off 13,000 tons ofcarbon dioxide. Tatung will continue to uphold "Green
Energy Tatung" development strategy and continue toparticipate in the renewable energy industry for making
an effort to the country.

Integration of education andindustry for fostering of talents
The founder of Tatung ended his private business in1942 and donated his assets to create the "Integrated
Research and Development" school and company
which is the former of current Tatung High School andTatung University. The spirit of operating the educationin Tatung shows that the company is an annex
company factory of the schools and provides the internopportunities for students to practice their theories
learnt from the lectures. In 2017, we established TatungShanchi Education Foundation which aims to care for

55 2018 TATUNG CSRTATUNG CSR

the society, promote the development of humanities
and science and technology education, and cultivate
professional scientific talents.

Tatung charity soccer summer camp
In an effort to help the underprivileged children to
cultivate a proper and healthy hobby, Tatung started torun "Tatung Charity Soccer Summer Camp" since 2010
and invited orphanages and welfare groups aroundTaiwan to experience the joy of playing football. The
main purpose of organizing "Tatung Charity Summer
Soccer Camp" is hoping every child can gain happinessand satisfaction as well as positive attitude. In 2017,
Tatung invited 300 children from 8 welfare groups.
Children were taught skill and knowledge of soccer inthe field by Tatung's professional team.

Supporting in traditions and arts
In support of preserving and innovation of traditionalarts, Tatung invited Taiwan indigenous paper carving
master to design Tatung Boy small lanterns of 12 Chinese
zodiac. As a token of celebrating the Year of Chickenin 2017, the small lanterns served as a promotion gift
for Tatung 3C to its customer. In support of traditional
folk arts, Tatung invited indigenous lantern master tomake Tatung Boy creative lanterns to display in the 2017
Taiwan Lantern Festival in Yunlin and Nantou Lantern
Festival. Tatung Boy participated in the 2017 New
Taipei City International Environmental Arts Festival andTianmu Marketplace Development Association 2017
Happy Halloween in Tianmu to raise public awarenessfor community characteristics development. In 2017,
Tatung also supported native performing arts groups bycooperating with children's theatre to jointly compose
a brand-new play "Tatung Boy Loves the Earth", achildren's drama performed to over 6,000 students in 7
primary schools nationwide. The play was infused withthe concepts of energy –saving, healthy living, andenvironmental protection giving rise to a significant
habit change amongst students.

Chapter 5 Social performance

56

Chapter 6
Environmental performances

2018

TATUNG CSR

Target and performances

Waste reduction management

Environmental management
TargetPerformance

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

TargetPerformance

Correction rate was 96.67% in 2017.

Reduce the amount of wastes by 5% every year.
13.49% waste reduction in 2017.

Pollutant management
TargetPerformance

Update ISO 14001 to new version by the end of 2018.

Short-termtargetIn 2017, Tayuan Plant, Taoyuan Wires and Cables Plant, and San-Hsia
Factory updated their management system to ISO 14001:2015 andpassed certification.

Energy and GHG management

Complete the installation of a RTO facility in Tayuan Plant by theend of 2018.

Mid-long term
targetEffluent and air emission are below national standards.

Performance

In 2017, the effluent and air emission were below national
standards.

1. Energy intensity of represented products in 2018 will be 6% less than in 2013.

TargetPerformance2016 - 3% less,2017 - 4.5% less,

1. Continue to seek for solar PV system cases.
In 2017, 56% of major products met the target.

2. Establish ISO 50001

Short-termtargetFactories have ISO 50001 pass re-certification every year.

Performance

3 factories passed re-certification in 2017.

Mid-long
term target

Taoyuan 1st Plant establishes ISO 50001 and passes certification.

3. Carry out GHG inventory in accordance to with ISO 14064-1

57 2018 TATUNG CSRGreen product management

2018 - 6% less

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

Performance

In 2017, Taoyuan Wires and Cables Plant, Taoyuan 1st Plant, and
San-Hsia Factory completed GHG inventories for year 2016 andverified by the third parties.

Mid-long
term target

Implement ISO 14064-1 in Tayuan Plant and headquarter.

TargetPerformance

Aiming to install 100MWp capacity by the end of 2018.
By the end of 2017, the total installed capacity was 70MWp which is
27MWp more than the end of 2016.

2. Continue to research and design environmental friendly, energy saving, water saving
products.

Short-termtargetContinue to apply for Green Mark, Energy Label, and Water Label.

Performance

New applied Energy Label – 74 models, Green Mark – 4 models,
Water Label – 9 model in 2017.

Mid-long
term target

Research and design IE4 industrial use motors.

ComplianceTargetPerformance

Numbers of violation against regulation are less thanprevious year.
1 violation in 2017 which is fewer than 2016.

Chapter 6 Environmental performances

58

2018

Chapter 6
Environmental performances

TATUNG CSR

ISO50001► Tatung environmental management road map

Energy audit
Product carbon footprint
ISO14064-1
ISO14001

3P Progrom

2010

2013
2014
2015
★ Energy saving target
Base year

1%

1%

2013

2018
6%

1%

1.5%

1.5%

⇧

⇧

⇧

⇧

2009

⇧

1996

2014

2015

2016

2017

Target 6%
2018
⇧

1993

⇧

1990

6.1Environment management
ISO 14001environmental management system

Pollution Prevention Pays (3P) Program

Tatung believes that by implementing ISO14001 is able to continue improve environmental performances, and improveexport competitively and company images. Thus, in 1996, Tatung started to implement ISO14001 among the factories
and the subsidiaries. So far all 4 factories have established ISO 14001 and certified every year. ISO published ISO
14001:2015 in 2015, we have updated the management system to 2015 version for Tayuan Plant, Taoyuan Wires andCables Plant, and San-Hsia Factory in 2017. We are targeting to complete to update work for Taoyuan 1st Plant in 2018.
Table 6.1-1 shows the factories which have been certified with ISO14001 certification.

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. Currently 17 factories
and subsidiaries are participated, please refer to Annex 3 for more information. The elements of 3P program are listed
as follows:
Measures
Promote Clean Production
technology, fully utilize
Manufacturingresources and materials andaspectto reduce the wastes and the
production costs.

Product aspect
1996

1998

Started to Tayuan Plant
implement
andISO 14001 Taoyuan 1st
Plant passed
certification

1999

2000

2017

2018

San-Hsia
Factory
passedcertification

Taoyuan Wires
and Cables
Plant passed
certification

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

Target: Taoyuan 1st Plant
passed ISO 14001: 2015
certification

Tayuan Plant ISO
14001 certificate

San-Hsia Factory ISO
14001 certificate

Management
aspectConformity▲ Figure 6.1-1 ISO14001 certification status

59 2018 TATUNG CSR

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

Descriptions

Performance

Improve the existing manufacturing
Amount of industrial wastes reduced
processes and management operations 13.49% and 75.45% of wastes wereto eliminate sources of pollution. Also
reused in 2017.
improve upon the recycling/reuse, andexchange/reuse of waste materials.
Apply Design for the Environment,
DfE”, in the design phase to produce“recyclable, low pollution, toxicfree, resource saving, power saving,and durable” products to benefit theenvironment.

New applied Energy Label – 74 models,Green Mark – 4 models, Water Label – 9
model in 2017.

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

17 factories and subsidiaries participatedin 3P program.

Conduct internal audit.

Conduct internal audit on regulation
Non-conformity correction percentage
compliance in order to find out problem was 96.67% in 2017.
at first place and mitigate it.

Chapter 6 Environmental performances

60

2018

Chapter 6
Environmental performances

TATUNG CSRWhen there any incidents found against company rules or with potential to cause environmental pollution, we will
list such incidents and request the factories and the subsidiaries to correct them. We also set yearly correction target
to be 95%. For the incidents which can not be corrected by the end of year, we will track them and make them tobe corrected next year. In 2017, 90 incidents (without subsidiaries) were requested to be corrected and 87 werecompleted by the end of 2017. The correction rate was 96.67% and met target.

6.2 Energy consumption and GHG management
Energy consumption
There are two types of energies that Tatung consumes – direct energy and indirect energy. Direct energy sources
are from diesel fuel oil, LPG, and diesel. Indirect energy source is purchased electricity from Taiwan Power Company.
The amount of energy consumption in 2017 is shown on Table 6.2-1, Figure 6.2-1 and Figure 6.2-2. The most consumed
energy in 2017 was purchased electricity and the amount was 216,152.20 GJ (90.68%) which equaled to 60,042.28 kkwhr; followed by LPG with 12,753.06 GJ (5.35%) which equaled to 252.69 tons. The total amount of energy consumption in2017 was 484.53 GJ more than in 2016, which was 0.2% increasing.

90.68%

3P plan on-site audit(2)3P plan on-site audit(1)Purchased
electricity

5.35%

LPG

3.53%

Conformity and significant spill
Tatung takes great concern on the development of environmental protection regulations. When there are public
hearings or seminars for new regulations, Tatung assigns professions to receive the latest information. In spite ofenvironmental management system and internal audit have been implemented in the company, there was 1 incident
which breached the regulations in 2017. Taoyuan Wires and Cables Plant was fined NTD$30,000 due to violating Water
Pollution Control Act. The violation was corrected in accordance to the regulation and accepted by the authority.
We will further strengthen management in the factories and enhance compliance education to the staffs and the
managers. In addition, we will continue to conduct internal audit and 3P Program evaluation to prevent such incidents
happened again. Besides, there was not significant spill in 2017.

Authority

GJ
400,000

386,648.95

398,383.26

350,000

Diesel0.44%Diesel fuel oil

300,494.38

300,000

238,362.43

250,000
237,877.90
200,000▲ Figure 6.2-1 Energy consumption
breakdown in 2017 (by category)

2013

2014

2015

2016

2017

▲ Figure 6.2-2 Trend of energy consumption▲▲

Table6.2-1 Tatung energy consumption in the past 5 years
Unit:GJ

2013

2014

2015

2016

2017

Diesel fuel oil

5,181.47

3,655.14

3,454.31

441.83

1,044.33

LPG

22,727.29

21,323.74

17,599.02

14,003.49

12,753.06

DieselPurchased
electricity
Total

7,445.85

7,927.32

7,487.31

7,597.62

8,412.84

363,028.65

353,742.74

271,953.74

215,834.96

216,152.20

398,383.26

386,648.95

300,494.38

237,899.90

238,362.43

AuditInternal control audit

ESD

Improvement

3P Program onsite audit

ISO 14001
Factoryaudit▲ Figure 6.1-2 Conformance measures in Tatung

61 2018 TATUNG CSR

Note: The data from San-Hsia Factory, Taoyuan Wires and Cables Plant, Taoyuan 1st Plant in 2013~2016 was colleted
based on ISO14064-1 and have been certified. Therefore, the numbers in 2016 were re-edited when compared tolast year’s version. The data in 2017 was collected based on ISO14064-1 but have not been certified yet. The datafrom H.Q. and Tayuan Plant was collected from power bills and receips.

Chapter 6 Environmental performances

62

2018

Chapter 6
Environmental performances

TATUNG CSRGreenhouse gas emission
Greenhouse gas emitted by human activities have already caused global warming and led to the threat on thesustainable development. Corporations actively to reduce the greenhouse gas emissions are not only to show a
responsible image to the public but also able to reduce the operation costs from running the business. In order toinvestigate the amount of GHG emission thoroughly and comply with the regulation, Tatung actively implements
ISO14064-1 greenhouse gas management system into the factories. So far, San-Hsia Factory, Taoyuan Wires and Cables
Plant, and Taoyuan 1st Plant carry out GHG inventory and get verified by third parties based on reasonable level ofassurance. Figure 6.2-3 shows the factories have done GHG inventory. For the purpose of enhancing the ability to
do greenhouse gas inventory in the factories, Tatung runs ISO14064-1 Internal Verification Class every year. We are
expecting to have more well-trained employees through these classes and they are able to do the greenhouse gas
inventory well and pass the verification by the third party in the future.

Due to Tayuan Plant and H.Q. are still undergoing the establishment of ISO14064-1, the GHG emissions (scope 3 is
not included) disclosed in this report are calculated as follows: the amount of energy sources disclosed in previous
paragraph multiplied by each emission factor. The total GHG emission amount in 2017 was 33,276.02 tons CO2e (Figure
6.2-4) which was 135.08 tons CO2e (0.41%) more than in 2016. The largest emission source was purchased electricity(scope 2) which took 95.45%. The second largest portion was LPG which only took 2.42% (Figure 6.2-5).

Tons
CO2e

Purchased
electricity

60,000

Diesel

LPG

Diesel fuel oil

31,655.79

31,762.37

565.83884.9834.33

626.54805.9681.15

50,000

H.Q. ／ Tayuan Plant
40,000

Taoyuan Wires and Cables Plant ／ San-Hsia Factory
Taoyuan 1st Plant

30,000

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018
2018

52,639.15

51,194.44

39,886.55

20,000Calculated without being verified.
Calculated based on ISO14064-1 and being verified.
Calculated based on ISO14064-1 and scheduled to be veriﬁed by the end of 2018.

10,0000▲ Figure 6.2-3 Tatung GHG inventory and verification status95.45%
2.42%
1.88%
0.24%

Purchased
electricity
LPG
Diesel554.491,436.23
402.602013

590.35
1,347.54
284.01
2014

557.58
1,112.15
268.40
2015

2016

2017

Note 1: The data from San-Hsia Factory, Taoyuan Wires and Cables Plant, Taoyuan 1st Plant in 2013~2016 were colleted based on
ISO14064-1 and were verified by third parties. Hence in this report, the numbers for 2016 were restated when compared to lastreport. The data in 2017 was collected based on ISO14064-1 but was not verified yet. The data from H.Q. and Tayuan Plant wascollected from power bills and receips.
Note 2: The greenhouse gases are CO2, CH4, N2O. The GWP for 2013~2015 is based on IPCC 1995, the GWP for 2016 and 2017 is basedon IPCC 2007.

▲ Figure 6.2-4 Amount of GHG emissions

Diesel fuel oil▲ Figure 6.2-5 GHG emission percentage by source in 201763 2018 TATUNG CSR

Chapter 6 Environmental performances

64

2018

Chapter 6
Environmental performances

TATUNG CSREnergy saving and GHG reduction

Tons
CO2e

Global warming greatly increases the frequency of extreme weather events and directly causes impacts to the operation of abusiness. In order to fulfill corporate social responsibility and reduce operating costs, Tatung sets short and medium term goals which
are based on energy intensity per product and the baseline year is 2013. The goals are: Short term – reduce 3% in 2016, Medium term
– reduce 6% in 2018. To achieve the goals, Tatung implements ISO 50001 Energy Management System in the factories to sharpen up
company's energy performance. So far San-Hsia Factory, Tayuan Plant, and Taoyuan Wires and Cables Plant have established ISO
50001 and passed certification. Please refer to Figure 6.2-6 for more details. In addition, we conduct annual energy audit and report
the energy consumption information to the government as well as implements energy saving projects in H.Q. and the factories. In
2017, Tatung reduced about 2.35 million kwh of purchased electricity consumption via 4 dimensions (Table 6.2-2) which equaled to1,241 tons of GHG emission reduction (3.2 Daan Forest Park's carbon reduction amount1). Figure 6.2-7 shows carbon reduction results
for the past 5 years.

1,400

Amount of carbon reduction
increases for 4 consecutive years

1,240.85

1,200
1,000
800

1,075.43

1,086.26

2015

2016

617.55

600
400
200

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

0

164.47
2013

2014

2017

▲ Figure 6.2-7 Amount of carbon emission reduction

San-Hsia Factory
Tayuan Plant and Taoyuan
passed ISO 50001 Wires and Cables Plant passed
certification
ISO 50001 certification▲ Figure 6.2-6 Status of Tatung's ISO 50001▲▲

Table 6.2-2 Tatung energy saving projects and results

Utilized manufacturing process to reduce operation
time.
Replaced with high energy efficient and energy saving
equipments
Centralized operation areas and shut down
unnecessary air conditioners and lightings.
Increased the frequency of maintenance for majoredenergy using equipments and installed curtains to
avoid leakage of cooled air.
Total
Note: 1 kw-hr of electricity emits 0.529 kg CO2e.

Amount of electricity saved(kw-hr)

GHG reduction(tonCO2e)1392,646207.71

Major products

1,626,825

860.59147,091

77.81

179,09794.74

2,345,659

1,240.85

Motors/generators
Multi-function cookers
Domestic air conditioners
Commercial air conditioners
Transformers/switch gears
Mechanical meters
Lan cables
Power cables
Wires

Table 6.2-3 Status of energy intensity goal for major products▲▲

Energy saving projects

2014 (⇧

2016

For the major products failed to achieve energy intensity goal, we will replace the old energy-using equipment. For
example, Taoyuan 1st Plant plans to replace one 100HP traditional air compressor with a high energy efficiency air
compressor with inverter. Taoyuan Wires and Cables Plant plans to replace one old production equipment with a highenergy efficiency production equipment, and Tayuan Plant plans to replace on diesel fuel oil drying furnace to LPG
drying furnace and install the automatic power breaker for the power consumption equipments above 5HP. In addition,
we will introduce an external professional team this year to conduct energy-saving counseling, assist in the efficiency
diagnosis of the in-plant equipments, establish baseline, engineering planning, and performance verification in orderto improve production efficiency and reduce energy use. Each division will conduct the second phase of the project,"Significant Energy Equipment Monitoring and Management" to reduce energy consumption. The energy conservationteam (formed by H.Q. and the plants energy managers) will also conduct the power consumption monitoring area
(SEU) monitoring plan by using power analysis equipment to establish a historical database of electricity consumption inorder to identify the future energy-saving potentials.

1%)2015 (⇧Started to
implement

2015

San-Hsia Factory
ISO 50001
certificate

2%)2016 (⇧

2014

Tayuan Wires andCables ISO 50001
certificate

3%)2017 (⇧

Tayuan Plant
ISO 50001
certificate

In 2017, there were 5 major products achieving the goal of 4.5% reduction in energy intensity. The completion rate
was 55.56%, please refer to Table 6.2-3 for more details. The main reasons for those failed to achieve the goal were
producing large size products which increased power consumption; the product testing time and method were morestrict than previous years due to customer's quality requirements, and the factory added RTO air pollution treatment
facility so the fuel consumption was increased.

X

X
X

X
X

X
X

◎
◎

◎
◎

◎
◎

◎
◎

X
X
X
X
X

X

X

X

◎
◎
◎
◎

◎
◎
◎
◎

◎
◎
◎

◎

4.5%)

X

Note: The baseline year is 2013. ◎ represents it meet the goal, X represents it does not meet the goal.

65 2018 TATUNG CSR

Chapter 6 Environmental performances

66

2018

Chapter 6
Environmental performances

TATUNG CSR

Carbon Footprint Lable and Certificate for Multifunction Cookers(TAC-10L-SR)

Consumption and management of water resource

As global warming issue becomes more and more concerned, we have actively disclose greenhouse gases emission
information on company's official website, CSR Report, and Market Observation Post System website. We also begin todisclose carbon information on products and hope to provide more detailed information to consumers and customers
for the purpose to select products with less environmental impacts.

The sources of water for Tatung are from tap water, ground water, and river water. Tatung consumed 600,001M3(Figure 6.3-1) of water in 2017 which was 58,301M3 less than the consumption in 2016. The main reason was part ofmanufacturing process being transferred to other company. In 2017, 16.31% of waste water was recycled (equaled to
97,861M3). We will continue to conduct water conserving project in order to reduce water consumption.

In the past few years, we have completed product carbon footprint for a motor and a transformer. We also assisted
CPT to complete product carbon footprint for a vehicle panel and GET for a silicon wafer. We also issued PCRs (productcategory rule) for AC motors, electric cookers (15-044 V. 2.0) and electronic cookers (15-045 V. 2.0) for industry to use.
In order to help consumers to understand their daily carbon emission amount, we started to conduct carbon footprint
for household appliances. At first we picked Tatung's signature product "Multi-function Cooker" (Model No.: TAC-10LSR) to carry out product carbon footprint and issued Carbon Label by EPA in 2017. In the future, we will continue to
conduct product carbon footprint to disclose the product carbon information and make effort to conserve energy andreduce GHG.
Table 6.2-4 Status of Tatung's product carbon footprint

As for the waste water management, all the factories and subsidiaries have granted government approved "waterpollution prevention measures" and "permit for effluent", as well as setup waste water treatment facilities based on theprevention measures. All the waste water treatment facilities are operated in accordance to the prevention measuresand the amount and quality of the effluent are regularly tested and reported to the authorities. The rest results are all
below the effluent standard. In addition, the factories are located in industrial area and/or industrial zone where do nothave bio-sensitive sites nearby. Therefore the effluent from Tatung will not have significant impacts to the biodiversity of
the recipient water bodies. The detailed effluent information is disclosed on Table 6.3-2.

▲
▲

▲
▲

Disclosure on product carbon information

Year

2010
2012
2012
2016
2017

Product carbon
Carbon Labelfootprint

Product
NEMA Premium AC Motor 3HP 4P
Poly-silicon wafer / 200μm
Vehicle panel

Ⅴ

1

Ⅴ

2

Ⅴ

Oil-immerse amorphous core transformer(3φ 60Hz-2000kVA-420/242-6600V)

Ⅴ
Ⅴ

Ⅴ

PCR issued by Tatung

Table 6.3-2 Waste water treatment and effluent description in 2017

Factory

Treatment method-

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

Taoyuan 1st Plant

Factory owned
waste water
treatment plant inaccordance to therequirement by theregulation

AC Motors-■ Electric cookers (15-044 V. 2.0)
■ Electronic cookers (15-045 V. 2.0)

Note 1: Assisted GET to complete carbon footprint inventory.
Note 2: Assisted CPT to complete carbon footprint inventory.

Average COD
Average SS
Amount ofconcentration (mg/L) concentration (mg/L) effluent (M3)

Recipient
water body

40.26
11.78

23.17
8.97

5,324
1,841

Heng River
New Street River

9.40

4.21

51,893

New Street River

11.39

3.00

7,680

Tianxinzhi River

Effluent reusedby othersNone

66,738

Total
Note 1: The data is from EPA's declaration system.
Note 2: Effluent standard COD: 100, SS: 30.
M3

800,000

6.3 Resources consumption and pollutants management

700,000

Consumption and management on main materials

600,000

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

500,000▲▲

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

Main materials

Amount of consumption

Local purchase percentage

Steel (silicon steel included)
CopperAluminum
Insulation oil

7,247 tons
17,620 tons
493 tons
767 kL

61%
5%
85%
98%

Note: Tatung produces hundreds of different products. Some of them are OEM/ODM made. Therefore, in this report only discloses theamount of the above 4 fundamental materials.

67 2018 TATUNG CSR

243,461

253,008

235,384

245,799

161,059

229,321275,181

238,185

242,003292,811400,000
300,000

River water

200,000
100,000
0

Tap water

203,603

197,944

186,109170,500

146,131

2013

2014

2015

2016

2017

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

Chapter 6 Environmental performances

68

2018

Chapter 6
Environmental performances

TATUNG CSR

Air pollutant emissions and management

Waste reduction and management

Tatung sets up and operates air pollutant treatment facilities in the factories in accordance to the regulation. Pollutant
concentration is regularly tested and met the standard. In addition to meet emission standards, we are committed to
optimize the air quality around the factories. In the past few years, we have adopted RTO and other pollutant removal
facility with higher removal efficiency, and we plan to add a set of RTO to Tayuan Plant in 2018. In San-Hsia Factory wewill change the part of treatment process from activated carbon adsorption to the existed RTO to reduce the impact
on the surrounding environment.

Tatung's waste reduction concept is mostly from product design and process improvement to reduce the amount ofindustrial waste. The waste produced is properly classified and stored according to relevant regulations, and finallycommissioned by domestic qualified treatment companies or reuse companies. Tatung will audit the entrusted
companies from time to time to ensure that the waste is properly cleaned up.
waste being
5 Obtainproper treatedqualified
3 Entrustwaste treatment anddocument from
entrusted companies

re-use companies

The main air pollutants from the factories are NOx, SOx, and VOC. Tatung declares the amount of emissions and pays
air pollution control fee to the authority. From Figure 6.3-2 and Figure 6.3-3 we can see the emissions of VOC have
reduced gradually for the past 5 years. The emissions for NOx and Sox were slightly increased in 2017. The reason could
be more fuels were consumed by RTO.

Contract

2 Classified,labeled, stored inent
Proper treatm
document

環保公司

廢棄物處理

the factory

廢棄物處理

NOx

Kg

VOC

SOx

Kg

4,000
3,500

1

120,000
3,493
100,000

2,000

1,666

1,000

waste treatment andre-use companies

1,227

In 2017, Tatung produced 2,984.54 tons of industrial waste, of which 2,930.28 tons were general industrial waste and54.26 tons were hazardous industrial waste (Figure 6.3-4). Compared with the previous year, the amount of waste
produced in 2017 was 13.49% less which reached our waste reduction target of 5% per year. In the past 5 years, theamount of waste has been reduced by 42%.

40,000

1,087
2013

2014

4 Audit the entrusted

56,90767,09860,000

1,464

500

廢棄物處理

1,351

1,323

1,500

廢油

79,431

2,109

1,932

廢鐵

72,92080,000

2,266

一般垃圾

89,135

3,000
2,500

Product design
and process
improvement to
reduce waste

2015

2016

2017

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

20,000

2013

2014

2015

2016

2017

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

Tons

Waste being reduced by 42% in the past 5 years

6,000.00

5,043.69

5,000.00

4,176.07

4,000.00

3,248.25 3,392.95
2,930.28

3,000.00
2,000.00
1,000.00
0.00

66.73 27.63 43.66 56.95 54.26
2013

2014

2015

2016

2017

Hazardous industrial waste

RTO in Tayuan Plant(underconstruction)

69 2018 TATUNG CSR

2013

2014

2015

2016

2017

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

Chapter 6 Environmental performances

70

2018

Chapter 6
Environmental performances

TATUNG CSR

Table 6.3-3 shows the methods used for waste treatment in 2017. The factories also have been working hard to recycle
and/or reuse the wastes in order to minimize the impact to the environment. In 2017, 2,251.90 tons of wastes werereused (75.45% of total wastes). The reuse rates in the past 3 years were all above 70%.
▲▲

Table 6.3-3 Waste treatment methods and amount in 2017

Treatment method
General industrial waste(tons)
Hazardous industrial waste(tons)
Treatment method
percentages (by weight)

Reuse

Incinerate

Solidify

Landfill

PhysicalChemical

Total

Total

526.84

31.88

85.20

34.47

0.00

2,930.28

0

46.68

7.07

0

0

0.51

54.26

75.45%

19.22%

1.31%

2.85%

1.15%

0.02%

100.00%Note: The data is cited from EPA's waste declaration system or entrusted documents.

80.00%

76.71%
73.17%

75.45%

70.00%

6.4 Green products for a better earth
Establishing solar PV systems to minimize air pollution and greenhouse gases"Green Energy Tatung" is Tatung's development strategy. We plan to promote PV solar projects with steady paces
and continue to innovate in combination with smart technology and have achieved leading performance in PV solar
system industry. We have successfully finished PV solar systems in kinds of place, such as residential area, community,
factory, dormitory, and commercial building. We are offering the solutions of rooftop, ground-mounted and floating
types. The major achievements in 2017 were Houzhuang landfill rehabilitation sites PV solar system, Taoyuan farm ponds
floating PV solar system. By the end of 2017, we have completed 70MWp of PV solar systems in accumulatively. The
systems can generate 77,000,000 kwh of electricity each year and cut off 41,000 tons1 CO2e which equals to 105 Daan
Forest Park's2 carbon absorbing capability.
Looking forward to the future, Tatung will adhere to the sustainable
development strategy and actively promote the energy transformation of
non-nuclear homes in line with the government's green energy policy. The
goal is to complete 100MWp solar PV systems accumulatively in 2018. We areaiming to lead the solar power industry to reciprocate and innovate throughvarious industry cooperation and to expand setup area for PV solar systems.
We will provide more opportunities for cooperation in the solar energy
industry. For more details about Tatung PV solar projects, please browse:
http://www.tatung.com.tw/solution/detail/16
Note 1: 1 kw-hr electricity emits 0.529 kg CO2e.
Note 2: One Daan Forest Park absorbs 389 tons of CO2 per year.

PV solar system at Taoyuan
Agriculture EXPO

60.00%
50.00%
40.00%
30.00%

PV solar system at Houzhuang
landfill rehabilitation sites

20.00%

PV solar system at Benzhou
sewage treatment plant

10.00%
0.00%

PV solar system at Hsinchu
County Stadium

Target100MWp

2015

2016

2017

70MWp

▲ Figure 6.3-5 Waste reuse rates in the past 3 years

43MWp
23MWp
13MWp

2014

2015

2016

2017

2018

▲ Total PV solar systems installed and our target

71 2018 TATUNG CSR

Chapter 6 Environmental performances

72

2018

Chapter 6
Environmental performances

TATUNG CSR

Devote in developing environmental friendly products
Tatung tirelessly dedicates to the development of green products and many of them have been awarded with"Green Mark", "Energy Label", and "Water Label". There were 4 models awarded with Green Mark, 74 models awarded
with Energy Label, 9 models awarded with Water Label in 2017. Please refer to Table 6.4-1 and Figure 6.4-1 for moredetails. As for toxic free products, Tatung has followed EU RoHS directive and REACH regulation, through supply chain
management and manufacturing management to ensure there is no hazardous substance in the products shipped toEU.
▲▲

Table 6.4-1 Lists of green products

Products

Green Mark1

Energy Label2

Water Label

－
◎
－
－
－
－
－
◎

◎
◎
◎
◎
◎
◎
◎
◎

－
－
◎ (all series)
－
－
－
－
－

◎

－

－

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

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

250

200

Unit：No. of models

190

186

Energy Label

203

Green Mark
Water Label
133

150

100

On the other hand, Tatung takes "energy saving and carbon
reduction" as her corporate social responsibility, and focuseson improving the energy efficiency of her products. Motors
are the driving force of industrial production processes which
consume the highest proportion of electricity consumption
and are widely used in various equipments. In order toachieve the goal of global energy saving and carbon
reduction, IEC announced 'IE4' efficiency standard in 2014.
Therefore, the popularization of "high efficiency motor" isregarded as an important force for global motor energy
conservation. Tatung, as a global motor leader, although
has developed IE4 motors, but most of them are PM
permanent magnet motors or SRM reluctance motors. The
new motors can not be replaced directly because of thedifferent installation sizes of the old IE1, IE2, and IE3 motors and extra controllers have to be installed to peripheral devices.
Therefore, Tatung cooperates with ITRI in 2017, hoping to combine the research and development capabilities of ITRI
with the excellent motor producing foundation of Tatung for many years to develop "digital design and manufacturing
technology" for the development of IE4 ultra-high efficiency motor with sharing and interchangeable ability. The outcome
allows equipment manufacturers to completely replace old and inefficient motors with ultra-high efficiency motors,
maximizing the power saving effect in Taiwan and reducing the risk of power shortage.

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 country-wide waste
recycling affairs. Based on the statistics1 in 2016, the average recycling rate for electric and electronic devices was
58.91%, the average recycling rate for information devices is 30.91%. In addition, as a corporate who has her own retailingsystem, Tatung works together with TCPC to set up battery and fluorescent lamp recycling box at each Tatung 3C Store torecycle consumers' wasted batteries and fluorescent lamps, as well as consumers' large wasted house appliances uponrequest when purchasing. By doing this, the wastes can be fully recycled under the control of regulation and avoided
damage to the environment. Apart from paying the fees and fulfilling producer responsibility, Tatung also works hard touse more recyclable materials through design and manufacturing stages and actively to apply for Green Mark.
In regarding to the packaging materials of household appliances and consumer products, Tatung believes that the
packaging materials are fully recycled. The reason behind this is the recycling channels in Taiwan are well established andresidences are highly educated and aware to do recycle in their households. For packaging materials (mainly wood/iron pallets or axles) used on large industrial products such as cables, transformers, power generators, motors, they are
recycled and reused on daily operations. Tatung commits herself to continue designing and producing more energy
efficient and environmental friendly products to be consistent with her vision.
Note 1: The official website of Recycling Fund Management Board
https://recycle.epa.gov.tw/epa/ShowPage2.aspx?key=6&sno=1010&subsno=293&subsubsno=252

74
49

50

0

4

2013

19

2014

24
7

19
8

2015

Publishing wasted household appliances
recycling information on products fliers.
1

2016

4

9

2017

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

73 2018 TATUNG CSR

Publishing wated household
appliances recycling information on
etungo online shopping site.

Chapter 6 Environmental performances

74

ANNEX
Annex 12018

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

TATUNG CO., LTD. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Expressed in Thousands
Newconsolidated
Taiwan Dollars unlessfinancial
otherwise Specified)
Subsidiaries
notesof tostateents

a. The consolidated entities are listed as follows:

The consolidated entitles are listed as follows
December 31, December 31,
Investor

Subsidiary

Main businesses

2017

2016

December 31, December 31,
Investor

Subsidiary

Main businesses

2017

2016

41.25%

41.25%

54.40%

54.40%

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

40.75%

40.75%

Taiwan Telecommunication Industry Telecommunication devices.

100.00%100.00%58.20%

58.20%

39.04%

36.22%

100.00%100.00%99.10%

99.10%

85.33%

85.33%

54.63%

54.63%

100.00%100.00%

The Company

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

100.00%100.00%

The Company, Chunghwa Electronics

Chunghwa Picture Tubes, Ltd.

Manufacture, research and sale of

The Company

Tatung Co. of America Inc.

50.00%

50.00%

Investment Co., Ltd., Green Energy(“CPT”)

picture tubs and TFT-LCD products

The Company

Tatung Mexico S.A de C.V.

100.00%100.00%Ltd. and Tatung Global Strategy Investment(“TMX”)and Trading (BVI) Inc.

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

100.00%

The Company, Shan-Chih Investment Co.,

Tatung System Technologies Inc.

Software and hardware service and100.00%100.00%Ltd. and Shan-Chih Asset Development Co. (“TSTI”)

Sales and service of IT and household

Technology Inc., Chih Sheng Realty Co.,

electronics products in the US

The Company
The Company

Manufacture of electronic products

100.00%

Tatung Electric Company of

Manufacture and sales of motor

America, Inc.

products in the U.S.

The Company

Tatung Netherlands B.V.

Sales of electronic products

100.00%100.00%

The Company

TATUNG CZECH s.r.o

Manufacture of IT products

100.00%100.00%

The Company

Tatung Medical Healthcare

Design and sales of medical

95.33%

95.08%

Technologies Co., Ltd.

instruments.

Toes Opto-Mechatronics Co.

Manufacture of data storage and

The Company

85.00%

85.00%

process equipment
The Company

Tatung Vietnam Co., Ltd.

Manufacture and sales of home

100.00%100.00%appliances
The Company

Tatung Electric Technology (VN)

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

cable

The Company

Chih Sheng Investment Co., Ltd.

Professional investment holding

100.00%100.00%

The Company and Chunghwa Electronics

Shan Chih Investment Co., Ltd.

Professional investment holding

100.00%100.00%Investment Co., Ltd.
The Company

The Company, CPT, SCSC and Chunghwa

system integration

Electronics Investment Co., Ltd
The Company

Company Ltd.
The Company and Chunghwa Electronics

San-Chih Semiconductor Co.,

Manufacture and sales ofInvestment Co., Ltd.

Ltd.(“SCSC”)

semiconductors and chips

The Company, SCSC, SCAD, Shan Chih

Green Energy Technology Inc.

Manufacture of electrical parts andInvestment Co., Ltd., and Chih Sheng(“GET”)

retail sales and wholesale ofInvestment Co., Ltd.
The Company

electrical materials
Central Research Technology Co.

EMCIRF testing and certification
services

The Company
The Company

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

computer products

Tatung SM-Cycle Co.

Manufacture of speed reducers,
speed aviators

Tatung Global Strategy Investment

Professional investment holding-

100.00%and trading (BVI) Inc.

The Company, Chunghwa Electronics

Tatung Fine Chemicals Co., Ltd.

Industrial coatings, electrocution

Investment Co., Ltd. and Chih-Sheng(“TFC”)

coatings resistor coatings, photo-

The Company

Absolute Alpha Limited

Professional investment holding

100.00%100.00%Investment Co., Ltd.

The Company

Tatung Forever Energy Co., Ltd.

Solar energy related business

98.55%

98.12%The Company

The Company

Leap High Limited

Professional investment holding

65.00%

65.00%The Company

Tungyang Energy Co., Ltd.

Solar energy related business100.00%-

The Company and CPTB

Chunghwa Picture Tubes (Labuan)

Investment holding and sales of

100.00%100.00%Ltd. (“CPTL”)

TFT-LCD

Giantplus Technology Co., Ltd.

Research, development, production-

53.67%(“Giantplus”)

and sales of LCD.

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

Manufacturing and sales of IT

100.00%100.00%(Thailand) Co., Ltd.

products, home appliances and AI

26.37%

30.42%The Company

CPT
CPT
CPTB and CPTLTATUNG CSR

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

TFT-LCD

Chunghwa Picture Tubes

Research, design, manufacturing,Technology (Group) Co., Ltd.

sales and service of flat-panel display(“CPTTG”)

device, monitor display model andcatalyst, inkjet ink
Shan-Chih Asset Development Co.

Development and leasing of real(“SCAD”)

estateThe Company, SCAD and Chih Sheng

Chunghwa Electronics

Professional investment holding

100.00%99.86%

Investment Co., Ltd.

Investment Co., Ltd.

The Company

Tatung DIE Casting Co.

Manufacturing and sales of casting

51.00%

51.00%

100.00%100.00%100.00%100.00%90.00%

90.00%

100.00%100.00%100.00%100.00%

mold

meter
Tatung Co. of Japan, Inc.

Sales and purchase of electronicparts, home appliances and IT
products

The Company

components
CPTB

Dalemont Investment Ltd.

Professional investment holding-

100.00%

CPTB

Daliant Investment Ltd.

Professional investment holding-

100.00%

CPTB

Bangalor Investment Ltd.

Professional investment holding-

100.00%

CPTB

Bensaline Investment Ltd.

Professional investment holding-

100.00%CPTB

New Kingston Enterprises Limited

Professional investment holding

100.00%100.00%100.00%100.00%

Tatung Electronics(S) Pte. Ltd.

Purchases, sales and services of raw
material

The Company

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

The Company

cable

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

(“NKEL”)
CPTTG(L) and CPTTG

Chunghwa Picture Tubes (Wujiang) Assembly final module of TFT-LCD
Ltd. (“CPTW”)

26

27

75 2018 TATUNG CSR

ANNEX

76

ANNEX2018

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

December 31, December 31,
Investor

Subsidiary

Main businesses

2017

2016

Assembly final module of TFT-LCD-

100.00%Assembly final module of TFT-LCD

100.00%100.00%100.00%100.00%CPTTG

Chunghwa Pictures Display

CPTW, FDT and CPTTG

CPTF Optronics Co., Ltd.

CPTB

Chunghwa Picture Tubes (Malaysia) Manufacture and sale of CRT

December 31, December 31,
Investor
Forward Development Co., Ltd.

Technology (Fujian) Ltd.(“FDT”)

Sdn. Bhd. (“CPTM”)
CPTF Optronics Co., Ltd., NKEL, and

CPTF Visual Display (Fuzhou)

Manufacture components of TFT-

Forward Development Co., Ltd.

Ltd.(“FVD”)

LCD

CPTF Optronics Co., Ltd.

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

100.00%51.00%

100.00%51.00%LCD
CPTTG

Chunghwa PictureTubes Technology Investment holding and sales of

CPTTG

Fuzhou YingYuan Equity Investment Professional investment holding(Labuan) Ltd

CPTB and CPTTG

Main businesses

2017

2016

Suzhou Forward Electronics

Manufacture and sale of backlight

100.00%100.00%Technology Co., Ltd.

unit for TFT-LCD, driving board,
tuner, keyboard, mouse, switch,socket and connector.

SCSC

Greater Power Limited

Investment holding

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

Investment holding

100.00%100.00%GET

Energy Well International Limited

Investment holding

100.00%100.00%GET

Green Energy Global Investment

Investment holding

100.00%100.00%Greater Power Limited and Energy Well

Ultra Energy Holdings Limited

Investment holding

100.00%100.00%International Limited

100.00%100.00%

Energy Well International Limited

Golden Sunny Limited

Investment holding

100.00%100.00%100.00%100.00%Ultra Energy Holdings Limited

Ultra Energy (WEIFANG)

Solar silicon wafer slicing.

100.00%100.00%100.00%

TFC

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

100.00%100.00%100.00%100.00%100.00%100.00%

TFT-LCD

Technology Co. Ltd

Management Co., Ltd.
CPTTG

SubsidiaryVibrant Display Technology CO.,R&D, design and manufacture

Ltd.

components of TFT-LCD

CPT TPV Optical (Fujian) Co., Ltd.

Manufacture components of TFT-

100.00%coating and electro-deposition
80.00%CPTB

CPTF Optronics (Shen-Zhen) Co.,

CPTTG, CPTF Optronics Co., Ltd., andGoldmax Asia Pacific Ltd

coating.

80.00%TFC

LCD
Investigation of market information

100.00%100.00%

Kornerstone Materials Technology

R&D, design and manufacture and100.00%100.00%Co. Ltd.

sale of panel components

Huaian Tatung Advanced

Manufacture and sale of positive

Technology Materials Co., Ltd.

material of lithium battery, printerink, electro-deposition highLtd.

Kornerstone Materials Technology Co. Ltd. DDD3Empire

Manufacture, research and sales of

CPTF Optronics Co., Ltd

CPTF Optronics (HK) Co., Ltd.

Vibrant Display Technology CO., Ltd.

Huajiayuan Co., Ltd.

55.00%

55.00%

Sales of TFT-LCD

100.00%100.00%Development, investment, sale,

100.00%-100.00%100.00%100.00%100.00%leasing of real estate; estate

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

Wholesale of painting, coating and100.00%100.00%management and lodging

Co., Ltd.

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

100.00%Hsh Heng Investment Co., Ltd.

Investment-

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

Giantplus Holding L.L.C

Investment-

100.00%

Kunshan Giantplus Optoelectronics

Manufacture components of LCD-

100.00%Technology Co., Ltd.

display

Giantplus Holding L.L.C

Shenzhen Giantplus Optoelectronics Manufacture components of LCD-

100.00%

Display Co., Ltd.

display

Kunshan Giantplus Optronics

Sales of touch panel-

100.00%Investment holding

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

Manufacture and sale of solar

45.82%

45.82%

Technology Inc. and Toes Opto-

module and related component

Giantplus Holding L.L.C

Display Technology Co., Ltd
Forward Electronics Co., Ltd.

Forward Development Co., Ltd.

Forward Electronics Equipment

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

keyboard, mouse, remote controller,
switch, socket and potentiometer.

28

77 2018 TATUNG CSR

Wujiang Shang Huah Plastic Co., Ltd. Manufacture and sale of ABS plastic.

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

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

Technology Co., Ltd

Tatung Information Technology

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

electrical products

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

cable

Tatung Information (Singapore) Pte. Ltd.

Tatung Compressors

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

reciprocating compressors.

Tatung (Shanghai) Co., Ltd

Manufacture and sales of motors,

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

generators and transformers

Corporation
TMX

TMX Logistics, Inc.

Hub service

100.00%100.00%TMX

TMX Technologies Inc.

Technologies & business100.00%100.00%100.00%100.00%-100.00%development

Mechatronics Co.
Forward Development Co., Ltd.

Investment holding

ABS plastic, color dyes

Giantplus Technology Co., Ltd.
Giantplus Holding L.L.C

Shang Chih International Chemical
Industry Co., Ltd.

TFC

optical glass

Giantplus Technology Co., Ltd.

performance coating.
TFC

100.00%100.00%Shan Chin Investment Co. Ltd

Shan-Chih International Holding

Investment holding

Corporation
Shan-Chih International Holding

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

cable

29
ANNEX

78

ANNEX2018

TATUNG CSRTATUNG CO., LTD. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Annex 2 Products and services provided by Tatung(Expressed in Thousands of New Taiwan Dollars unless otherwise Specified)

December 31, December 31,
Investor

Subsidiary

Main businesses

2017

2016

100.00%100.00%Investment holding

100.00%100.00%Software design and development

100.00%100.00%94.00%

94.00%TSTI

Chyun Huei Business Technology

Information software

Inc.

Service

TSTI

Tatung System Technologies

Products and services provided by Tatung
Business Groups

Tisnet Technology Inc.

Tatung System Technologies Holding Ltd.

TSTI Technologies (Shanghai) Co.,

Information software

Ltd.

Service

Chih Sheng Investment Co., Ltd.

Chih Sheng Investment (BVI)

Investment holding

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

HEDA Biotechnology Co., Ltd.

Produce, food retail and wholesale

52.17%

52.17%

Products and services

ImportantCertifications

Industrial Appliance: Researching, developing and manufacturing all kinds oftransformers rated 345kV 1000MVA and under, all kinds of reactors rated 345kV
100MVAR and under, gas insulated switchgears and outdoor gas circuit breakers
up to 161kV class, 36kV series of switchgear, power distribution equipment, andother industrial equipment.
Power Equipment Cable: With more than fifty years of technical experience, this business unit is
responsible for manufacturing and sale of various wires, cables, optical fiber
BU
cables and busway which are widely used in telecommunication, powertransmission and distribution system, industrial equipment, home appliance and IT
network & electronic device.

Holding Ltd.
TSTIBusiness Units

2306

industry
Chih Sheng Investment (BVI) Co., Ltd

Chih Sheng Holding Co., Ltd.

Investment holding

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

Goldmax Asia Pacific Ltd

Investment holding

51.26%

51.26%

Chih Sheng Holding Co., Ltd.

Chih Sheng Holding HK Limited

Investment holding

100.00%100.00%Absolute Alpha Limited

Tatung Information Technologies

Sales of electronic products

100.00%100.00%100.00%100.00%99.87%

99.87%

50.61%

50.61%

Power BusinessGroup
Motor BU

Corp.
Chih Sheng Holding HK Limited

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

Shan-Chih Asset Development Co. andTatung Forestry and Construction

Design and construction of structural

Taipei Industry Corporation

Co.

engineering.

Shan-Chih Asset Development Co.

Taipei Industry Corporation

Production and sales of mixing

ElectricalEngineering
Divisionconcrete.
Shan-Chih Asset Development Co.

Chih Sheng Realty Co., Ltd.

Realty management

100.00%100.00%Shan-Chih Asset Development Co.

Shan-Chih Asset International

Investment Holding

100.00%100.00%Realty and Leasing Service

100.00%100.00%100.00%100.00%-100.00%Holding Corporation
Shan-Chih Asset International Holding

Tatung Management Consultant

Corporation(Shanghai) Co., Ltd.

Shan-Chih Asset International Holding

Shan-Chih Asset International (Hong Investment Holding

Corporation

Kong) Holding Limited

Shan-Chih Asset International (Hong Kong) Suqian Zhiwei Real Estate Co., Ltd.

Realty management

AdvancedElectronics BU

Holding Limited
Tatung Forever Energy Co., Ltd.

Sheng Yang Energy Co., Ltd.

Battery Material Retail100.00%100.00%

Tatung Information (Singapore) Pte. Ltd.,

Myanmar Tatung Co., Ltd.

Sales and customer service of solar

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

energy, industrial motor, home
appliances, industrial air
conditioner

Tatung Information (Singapore) Pte. Ltd.

Tatung Myanmar JV Holding Co., Ltd. Investment Holding

100.00%100.00%

Tatung Medical Healthcare Technologies

Tatung Medical & Healthcare

100.00%-Co., Ltd.

Technologies Inc.
100.00%-100.00%-100.00%-Investment Holding

Tatung Medical & Healthcare Technologies Elite Oxygen And Healthcare Co., Ltd. Sale of Oxygen generator
Inc.
Tatung Medical Healthcare Technologies

Insured Pharmaceuticals Co., Ltd.

Co., Ltd.
Tatung (Shanghai) Co., Ltd

Pharmaceuticals and warehousing andtransportation service

Tatung Xinji (Guangdong)Electrical engineering system

Technology Co., Ltd.

installation service

Consumer BusinessGroup

Appliance BU

Tatung motor business has been in the industry for more than 70 years. Tatung's
motors business has been operating for over six decades with sales worldwide.
With "Tatung Motors Drive the World" as its theme. Integrating of all aspectsof electric machine which covered for designing, manufacturing, and sellingof 1/8~30,000HP, single and three phase induction motors, high temperature
resistant motor, and explosion- proof motor, immersible pump motors, PM motors,
EV motors, drives, water jacket motors, generator sets, and total solutions of
power systems.
To comply with Government Renewal Energy policy, Tatung Company has
integrated the resources of three Heavy Power Plants within Tatung Group andthe advantage of our electrical power products for the expanding of the businessscope of electrical power system integration and providing total solution services.
Business scope: 1. PV power substation system. 2. Small scale Hydro Power Plant
system. 3. Wind Mill Power substation system. 4. Electrical Power Engineering
System.
AEBU focuses on providing global ODM customers with design and manufacturing
products & solutions. The product lines include 2 main lines: digital entertainment
and Internet-of-Things (IoT) products. The digital entertainment line includes
gaming headsets, smart noise cancelation headsets, streaming microphone,and entertainment accessories. The IoT products include IP camera, smart
energy management and sensing-&-control products. Tatung’s customers canbenefit from Tatung’s fast reaction to accommodate market needs and flexibility
in design customization. The on-going research and development will further
enhance the customers’ competitiveness in their products.

UL

To boost sales in both domestic and overseas markets, apart from improving
brand operations, we enhance brand value with innovative design, quality
products, and technology integration. Our wide variety of products includes ecofriendly air-conditioning systems for business and home; 4K smart LCD displays; slim
fashionable refrigerators; and top-loading high-level inverter washers. In addition,
we have won awards worldwide for a great number of products awards due
to our persistence in technology innovation and esthetic design. We have also
launched health kitchen appliances including Enjoy Fresh juicer & Fast cooking
pot and Fusion Cooker. As a title sponsor of the Taipei Golden Horse Film Festival,
we have successfully promoted Tatung multifunctional cookers to the worldand enhance the brand value. To make farm-to-table a reality, we persistently
promote our health food brand "In Fresh" through careful selection of smallholding
farmers.

30

79 2018 TATUNG CSR

ANNEX

80

ANNEX2018

TATUNG CSR

Annex 3 Factories and subsidiaries participated in 3P program andOccupational Accident Prevention Pays program in 2017.
Business Groups

Business Units

Consumer Business
Group

System BusinessGroup

Appliance BU

Products and services
With the rise of the Internet of Things (IoT), we integrate resources to develop a wide
variety of smart and energy-efficient appliances equipped with touch/sensing andinternet technologies to provide consumers with total smart life solutions. With thesmart appliance system and smart appliance app, consumers can control various
Tatung smart appliances wirelessly to achieve electricity management, remotecontrol, schedule management, and scenario personalization to save energy andprotect the Earth smartly.

Smart Meter BU

Smart Meter BU provides various types of smart meters and AMI systems. Tatung has
the ability of integrating the systems of smart meter infrastructure and integrating
different communication technologies such as RF, PLC, and 4G communications todevelop smart meter application functions to meet customer needs and improvesystem performance. Furthermore, cooperating with the design and development ofsolar energy systems to become the development of micro-grid system integrators,
and serve the global power companies, governments and households.

Solar Energy BU

In the Solar Energy BU, from north to south in Taiwan, there are hundreds of publicbuildings and cases, integrated with Tatung's high-performance solar energy
products, to provide professional energy creation management and establishmentservices. The main services are electricity grid systems, stand-alone solar energy
systems and related applications. With rich experiences in Taiwan, the establishmentof various types of solar power plants has been extended from public housingroofs to ground-based landfill sites and water-based photoelectric ponds. With
electromechanical integration capabilities and monitoring technology, to promoterenewable energy. Tatung develops power plants maintenance business.

ImportantCertifications

Factories and subsidiaries participated in 3P program and Occupational Accident Prevention Pays
program in 2017.
Factories owned by Tatung.

R31001
RoHS

Subsidiaries

Tayuan Plant

Tatung Die Casting Co., Ltd.

Green Energy Technology Co., Ltd3

Taoyuan Wires and Cables Plant

Tatung SM-Cyclo Co., Ltd.

Toes Opto-Mechatronics Co., Ltd.

San-Hsia Factory

Tatung Fine Chemicals Co., Ltd.

Taoyuan 1st Plant

Shan Chih Semiconductor Co., Ltd.

Electrical Meters Center1

Chunghwa Picture Tubes, Ltd.2
Forward Electronics Co., Ltd.

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

System Integration BU is committed to specializing in the fields of information andcommunication systems as well as electromechanical systems.
Information and Communication Systems: For more than 30 years, we have been
helping customers deal with the computerization and automation of their systems
and have endeavored to meet the needs of the information market in the era oftechnology. We expect ourselves to be a representative manufacturer of high-quality
system integration in the country. We specialize in information system integration,
network security planning & construction, and application software development.
We have rich large-scale system integration capabilities and experience. The service
team has owned a wide range of IT professional skills, certificates and services
network throughout the Taiwan by 13 direct branch offices to provide customers fast
services. In the future, we will continue to devote ourselves to deepening the fields ofinformation and communication integration, cloud applications, information security,
outsourcing services, business intelligence and system development, and then will
become the leading manufacturer in those fields.
System Integration Electromechanical Systems: As various infrastructure projects at Taiwan started
between the 1950s and 1970s, Tatung Company made an important contribution to
BU
the infrastructure construction such as power generation, power transmission as wellas power supply. Electrical and mechanical systems related businesses are:
1. Provide power plants, large substations, transmission & distribution systems, solar
power generation and motor related electromechanical integration services.
2. Residential and factory-built electromechanical engineering, including planning
as well as construction for smart building.
3. Sewage (waste water) treatment, which has reached the industrial waste water
Zero Discharge standard.
4. Traffic mechanical and electrical engineering for Rails and roads as well as sign
control systems.
We has owned cross-disciplinary professionals, which covers various functionalities
such as power, electronics, mechanics, smart control, information, communications,transportation and project management. They are responsible for integrating crossdisciplinary professionals, coordinating cross-organizational interfaces, providing
integrated design, project management and maintenance services.

81 2018 TATUNG CSR

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Annex 4 Third-party assurance statements

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Annex 5 GRI Standards content index
GRI Content Index
GRI Standard

Disclosure

Page numbers/
URL

Note

GRI 101: Foundation
GRI 102: General Disclosures

Organization profile

102-1 Name of the organization

9102-2 Activities, brands, products, and services

9, 10, 13

102-3 Location of headquarters

10

102-4 Location of operations

10

102-5 Ownership and legal form

9102-6 Markets served

9, 10

102-7 Scale of the organization

10

102-8 Information on employees and other workers

43102-9 Supply chain

28

102-10 Significant changes to the organization and its supply chain 102-11 Precautionary Principle or approach24

102-12 External initiatives

12102-13 Membership of associations

11

102-14 Statement from senior decision-maker

Top management
statement

102-15 Key impacts, risks, and opportunities

Top management
statement, 13102-16 Values, principles, standards, and norms of behavior

17, 25102-18 Governance structure

16102-19 Delegating authority

25

102-20 Executive-level responsibility for economic, environmental,
and social topics

25

102-21 Consulting stakeholders on economic, environmental, andsocial topics

1, 2

102-22 Composition of the highest governance body and its
committees

18102-23 Chair of the highest governance body18

102-24 Nominating and selecting the highest governance body

18

Strategy

Ethics and integrity

Governance

85 2018 TATUNG CSR

No significant
changeANNEX

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TATUNG CSRGRI Content Index
GRI Standard

Disclosure

GRI Content Index
Page numbers/
URL

Note

Disclosure

Page numbers/URL

102-54 Claims of reporting in accordance with the GRI Standards

About this report102-55 GRI content index

Annex 5102-56 External assurance

Annex 4GRI Standard

GRI 101: Foundation

GRI 101: Foundation

GRI 102: General Disclosures

GRI 102: General Disclosures102-25 Conflicts of interest

18

102-26 Role of highest governance body in setting purpose, values,
25
and strategy

Governance

Stakeholder
engagement

Reporting practice87 2018 TATUNG CSR

102-27 Collective knowledge of highest governance body

19102-28 Evaluating the highest governance body’s performance22102-29 Identifying and managing economic, environmental, andsocial impacts

25102-31 Review of economic, environmental, and social topics

25

102-32 Highest governance body’s role in sustainability reporting

26

102-35 Remuneration policies

22102-36 Process for determining remuneration

22

102-40 List of stakeholder groups

1, 2

102-41 Collective bargaining agreements

41

102-42 Identifying and selecting stakeholders

1102-43 Approach to stakeholder engagement

1, 2

102-44 Key topics and concerns raised

2

102-45 Entities included in the consolidated financial statements

Annex 1

102-46 Defining report content and topic Boundaries

6102-47 List of material topics

6

102-48 Restatements of information

About this report,
62, 64102-49 Changes in reporting6

102-50 Reporting period

About this report102-51 Date of most recent report

About this report102-52 Reporting cycle

About this report102-53 Contact point for questions regarding the report

About this report

Reporting practiceNoteMaterial topics
Corporate governance and ethical practiceGRI 103:
Management
Approach103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach

615, 17, 23

Disclosure on non-financial information
GRI 103:
Management
Approach103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach

625, 26

Product quality and safety
GRI 103:
Management
Approach

GRI 416 Customer
health and safety

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

631, 33416-1 Assessment of the health and safety impacts of product and33, 35service categories
416-2 Incidents of non-compliance concerning the health andsafety impacts of products and services

33

Comply with social and economic regulations
GRI 103:
Management
Approach
GRI 419
Socioeconomic
compliance103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach419-1 Non-compliance with laws and regulations in the social andeconomic area

6
23, 42

─No significant incident
that against social andeconomic regulations

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GRI Standard

Disclosure

GRI Content Index
Page numbers/
URL

Customer relation management
GRI 103:
Management
Approach
GRI 418 Customer
privacy103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach418-1 Substantial complaints concerning breaches of customer
privacy and losses of customer data

GRI 103:
Management
Approach
GRI 402 Labor/
management
relations103-2 The management approach and its components
103-3 Evaluation of the management approach402-1 Minimum notice periods regarding operational changes

6
38

GRI 103:
Management
Approach103-2 The management approach and its components
103-3 Evaluation of the management approach6

651, 52, 53

Comply with environmental regulations

103-2 The management approach and its components

GRI 307
Environmental
compliance307-1Non-compliance with environmental laws and regulations

103-3 Evaluation of the management approach

GRI 103:
Management
Approach

89 2018 TATUNG CSR

103-3 Evaluation of the management approachNote72, 73, 74

103-2 The management approach and its components
103-3 Evaluation of the management approach

6
68, 69305-7 NOx, SOx, and other significant air emissions

69

306-1 Water discharge by quality and destination

68
61
68

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

GRI 306 Effluents and306-2 Waste by type and disposal method
waste

GRI 103:
Management
Approach23, 61

GRI 302 Energy

61
GRI 305 Emissions

103-2 The management approach and its components

103-1 Explanation of the material topic and its Boundary

306-5 Water bodies affected by water discharges and/or runoff

6

Environmental friendly products103-1 Explanation of the material topic and its Boundary

Page numbers/
URL

6
70

71

Energy and green house gases management

51
GRI 403
Occupational health403-2 Types of injury and rates of injury, occupational diseases, lostand safety
54
days and absenteeism, and number of work-related fatalities

103-1 Explanation of the material topic and its Boundary

302-5 Reductions in energy requirements of products and services

GRI 306 Effluents and306-3 Significant spills
waste

45

403-1Workers representation in formal joint management-worker
health and safety committees

GRI 103:
Management
Approach

GRI 103:
Management
Approach
GRI 305: Emissions

45

DisclosureManagement on the water and air pollutants

38

Occupational health and safety
103-1 Explanation of the material topic and its Boundary

GRI Standard
GRI 302 Energy

Labor/management relations
103-1 Explanation of the material topic and its BoundaryNote103-1 Explanation of the material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach

6
63, 65, 66

302-1 Energy consumption within the organization

62

302-3 Energy intensity

66

302-4 Reduction of energy consumption

65, 66305-1 Direct (Scope 1) GHG emissions

64

305-2 Energy indirect (Scope 2) GHG emissions

64

305-5 Reduction of GHG emissions

65

6
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GRI Standard

Disclosure

GRI Content Index
Page numbers/
URL

Note

GRI Standard

Other topics

201-1 Direct economic value generated and distributed

12201-2 Financial implications and other risks and opportunities due
to climate change

13201-3 Defined benefit plan obligations and other retirement plans

45

Market presenceGRI 202: Market
presence

202-1 Ratios of standard entry level wage by gender compared to44
local minimum wage
202-2 Proportion of senior management hired from the local
community

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

GRI 405: Diversity andequal opportunity
GRI 412: Humanrights assessment

GRI 407: Freedomof associationand collective
bargaining

36405-1 Diversity of governance bodies and employees

43405-2 Ratio and basic salary and remuneration of women to men

44412-1 Operations that have been subject to human rights reviews
or impact assessment

41407-1 Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

41

Child labor, forced or compulsory labor
GRI 408: Child labor408-1 Operations and suppliers at significant risk for incidents ofchild labor41

GRI 409: Forced orcompulsory labor409-1 Operations and suppliers at significant risk for incidents offorced or compulsory labor

41

Management on the water and resources

Supplier management
GRI 308: Supplierenvironmental
assessment

308-1 New suppliers that were screened using environmental
criteria

28, 30

GRI 414: Suppliersocial assessment

414-1 New suppliers that were screened using social criteria

28, 30

Employment

GRI 401: Employment

Note

Freedom of association and collective bargaining

43

Anti-competitive behavior
GRI 206: Anticompetitive
behavior

Page numbers/
URL

Human rights, equality, and non-discriminations

Economic performanceGRI 201: Economic
performance

Disclosure401-1 New employee hires and employee turnover43

401-2 Benefits provided to full-time employees that are notprovided to temporary or part-time employees

48

401-3 Parental leave

44

GRI 301: Materials

GRI 303: Water

301-1 Materials used by weight or volume67

301-3 Reclaimed products and their packaging materials

74

303-1 Water withdrawal by source

68

303-3 Water recycled and resued

68

Training and education
GRI 404: Training and404-1 Average hours of training per year per employee
education

47

Performance review and career development404-2 Programs for upgrading employee skills and transition
assistance programs
GRI 404: Training andeducation404-3 Percentage of employees receiving regular performanceand career development reviews

91 2018 TATUNG CSR

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Annex 6

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Tatung Co.

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

2018/11