China Motor Corporation

2022 Sustainability Report

Sustainability Commitment from the Chairperson
About the Report
ESG Performance 2022
About CMC
Evolving Taiwan’s automotive industry: Corporate Value of CMC

2
4
5
7
7

CH 1 Vision Blueprint for Corporate
Sustainability
1.1 Mission and Vision of Sustainable
Development
1.2 Materiality Analysis

11
11
15

CH 2 Innovative Technology Sustainable
Value
29
2.1 Visionary Technology: Making safe andcomfortable products
30
2.2 Sustainable Manufacture: Towards digitalmanagement of production lines
35
2.3 Mutual Prosperity and Existence: Pursuingsustainability with suppliers38
2.4 Valued Service: Providing safe and quality
services43

CH 3 Excellent Governance Proactive
Action46
3.1 Sustainable Governance: Robust
governance for a sure foundation
47
3.2 Ethical Management: Uncorrupted
management for legal compliance49
3.3 Risk Management: Preventive action forbusiness continuity
52
3.4 Financial Performance: Businessdiversiﬁcation for overseas expansion 55
3.5 Information Security: Impeccable defense
for information security56

CH 4 Circular ReductionSafeguarding
Environment

58

4.1 Climate Change: Climate-related ﬁnancial
disclosures59
4.2 Environmental Management: Energy
conservation for carbon reduction
68
4.3 Pollution Prevention: Waste reduction forenvironmental protection
75
4.4 Circular Economy: Reclaiming and Recycling
for connection with circulation79

CH 5 Safe WorkplaceExcellent
Development

82

5.1 Workforce Deployment: Driving corporate
sustainable development
83
5.2 Attraction and Retention: Diversifying beneﬁts
and remuneration
88
5.3 Training and Development: Optimizing
competencies through complete learning
94
5.4 Safe Workplace: Enjoying the experience ofwork satisfaction
97

CH6 Give Back to Society
in Every Way Possible

101

6.1 Social Inclusion: Finishing the sustainability
roadmap together
102
6.2 Urban and Rural Sustainability: Safeguarding
society with cars
105
6.3 Indigenous Development: Regional
revitalization with the Indigenous Dream
Project
108
6.4 Knowledge and Education: Ingraining andtalents development
109
Appendix112

2022
Environmental, Social &Governance

Sustainability Commitment from the Chairperson

Sustainability Commitment from the Chairperson(PHEV) model equipped with the advanced driver assistance systems (ADAS) of the HS series
by MG for the passenger car range, and the mango sorbet color for the battery model EZ1 of
our e-scooter brand eMOVING. In addition to attracting young motorcyclists, we also soughtcooperation with the public sector and local governments to accelerate the developmentof urban e-mobility. From 2017, Chunghwa Post, Taiwan Power Company, Taiwan Water
Corporation, and local town and district ofﬁces have purchased over 4,000 units of eMOVING
e-scooters.
Chairperson Li-Lian YAN-CHEN

Apart from accomplishing the annual target for automotive sales with 45,867 units, we also
earned numbers of recognition for our ESG performance in 2022, including the top 5% of listedcompanies at the Corporate Governance Evaluation by TWSE for nine consecutive years,thndthe 17 (2 in the automotive industry) at the Excellence in Corporate Social Responsibilitythby CommonWealth Magazine, the silver award at the 4 National Enterprise Environmental
Protection Award, the silver award in the Corporate Sustainability Report Awards at the Taiwan
Corporate Sustainability Awards (TCSA), the Work-Life Balance Award of the Ministry of Labor,
the 2002 BSI Award for Sustainable Resilience, the gold award in Auto Part Store Category at
the Best Service in Taiwan and the gold award in the Auto Part Store Category at the Taiwan
Best Customer Center Award of the Commercial Times, and the constituent of the FTSE ESG
Index and Taiwan ESG Index.
Creating product value and innovating business model for a smart, low-emission mobility era
The government announced the Net Zero 2050 policy in 2022, and the “EV for Zero Emission”
strategy will drive the market and technology development of electric vehicles (EVs). We
will combine the support of this favorable policy to accelerate deployment in independent
technological capacity and local production and implement the new energy vehicle (NEV)transformation strategy so as to provide various low-emission mobility solutions for the greencompetitiveness of Taiwan’s businesses and net zero emissions target!
To support automotive product development, we are furthering cooperation with domestic
suppliers to actively develop the platform and module technology for V2X and EV powersystems. In the future, apart from continuously increasing domestic procurement and production
through product range expansion and sales boost, we will also drive the upgrading anddevelopment of Taiwan’s automotive supply chain by integrating the automotive technologicalcapacity so as to create the sustainable value of the industry in the smart NEV era!
Specifically, our 2022 progress included the launch of the independently developed CMC
P350 Hybrid for the commercial vehicle (CV) range, the plug-in hybrid electrical vehicle

Additionally, we have also extended to the autonomous mobile robot (AMR) sector based on
our core technology and already successfully distributed products to leading domestic hightech manufacturers. In the future, we will expand both the product and service ranges toprovide more competitive solutions for Taiwan’s industries to enter smart manufacturing!
In business model innovation, in addition to investing money and resources in helping startups
to develop new campus and tourism shared mobility services, we also promoted anddeveloped the customer total journey service model under the digital transformation strategy
to enhance resource efﬁciency and promote smart processes by exploiting digital technology
so as to improve customer experience while reducing operating costs and expenses at thesame time.
Integrating corporate events with continuous environmental sustainability actions for greater
industrial and social inﬂuence“Low-emissions and energy-saving smart manufacturing” has always been our goal for
combining profit-making with environmental sustainability, and we have earned various
representative citations for our investments and achievements over the year. In 2018 webegan implementing “smart energy conservation”, smart logistics”, and “smart factory” incollaboration with our contractors. In 2021 and 2022, apart from helping contractors reduce
emissions by about 3,365tCO2e, we also invited contractors, dealers, and car owners tojoin global interest activities, such as coastal clean-ups and Earth Hour. In the future, we willcontinue to help contractors plan and progressively realize various action plans with our knowhow in implementing energy conservation and carbon reduction over the years so as to build
a green supply chain and demonstrate the “big brother” inﬂuence!
In 2017 we activated the 3-phase construction project “Ecological Sustainability Park”.
It includes three pillars: the ecological pond for endemic Taiwanese animals and plants,
the Fagaceae restoration area, and the eco-friendly farm. After six years of efforts andinvestments, the preliminary structures were completed in 2022 to accommodate a total of 44
endemic species so far. In the future, we will continue to cultivate Taiwanese endemic species
in the park. Currently, traces of protected species such as the crested goshawk (Accipitertrivirgatus), the common kingfisher (Alcedo atthis), and the grey heron (Ardea cinerea)
have been reported in the park. The aquaponic water recycling system and kitchen waste
composting site have become the happy farm of Chunghua Preschool, which grows variousorganic (pesticide-free) vegetables in this edutaining setting. In the future, we will teamSustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

022022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Sustainability Commitment from the Chairperson

up with in-house volunteering groups and external environmental protection units to train
professional park tour guides so as to progressively publicize our conservation concept andingrain it in children’s education through the park guided tour service and interesting activities.
Additionally, we began expanding the eMOVING e-scooter and charging services toPenghu, Green Island, Matsu, and Liuqiu Island in 2012 to provide low-emission vehicles for the
residents and tourists of these offshore islands. On the 2022 World Sea Turtle Day (July 16), we
provided 100 e-scooters on Liuqiu Island where the green sea turtle (Chelonia mydas) andother protected species were seen on that day to promote low-carbon travel, publicize theconcept of marine conservation and biodiversity conservation, and safeguard the home ofsea turtles together.
In the future, we will continue to expand and extend the social inﬂuence of environmental
protection and conservation through various action plans.
Guarding happiness through undertaking corporate social responsibility
At CMC, we value the health, career development, growth, family care, and feedbackof every employee. In addition to equipping plants with kindergartens (preschools), afterschool care centers, dormitories, gyms, basketball courts, and badminton courts; andarranging health checkups, conducting employee satisfaction surveys, and optimizing the
remuneration and performance system every year, we have activated a range of epidemic
control measures, including offering the epidemic control tea and in-house COVID-19
vaccination service, organizing online physical exercise courses, and arranging online caretalks for professional counselors to help employees relieve mental stress. Additionally, weestablish a talent development committee in every department to implement various learningand growth plans by combining with the corporate resources. Employees are the source ofcorporate innovation and value creation. In a time of workforce shortages, employees are theCompany’s exceptionally important assets. In the future, we will continue to build a healthy
workplace environment for healthy working and work-life balance for every employee todemonstrate their self-worth!
As a local business, we have ingrained social responsibility in our corporate culture. Overthe years we have been engaging in volunteerism and offering care to remote townships
by combining with our core automotive business. In 2022 we supported the “Central
Kitchen for Schools in Remote Townships” launched the Executive Yuan by forming a food
distribution network to deliver tasty and nutritious lunch to 240,000 elementary schoolchildren
in remote townships with 225 DELICA vans. Additionally, we persistently implement remotetownshiptransportation improvement, including:
During the 2022 “Vehicle Maintenance Service Tour”, apart from amassing 8 contractors to
the tour, we also recruited students from Taipei City University of Science and Technology,

Dah Yung Senior High School of Kaohsiung, and National Kuangfu Commercial andIndustrial Vocational High School of Hualien through to join the service. In 2022 we made 24
maintenance service tours to service 856 vehicles in remote townships to fully integrate social
contribution into young student practice education!
Since 2016 we have donated 12 DELICA vans to children’s welfare groups and schools inremote townships through the “Happiness Guardian Program”. The beneficiaries included
Feng Tien Primary School and Hung Yeh Primary School in Taitung and Hualien County
Tafalong Primary School, which have cultivated numbers of great baseball players. With sucha program, we aim to contribute our part tochildren taking off for their dreams and Taiwan’s
baseball development!
In 2022 we continued to implemented the “Bu Bu Sharing Program” with the Ministry ofTransportation and Communication (MOTC) to provide regional shuttle services in Fuli Townshipand Zhuoxi Township of Hualien and Yanping Township of Taitung. The combined mileage ofthe service during 2021 and 2022 accumulated 54,800km. In the future we will expand theservice scope to safeguard the transportation needs and safety in more remote townships.
Putting people ﬁrst to achieve business sustainability through persistent pursuit of harmony withthe environment
The post-COVID inﬂation and rapid interest rate rises of worldwide central banks have ﬁlled
the macro environment with uncertainties in 2023. The increasing pressure from industry
transformation and competitions have also brought various challenges in the future. In
response to the new normal in the post-COVID era and the global ESG concerns, in addition tocontinuously improving the quality of corporate governance in terms of “maintaining the rights
and interests of shareholders”, “strengthening the structure and operation of the board”, and“enhancing information transparency”, we will also uphold the “people-oriented” mindset in
the interaction and relationship maintenance with all stakeholders to make sure steps towards
a happy business and sustainable operations.

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix03

2022 CMC Corporate Sustainability ReportAbout the ReportThank you for reading the 2022 Corporate Sustainability Report published by China
Motor Corporation (CMC, stock code 2204). Prepared by the CMC employees of
relevant units, this report aims at enabling all stakeholders having concerns about CMC
to comprehensively understand our theory and practice in sustainable operations,environmental protection, and social inclusion and our continuous efforts anddetermination in various issues relating to sustainable development.
As a company devoted to paperless operations for environmental protection, thewhole report will be published on the CMC corporate website (http://www.chinamotor.com.tw/) for download by the general public.
Reporting Period
This report discloses our environmental, social, and governance (ESG) performanceand implementation status in 2022 (1 January 2022 to 31 December 2022). To ensure
the integrity and comparability of the project and activity performance, some content
involves the information of 2022 and the outlook of 2023.
• Previous release: June 2022
• Current issue: June 2023
• Next release: June 2024
Scope of the Report
The scope of this report mainly covers the activities as well as services of CMC (Yangmei
Plant and Hsinchu Plant) and Sino Diamond Motors. The scope of the financial
performance corresponds to Page 9 of the 2022 Consolidated Financial Statements,
with all the ﬁnancial ﬁgures calculated in NTD. If any afﬁliates are involved, such matter
will be explicitly speciﬁed in this report.
What needs to be noted is that our Youth Plant as not become a dealing centerof Shung Ye Motors and the talents training center of Brilliant Insight International
Consultancy Service Co., Ltd. It is not operated for production and thus excluded fromthe scope of this report, except for the performance disclosures of its renewable energy
installations.
Principles for Compilation
This report has been prepared in accordance with the GRI Standards (2021) publishedby Global Reporting Initiative (GRI), the Sustainability Accounting Standards forautomobiles published by the Sustainability Accounting Standards Board (SASB), andthe recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The report contents cover various management approaches and material topics forsustainable operations and project performance.

Report Managementof Report
1 Development
Structure

2 Preparation of Report

Review on ESG
3 Implementation
Results

4

Interviews about the ESG
status and material topics
were conducted, and theresults of engagement
were submitted to the ESG
Committee for the referenceof implementation.

The working groups of
the ESG Committee andthe heads of different
departments reviewed
the report contents toensure the accuracy of
information disclosed ineach section.

The annual ESG performanceand strategic goals arereported to the Board every
year.

Report veriﬁcation
performed by
an external third
party

External
Veriﬁcation• Internal Review: This report has been reviewed by the heads of the relevant departments andthe chair of the ESG Committee of the Company based on their professional
knowledge and management experience.
• External Verification: SGS Taiwan Ltd. has been commissioned to perform the materiality
review and assurance of the report contents and data based on the GRI
Universal Standards 2021 to ensure compliance with the Type-2 moderatelevel assurance of the GRI Universal Standards 2021. Relevant veriﬁcation
methods and results are appended to the report.
Contact Information
Should you have any questions or suggestions regarding this report, please feel free to contact
us with the following information:
Contact persons: Anny Fu and Lisa Lee, report editors of the ESG Committee
Phone: (03) 478-3191 ext. 2316 and 2346
Email: anny.fu@china-motor.com, lisa.lee@china-motor.com
Address: No. 618, Xiucai Road, Xiucai Village, Yangmei District, Taoyuan City, Taiwan.

CMC ESG section

Download CMC
Corporate
Sustainability Report

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionFax: (03) 270-7770

Ofﬁcial website

2022
Environmental, Social &Governance

About the Report

CMC Stakeholders
sectionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix042022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

ESG Highlights

ESG Performance 2022
Highlights and Performances in the Aspect of Environment
Excellent Performance in “Taoyuan City Business River
Adoption” for 7 consecutive years.

Silver Award at the 4th National Enterprise Environmental Protection Award 2022

Apart from the long-term adoption of the Xiucaiwo Section of theDuzi River in Yangmei, the Yang Mei Plant also engages in regularenvironmental maintenance, organizes education and publicity
activities, thus earning the Excellent Performance in “Taoyuan City
Business River Adoption” for 7 consecutive years.

By implementing “intelligent energy management” and “solar energy installations
and green power use” through the energy conservation plan and the in-house“wastewater control and reduction measures” and “waste reduction” and providing
guidance, education, and training for suppliers, Hsinchu Plant outreached its
experience in “environmental sustainability”.

EV to offshore islands: Developing low-carbon tourism for the carbon-freeisland vision

Investment in Green Bonds up to NTD 200 million

Develop low-carbon tourism for offshore islands and realize the carbonfree island vision by combining NEVs with sustainability and tourism. Products
including the e-VERYCA and eMOVING are seen everywhere on offshoreislands including Liuqiu, Kinmen, Penghu, and Matsu, and Lanyu and Green
Island will be the next targets.

The Company invested in the green bonds issued by
Evergreen and YAGEO, not only supporting them to movetowards sustainable green development with the idle funds
but also receiving stable income by increasing the asset
allocation

Highlights and Performances in the Aspect of Society
4th Work-Life Balance Award 2022 of the Ministry of Labor
We value the living quality of employees. Through the measuresfor building a friendly workplace, we improve the physical, mental,
and spiritual sense of happiness for employees to balance work,
family life, and health. In 2022 we were awarded the Employee
Care Award at the 4th Work-Life Balance Award of the Ministry ofLabor.

Excellent Performance in Occupational Safety and Health 2022
Hsinchu Plant makes continual workplace environment to improve
workplace safety and health through “occupational accident
prevention”, “workplace health management and healthprotection”, and “safety and health education, training, andactivities” to promote labor safety and health,First Prize for Elder-Friendly Outstanding Solution at the 19th Annual Corporate Social
Responsibility and ESG Award by Global Vision Monthly

Based on the themes of “zero workplace barriers, zero health burdens, and zero limit
development”, we activated the “CMC Triple Zeros Evergreen Program” in our senior
workforce development strategy to extend the work career of senior employees through the“job accommodation” and “second career” policies.

Bu Bu Sharing for remote townships with 3 DELICA vans for a total service mileageequivalent to Traveling around Taiwan 51 Times
To assist the MOTC in promoting the Bu Bu Sharing, we provided Fuli Township andZhuoli townships in Hualien and Yanping Township in Taitung with 3 DELICA vansfor shuttling up to 19,608 persons over a total mileage of 54,800km (equivalent totraveling around Taiwan 51 times).

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

05

2022 CMC Corporate Sustainability ReportHighlights and Performances in the Aspect of GovernanceTop 5% at the Corporate Governance Evaluation for
9 consecutive years
CMC has won the highest recognition of the Corporate
Governance Evaluation for 9 consecutive years.

Top 100 at the Excellence in Corporate Social Responsibility by Common

Wealth Magazine

Through long-term engagement in sustainability, apart from the deep ESG
involvement, we also combined with various work items, customers, suppliers,
and local communities to build the CMC sustainable value chain andecosystem.

Independent director seats A Third of the Board

2022
Environmental, Social &Governance

ESG Highlights

To strengthen Board competencies and increase the Company’s sustainablevalue, apart from setting up functional committees including the Audit
Committee and Remuneration Committee, we increased the seats of
independent directors to a third of the Board to improve Board operation from2022..
Implementation of the ISO 27001 Information Security
Management System
Implemented the ISO 27001 Information Security Management
System and passed the certiﬁcation.

Sustainability
Commitment
from theChairperson
ESG
Highlights

Co-prosperity of Supply Chain
Co-prosperity and developing supply chain resilience with
suppliers through the price adjustment mechanism and spot
goods procurement funding mechanism.
To mitigate the stress of cost changes on CMC and suppliers,
we have signed an agreement on the price adjustment
mechanism of raw materials and exchange rate with suppliers
and periodically check the changes and adjustments in prices.
When there is a dramatic rise of materials prices due to global
materials and chip shortages, we will assist suppliers in materials
price adjustment or make up the price differences.
Beach Clean-up with 37 Suppliers and 121 Participants,
cleaning up 368kg of exotic plants and 276kg of marine debris
Teaming up with suppliers to practice CSR, we implement andencourage suppliers to participate in environmental sustainability
activities. In 2022 we organized three clean-ups, including theYangming Mountain Clean-up in Taipei, Xianxi Township Coastal Cleanup in Changhua, and Kezailiao Coastal Clean-up in Kaohsiung.

About CMC

Excellence in Green Procurement from Hsinchu County Government
Hsinchu Plant actively uses and purchases green products for
manufacturing, such as green construction materials and Green Mark
parts, thus earning the Excellence in Green Procurement recognition fromthe Hsinchu County Government in 2021 and 2022.

Guidance for 7 Suppliers on Intelligent Transformation, with improvement
efficiency up to NTD49.08 million/year and emissions reduction up to2,885 tCO2e

Based on the themes of “smart energy conservation”, “smart logistics”,
and “smart factory”, we arrange internal and external guidance by
experts for selected suppliers and share the outcomes and beneﬁts withall suppliers, hoping to spill over our knowhow in smart manufacturing,energy conservation, and carbon reduction to the supply chain.

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

06

2022 CMC Corporate Sustainability ReportEvolving Taiwan’s automotive industry: Corporate Value of CMC
Upholding CMC’s business philosophy of HITS (Harmony, Innovation, Top, Sustainability),
we make continual innovation through harmony to pursue excellence. We also expand
our business scope to the green energy industry to keep up with the trends to create
value for employees, the Company, and society, achieve sustainable operations, andgive back to society.

CMC’s Vision

Carrying happiness and delivering touching
warmth with new forms of convenience andpower, we endeavor to become the mostreliable diversiﬁed mobile partner

Yangmei
Plant

Hsinchu Plant

Main Products and Services

Sedan

GRAND LANCER series
COLT PLUS series

RV

OUTLANDER PHEVECLIPSE CROSS series

Commercial
vehicleDELICA series

Commercial
RV

ZINGER series ZINGER PICK UP series

Commercial
vehicleVeryca Series CMC VERYCA series CMC e-VERYCA series

Sedan

MG HS

MG HS PHEV

2022
Environmental, Social &Governance

About CMC

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

Company name
China Motor Corporation (stock code: 2204)
Headquarters address
No. 618, Xiucai Road, Yangmei District,Taoyuan City

Date of establishment
June 13, 1969

Paid-in capital
NTD 5.54 billion

Total Number of Employees
2,117 member

Major Products and Services
Production and sales of commercial vehicles, RVs, sedans, motor vehicles, andthe related parts and components thereof
Business locations
Yangmei Plant, Hsinchu Plant

Commercial
vehicleFUSO Series CANTER series

Electric twowheeler

e-Scooter series Micro e-Scooter series e-Bicycle series

Automated
Guided Vehicle(AGV)

Autonomous
Mobile Robot(AMR)

Heavy-duty AGV Magnetic tape guided AGV
Mobile robot

Hi-Power Autonomous Mobile Robot

Note: CMC is a partner of MFTBC (Mitsubishi Fuso Truck and Bus Corporation) for the production of their domestic cars, and is
responsible for the implementation testing and veriﬁcation of the FUSO and CANTER series, procurement and developmentof locally manufactured parts, assembly and production of completed cars, sales of locally manufactured parts, etc.

072022 CMC Corporate Sustainability Report

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixYouth Dealer Franchise Program - Engagement in Social
Participation and Environmental Sustainability Promotion

Business Focus and Strategy
Embracing the EV era with the NEV Promotion Strategy
In response to the government’s net-zero emissions pathway and the goal of 100% price-tosales ratio of electric vehicles/scooters in Taiwan by 2040, the Company aggressively promotes
the sales of new energy vehicles (NEVs) and motivates business and consumers to use EVs
through multiple channels to enhance the market visibility of CMC electric vehicles/scooters.

Expanding Green Transportation Territory: Campus Charging
Stations from eMoving
Practicing ESG Together with CYCU, NTHU, and NCKU for ESG

Promotion of corporate procurement

Launch of diversiﬁed
electric models

To reduce carbon emissions
from transportation, CMC has
actively promoted corporate EV
procurement. In 2022 Chunghwa Postpurchased 500 units of eVERYCA forthe post service.

12More opportunities for consumers
to try the products

Youth Dealer Franchise
ProgrameMoving launched the“Youth Dealer Franchise
Program” to increase 8
franchised stores in 2022.

Diversified models including
e-VERYCA vehicles, OUTLANDER
PHEV and MG HS PHEV, CMC P350
Hybrid, and eMOVING e-scooters
have been provided for consumers
to choose.

4

As EV is not yet popular in Taiwan,
we increase the opportunities for
EV use by enriching consumer
experience. In 2022 we thus
introduced the short-let service ofeVERYCA in Kinmen.

Electric
Vehicle/Scooter
100%

3

5

6

Enhancement of the ratio ofelectric company vehicles
We progressively increase the ratio to
EV company car at CMC. In 2022 weused 3 EVs and 10 PHEVs for company
cars. We also arranged 43 eVERYCAs
as the company cars for Huifeng
Plant to reduce carbon emissions.

In social engagement, eMOVING has launched
the “Youth Dealer Franchise Program” to provide
multiple resources for young people to fulfill
their entrepreneurial dreams so as to promote
environmental sustainability together with young
people and so to expand our social influence.
Through the “Youth Dealer Franchise Program”, wehave set up eight eMoving locations, including Dajia
Branch in Taichung, Puli Branch in Nantou, Zhonghua
Branch in Yongkang, Zhonghua North Branch inGangshan, Taibao Branch in Chiayi, Daguan Branch
in Banqiao, Fuan Branch in Xizhi, and ZhongshanWest Branch in Fengshan.

Expansion of green
transportation layout on
campusesCommitted to providing
campuses with a sustainable
environment, eMoving works
for net-zero emissions bybuilding charging stations or
forming campus EV patrol
ﬂeet on campuses.

Committed to providing campuses with a sustainable environment,
eMOVING has collaborated with Chung Yuan Christian University(CYCU), National Tsing Hua University (NTHU), and National Cheng
Kung University (NCKU) to build campus charging stations or form
campus patrol car ﬂeets to contribute to net-zero emissions. In April
2022, eMOVING further cooperated with National Cheng Kung
University for the practicing ESG by introducing the first batch ofsmart green e-scooters into the campus for campus patrol missions
to maintain campus security.
Additionally, building charging stations is the priority to provide
a thorough environment for using e-scooters in Taiwan! Settingout from “harmony with the environment and green campus”,
eMOVING has invested in the infrastructure to build the campus
green transportation territory and progressively built 8 charging
stations (2 rapid charging stations and 6 slow-charging stations) in
CYCU, 10 stations (2 rapid charging stations and 8 slow-charging
stations) in NTHU, and 2 rapid charging stations in NCKU, making
energy use more convenient.

Green Fleet by Government Sector
Realizing net-zero emissions with over 4,000 eMOVING e-scooters.
To end petroleum car sales by 2040, the MOTC began
forming the “green fleet” in the government sector from
Chunghwa Post by continuously replacing its petroleum
vehicles. From 2017 Chunghwa Post has been progressively
purchasing e-scooters to deliver mails. So far, it haspurchased over 3,200 eMOVING e-scooters for the mailservice. By including Taiwan Power Company, Taiwan Water
Corporation, and township and district offices, the public
sector has purchased over 4,000 eMOVING e-scootersfor office use to reduce emissions of up to 696 tCO2e,equivalent to the carbon adsorption of 1.8 Daan Parks,
so as to reduce carbon together with a meticulous green
transportation network.

2022
Environmental, Social &Governance

About CMC

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

08

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

About CMC

Net-Zero 2050: Demonstrating the determination to promote the ESG ecosystem and guide
suppliers and dealers to reduce emissions with the “big brother” inﬂuence

To facing the future issues for sustainable development, implement ESG development,comply with the legal and regulatory requirements, and keep up with the green energy
market trend, we will actively combine internal and external resources to launch various
NEV products to fulfill the market demand and maintain harmony with the environment.
Additionally, we undertake to set short-, medium-, and long-term targets for carbon reduction
based on the “Taiwan Net-Zero Emissions 2050 Pathway”. Apart from achieving carbon

neutrality throughout the production process by 2050, we further set Net -Zero 2050 as ourcarbon emission target in terms of four aspects: energy conservation and carbon reduction,energy transformation, sustainable development, and low-emission transportation. Based on
the “big brother” mindset, we will implement the “Carbon Reduction for the Common Good
Advancement Program” to lead and help upstream and downstream suppliers to achieve
the “Net-Zero 2050” target together with the whole center-satellite system.

Sustainability
Commitment
from theChairperson
ESG
Highlights

CMC Sustainability 3 Arrows Towards Net-Zero 2050
About CMC

CMC Net Zero
Declaration

We undertake to set short-,
medium-, and long-termtargets for carbon reduction
based on the “Taiwan NetZero Emissions 2050 Pathway”.
We also undertake to achievecarbon neutrality or net-zeroemissions throughout the
production process by 2050

Plant; Scopes 1 + 2

Set Net-Zero 2050 as theemission reduction target topractice energy conservationand energy transformation
and actively develop lowemission transportation.

Products, Scope 3

Practice the “big brother”
carbon reduction forcommon good policy
and lead the upstream
and downstream supply
chains to achieve net-zeroemissions together.

Suppliers and dealers:
Scope 3

Guidance for GHG inventory
Aiming to expand the scope of carbon reduction, we activated the “2050 NetZero Emissions Carbon Reduction for the Common Good Advancement Program”
together with suppliers and dealers at the supplier conference on March 21, 2023.
To help suppliers complete GHG inventory, we offer onsite technical and practicalguidance to promote the program, hoping to increase the number of suppliers
conducting GHG inventory within ﬁve years.

GHG inventory for 115
suppliers by 2027

Guidance and funding for energy conservation and carbon reduction
We began providing suppliers with guidance on smart energy conservation, smart
logistics, and smart factory in 2018. Through 32 times of onsite guidance, we helped
suppliers reduce emissions by 11,282tCO2e.
Additionally, through the mid-term and term case presentation and onsite
improvement demonstration, we share the outcomes within the whole supply chain
system.

Guidance for 48 suppliersby 2027 to help reduce
emissions by 18,200tCO2e

Advocation of green power installations
We have long been promoting green energy at CMC. We also assist suppliers inbuilding green power facilities to reduce emissions and costs and so to realize
sustainable development. Assisting suppliers in building green power facilities is our
one of social and environmental responsibilities, as well as our realization of the CMC
Net Zero 2050 vision. We will continue to offer green power construction assistancefor more suppliers to actively promote green energy use in the automotive industry
and so to realize sustainable development,

Guidance for 48 suppliersby 2027 and building
green power facilities up to
60,000KW

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

092022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

About CMC

Apart from committing to setting short-, medium-, and long-term targets for carbon reduction
based on the “Taiwan Net-Zero Emissions 2050 Pathway” and achieving carbon neutrality
throughout the production process by 2050, we further implement the Net-Zero 2050 target
in terms of four aspects: energy conservation and carbon reduction, energy transformation,
sustainable development, and low-emission transportation. We have also established the“Supply Chain Carbon Reduction 5-Year Plan” to progressively achieve Net-Zero 2050 throughdeﬁned and quantiﬁed targets, starting from short-term goals.

Sustainability
Commitment
from theChairperson

Supply Chain Carbon Reduction 5-Year Plan

ESG
Highlights

2023

Work Projects

GHG inventory
Organized ESG-related
coursesOrganized ESG-related courses

Low-carbon delivery

About CMC

VisionBlueprint for
Corporate
Sustainability

18

36

56

76

115

4 classes

3 classes

3 classes

3 classes

3 classes

32

36

40

44

48

12,500 tCO2e

14,000 tCO2e

15,500 tCO2e

17,000 tCO2e

18,500 tCO2e

27

33

38

43

48

40,000 KW

45,000 KW

50,000 KW

55,000 KW

60,000 KW

Carbon reduction of supplier delivery trucks(accumulatively from 2023)

3

5

6

7

8

Number of suppliers with Green Mark delivery trucks(accumulatively from 2023)

7

9

11

13

15

Electricity conservation and Number of electricity conservation/smart factory, smart
factory guidance (accumulatively from 2018)
smart factory guidance

Suppliers with green
power installations

2027

Targets
Number of suppliers practicing GHG inventory(accumulatively from 2023)

Supplier carbon
reduction

2026

2025

2024

Annual carbon reduction (tCO2e) (accumulatively from2018)
Number of suppliers with green power installations(accumulatively from 2018)
Installation capacity of green power (accumulatively from2018)

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix102022 CMC Corporate Sustainability Report

1

1.1 Mission and Vision of Sustainable
Development
1.2 Materiality Analysis

Vision Blueprint
for Corporate
Sustainability
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

CLIMATEACTION

Sustainability
Commitment
from theChairperson

PARTNERSHIPSFOR THE GOALS

ESG
Highlights

About CMC

1.1 Mission and Vision of Sustainable Development
1.1.1 Incorporation of Sustainability into Business Philosophy
Bearing Taiwan’s automotive industry, following Taiwan’s economic development,
we have shaped a solid brand image through close connection with “up- and downstream suppliers”, “customers”, “employees” and “society” over the past 53 years.
In the course of operations, we deeply realize that on top of corporate governanceand operational performance, we also need to value environmental and social
resources and address the concerns and needs of stakeholders through actions andcommitments.
The Company believes that harmony, innovation, top, and sustainability are interlinked.
Continuous innovation in harmony, pursuit of top performance and sustainable
operation jointly form the upmost philosophy of a company’s existence. By progressively
implementing our sustainability strategy based on the “HITS” business philosophy, we
make reforms in manufacture, corporate governance, and social welfare.

H
Harmony

Achievement of a balance
between the interests ofand harmonious interactionof customers, employees,
shareholders, up- anddownstream companies,
government and general public

Innovation

Unceasing
improvement anddevelopment of
products, technologies,
processes, andmanagement services

Efforts to ensuresustainable development,
fulﬁll CSR, and achievethorough corporate
governance andoperations, with the carefor the environment,
society and partners

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development

S
Sustainability

I

VisionBlueprint for
Corporate
Sustainability

Pursuit of top quality
and performance inthe aspects of work,
life and society

TTop

Give Back toSocietyin Every Way
Possible

Appendix

112022 CMC Corporate Sustainability Report1.1.2 Sustainability Strategy Blueprint
To demonstrate our determination to promote sustainability goals, we haveincorporated comprehensive industrial trends and explored the risks due toclimate change and the opportunities for transformation in accordance withthe recommendations of the Task Force on Climate-related Financial Disclosures(TCFD). In response to the 17 Sustainable Development Goals (SDGs) of theUnited Nations, we have established the “sustainable development strategy”
and set the following five constructs for the reference of implementation andmanagement: “steady governance,” “top innovation,” “harmony and coprosperity,” “environmental sustainability”, and “social care”. The Company has
employed the sustainability strategies in a progressive manner, innovating in the
regards of corporate governance, manufacturing and social welfare. Meanwhile,
we have actively responded to the needs of stakeholders, seeking to drive thedevelopment of the automotive industry chain and enhance the Company’ssustainable value through the connection of the ecosystem, and become themost reliable diversiﬁed mobile partner.

StableGovernance

DECENT WORK AND
ECONOMIC GROWTH

Ethical management

CMC ensures the integrity and transparency of management, implements risk management, andthereby becomes the model of sustainable enterpriseMarket expansion

Multiple product lines are developed to take care of the needs of diverse customer groups, and the export
market has been expanded

Information Security
Upgrading

Activate and implement and pass the certification of the ISO 27001 Information security management
systemGOOD HEALTH
AND WELL-BEING

Top Innovation

rm

Sup

pli

er

s

We integrate cloud technologies to develop smart plants and promote data-based
decisions

Quality improvement

The quality testing and application of AI has been expanded, and digitized service tools have beendeveloped

Digital transformation

Advance the “mobility service” development strategy and revolutionize traditional automaking throughtransformation.
GENDEREQUALITYDECENT WORK AND
ECONOMIC GROWTHPEACE, JUSTICEAND STRONG
INSTITUTIONS

Buying products fromsmall farmers

To promote eco-friendly farming, we have been continuously purchasing organic organic vegetables fromindigenous smallholders to support indigenous smallholder economic development.

Safe workplace

Treating employees as family, we expand the scope of talents development, value senior employees, andbuild a equal and safe workplace environment.

Creation of values
hand in hand

We strengthen the partnership with suppliers and dealers to lead the center-satellite system tocreate sustainable values together in the “big brother” mindset.
AFFORDABLE AND
CLEAN ENERGY

Environmental
Sustainability

SUSTAINABLE CITIESAND COMMUNITIESRESPONSIBLE
CONSUMPTION
AND PRODUCTION

CLIMATEACTION

Development of new energy

To implement “net-zero emissions”, we independently develop safe and comfortable Evs and build amultifaceted energy ecosystem.

Low-carbon operation

The Company is devoted to energy saving, carbon reduction, and establishment of renewable energy,
putting green manufacturing into practice

Beach cleanup forsustainability

We organize department oastal clean-ups through local actions to practice sustainable coastalmanagement,

m
om

tie
uni

te

nt

Au

th o ritie sTOP

The Med

lit y

pe

i
ab

m

C

Co

Ecological restoration

Social Care

ia

Su
s

ta

in

Carrier of happiness

122022 CMC Corporate Sustainability Report

Sustainability
Commitment
from theChairperson
ESG
Highlights

PARTNERSHIPSFOR THE GOALSs

Dealers

C ust

om

n

ers

tio

Em

Sh

va

Ha

es

SUSTAINABLE CITIESAND COMMUNITIESAbout CMC

In
no

pl

e
oy

oldersare h

INDUSTRY, INNOVATION
AND INFRASTRUCTURE

Smart manufacturing

Harmony andCo-prosperityyon

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

We restore Taiwan endemic species and the Fagaceae in the in-house ecological pond and train
environmental protection volunteers to offer ecological education.

NO
POVERTYQUALITYEDUCATIONSUSTAINABLE CITIESAND COMMUNITIESRESPONSIBLE
CONSUMPTION
AND PRODUCTION

Aiming at urban and rural sustainable development, we actively combine our core automotive industry
to safeguard the happiness of children in remote townships through repair and maintenance services andvehicle donation.

Delivery of warmth

CMC provides strong support for indigenous people, increases the effectiveness of our employees’
volunteer services, and pays attention to local issues

Rural transportation

Our corporate resources are invested to ensure the transportation justice in rural areas

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

1.1.3 SDGs
In 2015 the United Nations identified 17
sustainability issues of utmost global urgency,
announced the Sustainable Development
Goals (SDGs), and invited all walks ofsociety to take actions to solve these global
problems. Fulfilling the responsibility as a
global citizen, CMC actively responds to 12
UN SDGs based on the corporate businessphilosophy of “HITS” and the commitment of
becoming an “enterprise of well-being.” It is
our hope to transform our internal ESG actions
into global sustainability strategies, andrelevant actions have been taken to makeactive contributions to the goal of global
sustainable development.

NO
POVERTY

Corresponding
chapter: CH6

GOOD HEALTH
AND WELL-BEING

Remote Townships and Rural Communities: Support the “Indigenous Production-Sales” partnership development program
With an offer better than that of the brokers, we have purchased up to 70,280kg of organic vegetables from indigenous smallholders
since 2015 to help promote the indigenous smallholder economic development.
Promote the “Indigenous Dream Project” to support indigenous peoples
Recruit materials and daily necessities and deliver them to remote indigenous townships to lessen the urban-rural resource inequalities.
In 2022 wed donated 300 COVID-19 rapid test kits and 250 children’s picture books, and the project has beneﬁted up to 15,000 persons
so far.

Take care of the physical, mental, and spiritual health of employees through multifaceted measures and equipment.
Use organic vegetables to ensure food safety for employees to provide employees with the best beneﬁts. Arrange periodic healthcheckups, build multifaceted sports facilities, and organize weight loss activities to keep employees ﬁt. We establish the plant healthcenter and hire medical specialists to protect health for employees and provide medical consultation and ﬁrst aid services.

Corresponding
chapter: CH5

QUALITYEDUCATION

Corresponding
chapter: CH5
Corresponding
chapter: CH6

GENDEREQUALITY

Corresponding
Chapter: CH3
Corresponding
Chapter: CH5

CLEAN WATER
AND SANITATION

Corresponding
chapter: CH4

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Combine the core automotive industry to implement the “Anchor” education program.
Improve the practical competencies of students by donating test cars to vocational schools. Ingrain knowledge relating to automotive
tests, automotive design, and vehicle service in vocational schools through university-industry collaboration to develop professional
automotive talents. We organize the Trafﬁc Safety Camps to provide trafﬁc safety education for children in remote townships.
Through comprehensive career development plans and projects, we shape employees into multifaceted professional talents.
Establish a learning organization and offer channels to help employees enhance professional competencies and develop lifelong
learning capability. Enable employees to get the right jobs through education and training, value employee strengths, and develop
competencies to maximize their potential.

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

Gender equality for employees
About 12% of management are women (including Sino Diamond Motors; excluding seconding and expatriate officers) and two
women directors, no wage gap and benefit differences between women and men, establish the sexual harassment prevention
mechanism to ensure women’s rights.
Well-established parental beneﬁt policy
The parental beneﬁt policy applies to both women and men. We prepare the pregnancy card for employees to take good careof them during pregnancy. We also plan priority parking spaces, lunch break areas, protective gowns, and parental magazines for
pregnant employees.

We have adopted the Xiucai Village water area of Shezi River, Yangmei, maintaining the environment on a regular basis
Yangmei Plant has earned the Excellent Performance in “Taoyuan City Business River Adoption” for 7 consecutive years and launched
12 coastal clean-ups and 7 environmental outreaches in 2022.
Building the in-house wastewater treatment system and improve the environment of the in-house ecological pond,
Properly treat wastewater from the plant through source and process reduction, enhance efﬂuent monitoring, and reduce water
consumption. Make infrastructure improvement of the in-house ecological pond to reshape the environment for wetland species andbuild the aquaponics system.

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development

DECENT WORK AND
ECONOMIC GROWTH

Corresponding
chapter: CH3
Corresponding
chapter: CH5

132022 CMC Corporate Sustainability Report

Towards a business of excellent growth through robust corporate governance
Ranked the top 5% of listed companies at the Corporate Governance Evaluation for 9 consecutive years and maintain steady growth
upon a robust corporate governance system and effectiveness.
A remuneration and beneﬁt policy with better offers in the industry
Offer salaries and beneﬁts better than the industry’s average for employees to enjoy better pay and beneﬁts. Our multifaceted leavesystem includes up to 9 days of short summer breaks for employees to well relax themselves. With a 100% retention rate after parental
leave, we ease the worries about career development of employees after they become parents.

Give Back toSocietyin Every Way
Possible

Appendix

INDUSTRY, INNOVATION
AND INFRASTRUCTURE

Build a sustainable manufacturing ecosystem with intelligent and innovative production technologies.
Establish a smart factory and a smart supply chain system towards Productivity 4.0. Implement AGV, the supplier management platform, the global logistics
management system, and others to build a smart supply; build a smart energy management system; and establish energy conservation and carbon
reduction targets for effective emissions reduction. Continuously implement digital transformation to enhance production efﬁciency while maintaining
environmental protection to contribute to sustainable development.

Corresponding
chapter: CH2

SUSTAINABLE CITIESAND COMMUNITIESCorresponding
chapter: CH6

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

Implement the “Happiness Guardian Program” and donate vehicles to provide shuttle service for vulnerable children in remote townships.
Over the past 8 years, we provide transportation resources for children in remote townships through the “Happiness Guardian Program” to shorten theirdistance from going home safe, knowledge and education, dreams, and development, carrying the happiness of vulnerable children. Through vehicle
donation, we hope to broaden the horizons of children.
Implement the “Vehicle Maintenance Service Tour” provide car owners in remote townships to access vehicle safety check and auto services.
Continuously provide the vehicle maintenance and repair services in remote townships to expand the scope of the “Vehicle Maintenance Service Tour”;
introduce the “Safety for Children Tire Safety Check Service” to provide maintenance services including “free replacement with Taiwan CPC engine oil”
and “MAXXIS tire buy one get one free” to support the operations of children’s groups. Safeguard vehicle safety through continuous public care.
Engage in the “Bu Bu Sharing” and “Central Kitchen for Schools in Remote Townships” programs to ensure transportation justice.
Assist the MOTC in promoting trafﬁc equality in remote townships by providing carpooling services for residents of Fuli and Zhuoxi townships in Hualien
and Yanping Township in Taitung with the DELICA. Additionally, we engaged in the “Central Kitchen for Schools in Remote Townships” program in 2022 tocustomize the DELICA into meal delivery trucks to deliver school lunch for 240,000 students in remote townships.

Purchase ecolabel parts to enhance vehicle sustainability.
Promote ecolabel certification and energy label certification to products, purchase green parts for ecolabel models up to NT$903 million, with apercentage up to 56%.
Promote the circular economy to reduce resource consumption
The Company implements the recycling plan for “packaging materials of parts,” with a recycling rate up to 57.3%

Corresponding
chapter: CH2
Corresponding
chapter: CH4

CLIMATEACTION

Corresponding
chapter: CH2
Corresponding
chapter: CH4
LIFE ON
LAND

Corresponding
chapter: CH2
Corresponding
chapter: CH6
PEACE, JUSTICEAND STRONG
INSTITUTIONSCorresponding
chapter: CH3
Corresponding
chapter: CH5

142022 CMC Corporate Sustainability Report

Develop NEVs and enhance vehicle efﬁciency
Develop and actively market and promote electric four-wheelers, eMOVING e-scooters, and PHEVs to reduce the carbon emissions from transportation.
More reduction measures for climate action
Hsinchu Plant has passed the certiﬁcation for the Green Plant Mark and Golden Grade Green Building Mark. Yangmei Plant introduces the regenerative
thermal oxidizer (RTO) and automated spray paint and coating robotic arm systems to reduce VOCs emissions and so to improve air quality. We also build
solar PV systems in all plants to generate renewables for self-consumption.

Purchase smallholder organic vegetable
Promote eco-friendly farming and co-market eco-friendly crops to car owners through the Mitsubishi LINE ofﬁcial account. Purchase the organic vegetablefrom indigenous smallholders for the employee canteens and co-market their agricultural products through employee group purchase to protect local
agricultural development.
Promote coastal and mountain clean-ups within the outside of the company
Encourage employees and suppliers to join coastal and mountain clean-ups to contribute to environmental sustainability.

Transparent internal system and unfettered communication channels
Promote ethical management and arrange related training for all new employees Ban child labor and forced labor to protect labor human rights. Set up
various communication channels, including hotline, email, and employee survey, to provide employees with unfettered communication channels.
Enhance stakeholder communication
Set up sections including CSR, Stakeholder, Ethical Management on the CMC sustainability website to enhance stakeholder communication. We have also
signed the “CSR” policy and “Ethical Management Clause” with suppliers.

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

1.2 Materiality Analysis
1.2.1 Process of Materiality Analysis
Based on the materiality deﬁnitions of the GRI Standards (2021), we analyzed the latest
ESG trends and legal and regulatory changes at home and abroad and gathered
the ESG issues that concern stakeholders. Through the questionnaire survey on themembers of the ESG Committee and the ESG issues that concern stakeholders, we
identiﬁed 22 sustainability topics according to the double materiality principle in termsof the “signiﬁcance and likelihood of the positive and negative operational impacts”
and the “signiﬁcance of the positive and negative impacts on ESG” to understand thesubstantive impacts caused by CMC and the expectations of stakeholders.

Step 1

Identiﬁcation of
Stakeholders

Step 2

Collection ofsustainability
topicsStep 3

Evaluationof Impact
SigniﬁcanceStep 4Conﬁrmation ofmaterial topics

Based on the ﬁve attributes of stakeholders of AA1000
Stakeholder Engagement Standard (SES), we deﬁned“the internal and external organizations or individuals
influencing or being influenced by the company”
for the reference of distributing the stakeholder
questionnaire to department heads.

Targets
Identified 8
stakeholder groups
with 61 stakeholder
responses.

Based on the sustainability standards (e.g., GRI, TCFD,
SASB), the characteristics of automotive products, theconcerned issues at home and abroad, MSCI ESG
rating, and the global material sustainability trends,
we focused on the sustainability topics relating
to CMC operations and eventually selected 22
sustainability issues for impact assessment.

Targets
Selected 22
sustainability
issues for impact
assessment through13 sustainability
interviews acrossdepartments.

Based on the stakeholder tension and significanceto CMC of topics, we made a visual representation(matrix) of topics based on the assessment results inthree levels: high, medium, and low, for the referenceof judging materiality.

Targets
46 staff responses
and 43 stakeholder
responses tomateriality
questionnaire

Through staff and stakeholder questionnaire surveys,
horizontal communication among all units, andrecommendations by external experts, we verified
the operational relevance and impact significanceof material topics. After integrated considerationand further analysis, we determined 11 key material
topics.

Targets
Identified 11 key
material topics
through ONE crossdepartment andexternal expert
meeting.

Review the results of identiﬁcation of material topics,
compare them with the material topics in theprevious year, set management approaches andEstablishment and targets for material topics, review and manage every
Periodic Review year, and ensure compliance with the sustainability
context and completeness.
Step 5of Management
Approaches

152022 CMC Corporate Sustainability Report

Targets
100% compliancewith thesustainability andcompletenessrequirements of allmaterial topics

1.2.2 Identiﬁcation of Stakeholders

1

Identiﬁcation of
Stakeholders

2

Collection ofsustainability
issues3

Evaluationof Impact
Signiﬁcance4

Conﬁrmation ofmaterial topics

5

Establishment andPeriodic Review
of Management
Approaches

We started stakeholder identification with the stakeholders that each department
engages in routine operations, and the scope of analysis did not include other
CMC subsidiaries. Through analyzing various stakeholder groups, we determined thestakeholder groups with the greatest influence on CMC. Based on the assessment
results of the ESG Committee, we identified 10 major stakeholder groups based on
the ﬁve stakeholder attributes in AA1000SES: Responsibility, inﬂuence, tension, diverse
perspectives, and dependency. After prioritizing stakeholder groups based on theirsignificance to CMC, their priorities are: A. employees; B. suppliers; C. government
agencies; D. dealers; E. customers; F. shareholders; G, industry associations and NGOs;
and the media.

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC
Whom CMC is
responsible for making
responses to

VisionBlueprint for
Corporate
Sustainability

F
H
A/B/C
D/E
Being
inﬂuenced by
CMC

Innovative
Technology
Sustainable
Value

G
Potential
impact on CMC
operational
performance

Excellent
Governance
Proactive
ActionTensionGroups or individuals who need
immediate attention from CMC
with regard to financial, wider
economic, social or environmental
issues.

Inﬂuence

Groups or individuals who canhave an impact on CMC’s
strategic or operational
decision-making.

Dependency

Groups or individuals who are
directly or indirectly dependent
on CMC’s products, activities, orservices.

ResponsibilityGroups or individuals to whom
CMC has legal, commercial,
operational or ethical/moral
responsibilities.

Diverse perspectives

Groups or individuals whose different views can lead to a newunderstanding of the situation and the identiﬁcation of opportunities of
CMC.

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

1.2.3 Dialogue with Stakeholders
We value the needs and opinions of stakeholders. Apart from providing unfettered communication channels forstakeholders, we also collaborate with key stakeholders to implement projects relating to social inclusion andenvironmental sustainability. Through continuous interaction, we set the performance indicators of material issues andreview our performance in sustainability implementation from time to time. The table below shows the frequency andmajor contents of communication with stakeholders in 2022.

Unfettered Stakeholder Dialogue

Signiﬁcance and Value to CMC

Method and Frequency of Engagement

Results and Actual Performance of Dialogue

Employees are our most important stakeholder andcore competitiveness for sustainable operations.
Apart from building a no-discrimination friendly
workplace environment, we keep thinking how to
improve the work experience of employees andcontinuously enhance the capability of digital
operations for cross-generation teams to work at
CMC with agility and ﬂexibility.

(Regularly)• Labor-management meeting (monthly)• Employee Welfare Committee Meeting(quarterly)• Member representative conference(annually)• Training and development meeting(annually)• Occupational Safety and HealthCommittee meeting (quarterly (indirectunits/enterprise-wide), monthly (directunits)

Concerned Issues

Employees• Recruitment and retention• Safe workplace• Product Safety and Quality
Management

Suppliers are the important partners that enable
us to manufacture and supply quality products
and the key of CMC carbon reduction andsustainability. Teaming up with suppliers, we
progressively advance towards a sustainablesupply chain for suppliers to provide services thatcomply with our business philosophy and satisfy
customers.

Suppliers

16(Irregularly)• Together for ESG section• Management-employee communication
meeting (periodically)• Hotline, fax number and email address for
employee complaints• Hotline, fax number and email address forsexual harassment complaints• LINE@5680 and 2460 hotline (employees
may report the status through thesechannels)(Regularly)• Supplier Conference (annually)• SCM Platform: Supplier activities (12 times/
year)

Concerned Issues• Product safety and quality
management• Business continuity
management• Product and service
innovation

2022 CMC Corporate Sustainability Report(Irregularly)• SCM Platform: Explain the requirementsof the design speciﬁcations through legal
outreaches.
• Support for suppliers to obtain ISO 14001
certiﬁcation

CMC
Stakeholder
section

Stakeholder
sustainability
feedback
questionnaire

Putting health ﬁrst and maintaining work-life balance
Employees are our biggest asset,
particularly during the pandemic
when we introduced multifaceted
epidemic control policies. In addition
to the isolation leave and homerecovery leave, we launched the“one-stop health service” for private
trainers to lead employees toexercise regularly and capture their
physical health. Employees with children can send their children to thekindergartens and after-school clubs run by the Company to matchchildcare with work so as to smoothly connect work with family andprevent burning the candle at both ends for two-paycheck families.
Our quality employee benefits enable employees to balance workand life and to be proud of being a CMC employee.

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

Guidance for zero emissions towards a green future
The rise of environmental protection
awareness has been tightening
the laws and regulations relating
to environmental protection.
Additionally, the continuous rise ofmaterial costs during the pandemic
further made it more difficult for
us to maintain steady supply andbrought more pressure to quality
management. Hence, it is not easy for suppliers to keep up with the
low-carbon transformation trend. Fortunately, suppliers were willingto put themselves into our shoes in cooperation. Apart from helping
them passing the certiﬁcation of various ISO systems, we also held the
supplier conference to explain the relevant laws and regulations tothem. We even voluntarily guided them to progressively implement
net-zero emissions as a “big brother” to maintain virtuous and positivecompetitiveness and sustainability.

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixSigniﬁcance and Value to CMC
Government agencies have signiﬁcant inﬂuenceon our development and competitiveness. In
addition to abiding by the automotive safety laws
and regulations, environmental protection laws
and regulations, and trade laws and regulations,
we also actively coordinate with the productand safety monitoring and assessment of thegovernment and maintain a sound relationshipwith government agencies.

Government
Agencies

Method and Frequency of Engagement(Regularly)• Evaluation by government
agencies (annually)• Corporate GovernanceEvaluation (annually)

Concerned Issues• Ethical management andlegal compliance• Product safety andquality management• Customer privacy(Irregularly)• Policy seminar, forum, public
hearing• Ofﬁcial document and visit

Results and Actual Performance of Dialogue

Achieving the low-carbon policy with innovative technologies towards
low-carbon tourism
We actively support government policies andlegal compliance. Through green production
and the excellent performance in energy
conservation and carbon reduction of plants,
we earned the National Enterprise Environmental
Protection Award and were ranked the top
5% among listed companies in the Corporate
Governance Evaluation. In response to industrial
upgrading, the MOTC innovates the platform
guidance by launching the “Smart Electric Scooter Development and Promotion
Program”. We engage in the R&D of key technologies to help develop
e-scooters and improve their functions. In response to the national green
energy technology promotion policy, we also actively cooperate with local
governments to build e-scooter charing stations and battery exchange stations,becoming one of the key promoters of green transportation promotion.

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

Shareholder investments are the major supportof business expansion and development andbring direct influence to the corporate finance,
decision-making, and future development. We
value the rights and interests of shareholders andregularly disclose information relating to corporate
governance for shareholders to understand ouroperations more conveniently.

Shareholders

Concerned Issues• Product safety and quality management• Economic performance and proﬁt• Recruitment and retention(Regularly)• Annual meeting of shareholders(AGM) (annually)• Annual report (annually)• Investor conference (quarterly)(Irregularly)• Acceptance of corporate visit• Shareholder inquiry by phone• Announcement of management
status and timely disclosure of material
information on the corporate website
and the Market Observation Post
System (MOPS)

Shaping a benchmark for business sustainability with informationtransparency
Upholding the HITS business philosophy, we
embrace integrity and practice it in corporate
governance, legal compliance, and risk
management. By establishing a robust corporate
governance framework, we ensure that theBoard and management can meet the bestinterest of both the company and shareholders
and maintain steady operations to protect
the assets of shareholders and customers. In
addition to strengthening the core services,
we continuously cultivate the market throughinnovative and comprehensive means to expand
the scale of operations, create proﬁt, and so toboost integrated growth.
Excerpts from the CMC Annual Report 2021

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

172022 CMC Corporate Sustainability ReportSigniﬁcance and Value to CMC

Customers are the major source of revenues anddirectly influence sales and market presence.
Customer satisfaction and loyalty are key to thesuccess in business operations. Customer needs
and feedback are significant to us. Hence, we
improve product and service quality and establish
a steady customer relationship.

Customers

Concerned Issues(Irregularly)• Contact points of new model development
projects, email, conference call, formal
meeting and regular project meeting• Online inquiry through 0800 hotline ofCustomer Care Center (8:00~22:00)• Customer satisfaction survey• Irregular customer care activity• Dissemination of SOP for vehicle delivery• SMS and YES APP promotion information• Customer privacy• Customer relationshipmanagement• Product and service
innovation

Industry associations and NGOs give us supportand instructions, promote cooperation within theindustry, and strive for policy support. We actively
cooperate with the collaboration needs of industry
associations to promote close collaboration
within the industry. We also engage in long-termcooperation with NGOs to create the best future
for the industry through reciprocity.

Industry
Associations/
NGOs

Method and Frequency of Engagement(Regularly)• Annual "Anchor" program (quarterly)• Vehicle Maintenance Service Tour
(monthly)• Trafﬁc Safety Camp (quarterly)• Industry association board meetings(quarterly)

Concerned Issues• Ethical management andlegal compliance• Product and service
innovation• Waste emission
management(Irregularly)• Remote Agricultural Community Partner
Development Program• Annual "Dream Project"• Happiness Guardian Program• Bu Bu Sharing• Online inquiry through 0800 care center
hotline (8:00~22:00)

Results and Actual Performance of Dialogue

Timely fulﬁlling customer demands with excellent services
Since I bought thiscar, I feel safe to have
Mechanic Chen of theRende Service Centertake care of it. When I
lost my remote control
the other day and could
not open the door withthe spare key, I phoned
the Rende Service Center for help. It was a Sunday and Chen
was on leave. To my surprise, Chen immediately drove to myplace to look into the matter upon hearing this. Then, he drove
back to the service center to fetch the maintenance computerand returned to me to solve my door lock problem. Chen eventested the remote control again before leaving. I was deeply
impressed by his enthusiasm and dedication.
--- car owner Mr. Wang.

Rewarding outstanding college automotive talents by promoting
university-industry exchange
We, the Society of Automotive
Engineers (SAE) Taipei Section, coorganize with CMC the National
College and University Electric
Vehicle Competition with toencourage young students to
put theory into practice, develop
teamwork, and cultivate R&D andinnovation capabilities. In addition
to emphasizing the driving performance, emission reduction, andenergy conservation of vehicles, the competition also enables
students to put theory into practice and demonstrate their talent.
We also co-promote with CMC national engineering symposium,international student exchange, and participation in US SAE
events to actively promote university-industry exchange andconnect with the world. Promote university-industry exchange.
--- SAE Taipei Section

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

182022 CMC Corporate Sustainability Report

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Signiﬁcance and Value to CMC

As the coordinator between CMC and consumers,
dealers can promote products to the more
extensive consumer market to help us increase
market share. Additionally, they also help
consumers solve problems and ease doubts toenhance our brand reputation, bringing signiﬁcant
influence to our market presence and brandimage.

Dealers

Concerned Issues• Economic performance and proﬁt• Ethical management and legal
compliance• Product safety and quality management

As the tie between CMC and the public, themedia helps shape our social image andreputation and influence our sales and market
presence. We actively maintain a steady andsound relationship with the media to increasesocial trust through open and transparent
communication and disclosure.

The Media

Method and Frequency of Engagement(Regularly)• Dealer conference (monthly)• Analysis of the board operationand ﬁnancial statements of dealers(quarterly)• Dealer e-leaning courses with Microsoft
Teams (monthly)• Dealer technology education andtraining (every four months)(Irregularly)• Regional dealer conferences or online
meetings• Dealer education and training

Developing multifaceted and sustainable sales pathways by ingraining thegreen concept
The rapid development of sustainability issues
has urged dealers to timely keep up withthe latest legal and regulatory changes to
respond to the related doubts of car owners.
Through education and training, CMC
outreaches the environmental sustainability
concept and net-zero emission practice
to management and sales representatives
and ingrains the environmental sustainability
concept in car owners through its service.
In addition to creating a two-way learning situation for both CMC and carowners, this also enables car owners to understand Mitsubishi’s environmental
concerns and helps boost sales. Every year it also leads dealers to join the “Earth
Hour” event to substantively improve the emission reduction image of dealers.
--- Dealer Fortune Motors Co., Ltd.

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability(Regularly)• Corporate GovernanceEvaluation (annually)• Test drivee and gatherings withthe media (annually)

Concerned Issues• Product safety and quality
management• Customer privacy

Results and Actual Performance of Dialogue(Irregularly)• Product launch press conference• Organize ESG events• Publish press releases• Media interviews

Sharing industry innovation trends through multifaceted cooperation
Every year CMC organizes test
drives, innovation and R&D
presentations, and product launchpress conferences for the media
understand its latest products andoperational directions with open
and transparent information. It also
holds investor conferences regularly
to disclose the information regarding
corporate governance and productinnovation at CMC. All these reveals that CMC values the media andmaintain a positive and steady relationship with the media.
--- The Media

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

192022 CMC Corporate Sustainability Report

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

1.2.4 Identiﬁcation of and Matrix Analysis of Material Topics

1

Identiﬁcation of
Stakeholders

2

Collection ofsustainability
issues3

Evaluationof Impact
Signiﬁcance4

Conﬁrmation ofmaterial topics

5

Establishment andPeriodic Review
of Management
Approaches

After locating the potential material issues based on the international sustainability standards and regulations, the SDGs, responsible investment, industry trends, and stakeholder interaction,
we focused on 22 sustainability topics and further investigated their impacts caused.

Sources of sustainability issues

Sustainability
Commitment
from theChairperson
ESG
Highlights

International Sustainability
Standards and Regulations

Sustainable
Development Goals

Responsible
Investment

Industry Development
TrendsIssues that Concern
Stakeholders
About CMC

References are made to the GRI
Standards, Responsible Business Alliance(RBA), Task Force on Climate-Related
Financial Disclosures (TCFD), Carbon
Disclosure Project (CDP).

Screening actions to which we cancontribute by assessing the 169 targetsof the 17 SDGs.

References are made to the MSCI ESG
Leaders Indexes and the standards of
the Sustainability Accounting Standards
Board (SASB).

Issues that concern industries, suchas international sustainability leaders,business associate Hotai Motor Co.,
Ltd., and heterogeneous industries like
Taiwan Cement and ASUSTek.

Issues that concerns shareholders
including employees, suppliers,
government agencies, dealers, customers,
shareholders, industry associations/NGOs,
and the media.

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

Sustainability Topics
Strengthening
Corporate Governance• Economic performance and proﬁt• Customer privacy• Customer relationship management• Ethical management and legal
compliance• Anti-corruption and anti-competition• Whistleblower system

Resource Recycling
and Management• Waste emission management• GHG management• Energy management• Climate change• Water resource management• Use of renewable energy

Product Innovative
Application• Product safety and quality management• Product and service innovation• Low-emission products and services

Strengthening Value
Chain Cooperation• Sustainable Supply Chain• Business continuity management

Sustainability andSocial Common Good• Recruitment and retention• Safe workplace• Collective bargaining• Labor right protection• Community engagement

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix202022 CMC Corporate Sustainability Report

1

Identiﬁcation of
Stakeholders

2

Collection ofsustainability
issues3

Evaluationof Impact
Signiﬁcance4

Conﬁrmation ofmaterial topics

52022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Establishment andPeriodic Review
of Management
Approaches

Calculation Process
Based on the definitions of the GRI Standards (2021), we assessed the significance of the impacts on CMC and the economy, environment, and people (including human rights) of 22
sustainability topics. Apart from setting the impact factor (IF) as the foundation for assessment, we have also considered the perspectives of stakeholders to facilitate the identiﬁcation of theexternal impacts caused by our operational activities.

Stage 1
IF Calculation

Stage 2
Stakeholder
Questionnaireand Analysis

In addition to assessing the routine operations, we have also identiﬁed the potential positive and negative impacts of the 11 sustainability topics with reference to the development trends ofsustainability issues. Then, we assessed the signiﬁcance of impact based on the severity and likelihood of impacts. Furthermore, we calculated the IF of individual topics in consideration of thescale, range, reversibility, and human rights impact of individual factor.

By setting the “signiﬁcance of impact” as the criterion for topic materiality assessment, we screened
key stakeholders having close interaction with CMC to ensure that the feedback is collected fromstakeholders have a good understanding of CMC.
In 2022 we collected 61 stakeholder responses. After statistical analysis, we quantitatively assessed themateriality and impact signiﬁcance of each issue to understand the potential sustainability issues andmanagement strategies.

Incorporation
Incorporate opinions closely related to CMC for the reference of material topics.

Questionnaire
Review of the perspectives and context of stakeholders, including theirbackgrounds and observations.
Analysis
Quantify stakeholder feedback verify the pros and cons of stakeholders.

Quantitative Questionnaire Analysis
The table below shows the impact signiﬁcance match of individual stakeholder groups and material issues with reference to the stakeholder responses and in consideration of the materialityof issues. “Product safety and quality management” and “talents recruitment and retention” were the material issues with higher impact in 2022.

Signiﬁcanceof Impact
High
↓
Low

Employees• Recruitment andretention• Safe workplace• Product safety andquality management

Government
Agencies

Suppliers• Product safety andquality management• Business continuity
management• Product and service
innovation• Customer privacy• Ethical management
and legal compliance• Product safety andquality management

Dealers

Customers• Economic performance• Customer privacy
and proﬁt• Customer• Ethical management andrelationshiplegal compliancemanagement• Product safety and• Product and service
quality management
innovation

Shareholders

Industry Associations/
NGOs• Product safety andquality management• Economic performanceand proﬁt• Recruitment andretention• Ethical management andlegal compliance• Product and service
innovation• Waste emission
management

The Media• Customer privacy• Product safety andquality management

Description of Issue Changes
No.

Material Issues 2022

Description of Issue Changes

Recommendation and Description of Issue Adjustment 2022

1

Low-emission products andservices

Term adjustment

The term “product carbon footprint” was adjustment in line with the net-zero emissions and industry trends.

2

Sustainable Supply Chain

Term adjustment

The term “supply chain management” was adjustment in line with the net-zero emissions and industry trends.

3

Product safety and quality
management

New issue

This is a new issue for disclosure in 2022 and was adjusted as a material issue in 2022 after comparing to the major issues of competitors.

21

2022 CMC Corporate Sustainability Report

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

1

Identiﬁcation of
Stakeholders

2

Collection ofsustainability
issues3

Evaluationof Impact
Signiﬁcance4

Conﬁrmation ofmaterial topics

5

Establishment andPeriodic Review
of Management
Approaches

Based on the GRI Standards (2021), the visual representation of the 22 sustainability issues ispresented in the following matrix of material issues after cross-analysis of “their impact on theeconomy, society, and people (human rights)” and “the signiﬁcance of their impact on CMC”.
We establish the sustainable development strategic policy, periodically review its performanceand target accomplishment, and enhance performance reliability through internal validationand third-party veriﬁcation. Based on the management approaches of material topics, we set
key performance indicators (KPIs), follow up on target accomplishment and progress, and verify
the consistency between the KPI and sustainability principle. We deﬁne topics with signiﬁcant
impact on “operations” and “the economy, environment, and people” as “high-concernedmaterial topics”.

1.2.5 Material Topics and Automotive Value Chain
With the global rise of the climate change issue, automotive industries and supply chainsaround the globe actively engage in low-emission transformation. As the leader of Taiwan’s
automotive industry, we have different value chains corresponding to our up-, mid-,and down-stream services, covering materials and part and component suppliers in the
upstream, automotive manufacturing and assembly and technical service providers in
the midstream, and branded suppliers and sales and service stations in the downstream.
After assessing the environmental and social impacts and influences of the automotive
value chain, we correspond it to the material topics and maintain close cooperation with
upstream, midstream, and downstream suppliers to engage in sustainable development so
as to enhance the sustainability competitiveness of Taiwan’s automotive industry.

Materiality Deﬁnitions and Management Strategies of Topics• High-concerned material topic: Set targets with periodic follow-up and management.
• Medium-concerned material topic: Establish management policies and assign
responsible control units• Low-concerned material topic: Insignificant short-term impact, continuous
observation.

After consolidating IFs to calculate the results of stakeholder engagement, we selected andvalidated the 11 material topics of 2022. Although “climate change” was not considered as amaterial topic at the beginning, due to the net-zero emission trend and the effectuation of the
Climate Change Response Act, after the discussion at the ESG Committee and cross-department
meetings, we eventually decided to include “climate change” as a high-concerned material
topic in consideration of its rising importance in line with global warming.

Production Item

Supply chain

Aluminumalloy steel
wheel

Product safety andquality management

Tire
Sheet metal

Upstreamvehicle lightMaterials andComponent
Manufacturers

Low-emission products
and services
Safe workplace
Waste emission
management

Impact on the economy, environment, and people (human rights)

OthersCustomer privacy
Customer relationship management

Water resource management
Use of renewable energy
Whistleblower system
Anti-corruption and anti-competition

Sustainable Supply Chain

Low-emission products and services

Climate change

Product and service innovation

Energy management

Product safety and quality
management
Economic performance and proﬁt

GHG management

Community engagement
Collective bargaining

Recruitment and retention

Labor right protection

Topic in social
aspect2022 CMC Corporate Sustainability Report

Midstream

Technical service

Manufacturing
CenterAssembly andTechnical Service
Plants

Product quality andsafety management
Product and service
innovation
Safe workplace
Waste emission
management

Safe workplace

Waste emission management

Downstream

Signiﬁcance of impact on operations

Topic inenvironmental
aspectVehicle assembly

Ethical management and legal
complianceBusiness continuity management

Low

22

High-ConcernedMaterial Topic

Material topic
About CMC

Hood
Medium-ConcernedMaterial Topic

Governance issues

Sustainability
Commitment
from theChairperson
ESG
Highlights

Bumper

Low-ConcernedMaterial Topic

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Sales

Branded Suppliers

Economic performanceand proﬁt

Import andExportService and Sales
LocationsCustomer relationshipmanagement
Customer privacy

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

Automotive industry
issues2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Impact hotspot on value chain and description

Material topic

Business
operations

Upstream

Downstream

Downstream

Materials
Procurement/
Product
Manufacture

Customer
Use

Reclamation
andRecycling

Description

Product safety and quality
management

We have established a well-planned product quality management system to reduce
hazards in product use with stable product quality, safety, and reliability and so to ensurecompliance with the laws, regulations, and standards and fulﬁll customer expectations for
all products.

Product and service
innovation

We engage in continual product improvement and R&D and continuously introduce
NEVs in response to the market changes and energy conservation trend to fulﬁll customer
demands with innovative technologies and services.

Recruitment and retention

As employees are our biggest asset, we offer a well-established promotion and transfer
system and good salaries and benefits, attract outstanding talents to join CMC, andcohere organizational commitment to create a better future with employees.

Customer privacy

We periodically maintain the information security system at high standards to ensure noleakage of customer privacy and ensure all protective measures are in place to safeguard
the customer trust on CMC with absolute rigor.

Economic performance and
proﬁt

We engage in active business expansion and development through operations
diversification, maintain steady profit and a robust corporate structure, and boost
automotive sales every year to enhance competitiveness and improve operational
performance.

Customer relationshipmanagement

We listen to customer feedback and periodically gather customer opinions. We value
each piece of customer advice and maintain sound two-way interaction with customers.

Ethical management andlegal complianceIntegrity is the guiding principle of business operations at CMC. We treat customers withsincerity, run the business with diligence, and comply with applicable laws and regulations
to ensure sustainable development.

Low-emission products andservices

We actively develop low-emission technology and NEVs and enter the green market with
low-emission products to provide customers with more automotive options and contributeto environmental protection at the same time.

Safe workplace

We emphasize occupational safety and health and protect employee health,believing that only the best care for employee health can productivity, efﬁciency, andorganizational commitment be enhanced.

Waste emission
management

Reduce environmental production through proper waste recycling and energy efﬁciency
enhancement. By complying with various waste reduction laws and regulations, we
promote environmental protection and reduce negative impacts to practice out
commitment to environmental sustainable development.

Climate change

While GHGs from product production and manufacture will accelerate global warming,
we establish the internal climate response policy and engage in low-carbon transformation
with suppliers to provide customers with more options for green products.

Contribution to SDGs

INDUSTRY, INNOVATION
AND INFRASTRUCTURERESPONSIBLE
CONSUMPTION
AND PRODUCTION

INDUSTRY, INNOVATION
AND INFRASTRUCTURERESPONSIBLE
CONSUMPTION
AND PRODUCTIONQUALITYEDUCATIONGENDEREQUALITY

Sustainability
Commitment
from theChairperson

DECENT WORK AND
ECONOMIC GROWTHPEACE, JUSTICEAND STRONG
INSTITUTIONSRESPONSIBLE
CONSUMPTION
AND PRODUCTION

About CMC

VisionBlueprint for
Corporate
Sustainability

DECENT WORK AND
ECONOMIC GROWTH

Innovative
Technology
SustainableValue

RESPONSIBLE
CONSUMPTION
AND PRODUCTIONPEACE, JUSTICEAND STRONG
INSTITUTIONSINDUSTRY, INNOVATION
AND INFRASTRUCTURERESPONSIBLE
CONSUMPTION
AND PRODUCTIONQUALITYEDUCATIONPEACE, JUSTICEAND STRONG
INSTITUTIONSCLEAN WATER
AND SANITATION

INDUSTRY, INNOVATION
AND INFRASTRUCTURE

CLIMATEACTION

CLIMATEACTION

Excellent
Governance
Proactive
Action

CLIMATEACTIONGOOD HEALTH
AND WELL-BEING

CLEAN WATER
AND SANITATION

ESG
Highlights

LIFE ONLAND

Circular
Reduction
Safeguarding
Environment

LIFE ON
LAND

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

232022 CMC Corporate Sustainability Report

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

1.2.6 Management Approaches and Visionary Targets

1

Stakeholder
typeManagement
approaches

2Collection ofsustainability
issues3

Evaluation of
impactSigniﬁcance4

Our Management Commitment

Validation ofmaterial
Topic

5

Establishment andPeriodic Review
of Management
Approaches

Target Term

Short-term

Product
safety andquality
management

Product safety and product quality
are our first priority. Before shipping
we conduct quality control (QC)
inspection on every product throughcomplete and stringent processes,
including parts, finished vehicles, andafter-sales service and guarantee,
to ensure total compliance with thequality requirements of the vehicle andcustomers.

Replace paperwork with thetablet PC in QC inspections
and extend to materials
incoming QC inspection andvehicle OQC inspection.

Medium to long-term

Ensure unaffected part quality
and continuously maintain
zero error with computer
check.

Short-term

Product
and service
innovation

In response to the environmental
protection regulations at home andabroad and the international changes,
we actively engage in transformation,
continuously develop the “commercial
vehicle sector” and innovate the “NEV
sector” to providing quality productsthat carry happiness and deliver warmthwith new forms of convenience andpower.

Announce the EZ2 e-scooter
to implement HEV to raise the
CAFE standard of the wholeplant.

Medium to long-term

Continuously introduce
NEVs and enhance the fuelefficiency of commercial
vehicles by 20%.

Action Performance

Management and Improvement Mechanisms• MG car implementation: All three models of the HS range
met various quality requirements.
• QC information digitization system: Enhanced work
efficiency, quality big data application, and graphvisualization.
• Smart management: Optimized timely and preventive
management through real-time quality monitoring and big
data analysis and application.
• New technology application: Used 3D visualization
devices for automatic tests and calibration, VR devices foreducation and training, and I/O devices for simulation andquality instructions to make quality more reliable.
• Mistake-prooﬁng (poka-yoke) quality system: With the error
prevention (fool-proofing) equipment and tools, 100%
quality was assured at the first time to deliver trustworthy
quality for customers.

• Suppliers can discuss with CMC and make realtime report and control of product status via the
4M change system.
• Post information over the SCM platform via
software quality assurance (SOA) to notify all
suppliers or customers.
• All suppliers establish the “QC Practices During
COVID-19”.
• Validate the performance of suppliers with the“Horizontal Implementation Validation and
Improvement Form”. Request for improvement
measures for failure to meet the requirements
and completion of improvement by a time-limit.

• Implemented the eHRD system, uploaded new courses
every month, and all 22 dealers completed the training.
• EZ2 e-scooter R&D and EX3 e-scooter pilot research.
• Continuously implemented the “Youth Dealer Franchise
Program”, and 3 dealers and 8 franchised stores wereopened in 2022.
• Launched the brand-new battery plan “Save More witheMOVING” to lessen the monthly battery rate burden(exceeding the petroleum rate) of light users. In 2022 about
64.3% of owners subscribed this new plan.
• Continuously developed the “Ride with Fun” two-wheelerapp.
• Co-developed the emergency steering assist system with
the National Taipei University of Technology.
• Completed the facelift development of the eVeryca van/truck and certiﬁcation of energy efﬁciency enhancement.

• We determine the results and come up withimprovement measures according to the CMC
model development system• We actively support the suppliers to pass the ISO
14001 certiﬁcation.
• The Business Partners Conference is held
periodically to present the energy vehicle
programs to the suppliers and actively look forcollaboration opportunities

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

242022 CMC Corporate Sustainability ReportManagement
approaches

Our Management Commitment

Target Term
Short-term

Recruitment
and retention

Employees are the most important asset
to CMC. We value the development
diversity of employees, enhancethe employee retention rate, recruit
outstanding talents in the industry, andensure production efﬁciency.

Establish comprehensive
channels to recruit
appropriate talents andenhance the retention rate of
new employees.

Medium to long-term

Develop long-term and stable
workforces and offer industrybetter remuneration andrewards

Short-term
To enhance management against
personal data leakage, we inventory
and validate various program using
personal data, implement management
at the source, and establish the“CMC Personal Information Security
Committee” to implement the measures
for security management of personal
data.

Customer
privacy

Request dealers toincorporate personal dataprotection in the standard
operating procedures (SOP)of car delivery.

Economic
performanceand proﬁt

Management and Improvement Mechanisms• In 2022 a total of 75 employees recommended 84 talents to
CMC. Based on the duty reporting rate of recommended
talents, a total of NT$335,000 was distributed as the talents
recommendation bonus.
• In 2022 we introduced the departmental talents
recommendation point collection plan and distributed a
total of NT$190,000 as the talents recommendation bonus.
• University-industry collaboration with Vanung University.
• Internship program with Chienkuo Technology University.
• Support for the government’s Youth Employment
Navigation Program• Internship program with Kao Ying Industrial, Commercial,
Vocational High School.

• Comprehensive benefits for employees, e.g.,gatherings, LOHAS exercise, diversiﬁed employee
clubs.
• Well-laid pension system.
• Promotion of the “Zero Limit on Development”
program to extend the career of senior workers.
• Development of a multifaceted leave system,e.g., short summer break, volunteerism leave,
extended paternity leave, COVID-19 leave.

• Before vehicle delivery, the customers are required to sign
the agreement that they authorize the Company to use
their personal information• In each department, the access to the customer
information is limited to the approved sales-related
personnel only
• Periodic deletion of customer data after use.

• Through new car training, we educate thedealers about how to explain our key personal
information protection policies to car buyers andrequire them to stick to the procedures• We arrange personal information security
education and training led by our in-house
instructors on an annual basis, and periodicallyrequire all employees to take the online courses
on Personal Data Protection Act designed by theCompany, or disseminate information throughthe courses

Medium to long-term

Continuously strengthen
personal data protection andenhance the awareness of
personal data protection in
employees through educationand training.

Short-term

Maintaining the steadiness andgrowth of economic performanceis our fundamental commitment tothe shareholders. Through diversified
operation and innovative R&D, we
expand the market, increase thesales, and pursue the sustainable
development of the Company

Action Performance

Progressively launch various
facelift and special education
models and integrate/enhance the retail system tomeet the consumer needs.

Medium to long-term

Seize domestic and overseas
markets through operations
diversification to pursue
steady operations and profit
growth.

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value• No. 1 market share for micro electric two-wheelers in 2022,• Accumulative sales of eMOVING during 2018-2022 wereover 18,000 units.
• The 2022 sales of four-wheelers were up to 44,437 units orNT$21.37 billion.

• Hold the AGM and publish the annual report
every year.
• Hold the investor conference quarterly andaccept corporate visits from time to time.
• Hold regular meetings to keep track on
exchange rate changes and adopt steadyheading policies.
• Maintain close interaction and soundrelationships with various banks to strive for thebest interest rate for ﬁnancing and savings.
• Periodically assess the capital adequacy for
operations and turnover and apply for ﬁnancing
credits from various banks to ensure no liquidity
risks.
• Assign responsible personnel to keep track on
tax regulation changes and study and draw up
counteractions for such changes to ensure tax
compliance, enjoy tax incentives, and mitigate
tax.

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix25

2022 CMC Corporate Sustainability ReportManagement
approaches

Our Management Commitment

Target Term
Short-term

Customer
relationshipmanagement

We keep ourselves aware ofwhat motivates consumers tobuy vehicles or how they use
them to fully understand theconsumer needs so as to toprotect their rights and interestsand enhance customer
satisfaction.

Improve the service expertiseof service representatives andthe certification of SSI sales
representatives, including apassing rate of over 95% in the
mystery shopper test.

Low-emission
products andservices

26

2022 CMC Corporate Sustainability Report• Appropriate part of the amount for the customer
satisfaction evaluation bonus to incentivize sales
consultants to optimize sales service.
• Conduct a customer satisfaction survey after
warranty repair every week, review the CSI scoreof all service centers across Taiwan every month,and request centers in the last two places topresent an improvement report at CMC HQ.
• 0800 Customer Care Center: Handle customer
inquiries and complaints.
• Customer satisfaction survey: Conduct themaintenance satisfaction survey on customers atservice centers each week.

• We conduct an external board performance evaluation every three
years (the most recent one was in 2021)• Annual meetings have been convened for different divisions related
to the teams to present the implementation status of the year
• Education and training courses are arranged• We have established operating regulations regarding trade secrets
management• Appointment of dedicated personnel for legal affairs to keep up
with the changes in laws, inform relevant units of such changes andthe risks thereof, and request the units to make immediate responses

Medium to long-term

Continuously improve thecorporate governanceculture, with sustainable
operations as the ultimate
goal.

Short-term

Develop low-emission
products and technologies
and implement low-carbon
transformation are ourenvironmental concerns.
Through continual productimprovement, we provide
customers with the best service
quality.

• Added the online questionnaire survey to increase the population
for the new vehicle sales satisfaction survey.
• For the problems that the customers have, the responsible service
stations are appointed to repair the vehicles and deal with customer
dissatisfaction

Improve service quality andmaintain sound and positive
interaction with customers.

Zero non-compliance of parts
and top 5% in the Corporate
Governance Evaluation

Ethicalmanagement
and legal
complianceManagement and Improvement Mechanisms

Medium to long-term

Short-term

We establish an integritybased policy and have it
approved by the Board.
We also establish a soundcorporate governance and risk
control mechanism to create
an environment for sustainable
development.

Action Performance

Implement the Design BOM
system and the PLM+DFMEA
KM module and develop the
topology optimization analysis
capability.

Medium to long-term

Set Net-Zero 2050 as theemission reduction target topractice energy conservationand energy transformation
and actively develop lowemission transportation.

• Painting Line 1 ASU modiﬁcation: Reduced natural gas consumption
by 20% in winter after direct heating modiﬁcation.
• Coating and gluing automation enhancement: Enhanced gluing
automation from 25% to 45%.
• Reduced power consumption with the 3-in-1 motor and enhancebattery capacity to increase travel mileage.
• Facelift for the Veryca and Zinger reduced fuel consumption andensure market share.
• Developed integrated starter-generator (ISG) for 3.5T models.
• Introduced the HS ranges of MG cars and passed the certiﬁcation
for the HS 1.5T, 2.0T, and PHEV models.
• Improved the carving quality and reduced ambient noise with laser
VIN carving for the quietness and ﬂexibility of laser carving.
• Set franchised stores in regions without stores or vulnerable regions tobuild a complete retail network for eMOVING.
• Built 110 eMOVING charging stations, accounting for 52% of all twowheeler charging stations across Taiwan.

• In accordance with the “Unethical Behavior
Report Handling SOP”, after producing thereport every six months, the Audit Office will
present the report to the president, directors, andindependent directors to explain the handlingstatus of each unethical behavior report.
• Incorporation of ethical management into theemployee performance evaluation and humanresource policies, and establishment of specificand effective systems for rewarding, punishment
and reporting• The functional units make self-evaluation underinternal control every year
• Regular internal and external audit plans are
implemented annually• The Company takes part in TWSE’s Corporate
Governance Evaluation every year
• Periodically audit customers in coordination withthe government regulations.
• Run emission and fuel consumption tests of all
products before shipping.
• Reasonably and automatically improve
production lines periodically.
• Extend the procurement module of the
e-procurement platform to the suppliers tosimplify the paperwork process and reduce
paperwork lead time.
• Introduce the Delmia simulation software to
realize engineering synchronization to shorten
development time and enhance equipment
planning accuracy.
• Continuously implement more advanced ISG
technology and engage in EV and e-scooter
R&D to develop low-emission and low-energy
consumption NEVs.

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixManagement
approaches

Our Management Commitment

Target Term

Short-term

Implement the Occupational
Safety and Health Policy toprovide a safe and healthy
workplace for employees.

Safe
workplace

We actively practice workplace safety
and health management and protect
the health and safety of employees tocohere organizational commitment.

Medium to long-term

Pass the certification of ISO
45001.

Action Performance

Management and Improvement Mechanisms• NHI-covered outpatient services are provided in the plants
to take care of the employees’ health. The employees can
get free diagnosis services during work time whenever they
don’t feel well
• Contracted dietitians are appointed to offer free nutrition
consultation service for the employees in the plants, so thatthe employees can have a better diet when dining out• Purchased the InBody Composition Analyzer for employers
to understand their body composition: muscle, fat,and bone. Arranged dietitian consultation services for
employee to tailor personal diet and exercise plans.
• Gift for birth: Mothers were given a cash gift of NT$1,600 foreach baby.
• Gift for maternity: Pregnant employees were given a gift
for maternity of NT$2,000 for each baby.
• The CMC kindergarten has accepted 827 children of
employees since its establishment.
• The CMC after-school club has accepted 168 children of
employees since its establishment.

• The Occupational Safety and Health Committee
meetings and management review meetings areorganized to review and improve the executionof measures for a safe workplace• Hold the epidemic control meeting periodicallyto review and improve the epidemic control
measures.

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Sustainability
Commitment
from theChairperson
ESG
Highlights

Short-term

Wasteemissionmanagement

CMC proactively complies withenvironmental regulations such as the
Air Pollution Control Act, Water Pollution
Control Act, and Waste Disposal Act,and implements waste managementin accordance with the ISO14001
environmental management systems tolower environmental impact.

Reduce wastewater
discharge by 10% in two years,
coating VOCs emission by 2%
in two years, and waste paintby 6% in two years.

Medium to long-term

Reduce wastewater
discharge by 25% in ﬁve years,
coating VOCs emission by 5%in ﬁve years, and waste paintby 15% in ﬁve years.

Short-term

Climatechange27

Climate change will affect the stability
and quality of product manufacture.
Hence, we actively engage in carbon
reduction and plant safety protection to
reduce disasters due to climate change.

2022 CMC Corporate Sustainability Report

Implement self-generation ofsolar power and the ISO 50001
energy management systems
and continuously expand
the scope of product carbon
footprint calculation.

Medium to long-term

Complete the construction of
the independent PV systemand transition to green power
according to the net zero
emissions planning.

• Implemented waste reduction and the recycling of wasteof higher heating value (HHV).
• The efﬂuent recycling equipment is installed• Implemented the VOCs reduction project at the painting
workshop.
• Yangmei Plant passed the certiﬁcation of carbon footprint
and water footprint for the EM25 Shine e-bike.
• Yangmei Plant passed the certification for the ISO 46001
Water efﬁciency management systems.
• Hsinchu Plant harvested and reused rainwater up to 1,136t
in 2022, with an recycling rate increased by 215% over2021.

• Relevant indicators and projects have been
incorporated into the Company’s 5-year work
objectives for implementation• The implementation and achievement status will
be followed up and reviewed through regularmeetings and evaluated on a monthly, quarterly
and yearly basis. The objectives will also be timely
adjusted if necessary

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
Action• Yangmei Plant implemented the PV system construction
project in 2022.
• A total of 25 coastal clean-ups were organized individuallyby different departments with the participation of suppliers
to enhance the action for environmental sustainability in
2022.
• Invested NT$72.5 million in building the high-temperatureand low-temperature laboratories.
• Equipped inspection lines with the drainage system toprevent damage on high valued equipment caused bynatural disasters.
• Promoted low-carbon tourism to offshore islands byintroducing 100 units of the iE125 to Liuqiu Island and 22
units of eVERYCA to Kinmen to reduce carbon reduction
on offshore islands with green vehicles.

• Build ﬂood protection gates to prevent damage
on vehicles in the plant by ﬂoods.
• The energy saving projects and water saving
projects are constantly implemented at plants• Increase the testing and solution costs forvehicles before shipping to prevent the rise ofvehicle failure rate due to extreme temperatures.
• Provide product repair services or new car
purchase for the car damage of stakeholders
due to typhoons.
• Continuously plan the environmental andecological education park.

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

Scope of Stakeholder Impact
Through identiﬁcation including internal and external impact assessment and integrating the perspectives of stakeholder groups, the 11 material topics were ﬁnalized after validation with the
CMC ESG Committee. In the future, we will maintain contacts with CMC stakeholders from time to time to validate if there are changes in the negative and positive impacts on CMC of thematerial issues and the stakeholder expectations on CMC.
Apart from planning corresponding management approaches and countermeasures to address material issues, we have also established action plans based on the short-, medium-, andlong-term targets and follow up on the results periodically. For immaterial issues, we planned and implemented relevant counteractions based on the existing management processes anddisclosed the relevant indicators for stakeholders to get the whole picture of our operations.

2022
Environmental, Social &GovernanceVision Blueprint for Corporate Sustainability

Scope of Stakeholder Impact
CMC
Material topic

Category

Signiﬁcance to Operations

Internal
CMC

Product safety andquality management

Ensure compliance with product health and safety regulations
through protect safety tests and quality management andoptimization to provide customers with high-quality products.

Product and service
innovation

Enhance core competitiveness through continual product R&D
and innovation, produce high-quality products with professional
technologies, diversify service pathways, make continual service
improvement, and enhance customer satisfaction.

Customer privacy

Customer privacy protection is our due responsibility. By raising thelevel of information security management through a well-planned
customer privacy protection policy, we provide customers with safe
and secure services.

Customer relationshipmanagement

We value customer demands and feedback. Through customer
satisfaction surveys and grievance handling, we make continual
improvement in product and service design to maintain a soundcustomer relationship.

Low-emission products
and services

Maximize economic value while addressing environmental
sustainability through the carbon reduction and optimization of
manufacturing processes, products, and services and provide
customers with data relating to the product carbon footprint.

Economic performanceand proﬁt

Develop complete strategies and management mechanisms
to facilitate the steady growth of operational performance andincrease proﬁt for sustainable operations.

Ethical management
and legal compliance

Incorporate business ethics and integrity into the operational
strategy and prevent operational and ﬁnancial impacts due to noncompliance through legal compliance and ethical management.

Waste emission
management

Reduce environmental impact through waste disposal, reduction,
recycling, and reuse.

Climate change

Enhance product R&D and production safety to address the riskof natural disasters at the rise of the demand for energy-efficienttransportation in consumers in response to the tightening emission
control due to climate change.

Recruitment andretention

Employees are the most important asset to CMC. We offer complete
and industry-better employee beneﬁts and develop positive labormanagement relations through unfettered communication channels
to attract talents.

Safe workplace

Labor safety always comes ﬁrst at CMC. To promote employee healthand safety, we continuously improve safety and health management
measures and proactively prevent occupational accidents.

Automotive
Industry

Governance

Environment

SocietyNote: ●Direct impact

28

Business-related impact

2022 CMC Corporate Sustainability Report

External
Suppliers

Government
Agencies

Dealers

Customers

Shareholders

Industry
Associations/NGOs

The Media

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix2

2.1 Visionary Technology: Making safe andcomfortable products
2.2 Sustainable Manufacture: Towards digitalmanagement of production lines
2.3 Mutual Prosperity and Existence: Pursuingsustainability with suppliers
2.4 Valued Service: Providing safe and quality
services

Innovative
Technology
Sustainable
Value
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

2022
Environmental, Social &Governance

Innovative Technology
Sustainable ValueRESPONSIBLE
CONSUMPTION
AND PRODUCTION

CLIMATEACTION

Sustainability
Commitment
from theChairperson

PARTNERSHIPSFOR THE GOALS

ESG
Highlights

Outcomes and Performance in 2022

About CMC

Investment in actual
vehicle testing totaled
NTD93,760,000

Launched the CMC P350 Hybrid to reduced
emissions by 0.34kgCO2e/liter of diesel
Up to 90% of suppliers
passed the ISO 14001 EMS certiﬁcation

Material topic

Product and service
innovation

Monthly average score of new car ownersatisfaction in 2022 up to 996 marks (out of 1,000)

Product safety and quality
management

Core Vision and Commitment
To keep up with the market trends and green energy development,
apart from continuously investing resources in technology
optimization, we launch low-emission and green-energy products
and optimize service experience through quality management
improvement, sustainable development and co-prosperity withthe supply chain, and internal and external development andinnovation collaboration. By fulﬁlling the market demands throughcontinual product and technology R&D and innovation, we aim
to build a sustainable value chain for the mutual prosperity with
suppliers and dealers in a top-down manner so as to contribute to
the progress of Taiwan’s electric vehicles.

29

2022 CMC Corporate Sustainability Report

30 car models

eMOVING and Ysrt launched 100 units of
iE125 to Liuqiu Island

passed the Green Mark certiﬁcationof EPA.

License plate collection of 2,735micro e-bikewith market shares up to 13.4%, ranking at
marketNo.1

Low-emission products
and services

Customer relationshipmanagement

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

CustomerPrivacy

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment

Strategic Goal
• Continuously develop new energy vehicles
to boost the technologies and expand themarket• Set up the Part Development Management
System (PDMS) to digitally manage theimportant development processes

Keep on introducing NEVs, increase thefuel efﬁciency of commercial vehicles, andaggressively develop new models

Short-term

Medium-term

Expand the scope of supply chain
management, with the supplierinformation from up- and downstream
supply chain combined for early
detection of the controllable anduncontrollable factors

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
PossibleLong-term
Appendix

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

2.1 Visionary Technology: Making safe and comfortable products
The global automotive industry entered a new era in 2022 towards vehicle-to-everything(V2X) characterized by intelligent, sharing, and electric features. CMC is devoted tomeet the consumer demands and the market trends, and since the full electriﬁcation ofvehicles for carbon emission reduction has been the current trend, the Company has
been pursuing the goal of NEV development. Hence, we set “transformation from insideout” as the operational goal. In the future, we will foster the “diversiﬁed brand business”,

develop the “commercial vehicle business”, and innovate the “new energy vehicle business”.
Additionally, apart from deploying an innovative business model through designing anddeveloping products with excellent quality and meeting the market demands, we will also
develop control processes based on the new models to progressively achieve the QG (quality
gate) objectives at different stages.
Sustainability
Commitment
from theChairperson

CMC Operational Strategy

ESG
Highlights

About CMC
1. Strive for opportunities to import popular models overseas to fulﬁll the diverse
consumer demands.
2. Actively seek opportunities for collaboration with external resources todevelop the diversiﬁed brand business
Promotion of• Introduce the HS series from MG and actively import Mitsubishi’s PHEV
“diversiﬁed brandand other NEV models

business”

SocietyInnovation(S)with“new energy vehicle
business”

1. Complete the medium, small, and mini commercial vehicle (CV) ranges and independently
develop new appearances and power systems for CV
to extend the product life cycle of the CV.
2. Develop smart systems and features to increase the comfort and safety of CVs• Launched the CMC P350 Hybrid in 2022 to provide the CV market with anotheroption.
• Local production of the advanced driver assistance systems (ADAS), withspeciﬁcation adjustment started in 2022.

Development of“commercial vehicle
business”

1. Engage in key technology development to improve the performance and extend the trip mileage to eMOVING
two-wheelers.
2. Increase product ranges in response to the government’s e-bus designed and made in Taiwan (DMIT) policy.
• Independent development of electric four-wheelers, including the e-VERYCA in 2021 and VERYCA E300 in 2023, tosigniﬁcantly enhance durability.
• Increase in the product ranges of electric two-wheelers and launch of the EZ2 in collaboration with GOGORO in
2023• License plate collection of 2,735 micro e-bikes with market shares up to 13.4%, ranking at market No.1

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix302022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

2.1.1 Advanced Technology and Process Innovation
Provision of Products that Satisfy the Market Demands
New product innovation and development matter continuous proﬁt-making and sustainable
operations. We invest resources in innovation and R&D and produce high-quality productswith professional technology. Apart from engaging in body, interior/exterior, chassis, and partdevelopment, the R&D team also review the development progress and trial parts together
with customers. Every year the R&D department sets the annual targets for new productand process development. Through the stringent innovation and development processes, it
continuously launches new products and technologies to maintain steady development in theincreasingly competitive market.
Product Development Strategies

Sustainability
Commitment
from theChairperson

Research on market
demands

R&D of sustainablegreen energy
products

Diversiﬁed service
experience

Listening tocustomers’
expectation

Product safetyenhancement

Before product development andimplementation, we investigate
the car buying motivation of
consumers or listen to the car use
experience of owners throughnew car buyers study (NCBS),focus group interview (FGI) anddealer interview to develop
products that meet the market
trends.

In response to the rising global
awareness of environmental
protection in recent years andthe government’s green energy
policy, apart from actively
importing the PHEV from MG,
we will launch the ECLIPSECROSS PHEV from Mitsubishi after
researching and analyzing thecustomer demands so as to fulfill
the green energy demand of
businesses and car owners.

To fulfill the comprehensive
leisure demands of consumers,
we license manufacturers tolaunch the caravan range for the
VERYCA to provide drivers andpassengers to more convenientdriving experience.

We launch the CMC P350 HYBRID
equipped with the independently
developed ISG power system, thesmart cruise control (SCC) safetysystem, and the maximum load of
1,610kg (highest in class) to meetcustomer expectations moreclosely.

In 2022 we maintained leadershipin safety regulation compliancefor all CMC cars and enhanced
the safety protection for all
series to improve vehicle safety
and convenience with various
additional features.

ESG
Highlights

About CMC

Conception of thedevelopment/business

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCMC Product Development Process

Idea of a product

VisionBlueprint for
Corporate
Sustainability

Determination of thespeciﬁcation

Completion of thedevelopment

Circular
Reduction
Safeguarding
Environment

Final quality assurance

1.558 billion

2022 innovation and R&D investments up to NT$

Mass production

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

312022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

Development Goals of Product andTechnology Innovation

Short-term(within one year)

To follow the market trend of green energy and the Corporate
Average Fuel Economy Standards (CAFE) enforced in Taiwan
in 2022, the Company has independently developed electricvehicles and hybrid models. Aside from launching new productsthat lead us into the market of ordinary heavy-duty electricmotorcycles to boost our competitiveness therein, we also plan
to introduce hybrid electric trucks this year to enhance thecompetitiveness of our truck products.

• Take responsibility for the goals set
by the CMC Board and the KPIs of theGroup in 2023:
1. Domestic sales of 48,163 fourwheelers, accounting for 11.4% of thesmall four-wheeler market.
2. Domestic sales of 10,000 twowheelers,

Medium-termLong-term• Development of 3.5t CVs in response to the CAFE • Progressively raise the level ofpolicy and to expand CMC product ranges.
advanced driving and safety• Development of the new two-wheeler business: In
systems towards autonomous
addition to the EZ2 ( (51-150cc) model equipped
driving.
with the 7KW motor planned for mass production,
we will develop the EZ3 of the same displacement
for women to add more options two-wheelers.

ESG
Highlights

Performance
NEV Development and Technology
Advancement

About CMC

R&D of lithium-ion power battery applicable tocommercial use• Successfully mass-produced the eMOVING iE125 e-scooter. Apart from the increasing the battery capacity, we also shortened the quick charge time to 80% from 48
minutes to 18 minutes.
• Accepted for use by Chunghwa Post.

Enhancement of electric two-wheeler powersystem• Developed the 7.2KV air-cooled power system• Improved performance with high-torque motor (28Nm)• Completed quality quality validation and design validation before mass production in 2022

Fast charging system with a common charging
speciﬁcation• With the fast-charging battery, we are the ﬁrst company in the electric scooter industry to simultaneously realize the three features: high-speed charging, long endurance,and long service life
• We facilitate the fast charging operation and set up demonstration operation for compatible charging

Cooling system with cooling chips• Quickly inhibited temperature rises due to battery charging and discharging on e-scooters.
• The small volume of cooling system is an advantage in terms of the space for use• Passed the battery life test and the ECE R100 test to ensure durability of over 300km.

Vehicle Safety System Upgrade
ADAS

Sustainability
Commitment
from theChairperson

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment

Independently developed the relevant parts and components in response to the ADAS trend.
Started Level 2 speciﬁcation adjustment and road test preparation in 2022 for use on independently developed CMC
models in 2023 to enhance technical capacity as well as progressively raise the level of advanced driving and safetysystems towards autonomous driving.

Safe
WorkplaceExcellent
Development▲CMC commercial vehicle ADAS

Give Back toSocietyin Every Way
Possible

Appendix

32

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

New Energy Laboratory
To develop competitive NEVs that meet the market demands through the independent
development and validation of new-typed batteries, in consideration of energy conservation,
carbon reduction, and energy recovery, we built and inaugurated the new energy laboratory
in 2021. In 2022 we actively contact worldwide excellent suppliers to make continual
improvement to develop lightweight batteries at a lower cost with higher safety.
In response to the in-house EV and hybrid CV development, we completed the modiﬁcationof the new module testing equipment at the end of 2022 to accelerate the performance
validation of battery packs. In addition to running the continuous test on battery packdurability with the programmable battery automatic charging and discharging system, the lab
Testing Items in Cryogenics
Laboratory and the Results
thereofis equipped with the ﬁre system using smoke detectors and submersible pumps and the energy
storage cabinet to recover the electrical energy discharged in the battery test to achieveenvironmental protection and energy conservation.
In recent years, climate change has led to more and more extreme weathers, particularly theextreme cold and extreme heat events. CMC has invested NTD 72.50 million to set up the hightemperature and cryogenics laboratory for product testing, thereby ensuring the stability of
products sold and reducing the failure rate. Also, by establishing the actual vehicle laboratory,
we have enhanced the vehicle quality and increased export opportunities.

Project Description

Heater performance testing in the
cryogenics laboratory

Validate compliance with the vehicle development targets of the vehicle heating system
performance and fulﬁll the use demands of customers.

Defrost testing in the cryogenics
laboratory

Validate defrost performance of the vehicle heating system to ensure clear vision for driving safety

Defog testing in the cryogenics
laboratory

Validate defrost performance of the vehicle heating system to ensure clear vision for driving safety

Power margin test (winter)

Validate generator power supply meeting the winter demand to ensure driving safety.

Placement and freezing test in the
cryogenics laboratory

Make sure of the frozen status of parts when the vehicle is placed outdoor after being driven on theroad of melted ice and washed to ensure that the frozen status does not impact the normal use ofvehicleValidate the frozen status of parts when the vehicle is placed outdoor after being driven on
the road of melted ice and washed to ensure that the frozen status does not impact the normal use
of vehicle

Cold resistance testing of resin partsof actual vehicle

Validate the low-temperature tolerance of resin parts to prevent deformation and breakage.

Low-temperature cold startup test

Validate compliance with the development targets of low-temperature cold startup to meetcustomer needs.

Low temperature-related function
testing

Validate the low-temperature performance of relevant functions to meet the use needs andvehicle safety demand of customers.

Innovative Laboratory
Equipment

Sustainability
Commitment
from theChairperson

Description
ESG
Highlights

Laboratory Battery Recycling and Reuse
All spent batteries from experiments aredischarged to reduce activity before
scrapping by government-accredited
contractors. After we replace the lithium
iron phosphate battery with the ternary
lithium battery, contractors sell the cathodematerials with commercial value recoveredfrom the batteries to cathode materials
manufacturers for recycling into cathodematerials with commercial value for reuse.
In 2022 a total of 10,400kg of batteries wererecovered.

Energy Storage Cabinet
By matching the operation of the highenergy consumption equipment, including
battery charge and discharge equipment
and immersion cooling equipment,
we regenerate electricity from battery
discharge, charge batteries in the nighttime (lower electricity rate), and regenerate
electricity at peak hours in the daytime tosave electricity by 120kWh/day or reducethe contract capacity by a maximum of
37KW each month.

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

33

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

2.1.2 Low-Emission Products and Development Diversiﬁcation
NEV Development Roadmap
As the environmental protection policies are becoming stricter around the world, some of the international car manufacturers have announced full electriﬁcation as their future product plan.
The Taiwan government has brought in several regulations to accelerate the EV business development. Due to the fact that new energy vehicles are going to be the next trend, seizing theopportunities of NEV development and business has become one of the most important business plans to CMC. NEV business development plans have thus been devised corresponding to theCompany’s three main future development strategies.

Three main NEV business development plans

Increasingly stricter energy policies in Taiwan

In 2022 the National Development Council (NDC)
announced the “Taiwan’s Pathway to Net-Zero
Emissions in 2050”. In 2023 the Climate Change
Response Act took effect to lead all businesses in
Taiwan towards net-zero emissions by 2050.

EV for multiple brands

Independent R&D

Launched the PHEV from MG andimported the OUTLANDER PHEV from
Mitsubishi from Japan to provide
consumers in Taiwan with more options.

Developed mini and small electriccommercial vehicles (ECVs) and electric
two-wheelers with diversified energy
reﬁlling methods.
• Independently developed electric fourwheelers, launched the e-VERYCA in
2021 andthe e-VERYCA E300 in 2023.
• Launched the CMC P350 Hybrid in 2022.

Development and modiﬁcation oftechnologies and parts

Even though the CAFE standards tighten
the regulations on the fuel consumptionof different models and further raise thefuel consumption levels of the models, thestandards also speed up the developmentof NEVs. Using green energy, the NEVmodels will help lessen the impact of CAFE
regulations

NEV: Reduce energy consumption without limiting travel
In 2022 we launched the CMC P350 HYBRID and HS PHEV through technological improvement to enhance the efﬁciency of oil-using cars. In the future, we will continue to develop hybrid cars.
In 2023 we will launch the ECLIPSE CROSS PHEV to enhance the competitiveness of truck products.

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionModel
Modiﬁcation

Energysaving
Performance34

CMC e-VERYCA

CMC P350 Hybrid in 3.5.

HS/PHEV/HYBRID from MG

OUTLANDER PHEV

Pure ECV equipped with the 42.6kWh lithium
battery for durability over 300km.

Equipped with the independently developed ISG
hybrid system, the CMC P350 Hybrid is the only
petroleum model in class, all using diesel engines.

A passenger PHEV equipped with the 16.6kWhlithium battery for a pure e-trip mileage up to
72km.

As a plug-in hybrid passenger vehicle equippedwith 13.8kWh lithium battery, it can offer a rangeof 52km with only electricity, and the pure EV top
speed can even reach 135km/h

Petroleum engines can reduce emissions overdiesel engines by 0.34kgCO2e/liter.

PHEV reduces carbon emissions over traditional
oil-using cars without limiting daily vehicle use.

Zero range anxiety: Save about NT$270,000 vs.
oil-using cars over a 10-year period.

EV can effectively reduce carbon emissions overpetroleum cars: 186g vs. 110g per kilometer

2022 CMC Corporate Sustainability Report

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix2.2 Sustainable Manufacture: Towards digital management of production lines
As a full-range automotive maker, CMC’s value chain covers the manufacturersof raw materials, parts and components in the upstream, car manufacturers
and assembly and technical service vendors in the midstream, and brands andsales service stations in the downstream. We closely review the impact that the
product value chain has on the environment and society, and move towards
sustainable development with the suppliers via constant improvement. It is
our hope to provide quality vehicle products that meet the market demands
through continuous R&D and innovation of products and technologies, andintegrate the guidance and collaboration of up- and downstream value chain
partners to facilitate the sustainable competitiveness of Taiwan’s automotive
industrial chain.

Production of vehicle parts and accessories

Upstream

Aluminum alloysteel wheel
Tire
Sheet metal

BumperHood
OthersMidstream

Vehicleassembly
Technical
service

Downstream

Sales,
Import andExport2022
Environmental, Social &Governance

Innovative Technology
Sustainable Valuevehicle light

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix35

2022 CMC Corporate Sustainability Report2.2.1 Sustainable Supply Chain
Life Cycle Planning of Sustainable Products
It is indicated in the Global Risks Report 2022 published by the World Economic Forum that climate change has ranked ﬁrst among the top 10 global risks for many years. With a view tomitigating the impact of global warming, CMC keeps ﬁnding ways to reduce the impact of products on the environment and safety during the manufacturing, the production, and the use by
consumers. We make health and safety assessment of product life cycle based on the phases of product concept development, R&D, certiﬁcation, manufacturing and production, marketingand promotion, storage, transportation and supply, usage, and disposal, reuse or recycling, and boost the health and safety properties of products by improving the plans.

CMC Action Plan

Life Cycle
Product concept
development

Research anddevelopment

Certiﬁcation

Manufacturing andproduction

Marketing andpromotion

36• The R&D of green energy vehicles is based on the customer-oriented principle. With the existing technology capacities and system processes, CMC develops products that correspond to the needs of the time andprovides consumers with quality products and services• As the ﬁrst mover in ECV development in Taiwan, we capture the government policy in using EVs for ofﬁce duty and EV market trend, meet the energy consumption requirements of Taiwan’s CAFE standards with
NEVs, develop the e-VERYCA ECV for large logistics companies and government agencies, and continuously cultivate new customers with airport vehicle demands.
• In terms of electric two-wheelers, 3 models have been developed to meet the demands of different customer groups: ① young males, ② corporations and logistic industry, and ③ females. Instead of simply
choosing from fuel vehicles and battery-swapping ones, consumers are now provided with more options• We conducted a market survey for electric two-wheelers on 1,800 respondents. As the major customer groups of eMOVING are aged 25-45 years old, the survey included male and female users using both
petroleum and electric scooters aged 25-45 years old. We also used the results in the development of the EZ2 for young male consumers

Sustainability
Commitment
from theChairperson
ESG
Highlights• The design and development of HEV (hybrid electric vehicle) trucks is incorporated with improvement technologies that effectively help reduce pollutant emissions. Using motors on HEVs enables the power system
to make agile control based on the actual driving condition to reduce fuel consumption and emissions.
• The exclusive smart protection system, safety control center (SCC), for commercial vehicles enhances safety and detects car skids with the dynamic body stabilization system to timely protect the safety of drivers
and passengers. The computer engine control enables the vehicle to advance along the original track when being braked. The active anti-rolling program (ARP) advances accident prevention. All are developed
towards ADAS and net-zero emissions.

About CMC

• By the end of 2022, up to 30 CMC vehicles have passed EPA's Green Mark certiﬁcation.
• Additionally, 9 electric two-wheelers passed the EPA's Green Mark certiﬁcation and 11 models passed ISO certiﬁcation.

VisionBlueprint for
Corporate
Sustainability• The brake shoe does not contain asbestos as we avoid using such a carcinogen as vehicle ﬁller. Meanwhile, we use environmental protection refrigerant• To prevent abandoned vehicles from polluting the environment, CMC has signed the voluntary standards and concluded a letter of intent with each supplier, committing to reduce or ban the use of the following
four hazardous substances: lead, mercury, cadmium, and hexavalent chromium in automotive parts. Currently, this policy has been applied to all models under development and production.

• Apart from continuously promoting models passing the certiﬁcation of Green Mark and Energy Label and eMOVING e-scooters to consumers and introducing eco-friendly and energy-efﬁcient CVs, we also
advertise products on different media based on the target customer groups of each model to increase reach and the chances of sales.
• In addition to the PHEV from MG, we will introduce the ESCLIPSE CROSS PHEV to promote plug-in hybrid EV and continuously distribute the e-VERYCA to promote pure electric driving.
• Launched the brand new CMC P350 HYBRID, with sales up to 212 units in 2022.

Storage,transportationand supply• By transporting the products during off-peak hours (18:00 to 08:00 of the next day), we not only enhance the transportation effectiveness but also cut the carbon emissions with less driving time for product delivery• The sales consultant delivers the vehicle to customer based on the vehicle delivery conﬁrmation form which includes certiﬁcate checking and handover, interior and exterior vehicle inspection, accessory
checking, matters to be noticed, etc. After the above items have been conﬁrmed one by one with the customer and the vehicle delivery has been completed, the customer will sign their name as conﬁrmation

Usage and services• Full-scale optimization of the “Ride with Fun” app. Modiﬁcation of the online billing function was completed in 2022 for e-scooter owners to immediately select and adjust the required plans to enhance userconvenience and enable consumers to enjoy the scooting fun.
• Added the maintenance booking service on the corporate website in 2022 for owners to book maintenance service online to reduce the onsite waiting time and reduce the labor dispatch workload of dealers.

Disposal, reuse or
recycling

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value• As the only manufacturer in Taiwan to recover used brake discs, we recovered 551 brake discs in 2022. Since 2009 a total of 16,411 brake discs have been recycled.
• In order to promote the reuse and recycling of vehicle parts, we have joined the voluntary standards set by the Taiwan Transportation Vehicle Manufacturers Association in response to the Resource Recycling Act,making a commitment that since January 1, 2008, the vehicle recyclable rate of the partners’ models should reach more than 80% and the reusable rate should be more than 85%• Detachable part and component design with clear indication of recycling symbols to facilitate the identiﬁcation of part reusability and recyclability and recycling after vehicle scrapping.

2022 CMC Corporate Sustainability ReportInnovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixProduct Quality Management
Product quality and safety are essential to automotive manufacturers. Through various design and innovation practices, we aim to maintain high product quality to impress customers withquality services beyond imagination. Upholding “observance and continual improvement”, through “double quality control” featuring the autonomous guarantee of upstream materials
suppliers and our full product inspection, we maintain rigorous quality control an every detail to ensure the comfort and safety of every CMC car owner.
In 2022 there was no non-compliance with safety and health regulations in products and services. We establish stringent QC policies and processes for product monitoring and measurementand data analysis. By conducting internal and external audits, preventive action, and management review, we improve product quality to practice our product quality commitment.

Sustainability
Commitment
from theChairperson

Methods of Quality Management
Category

Methodsof Quality
Management
Methodsof Quality
Management

Monitoring Monitoring
MethodMethodRaw
Materials• Secondary Materials IQC Criteria• Brake Fluid Check SOP• D i v i d e d i n t o “ R e g u l a r S e c o n d a r y • Subject to the inspection criteria
Materials” and “General Secondary • Prevent brake fluid leakage orMaterials”
sputtering on the human body• Once a month
to cause bodily injury.

• Regulations for Supplier Quality Assurance• During part development, the development
department obtain “QC Passed” parts
through the “Mass-Produced Part Approval
Procedure” to ensure the quality consistency • Subject to the “Inspection SOP”
of part mass production. QC personnel willtake over the quality management andassurance of part delivery.

Part

MassProduced
Products

Inspection
Item
Inspection
Item• Arrange periodic training
for personnel involving the
manufacture of safety parts andcomponents of suppliers.

Outcomes of quality
education andtraining 2022

We continuously implement the ISO 9001 and IATF 16949 quality management systems, and the status of internaland external implementation is as follows:(1) Internal management: Conduct personnel education and training, internal audits, and management reviews;
and report the progress and results to the president.
(2) External veriﬁcation: External auditors audit Yangmei and Hsinchu plants, which smoothly passed the 3-year
certiﬁcate renewal in 2020.
Process failure mode andeffects analysis (PFMEA)
supervision and quality
control plan practice andeducation for suppliers
45 persons/3 hours

Eight Disciplines
Methodology (8D)42 persons/3 hours

Smart management
Optimized timely andpreventive management
through real-time quality
monitoring and big data
analysis and application.

New Technology
Application• Spot checks in accordance withthe “Directions for Application for• Vehicle emissions and exhaust regulations
Certification of Motor Vehicle Noise • Stationary noise/acceleration
and QC SOPs
Control” and “Regulations Governing
noise• Motor vehicle noise QC SOPs
the Ratio fo New Vehicle Sampling
Check”

Product quality
and safety
protection

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

IATF 16949 internal auditor training
38 persons/7 hours

Used 3D visualization devices
for automatic tests andcalibration, VR devices foreducation and training, andI/O devices for simulation andquality instructions to makequality more reliable.

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability

Mistake-Prooﬁng (Poka-Yoke)
Quality System:
W ith th e e r r o r p r e v e n tio n(fool-proofing) equipment
and tools, 100% quality was
assured at the first time todeliver trustworthy quality forcustomers.

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment

Promoting “Total Quality Management” (TQM)
To pursue quality excellence in work, life, and society, we seek perfection
through quality control in terms of three aspects. We care for theenvironment, society, and partners and engage in sustainable development
to optimize corporate governance. Apart from easing customer doubts in
product quality, we also fulﬁll high-quality operation in all aspects.

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

372022 CMC Corporate Sustainability Report2.3 Mutual Prosperity and Existence: Pursuing sustainability with suppliers
Ratio of CMC Domestic and Foreign
Procurement in 2022

2.3.1 Sustainable Supply Chain
Eco-friendly and Local Procurement
To enhance the utilization rate and profitability of the local suppliers in
Taiwan, we actively promote the part production localization by implement
the local procurement policy. In 2022, the ratio of amount invested in local
procurement was 72%, among which the procurement of the parts for models
with environmental labels accounted for 56%. To contribute to environmental
protection, we actively promote “recyclable, low-pollution, and resourceefﬁcient” models. In 2022, modes including the OUTLANDER, LANCER, COLT PLUS,
ZINGER, VERYCA and eMOVING earned recognition from the Environmental
Protection Administration and passed the Green Mark certiﬁcation.

Domestic
NT$11.66 billion

Foreign
NT$4.52 billion

Statistics on the Procurement of Parts for the Production ofModels with Environmental Labels (NTD 100 million)
171.1

178.2
161.8

62%

55%

56%

28%
106.5
97.6

90.3

72%
2020

2021

Amount invested in
the procurement ofparts for models withenvironmental labels
Total amount ofprocurement
Ratio of the
procurement ofparts for models withenvironmental labels

2022

Supplier Evaluation and Sustainable Supply Chain
We consider suppliers as an extension of the production line. Hence, through the stringent evaluation of new suppliers, and routine management and structure improvement evaluationof existing suppliers, we hope that suppliers can male continual improvement and development in quality, cost control, delivery punctuality, and product R&D to synchronize production,
management, and operations together and so to develop long-term, steady partnerships. We also encourage suppliers to value and practice ESG through the relevant management
regulations.
Supplier Management Mechanism

New Supplier
Introduction

RoutineManagement
Mechanism

Structure
Improvement
Evaluation• New suppliers must pass the certiﬁcation of either IATF 16949 or ISO 9001 and the evaluation of by the task force formed by the procurement, development, QC, and production control units. The
evaluation covers ﬁve aspects: operational management, production/manufacturing management, product quality assurance, production plan and logistics management, and design and R&D.
Additionally, the performance in ISO 14001, environmental protection, and CSR is also included in the valuation. Suppliers will only become qualiﬁed CMC suppliers after passing the evaluation of therelevant units and obtaining the management approval.
• To ensure that suppliers can maintain the level of quality, cost, delivery punctuality, and R&D, we conduct routine supplier evaluation. Apart from rewarding suppliers with outstanding performance,
we also request suppliers with unfavorable performance to make improvement by a time limit. The description is as follows:a. Outstanding suppliers of the month: Suppliers are scored each month based on their performance in delivery punctuality, after-sales service, quality, and costs. The top ten suppliers will be
rewarded with advance receipt of payables. We also encourage suppliers to practice legal compliance and will disqualify suppliers from the reward when they are sanctioned for non-compliancewith environmental protection and labor safety regulations.
b. Outstanding suppliers of the year: Suppliers are scored each year based on their performance in delivery punctuality, after-sales service, quality, and costs. The top ten suppliers will be rewarded
with a trophy and free overseas travels. Suppliers will be disqualiﬁed by discretion from the reward when they are sanctioned for non-compliance with environmental protection and labor safety
regulations.
c. Focus suppliers of quality and delivery (including after-sales service) defects: The relevant units will draw up standards to screen focus suppliers with serious quality and delivery (including after-sales
service) defects in the month and request them to report the status of improvement. Payables will be put off for repeat focus suppliers with defects.

• To encourage suppliers to make continual improvement, eligible suppliers may apply for the Total Quality (TQ) Program in the middle of each year. Suppliers passing the evaluation will be rewarded
with a trophy and enjoy advance receipt of payables for one year and free overseas travels.
• Suppliers failing to pass the ISO 14001 certiﬁcation or being sanctioned for non-compliance with environmental protection or labor safety regulations will be disqualiﬁed from the evaluation or reward.

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

38

2022 CMC Corporate Sustainability ReportKey Points of CMC Sustainable Supply Chain

Supply chain sustainability
policy• All CMC part and component suppliers are requested to sign the “Basic Contract”. We reserve the right to revoke or terminate the contract after notiﬁcation when suppliers violate any one of thefollowing rules. In 2022 there was supplier non-compliance.
a. Violation of our ESG policy and causing signiﬁcant environmental and social impact to the local communities of their location.
b. Violation or allegation of violation of any anti-bribery regulations, anti-competitive regulations, corporate governance regulations, and other laws and regulations.

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value• New suppliers violating the following will be disqualiﬁed from being a qualiﬁed CMC supplier in accordance with the “Regulations for New Supplier Evaluation”.
a. The supplier and its products have considerable impact on the community environment as well as the society
b. Violation or being charged of violation of any anti-bribery regulations, anti-competitive regulations, corporate governance regulations, and other laws and regulations.

Encouragement to
suppliers to achieve legal
compliance

Request for Passing ISO
14001 Certiﬁcation• Suppliers are requested to comply with the environmental protection regulations of the local government; reduce emissions, water consumption, and waste; and comply with occupational safety
regulations.
• Exceptions are included in the excellent supplier selection and the TQ program. Suppliers sanctioned by government units for non-compliance with the environmental protection regulations andlabor safety regulations will be disqualiﬁed from the reward, including the advance receipt of payables and free travels.

• We have encouraged supplies to pass the certiﬁcation of the ISO 14001 EMS both at the supplier conference and by correspondence. By the end of 2022, 90% of suppliers have passed the ISO 14001
certiﬁcation.

Sustainability
Commitment
from theChairperson
ESG
Highlights

Recycling and reuse of
packaging materials,
waste motor oil andrepaired items with highunit prices• Packaging material recycling: The automotive parts are protected by packaging cartons during transportation. After the Company developed new operating process and SOP with the dealers andsuppliers, speciﬁc packaging materials of parts are recycled and reused. According to the statistics for 2022, a total of 26,894 packaging materials were used, and 15,411 packaging materials wererecycled; the recycling rate was 57.3%. This is a part of our efforts to support environmental protection, energy conservation and carbon reduction on this planet• Waste motor oil recycling: Legal contractors purchase and recycle motor oil from CMC and our dealers and suppliers. The circular economy not only matches the concept of environmental
protection but also increases our revenues. In 2022, 9,674 drums of waste oil were recycled.
• Recovery of refurbished products with high unit prices: 916 gearboxes, 1,891 AC compressors, and 643 steering pumps were recovered.

Enhancement ofenvironmental protection
and occupational safety
and health managementof suppliers• Plant ﬁre usually causes casualty and tremendous loss of plant assets, and greatly impacts the supply chain and overall economy. In 2022 we helped suppliers to run quick ﬁre safety inspection by
providing them with the ﬁre safety self-inspection checklist. The results show that 16 suppliers needed improvement, and all have completed their improvements.
• To build a center-satellite system with a safe workplace environment, we help suppliers pass the ISO 45001 certiﬁcation to enhance the plant and employee safety of the center-satellite system. In
2022, 39 suppliers passed the certiﬁcation.

Calling for the suppliers totake part in environmental
protection and social
welfare activities• CMC invites the suppliers to participate in the Vehicle Maintenance Service Tour, takes care of the disadvantaged through the activities of the China Motor Corporation Association and Golf
Association, and works with the suppliers for beach cleanup

Supplier risk assessment and management

When COVID-19 broke out
in 2020, we conducteda supplier financial
survey to care about
their financial statusduring the pandemic.
In 2022 we audited 80
suppliers for supply chain
management.

39

1. As the automotive industry was severely affected by COVID-19 during 2020-2022, the revenue of many
suppliers reduced. To ensure the normal operation of the supply chain and provide suppliers with necessary
assistance, we assessed the risk of 80 focus suppliers in 2022, and six low-risk suppliers were under control
and resume normal operations and delivery in 2022. Additionally, we also audited 80 suppliers in terms of
the following ﬁve aspects: labor and human rights, health and safety, environmental protection and green
procurement, ethics and integrity, and social engagement, to understand their status of operations.
2. The production control department keep track on and coordinate the supply status of suppliers andreview the supply in conjunction with the procurement, technology, QC, and development departments asnecessary.
3. Both CMC and suppliers have established a price adjustment mechanism to address materials priceﬂuctuations to effectively mitigate the cost pressure of suppliers through periodic price adjustments.

2022 CMC Corporate Sustainability Report

Price Adjustment of Suppliers
During Pandemic

In these two years, various countries haveadopted easy money policy to stimulate
economic recovery due to the COVID-19
pandemic, which has led to global materialand chip shortages and, subsequently, thedramatic rise in prices. We sign an agreementon the adjustment of raw material prices
and exchange rates with suppliers andperiodically validate price changes. When
there is a signiﬁcant price change due to supply
shortages of raw materials or electric parts, wewill help suppliers to regulate supply or fundprice differences to mitigate the cost changesof both CMC and suppliers so as to maintainthe robust development of the center-satellite
system.

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

2.3.2 Supplier Management
The Company has introduced the supply chain management (SCM)
platform, global logistics management (GLM) system, order anddelivery management system, electronic procurement management(EPM) platform, etc., to the supply chain management system, andincorporated the dealer management system (DMS), marketing andproduction balance system (MPBS), production data value chain (PDVC)
and enterprise resource planning (ERP) to integrate the information
network with the suppliers. We announce the forecast orders andproduction information through the SCM platform, making it easier forthe suppliers to arrange their production and delivery accordingly.
Meanwhile, to have an early grasp of the delivery information updates,
we actively manage the delivery progress of the suppliers through thedaily non-delivery management report; any abnormalities found will befollowed up and handled in a prompt manner.

MarketingProduction Balancing
System (MPBS )DealerManagement
System (DMS)Item

SCM Platform

40

Sales order

Production Data
Value Chain (PDVC)

Production plan
JIT delivery
Material order
Production
information

Enterprise
Resource Planning
SCM Platform(ERP)
Project change
Quality control
Reconciliation
with invoice

B2B.B

Turnkey
Supply Chain
Management

Actual production
performance

Description
Enable communication with suppliers based on the procurement, production, purchase order (PO), QC, and engineering data received from the ERP system. Major functions include
browse notice and sales information, engineering order (EO) and purchase order (PO) management, real-time delivery instructions, quality management, and account check andpayment.

Global Logistics Management(GLM) System

Capture the raw materials ﬂow through the management system. After sending a purchase request to overseas suppliers, the system keeps close track on processes from PO negotiation,
supplier shipping, delivery and receipt, customs clearance and discharge, to arrival and entry to ensure real-time PO management, information transparency, and operation
standardization to reduce the cost and enhance competitiveness.

Purchase Requisition and
Delivery Management System

Allow suppliers to manage CMC POs and prepare for shipping.
e-receipt, and material checking and management.

Electronic Procurement
Management (EPM) Platform

Enable the procurement department to publish procurement information to suppliers and proceed with inquiries, bid collection, quotation, bid opening, price negotiation, and bid
awarding based on the procurement information from the ERP system; and send the information of the successful bidder (supplier) to the ERP system through information interchange tosimply the operating process and shorten the operating time of the center-satellite system.

Dealer Management System(DMS)

Include four sub-systems: vehicle supply system, warranty repair system, part logistics system, and server virtualization system. Support collective data management of suppliers through aconsistent operating mode. Improve dealer management, quickly capture market information, and improve decision-making quality by sharing the same information platform between
manufacturers and dealers.

Marketing-Production
Balancing System (MPBS )Integrate sales and capacity planning with production plans and manufacturing processes through production-sales coordination and communication, with major functions including
sales planning, capacity planning, CKD planning, and production plan making,

Additionally, the system supports PO information and report download and transfer, including delivery management,

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment

Production Data Value Chain(PDVC)The leading-edge production system that gathers shop ﬂoor data with advanced information technology for value-added processing, including the shop ﬂoor control system and optimal
process control management.

Safe
WorkplaceExcellent
Development

Enterprise Resource Planning(ERP)

Provide suppliers with information of the related part orders, production intelligence, engineering change, quality management, and invoice checking and deliver it to suppliers to request
for supply over the supply chain system.

Give Back toSocietyin Every Way
Possible

Turnkey Supply Chain
Management

Installed at the supplier side, the system supports CMC order and shipping process management and PO information and report download and transfer, including delivery management,
e-receipt, and material checking and management.

2022 CMC Corporate Sustainability Report

Appendix

2.3.3 Sustainability and Mutual Prosperity with Suppliers

China Motor Corporation Association for Procurement

CMC believes that a company and its suppliers are not only connected by business
relationships. In addition to “coexistence and co-prosperity,” “loyalty” is another factor
even more critical to foster the partnership. In addition to implementing action plans
related to environmental sustainability and sustainable development through partnershipwith suppliers, we also invite internal and external experts to provide suppliers withguidance on operations and transformation so as to create a positive, sustainable cycle.
Due to high-mix low-volume (HMLV) manufacturing, a short product life cycle, and higher
part design and development costs, the supply chain member change is small in Taiwan’s
automotive industry. Hence, in addition to the supply-demand relationship, CMC andsuppliers have become an interest community characterized by reciprocity.
Since the suppliers are the extension of production lines of vehicle manufacturers, we shallwork in tandem to improve and develop in the aspects of quality, cost, delivery, R&D,
environmental protection and safety, so that the objective of simultaneous production,
management and operation can be achieved. Only with unceasing progression can
we create more value to give back to the consumers compared to the competitors andenhance the beneﬁts for the employees of the Company and the suppliers.

To strengthen the partnership with the suppliers, we formed the “China Motor Corporation
Association” (CMCA) in 1990 to enhance “operational capacity” and “competitiveness” andsecure the relationship with stakeholders so as to establish and enhance the competitivenessof the center-satellite system. Up to 2022, a total of 115 suppliers of parts and components
including electrical ones, machined ones, sheet metal ones, plastic and rubber ones, etc.
have been engaged. Based on the assistance of the Company’s technical experts, wehave worked with demonstration manufacturers to create feasible improvement cases andprocesses, share experience and provide on-site observation, and laterally expand the scope
to help the partners of China Motor Corporation Association boost competitiveness.

Supply chain
management
systemEstablishmentof China Motor
Corporation
Association

CSR

Ethicalmanagement

Center-satellite System
under Which CMC and theSuppliers Exist and Prosper
Together

Guidance onenergy saving andcarbon reduction

Description

Director/supervisor
meeting

1. The operation of China Motor Corporation Association and the rationality of theway the membership fees are used are supervised through the meeting
2. The prior communication about the relevant requirements set by the central plant isperformed at the meeting to allow all the units in the center-satellite system to reachan agreement
3. Through the meeting, responses to the opinions of the suppliers are given, and thecentral plant is urged to make improvements; mutual encouragement and common
growth can be achieved accordingly

Supplierconvention

This is held annually (unless suspended due to any signiﬁcant reason; in this case, thesuppliers would be informed of through the announcement of written information),with all the suppliers invited. In addition to the reporting of meeting affairs, CMC
provides information about the automobile market status, operation status and vision,
reaching mutual agreement and increasing cohesion

Coursesandlectures

Education, training or observation activities are provided for each level of employeesof the suppliers based on their position and professionalism

Themedactivities

1. Themed activities of the China Motor Corporation Association are organized toenhance the competitiveness of the CMC center-satellite system; the themes include
smart production lines, smart energy saving and smart logistics, etc.
2. CMC selects internal or external experts in different ﬁelds to make implementation
with the vendors, and arranges presentation and observation activities to increase
the inﬂuence of activities by laterally extending the improvement results to all suppliers

Based on the theme of “activities for sustainable operations”, in 2022 weGreenprocurement

Valuing Plant andLabor Safety and
HealthItem

Organized

11education andtraining and environmental
protection activities

Accumulated theparticipation of

237suppliers

Attracted up to

451persons

Compliancewith supplierintroduction
regulations

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix▲Onsite visit of the energy improvement of Kenda Rubber on
November 1 (Tue)412022 CMC Corporate Sustainability Report▲CMCA achievement presentation on December 27 (Tue)Carbon Reduction Together - Assistance for the Suppliers in Carbon Reduction with Smart
Systems
To call for the support for energy conservation from suppliers, we have proactively
gathered 115 suppliers through the CMCA to implement the Carbon Reduction for the
Common Good Advancement Program through the “big brother” policy of the Industrial
Development. By gathering experts with practical experience of energy conservation, weoffer free guidance and consultation to suppliers and organize sharing meetings to extend
our inﬂuence. Over the years we have recruited 28 suppliers (e.g., Kenda Rubber, Taiwan
Yuasa Battery, Kian Shen Corporation, and Lioho Machine Works) to reduce emissions by
about 10,802tCO2e. On March 21, 2023 we activated the “2050 Net-Zero Emissions Carbon
Reduction for the Common Good Advancement Program”. In the future we will continue
recruit more suppliers based on the experience and achievements in the year, hoping torecruit 115 suppliers to complete GHG inventory in ﬁve years.
1506

Emissions
Reduced(tCO2e/year)

3086

2018

3325

2019

2020

In 2022, themed improvement activities have continually taken place. With “smart energy
saving,” “smart logistics” and “smart plants” as the main topics, we selected a vendor andarranged internal and external guidance by experts, developed the know-how, improvement
methods, processes and cases for each topic, and organized seminars on energy saving
technology, mid-term and ﬁnal presentation, on-site observation events, etc. to share with all
the suppliers.
Guidance Structure of China
Motor Corporation

Sustainability
Commitment
from theChairperson

2885

2021-2022

Development ofconsensus

KICK OFF meeting

Implementationof education

Overalldiagnosis

Improvements

Horizontal
implementation

Determinationof the goals,
objectives andschedule ofguidance

Determination of theorganization, andannouncement by the
management

Concept
education for all

Understandingof the current
problems,
and provisionof directions
for primary
improvement

Detaileddiagnosis,
provision of
improvement
strategies, andpresentation ofenergy saving
achievements

Horizontal
implementationof plans

1

Total: 10,802tCO2e/year
Note 1: Guidance was prevented by the pandemic in 2021 and resumed in 2022.

Establishment of theenergy management
organization

Deﬁnition of
objectives ofmanagement plans

Establishment ofenergy baselines

Guidance for Implementation and Approach Optimization

Diagnosis of current
problems

Problems Found

1. Problems are easily overlooked and past experience is difﬁcult to apply andpass down for diagnosis based on the rule of thumb.
2. Proposals with major beneﬁts cannot be established due to the failure to
explain the practice and beneﬁts to decision-makers.
3. Time-consuming and inefﬁcient proposal assessment.

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

Analysis andstrategies of the
problems

Promotion ofprojects on ﬁlePromotion of smart
operations

Assistance with
implemented
projects

Approach Optimization

1. Gather and utilize past improvement examples.
• Establish an energy conservation case platform• Convert cases into check sheets for diagnosis.
2. Gather big data and apply it to important energy conservationequipment; gather, assess, and ﬁle data before, during, andafter improvement.
3. Establish an “improvement proposal assessment” procedure fordecision-makers to shorten decision-making time and enhance
proposal implementation efﬁciency.
4. Provide assistance for efﬁciency analysis and reporting of
proposals with major beneﬁts.

Attainment ofgovernment
subsidies and awards

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

422022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

2.4 Valued Service: Providing safe and quality services
2.4.1 Listen to Customers’ Voices
CMC Mitsubishi offers complete frontline interaction and consultation services, optimizes
every process and detail from new vehicle sales to after-sales services, listens to customers’
voices, and makes efforts to protect the rights and interests of customers and enhance theirsatisfaction.
In order to provide better services to every CMC car owner, CMC has a comprehensive
customer service management mechanism, regularly conducts improvement work,
information updates and staff training for the customer services hotline, and connects with the0800 free service hotline of our dealerships across the country to provide consumers with morediversiﬁed and holistic services and channels for inquiry about their rights.
Description

Telephone interviews
after warranty repair

Online market survey

Comments on theofﬁcial website

We conduct telephone interviews with randomly
selected customers who took their cars in forwarranty repairs the previous week

Implementation Outcomes in 2022
• There were about 363 telephoneinterview samples per week andabout 1,452 samples per month• Request the two lowest-scoredservice centers to present an
improvement proposal.

We have performed online questionnaire surveys
since March 2021 to gather more samples formarket survey. More questions have been added
to the questionnaires to understand the views ofcustomers from multiple perspectives. Online survey
messages are sent to all customers every weekthrough SMS, except for those who have beeninterviewed via telephone

About 5,000 questionnaires wererecovered per month

Customers’ comments are sorted and entered into
the customer complaint system for subsequent
handling every day

For comments entered into thecustomer complaint system
for management, the 1.5-hourcustomer complaint response rate
and five-day customer complaint
closure rate must be ensured.
The achievement rates for thetwo indexes were 99% and 91%,
respectively, in 2022

2.4.2 Customer Satisfaction Management
CMC has a 0800 free service hotline in place for car owners seeking towing assistance,
inquiries about the business and service locations of our dealers as well as new cars, andcustomers requesting assistance. We also take in suggestions from customers and handle
complaints to improve their satisfaction with our services. To effectively pass on customers’
requests and views to internal management units, all customer satisfaction surveys, including“items with Unsatisﬁed ratings” and “complaints taken in via the 0800 hotline”, are submitted
to the concerned units to come up with improvement plans. We also actively conﬁrm with thecustomers what improvements have been made.

432022 CMC Corporate Sustainability Report

Make Regular Reports on A
Monthly Basis

Make Responses Within theTarget Time of 1.5h

Close A Customer Complaint
Within Five Days

Report all complaints received
from the 0800 hotline tomanagement each monthand request dealers to make
improvement for major customer
customer complaints at themonthly sales meeting.

Contact customers filingcomplaints over the 0800 hotline
in 1.5 hours, and all targets for2022 were accomplished.

Customer complaints include
inquiries, complaints, orcompliments, and 91% ofcomplaints were settled within
ﬁve days in 2022.

Continuous Improvement of Customer Satisfaction with Bowing Philosophy
We have developed the “SSI SOP” together with dealers. In addition to the unscheduled audits
for business lines, we also hire external market survey companies to conduct mystery shopping
and new car owner satisfaction surveys based on the SSI (Sales Satisfaction Index), with theaim of meeting and surpassing customers’ expectations. In the automotive sales industry,
customer satisfaction surveys mainly involve the SSI and the CSI (Customer Service Index). We
have long valued the quality and performance of our services. After data analysis customer
satisfaction can be adopted as an important reference for the continual improvement of
products and service procedures to meet customer requirements more closely.

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Targets

Continuously enhance customer satisfaction and understand the car buying needs of consumers forthe reference of product improvement, personnel service improvement, SOP performance validation,and environmental facility improvement.

Management
Mechanism• We carry out electronic questionnaire or telephone satisfaction surveys for customers buying
new cars from the Company every month and for customers taking their cars in for repair andmaintenance every week to understand their satisfaction with the Company’s service procedures,personnel services, and environments and facilities• Regular meetings are held with our dealers to review any problems with respect to the promotionof customer satisfaction matters or the units or sections with lower scores and explain corresponding
countermeasures for improvement• An telephone interview is performed for individual customers giving low satisfaction ratings in market
surveys, and then the sales supervisor repairs relationships with the customers. A market survey isconducted again afterward to ensure that the customers’ problems are resolved. The survey result isused as a basis for reviewing and optimizing sales service procedures subsequently

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixAfter surveying customer satisfaction through various channels (including text message andtelephone interview), we forward the results to the customer service center for processing
and request dealers and frontline personnel to take counteraction and make improvement
to enhance customer satisfaction. Additionally, every month the service quality unit audits
the major areas of service, carry out the implementation plans, review the effectiveness ofoperation, and take corrective and preventive action for the effective management ofservice quality. We set the following quality KPIs for customer service.

Statistics on customer satisfaction with new car sales and after-sales services in the past three
years are as follows:
SSI during 2020-2022

996

995

2020

996

996
994

Accomplishment
rate in 2022

Management approaches

The monthly averagescore of new car
owner satisfaction in
2022 was 996 marks

Customer satisfaction questionnaire scores, mystery shopping survey
scores, the timeliness of responses to test drive appointments, sales
representative evaluation results, and other indexes are included in
our key customer service management indexes. We perform audits forlocations with low scores and draw up improvement plans together
therewith every month. As for complaints with low scores taken in via
the 0800 hotline, divisional managers are responsible for customer
care and relationship repair

988

988

988

March

April

May

The pass rate ofsales representativecertiﬁcation: 90%

Locations failing a mystery shopping test are required to conduct
regular simulations on a monthly basis and attend the simulation on
the monthly education and training day to have a synergistic effectIn addition to monthly ﬁxed courses, car model tests and simulations
are arranged in order for the personnel to answer perceived questions
out of a conditioned reﬂex

January99%

The scores for proactive
telephone CSI surveys were used
as KPIs in 2022:
Target telephone satisfaction
survey score: 970 points
Target online satisfaction survey
score: 920 points

44

Telephone survey score: 980
Online survey score: 928

2022 CMC Corporate Sustainability Report

July

996

995
994

994

995

992

February

AugustSeptember

OctoberNovember

December

Vehicle after-sales service CSI (telephone interview) during 2020-2022

2020

2021

Sustainability
Commitment
from theChairperson
ESG
Highlights

2022

987
985

981

980

98%

979
976

976

974

975

980

981

Targets in 2023
Conduct a customer satisfaction
survey after warranty repair every
week, review the CSI score of allservice centers across Taiwan every
month, and request centers in the lasttwo places to present an improvement
report at CMC HQ. Review the survey
questionnaire items every year andadjust the item weight based on thesystem performance.
Target telephone satisfaction survey
score: 970 points
Target online satisfaction survey score:
920 points

983

982
981

980

980

979
977

983

979

975

975

980
977

977

981

March

April

May

June

VisionBlueprint for
Corporate
Sustainability
972

July

AugustSeptember

October

About CMC

978

976

969

February

983
981

982
979

94%

The 2022 accomplishment rate and 2023 targets for after-sales service quality are as follows:
Outcomes in 2022

June

995

Note 1: An SSI score of over 800 out of 1000 is considered a passing markJanuary

Targets in 2022

993

997

996

994

995

994

996

2022

984

983

The pass rate of
mystery shopping
test: 90%

997

996

996

994

987

997

2021

2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

November

DecemberIn addition to the use of all statistical customer satisfaction indexes as a reference for theCompany’s business plans, we promote the optimization of customer service procedures andquality-related mechanisms, hoping to create service value that cannot be replaced throughgood sales services, after-sales care, and timely satisfaction of customers’ needs.

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

2.4.3 Customer Complaint Management and Service Optimization
Customer Complaint Management Procedures and Approaches
Through the SOP for handling customer complaints, including inquiries, complaints, andcompliments, we categorize complaints based on the feedback contents before referring
them to the relevant units to contact with customers, handling the complaints, and follow up
on the results before closing the case. Every month we review major customer complaints,
including in-house quality and service delivery. Goals related to customer complaint handlingare set to continue enhancing service quality and customer experience. The customer
complaint handling ﬂow chart is shown below.

Analysis of Customer Feedback

Category ofComplaints
873
7%

Compliments
123
1%

Customers’ Inquiries or Complaints Made via the 0800 Hotline
The location/service
station applies for the
closure of the inquiry
or complaint

CMC/the dealer
places the inquiry orcomplaint on ﬁle

1

2

3

Customer Complaint Management Outcomes in 2022
There were mainly inquiries, complaints and compliments from customers. Most of the inquiries
were immediately closed after being received and answered by customer service personnel
online. All the complaints were placed on ﬁle for investigation. The Service Division submitted
a list of employees praised by customers every quarter to the headquarters as a basis forselecting the best personnel. Once a customer complaint was received, the customer service
division immediately took proactive actions to understand all the details of the complaint,communicated with the handling unit of the dealer several times, and tracked the handlingprogress on a day-to-day basis. In a joint effort to value and quickly respond to customers’
voice, the division also gathered and submitted customer complaints to related internal
units every month. This led to both the response rate and the complaint closure rate in 2022
signiﬁcantly exceeding the target 1.5-hour customer complaint response rate and the target
ﬁve-day customer complaint closure rate, respectively.
Customer Complaint-related Targets and Achievement Rates in 2022
99%
90%

1.5-hour customer
complaint response
rate

45

Targets

88%

Performance

2022 CMC Corporate Sustainability ReportFive-day customer
complaint closure
rateTargets91%

Performance

Service Quality
63 inquiries(0.5%)

Sales Quality
48 inquires(0.4%)
Part-related
Inquiries
34 inquires(0.3%)

Total
12,417100%

CMC/the dealer
reviews thehandling result andgives consent tosuch closure

Sales Locations/Service
Centers
Handling and Reportin 1.5 hours

An inquiry orcomplaint from ancustomer

Total
12,417100%

65eMOVINGe-scooter 782
inquiries (6.3%)
609 messages
related to car
quality
4.9%

The respective subsidiaries
shall provide care for suchcustomer after the closureof the inquiry or complaint

4

Analysis of Customer Service Requests via
the 0800 Hotline in 2022

Sustainability
Commitment
from theChairperson
ESG
Highlights

Consumers
10,881inquiries
87.6%

Inquiries
11,42192%2022
Environmental, Social &Governance

Innovative Technology
Sustainable Value

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

2.6.4 Improvement of Service Quality and Customer
Experience
Ensure part supply stability
We have a well-managed part supply system with 121 suppliers across Taiwan. Parts aredelivered two times a day based on the ordering quantity of service centers. In case of
emergency, service centers can collect parts directly from the warehouse to meet customer
demands in real time.

Item

2020

2021

2022

2023 Targets

Total Sales Amount(NT$)

3.517 billion

3.58 billion

3.65 billion

3.69 billion

Part Supply Rate

97%

97%

97.8%

98%

Total Number ofDelivery Destinations

125

123

121

121

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

3

Excellent
Governance
Proactive
Action2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

3.1 Sustainable Governance: Robust governancefor a sure foundation
3.2 Ethical Management: Uncorrupted
management for legal compliance
3.3 Risk Management: Preventive action forbusiness continuity
3.4 Financial Performance: Businessdiversiﬁcation for overseas expansion
3.5 Information Security: Impeccable defense for
information security
GENDEREQUALITYDECENT WORK AND
ECONOMIC GROWTH

Sustainability
Commitment
from theChairperson

PEACE, JUSTICEAND STRONG
INSTITUTIONSESGHighlights

Outcomes and Performance in 2022
Top 5%

Ranked at the top 5% of listedthcompanies at the 9 Corporate
Governance Evaluation, holding
this place for 9 consecutive years(announced on April 30)

Award for Sustainable
ResilienceAwarded the 2002 BSI Award forsustainable resilience

Material topic

About CMC

100%, 1,225 hours in total

100% participation in ethicalmanagement outreaches and legal
affairs talks for a total of 1,225 hours.

75 suppliers

Audited 75 suppliers through the supplier
operations audit program in 2022 after
the pandemic.

Ethical management andlegal complianceBusiness continuity
management

Core Vision and Commitment
CMC upholds the “integrity, care and responsibility” as the code of conduct to treat all
the internal and external stakeholders. While pursuing stable growth, we keep in mind thecorporate purpose of “taking from the society and contributing to the society” and continue
to maintain harmonious interaction with all stakeholders, aiming to become a friendly
and CSR-based outstanding company in all respects. We have established the “EthicalCorporate Management Best Practice Principles", correctly and timely disclosed ﬁnancial
and non-ﬁnancial performance information, and continuously enhanced the awareness andperformance of legal compliance of employees to reduce the risk legal non-compliance.
In addition to continuously enhancing operational performance of the Company over theyears, we also connect with the ESG trend towards sustainable governance.

46

2022 CMC Corporate Sustainability Report

Zero personal data leakage

Implemented ISO 27001, with 104 persons
participating in the education and training
for information security.

There was no personal data leakage
or significant internally and externallyaudited defect in 2022.

Implemented the ISO 27001 Information Security
Management System and organized educationand training to enhance the awareness of andresponsiveness to information security risk for a
total of 104 persons in 2022.

Excellent Supplier Section

Encouraged suppliers selected as excellent
suppliers and approved under the TQ program
to implement environmental sustainability and
CSR.

Anti-corruption andanti-competition

Short-term

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionEconomic performanceand proﬁt

Circular
Reduction
Safeguarding
Environment

Strategic Goal

• Top 5% of Corporate
Governance Evaluation• Zero case of major
violation

VisionBlueprint for
Corporate
Sustainability

Unceasing follow-up andidentification of the risks to theCompany, and discussion on
the implementation results ofrisk control

Medium-term

Deployment in the domestic
and foreign markets throughdiversiﬁed operation to achieve
steady operation and profit
growthSafeWorkplaceExcellent
Development
Give Back toSocietyin Every Way
PossibleLong-term
AppendixOrganizational Structure of China Motor
Corporation

3.1 Sustainable Governance: Robust governance for a sure foundation
Upholding “ethical management”, we set CSR as the ultimate development goal andestablish a complete corporate governance mechanism. Being ranked among the top
5% of all listed company at the Corporate Governance Evaluation by the TWSE for 9
consecutive years is our performance in protecting the rights and interests of shareholders
and maintaining the interest of stakeholders, treating them as the “value co-builder”. Throughwell-planned communication channels and methods, we create sustainable value throughcollaboration with stakeholders. We also commit ourselves to building a comprehensive
governance structure for the Board and management to accomplish the operationaltargets in the best interest of the company and shareholders, enhance the performance ofcorporate governance, and ensure the outcomes and competitiveness of ethical corporate
management so as to improve social well-being.

Board of Directors
Chairperson

Audit Division
President

Executive Vice
President

3.1.1 Organization and Operation of the Board of Directors

Production Control Division
Yangmei Plant

Production Engineering
Division
Hsin Chu Plant

Board meeting status1

The Board of Directors

shall hold at least 1-2
meetings evert quarter

The annual meeting ofshareholders shall be held

once a year

About CMC

VisionBlueprint for
Corporate
Sustainability

Held 6 board
meetings in 2022

Board meeting attendance
rate 100%

Innovative
Technology
Sustainable
Value

5

50%

4

40%

3

30%

2

20%

1

10%

0

0%

NumberNew directors signed 3 setsof “best-practice principles”

2022 CMC Corporate Sustainability Report

ESG
Highlights

Board composition2

Percentage
Male

47

Vice
President

Formation of the Board of Directors

Communication between
independent directors andfunctional committees

Note 3: Article 16 of the “Rules of Procedure for Meetings of the Board of Directors” stipulates that directors or thecompanies they represent having a conﬂict of interest with a proposal discussed in a board meeting should avoid thediscussion and voting of such a proposal. Please refer to pp. 34-36 of the CMC Annual Report 2022 for more information
regarding the avoidance of conﬂicts of interest of CMC directors in 2022.

Sustainability
Commitment
from theChairperson

Product Engineering
Division
Parts Development Division
Product Program Division

Vice
President
Electrical & Electronic
Engineering Division
Advanced Technology
Division
Vehicle Testing Division

Vice
President

Quality Control Division

Board diversity
policyProject Vice
President

ECV Situation Room

SOPs for handlingboard requests

Vehicle Styling Division

Board Composition

Executive Vice
President

Digital Transformation
Project Ofﬁce

Rules of Procedure
for Meetings of theBoard of Directors

Financial & Accounting
Division
Environmental
Management,
Occupational Safety &Health Division
Human Resource
Management Division
Management Information
System DivisionCorporate Planning Division

Please visit the CMC website for more information regarding the CMC board.3

Procurement Division
Overseas Business Division
Electric Scooter Sales
Division

Formation of the Board of Directors
We select and review board members in terms of various criteria, including education
attainment, work experience, gender, independence, professional experience, andnationality. We also consider their roles and performance in the board so as to maximize theircontribution of the corporate interest. For example, a Japanese national with international
business management capability was appointed director in 2022 to help CMC makeinternational decisions. Scan the QR code below for more information regarding director
backgrounds and the board composition.

Executive Vice
President

Vice
President
Sales Division
Service Division

We place importance on shareholders’ equity and continue enhancing the operation of
the corporate governance. The Board of Directors is comprised of nine directors (including
three independent directors) who have a professional background and are experienced
in techniques. All the directors perform their duties in accordance with the Compact Act,
CMC’s Articles of Incorporation, and other relevant laws and regulations. With impartiality
the Board offers professional operational, legal, and financial consultation services andtakes charge of the Company’s strategy planning, operations, and supervision. Each year
the Board holds 1-2 board meetings on average to review CMC’s operational performance,
discuss important ESG strategies and issues and key events, including ﬁnancial, environmental,
and social impacts, risks, and opportunities. After verification in the board meeting, theresponsible units present the follow-up reports in the next board meeting. Every year we
arrange continuing education courses for directors to enrich the collective knowledge ofthe highest governance body in legal, economic, environmental, and social issues. The
self-organized courses in 2022 covered “legal knowledge building” and “ESG issues” fordepartment heads, senior ofﬁcers, and employees engaging in the relevant services.

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

Female directors 2 seats

Note 1: The three sets of “best-practice principles” include
the Corporate Governance Best Practice Principles,
ESG Best Practice Principles, and Ethical Corporate
Management Best Practice Principles.

Female51~60 years old(inclusive)

Male

Female61~70 years old(inclusive)

Male

Female71 years old or
above

Note 2: After the re-election in June 2022, currently there arenine directors, including three independent directors.

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

3.1.2 Sustainable Governance Structure and Functional Committee

3.1.3 ESG Committee

CMC Sustainable Governance Structure

We have been actively promoting corporate governance, developing environmental
sustainability, and maintaining social welfare over time. To promote ESG more efficiently,
we established the “CSR Management Committee” (renamed ESG Committee in 2022) in
2014, with President Chao-Wen CHEN chairing the committee and the President’s Officebeing the executive secretary. Other related departments are shown in the ESG Committeeorganization chart below. Apart from promoting sustainable development and editing the
ESG report, the ESG Committee also reports to the Board periodically.

Shareholders’Meeting
Remuneration Committee
Board of Directors
Chairperson
Audit Committee
Audit Division
ESG Committee

President

Structure of Sustainable Development (ESG)
Committee
Executive
secretary

Sustainable Development (ESG) Committee

Executive Secretary
Corporate Planning
Division

Audit Committee

Project
Management GR.

Remuneration Committee

The Audit Committee is formed by all three
independent directors to appoint and dismiss CMC
certified public accountants (CPAs), determine
CPA remuneration, review and discuss the annual
financial reports and internal audit system, andrevise and review the suitability of the statement ofinternal control.

ESG
Highlights

Corporate
Governance Team

Employee Care Team

Environment
Sustainability Team

Customer andPartnership
Team

Social Welfare Team

Executive Vice President ofPlanning and Management GR.

Executive Vice President ofPlanning and Management GR.

Executive Vice President of
Manufacture GR.

Executive Vice Presidentof Sales GR.

Executive Vice President ofPlanning and Management GR.

Corporate Planning
Division

Human Resource
Management Division

Yangmei Plant

Procurement DivisionCorporate Planning
Division

Hsin Chu Plant

Service Division

Electric Scooter Sales
Division

Financial &Accounting Division

Environmental Management,
Occupational Safety & Health Division

Management Information
System Division

Yangmei Plant

Environmental Management,
Occupational Safety & Health Division

Sales Division

Sales Division

Audit Division

Hsin Chu Plant

Product Program
Division

Electric Scooter Sales
Division

Human Resource
Management Division

Electrical & Electronic
Engineering DivisionParts Development
Division

Service Division

The Remuneration Committee is formed by three
independent directors to periodically establish andreview the policy, system, criteria, and structure of
performance evaluation, salary, and renumber of
directors and ofﬁcers.

Vehicle Testing
Division
Production Technique
Division

Held 3committee

2022 attendance rate:

Articles ofOrganization

100%

Note: Attendance included proxyattendance48

Electric Scooter Sales
Division

meetings in 2022

2022 attendance rate:

100%
Committee
Operation in
2022

2022 CMC Corporate Sustainability Report

Note: Attendance included proxyattendanceCommittee
Operation in
2022

Two meetings are held annually with eachteam explaining the implementation
status and establishing three-year
implementation goals.
The preparation and upload (to the official
website and MOPS) of the ESG report for theprevious year must be completed by the end ofJune every year.

Innovative
Technology
Sustainable
Value

Safe
WorkplaceExcellent
Development

Operation of ESG Committee
Articles ofOrganization

VisionBlueprint for
Corporate
Sustainability

Circular
Reduction
Safeguarding
Environment

Sales Division

meetings in 2022

About CMC

Excellent
Governance
Proactive
ActionProduct Engineering
Division

Production Control
Division

Held 5committee

Sustainability
Commitment
from theChairperson

Team leader

Risk Management Committee

Ethical Management
Committee

Chair
President Chao-Wen Chen

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

The Committee reports to the Board of
Directors regularly (every six months) and
explains the annual ESG implementation
outcomes and the key tasks for the future.

Give Back toSocietyin Every Way
Possible

The Committee discloses the ESG
implementation in the Company's
annual report every year.

Appendix

Structure of the Ethical Management andCompliance Management Committee

3.2 Ethical Management: Uncorrupted management for legal complianceWith the principles of fairness, honesty, trustworthiness, and transparency, we establishedthe “CMC Ethical Corporate Management Best Practice Principle" in 2014 to improve theefficiency in the implementation of the ethical corporate management. Four pillars are
established for all the commercial activities and the operations of the Company in order tocultivate the corporate culture of ethnical management and build an environment for thesustainability of the business operation. By taking multiple management strategies, we request
employees to observe the code of conduct with the ethics and integrity as the core value,enhance the norm of professional ethics from internal practices to external implementations,and cultivate a culture emphasizing legal compliance.
3.2.1 Ethical Management and Compliance Management Committee

Main responsible division

With the business philosophy of integrity, transparency and responsibility, CMC shall establish
integrity-based policies and submit them to the Board for approval, and sets up thoroughmechanisms for corporate governance and risk control to create an operational environment forsustainable development.

Commitment

Committee
Operation• CMC shall request the directors and senior management to make a statement that they willkeep in line with the ethical management policies and incorporate the requirement that theemployees shall abide by the ethical management policies into the conditions of employment.
• The ethical management policies shall be stated in the Company’s internal regulations, externalcorrespondence and on the ofﬁcial website, adhered to by the Board of Directors and senior
management in an active manner based on their commitments, and appropriately implemented
in the internal management and commercial activities.
• CMC should document the above policies, statements, commitments, and implementation forethical corporate management and properly retain the relevant documents.

• The Committee holds at least one committee meeting each year for all teams and departments
to report their performance in ethical corporate management (extraordinary meetings are heldfrom time to time as necessary).
• Every year the Committee report the results of ethical corporate management to the Board.
• The Committee shall disclose the implementation status of ethical management in the annual
report.

3.2.2 Ethical Corporate Management Policy and Implementation

Chair
Head of PlanningManagement GR Director
Executive Secretary
Human Resource
Management Division

Co-responsible division

Policies and Goals of the Ethical Management andCompliance Management Committee
PolicyEthical Management
and ComplianceManagement
Committee

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

Policy Planning Team

Promotion Team

Monitoring and Audit Team

Corporate Planning
Division

Human Resource
Management Division

Audit Division

Audit Division

Service Division

Human Resource
Management Division

Financial &Accounting Division

Overseas Business
Division

Financial & Accounting
Division

Procurement
Division

Sustainability
Commitment
from theChairperson
ESG
Highlights

Electric Scooter Sales
Division
Sales DivisionCorporate Planning
Division

Responsibility
1. The Secretariat operates the Ethical Corporate
Management and Compliance Management
Committee and reports to the Board periodically.
2. The Policy Planning Team establishes and revises
policies, guidelines, and related systems.
3. The Promotion Team outreaches and implements
pol i c i es and g u i del i nes wi t hi n th e c om p a n y(employees and officers) and outside of thecompany (DLRs and suppliers),
4. The Supervision and Audit Team audits related
policies, regulations, and systems.

Pillar 1

EthicalCorporate
Management
PolicyEthical Corporate
Management
Best-PracticePrinciples

About CMC

Proceduresfor EthicalManagement
and Guidelines for
Conduct

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionPillar 2

Regular Review and Amendment

Circular
Reduction
Safeguarding
Environment

The “Ethical Corporate Management and Compliance Management Committee” holds atleast one committee meeting every year for related departments to present and review thestatus of ethical corporate management, reports the achievements to the Board periodically,and discloses the results in the annual report.

Safe
WorkplaceExcellent
Development

Dissemination and Implementation

Whistleblowing Mechanism

Ensure compliance with a consistent code of business conduct and ethics within CMC
through implementing the relevant laws and regulations and internal regulations, continuous
employee education and training, and supplier management.

• Establish the “Unethical Behavior Report” section on the corporate website for stakeholders toreport unethical behavior.
• Incorporation of ethical management into the employee performance evaluation andhuman resource policies, and establishment of speciﬁc and effective systems for rewarding,punishment and reporting

Give Back toSocietyin Every Way
Possible

Establishment of Regulations
We establish an ethical corporate management culture and conduct business upon fairness,honesty, integrity, and transparency. By presenting periodic reports and establishing themanagement committee, we outreach the ethical corporate management policy internallyand externally and ensure legal compliance.

Ethicalmanagement
Pillar 4

Pillar 3

49

2022 CMC Corporate Sustainability Report

Pillar 4

Appendix

CMC’s Implementation of Ethical Management andCompliance Management
The Status of Participation in the Ethical Management
Courses from 2020 to 2022

Measures for Implementation of Internal and External
Ethical Management.

Number of participants
Percentage of participation
Total hours

Lecture on legal affairs

100%

125

124

31

100%

Cancelled due to COVID-19

Senior management(higher than division level)

-

2020

1775

-

Dissemination of ethicalmanagement to new andexisting employees

2022
2198

2105
100%

100%
1225

79%

Implementation status of theCharitable Donation andSponsorship Management
Regulations

2020

2021

2022
522

222

222
100%

263

522

Review of systems

263

100%

100%

New Employees

2020

2021

2022

Monitoring and audit ofoperations related to ethicalmanagement

Actions for addressing reportsof unethical behavior
Please refer to the ESG section
on our corporate website forthe details regarding the fourpillars of ethical corporate
management and related
education, training, andoutreach.

50

In 2022 we organized education and training related to ethical corporate management (including
compliance with ethical corporate management regulations, orientations of ethical corporate
management, and case study of ethical corporate management) for 463 persons with a total of958 hours.

Sustainability
Commitment
from theChairperson

1555

Employee

Ethical management play of a short ﬁlm

One new director and three new officers signed the three sets of “best-practice principles”:
Corporate Governance Best Practice Principles, ESG Best Practice Principles, and EthicalCorporate Management Best Practice Principles.

34

2021

1642

Lecture on ethicalmanagement and legal affairs-

The new directors andmanagerial ofﬁcers signed
the statements for three bestpractice principles this year

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

2022 CMC Corporate Sustainability Report

In 2022 we donated about NT$1.04 million to 8 units in accordance with the “Charitable Donationand Sponsorship Management Regulations”.

To promote the establishment of the Ethical Corporate Management Risk Scale, we selected
the department-based assessment because a department included more personnel than alocation. The assessment helps high-risk departments to review unethical behavior through selfassessment. By October 2022 the data of 11 departments was collected. Data will be reported
to management individually. Currently, 48% of all 23 CMC departments have completed the selfassessment of risks.

1. Completed the KPI audit of ethical corporate management in 2022 and recommended
observation of 3 items. Corrective action was proposed and completed as planned in the year.
2. There were three reports of unethical behavior, including one from the stakeholder email andtwo from the report system. All were reported to management and closed.

Report System
1. Anonymous report to the report email on the corruption of the purchasing personnel of aninvestee: After an internal review, the Audit Ofﬁce veriﬁed the report and referred the report tothe management of that investee and its “legal compliance department”. Additionally, as no
CMC expatriate was involved in the report, and part of the content overlapped with anotheranonymous report in 2021, we closed the case for non-compliance with our report handling SOP.
2. A supplier report on non-compliance with the corporate regulations of CMC staff: The Audit
Ofﬁce and administration unit audited the report together and reported the results to the senior
management. That staff member offended the business ethics for apparent non-compliance withthe administrative procedures and failure to confess to the superior. However, as there was noevidence proving an intent of claiming bribes, he was disciplined for violation of the CMC Work
Rules.

Stakeholder Communication Channels
A customer complaint to the media about an embezzlement of the sales representative of adealer: Investigation verified that the complainant was not the buyer but a lower-level sellerof the involved sales representative. Additionally, as it was the private behavior of that sales
representative, the report was referred the involved dealer. Eventually, that sales representative
returned the sum and reached a settlement with the complainant.

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixSuppliers in Ethical Management
We treat suppliers as a major stakeholder group in ethical corporate management. In addition
to outreaching ethical corporate management to them through the supplier conference or
correspondence, we have also added the ethical corporate management clause to the contracts.
Additionally, we also publicize ethical corporate management at the supplier conference toenhance the awareness of the importance of ethical corporate management in suppliers.
We incorporate the "Integrity and Compliance Pledge" in the “Fundamental Contract”
entered into between the CMC and parts suppliers as well as in the “Equipment/Engineering
Contract” entered into between the CMC and the suppliers contracting an equipment/
engineerintg project over NTD 1 million. If any supplier acts in violation of the ethical conduct,
CMC has the right to terminate or withdraw the contract.

A. Engagement inbusiness activities
in a fair andtransparent manner.
B. Termination
or withdrawal ofcontracts in caseof violations of the
Ethical Management
ClauseC. Management of
unethical behavior
reports

We undertake that all the business transactions and activities are lawful
without acceptance or offering of bribes or any other unethical conduct. We
will never offer or pay any improper advantages to any employees of CMC
for the purpose of any deals

Transparent information disclosure
We are dedicated to protecting the rights and interests of all the stakeholders, observe
relevant regulations and the “Corporate Governance Best-Practice Principles for TWSE/
TPEx Listed Companies”, and set up multiple smooth information disclosure channels for the
public to enquire.

Transparency of Information Disclosure(1) We set up the CMC unethical behavior reporthotline (03)-270-7781) in the Audit Ofﬁce. All calls
are tapped and the answering machine function
is provided. Personnel of the Audit Ofﬁce answer
the calls or process the the tapped ﬁles.
(2) CMC’s unethical behavior report email(audit@china-motor.com) can only be accessedby CMC independent directors or theirdesignated persons.

Establishment of Spokesperson Mechanism

Publishing the ESG Report
We have established the spokesperson mechanism
and appointed spokespersons. Apart from disclosing
CMC’s stage achievements and future prospects
to worldwide investors through the periodic
live investor conferences, we also publish thebilingual conference contents over MOPS..

The supplier who acts in violation of the Ethical Management Clause shallcompensate CMC for its damage, and CMC has the right to terminate orwithdraw the contract without the need to assume the liability for breach of
the contract
Any person who ﬁnds any employee of the company for which the person
works or the other company accepting or offering bribes or engaging in
unethical conduct shall report it to the audit department or designate
person of the other company as soon as possible CMC provides the following
whistleblowing channels. The identity of the whistleblower and the contents of
the whistleblowing will be kept conﬁdential

Society(S)

Establishment of
the Online PublicInformation Filing
SystemWe disclose our financial and non-financial
information to stakeholders and timely publish
information that concerned stakeholders overthe corporate website. In addition to publishing
the annual report, we also began publishing
the CSR report” (now ESG report) in 2014
every year to state explain the directions
and goals of our efforts in promoting
sustainable development.
Developmentof “commercial
vehicle business”

We establish the “Online Public Information Filing System” in accordancewith the Guidelines for Online Filing of Public Information by PublicCompanies promulgated by the Financial Supervisory Commission (FSC) toperiodically ﬁle information relating to the monthly revenue, the quarterly
audit and ﬁnancial statement review report of CPAs, insider share transfer,and AGM information, as well as the information relating to the acquisitionand disposition of assets from time to time. We also timely disclose material
information regarding legal compliance to provide stakeholders withcomplete and timely ﬁnancial and sales information to protect their rights
and interests.

Whistleblowing section
for stakeholders

Tax governanceIn addition to paying tax by law, we also mitigate tax through legal means. To keep up
with the international trend in tax governance, we control tax risk effectively, implement
sustainable operations thoroughly, and improve the shareholder value.

Investor section

ESG section

ESG
Highlights

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment

Information Disclosure Channel
Ofﬁcial website

Sustainability
Commitment
from theChairperson

About CMC

Note: After reviewing our (excluding investees) internal control and the laws and regulations governing environmental protection, tax, andlabor, there was defect required for correction by the end of 2022, including investees.

3.2.3 Tax Governance and Transparent Information Disclosure

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

Live-stream ofinvestor conference

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

51

2022 CMC Corporate Sustainability Report3.2.4 Legal Compliance3.3.1 Risk Management Committee

We keep paying attention to the regulations and policies related to the industry, assessing
the potential risk and effect arising from the changes of the regulations on the Company,
and reviewing if we have established corresponding internal rules according to theseregulations to ensure compliance with them to the extent of the highest standards. The
legal affairs unit of the President’s Office and responsible legal units review high-risks
regulations and general regulations and documents. Additionally, each department
establishes clear and appropriate action plans for periodic legal updates, self-assessment,
education and training, and audits.
In addition to laws and regulations, all the employees of the Company shall make sure theirbusiness activities comply with the policies and rules of the Company to implement the
ethical management. We provide education and training to improve the effectiveness ofthe dissemination on laws and regulations. 171 employees participated in the training in
2022. Through progressive promoting various concepts of the rule of law, there was no ﬁne
for legal non-compliance by the end of 2022.

To enhance corporate governance and improve the risk management operation, theCompany has established the Risk Management Committee, focusing on the standards thatboard members and senior management should observe, to review, control related risks, andupdate response strategies from time to time.

Legal Compliance Training
Courses in 2022

Course: Understanding the CopyrightAct

Participants: 65 persons

Course: Understanding Trade Secrets
and Management

Participants: 64 persons

Course: Basic Understanding of Patent Participants: 42 persons
Speciﬁcations

Handling Process of Cases In Violation of Laws

HRD receives
documents

Legal Affairs
reviews
documents

Discussed byresponsible units

Discussed atmanagement
meeting to raise
improvement plan

Main responsible division

Risk Management
Committee

Chair Head of PlanningManagement GR Director
Secretariat Management
Information System Division

Sustainability
Commitment
from theChairperson

Operation risk

Legal affair and intellectual
property risk

Financial risk

Supply chain risk

OSH&E risk

Information risk

Corporate Planning
Division

Corporate Planning Division

Financial &Accounting Division

Procurement
Division

Environmental Management,
Occupational Safety & Health Division

Management Information
System Division

Risk Management Procedure
Our risk management process covers identiﬁcation, assessment, control, handling, monitoring,and report. Through these steps we can proactively identify and assess potential risk incidents,
establish corresponding measures and make rapid response in risk occurrence, and lower
or prevent the impact of risk incidents. Additionally, through risk review and improvement,
we continuously enhance the efﬁciency of the risk management process to ensure business
continuity toward sustainable development.

Risk identiﬁcation

Please scan the QR Code to ﬁnd out the result of the identiﬁcation

Assessment of the occurrence frequency and probability of the risk and its impact

3.3 Risk Management: Preventive action for business continuity

522022 CMC Corporate Sustainability Report

ESG
Highlights

About CMC

Risk assessment

We an automotive and auto part manufacturer and do not engage in high-leverage, highrisk investments. With the rise of emerging risks around the globe, such as the deterioratingclimate change, legal and policy change, and viruses and epidemics, we get ourselvesprepared by engaging in risk management, planning loss controls, and building relevant
equipment, hoping to optimize risk management mechanism and enhance corporate
resilience through elevating alerts and taking precautionary actions.

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

Risk control

Establishment of cost-effective risk plans and countermeasures

Risk treatment

Simulation drill of risk incidents
Implementation of risk control plans and countermeasures

Risk monitoring andreporting

The risk management team holds at least two team meetings every year to capture risks andthe effectiveness of risk control.
Report the performance of risk management to the Board every year

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixThree Internal Control Frontlines
We have established the Audit Division directly under the Board of Directors. It is the designatedaudit unit in charge of internal audit affairs and whistleblowing matters. The responsibility of
the Audit Division covers all the units of the Company and the subsidiaries. The Audit Divisionperforms the audit in accordance with the annual audit plan that has been approved by the
Board of Directors. In case of deficiencies and unlawful acts, the Audit Division summarizes
the improvement statuses of the divisions involved into a report and submit it to the Audit
Committee, Board of Directors, operation meeting, or management review meeting. In addition,
the Audit Division follows up the problems identiﬁed during the audit every quarter and preparesthe “Follow-up Report on Identiﬁed Problems and Abnormalities” containing a description of theeffectiveness. The follow-up actions are taken until all the improvements have been completed,so that the Board of Directors and the management can understand the deﬁciencies and theeffectiveness of the corrective and preventive measures that the audited divisions have taken.
The Three Lines of Defense Model

Self-evaluation offunctional unit underinternal control

Sound legal
compliance and risk
management
systems

Independent audit
mechanism

The functional units makeself-evaluation underinternal control every year.
They fill out the checklist
and submit it to the Audit
Division for review• Appointment of dedicatedpersonnel for legal affairs tokeep up with the changes inlaws, inform relevant units ofsuch changes and the risks
thereof, and request the units tomake immediate responses• Enhanced promotion of risk
control targeting the Heads
of Finance or Accounting ofsubsidiaries and educating thatany unusual matters related
to legal compliance shall bereported within two days ofoccurrence• Setup of an audit unit under the
Board of Directors to monitor theinternal control system, carry out
the annual audit plan, report to
the Audit Committee and Board of
Directors regularly, and follow up
improvement status• Assistance to the Board of Directors
and management to achieve
given goals by performing the
aforesaid evaluation, improving risk
management, and controlling andmonitoring the effectiveness of theprocess

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

Items and Achievements of Routine Audits
Routine Audit
Audit Item

Audit Focus

ESG Relevance

Procurement Cycle:
Procurement, inspection
and acceptance,
payment (including
legal compliance)

Ensure that all operations with in the procurement and payment
cycles are implemented in accordance with the internal controls tolower internal control risks.

Green
procurement

Information Security
Check

Ensure that information security is managed in compliance with thesecurities-related regulations to prevent fines or sanctions on thechairperson by governance agencies.

Business
continuity
management

Acquisition and
Disposition of Assets

Ensure that assets are acquired and disposed in compliance with theinternal controls to lower internal control risk and securities-related
regulations to prevent fines or sanctions on the chairperson by
governance agencies.

Green Bond
Procurement

Management of Board
Operation

Ensure that the Board is operated in compliance with the securitiesrelated regulations to prevent ﬁnes or sanctions on the chairpersonby governance agencies.

Legalcompliance

About CMC

Subsidiary Supervision
and Management Audit•Ensure that subsidiaries are invested in compliance with thesecurities-related regulations to prevent fines or sanctions on thechairperson by governance agencies.
•Strengthen the internal control system of subsidiaries to lower
potential corruption risk.

Ethicalmanagement

VisionBlueprint for
Corporate
Sustainability

Sustainability
Commitment
from theChairperson
ESG
Highlights

Innovative
Technology
Sustainable
Value

Targeted Audit
Audit Item

Audit Focus

ESG RelevanceManagement of the Rules ofProcedure and Operation of
the Ethical Management andCompliance Management
Committee

Ensure that the Ethical Management and Compliance Management
Committee is operated in compliance with the securities-related
regulations to prevent fines or sanctions on the chairperson by
governance agencies.

Ethical corporate
management
and compliancemanagement

Environmental
Management Audit

Ensure that environmental management, including air pollution
prevention, water pollution prevention, waste disposal, and toxic
chemical management, is implemented in compliance with therelevant laws and regulations to prevent fines or sanctions on thechairperson by governance agencies.

Waste,
emissions, andenvironmental
sustainability
auditsPayroll Cycle &Occupational Safety Audit

Ensure that the payroll cycle and occupational safety (including
legal compliance, labor conditions, education and training) are
implemented in compliance with the internal controls to lower
internal control risk and securities-related regulations to prevent ﬁnes
or sanctions on the chairperson by governance agencies.

Safe workplace

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

53

2022 CMC Corporate Sustainability Report3.3.2 Critical Incident Risk Management

Operation risk
Establish the Ethical Management andCompliance Management Committee
and hold committee meetings periodically.
The ethical corporate management
achievements in 2022 were reported to theBoard on December 20, 2022.

3.3.3 Business Continuity Management (BCP)

Legal and IP Risk
1. Arranged education and training on the “Trade SecretManagement Mechanism” and the “Copyright Talk” in 2022.
2. Completed the Regulations for Trade Secret Management (Draft)to establish CMC’s trade secret management mechanism; will
be submitted to management for approval after gathering theopinions of all departments.

In response to the escalating risks and hazards around the globe, we proactively
establish the business continuity plan (BCP). Recognizing the need to provide strategic
customers and important stakeholders with uninterrupted services and to make advancedeployment for business continuity with a complete management mechanism so as topursue sustainable operations, we make continual review and optimization and ensure thecapability to maintain and restore optimal services to strive for and protect customers andstakeholders in their best interest.
Four Actions for Business Continuity Management
Action 1

Action 2

Adjustment of production
schedules to reduceinventory of completed
vehiclesFinancial Risk Management
Periodically assess the financial value ofinvestees, keep track on exchange ratechanges and adopt steady hedging
policies, maintain sound relationships withvarious banks to ensure ﬁnancing credits andprevent liquidity risk, and keep track on tax
legal changes and draw up counteractions.

HSE Risk

Information risk

In 2022 we passed the certiﬁcation of the ISO
45001 (CNS 45001) Occupational health andsafety management systems, the ISO 14001
environmental management system, andISO 14061-1 GHG inventory and verification
systems

1. Implemented the ISO 27001 Information Security Management
System and passed the certiﬁcation on December 16, 2022.
2. Identified 5 high-risk items and 18 medium-risk items andcompleted the improvement of all high-risk items.
3. The 5 high-risk items included service disruption due to systemoverload for sharing the same server and database between thecorporate website and apps with other other systems.
4. Corrective action: Separate database use, design load balance,and optimize SQL programming to solve the performance issue.

Scan the QR code below for
more information regarding
our achievements in risk
management in 2022 on thecorporate website.

54

2022 CMC Corporate Sustainability Report

Action 3

Follow-up of the upstream
suppliers for their material
preparation status

Action 4

Six-month forecast of orders
for long delivery time or crucial
materials to help suppliers in
preparation of materials

Continue to promote and use
the part selection signaling
system to shorten the
training for new employees
or contractors to effectively
improve the processing
difﬁculty after personnel
suffered from COVID-19.

Supply chain risk
1. Audited the business visit plan of 75 suppliers and provided
necessary support for them.
2. In the 2022 excellent supplier selection and TQ evaluation, marks
were added to suppliers passing the ISO 45001 and ISO 50001
certification to encourage suppliers to establish and implement
the occupational health and safety management systems (ISO45001) and energy management system (ISO 50001), implement
ESG management, and practice environmental sustainability andsocial responsibility.

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

National Disaster Response TeamThe climate change has been rank as one of the Top 5 risks, including ﬂood, draught andsevere typhoon, in The Global Risks Report 2021 published by World Economic Forum (WEF).
It is a threat and has impact on the operation of the companies to a certain extent, andresult in losses. To minimize the damage brought about by an emergency and the impact
on the environment, the CMC Yangmei Plant has established the “Operating Standards
for Emergency Responses” to specify the procedures for emergency contact, handling,treatment, and restoration in case an accident occurs. The responsible units are requested
to implement emergency response procedures for different emergency circumstances
within their respective authority and perform at least one drill every year to make sure thesystem involved functions effectively and make improvement for the deficiencies in the
response procedures. Where a natural disaster occurs, the responsible unit, Environmental
Management, Occupational Safety & Health Division, must be informed immediately. The
response procedures are comprised of the following documents:
Name of Organization and Process

1

2

3

4

Responsibility List andProcedure for the
Wastewater Leakage
Emergency Treatment
and Response
Organization

Responsibility List andProcedure for the
Boiler Natural Gas
Leakage and Fire Alarm
Emergency Response
Organization

Responsibility List andProcedure for the
ED Displacement
Tank Leakage
Emergency Treatment
and Response
Organization

Responsibility List andProcedure for the
Natural Gas Leakage
and Fire Alarm
Emergency Response
Organization

5

Responsibility List
and Procedure for
the Paint Mixing Room
(Waste Solvent Room,
Cleaning Solvent Room)
Leakage and Fire Alarm
Emergency Response
Organization andProcess

6

Responsibility List
and Procedure for
the Conﬁned Space
Emergency Response
Organization

7

Responsibility List
and Procedure for
the Natural Disaster
Emergency Response
Organization

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

3.4 Financial Performance: Business diversiﬁcation for overseas expansion
Our efforts in all aspects beneﬁted the ﬁnancial performance in 2022. For example, we emphasized enhancing operational efﬁciency and cost control, continuously increased the value andmarket competitiveness of products through marketing and product innovation, actively cultivated global business expansion, and carefully managed ﬁnancial risks. Apart from improving
ﬁnancial performance, these efforts also set a solid foundation for CMC’s sustainable development.
3.4.1 Building A Solid Financial Foundation

Operation Performance in the Recent Three Years

Financial
Performance

In 2022, CMC’s consolidated revenue was
NTD29.554 billion, total assets were NTD48.490
billion, and equity was NTD36.047 billion.

Operatingrevenue(Unit: NTD thousands)

Shareholders' equity

Total assets

31125399

54735114

46325028

54597693

30874600

48489639

36046948

2020

2021

2022

2020

Consolidated Financial Information of CMC in the Recent Three Years(Unit: NTD thousand)2020

Basic element

Direct economic value
generated-A

Revenue

30874600

31125399

29553870

Economic value retained

2021

2022

Operating costs

29099362

29083946

27611103

Employee wages and1
beneﬁts

2592905

25643182413329

Payments to providersof capital(cash dividend of the year)

3875342304491222144812211918674792495539

3

3052

7206

2251

Generated - Distributed(A- │ B │ )(4,907,979)(1,678,251)(767,253)

Note 1: Including personnel expenses such as bonuses, pensions, as well as labor and health insurance
Note 2: The income taxes paid
Note 3: Social welfare expenses such as donation to government agencies, other clubs and community care activities
Note 4: The data were based on the consolidated ﬁnancial statements in 2022 and the internal data of CMC; please refer to the Company’s
annual report of the year for details

55

2022 CMC Corporate Sustainability Report

2021

2022

2020

2021

2022

CMC’s Dividend Policy for 2022

Item

Investment in communities

ESG
Highlights

About CMC

Note: The data were based on CMC’s consolidated ﬁnancial statementsfor 2020 to 2022

Payments to government

Sustainability
Commitment
from theChairperson

45706644

29553870

Economic value
distributed-B

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

Due to the loss on the epidemic insurance policy sold by investee Tokio Marine Newa
Insurance, we accounted for such a loss amounting to NT$1.2499 billion in 2022, causing adeﬁcit in non-operating income and expense amounting to NT$9.049 billion, leading to a net
income after tax of NT$7.604 billion and an EPS of NT$14.22. As this is a single non-operating
loss caused by a single incident, EPS after eliminating the influence of Tokio Marine Newa
Insurance increased from NT$7.05 of 2021 to NT$8.34 in 2022. Apart from the continuous
growth in both operating and non-operating incomes, we have sufﬁcient capacity to support
medium- and long-term strategic development. After eliminating the influence of theepidemic insurance policy, we will regain normal proﬁt growth.

Cash dividend
NTD

4

Yield rate

10.10

%

EPS (excluding Tokio
Marine Newa Insurance)
NTD

8.34

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Note 1: After eliminating the inﬂuence of Tokio Marine Newa Insurance, the 2022 EPS was NT$8.34, showing that both theoperating and non-operating (excluding Tokio Marine Newa Insurance) incomes are growing continuously.

AppendixProduction Value in the Recent Three Years

3.5 Information Security: Impeccable defense for information security

4-wheeled ve hi cl es

Unit: Vehicle

47,36550,014
19,451

19,2662021

3.5.1 Information Security Management Policy
Conﬁdential data protection is a never-ending task at CMC. To protect the conﬁdential
data of both the Company and customers, we passed the certification of the ISO
27001 information security management system (ISMS) in 2022. Through the continuous
awareness education of information security and use of information security tools, weestablish ISO documents for conﬁdential data protection and processing in collaboration
with various departments so as to protect confidential data more comprehensively
through systems and mechanisms.

44,48920,5412020

Unit: NTD 1 million

2022

Note: The production volume and value are based on the production of completed cars. Production capacity refers

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

Sustainability
Commitment
from theChairperson

to the volume manufactured using existing production equipment operating under a normal single shift consideringfactors such as holidays or days when production ceases

2-wheeled v ehi cl es

ESG
Highlights

6,847
Cybersecurity
Management

4,692

Host Security
Management

3,108

About CMC

91

116

100

2021

2020

VisionBlueprint for
Corporate
Sustainability2022

S ale s V alue in the R ecent Thr ee Yea r s
C at ego r y

Unit

2020

2021

2022

Vehicle49,16350,39043,656

NTD 100
million233.39228206.964-wheeled electric vehicles

Vehicle

21

79

87

( i n c l ud i n g d om e st i c an d e x po r t s a le )NTD 100
million

0.15

0.53

0.51

Vehicle

NA

NA

694

NTD 100
million

NA

NA

6.24

Vehicle

5,964

5,365

6,483

NTD 100
million

3.06

1.98

3.01

4-wheeled diesel vehicles( i n c l ud i n g d om e st i c an d e x po r t s a le )4-wheeled plug-in
hybrid electric vehicles( i n c l ud i n g d om e st i c an d e x po r t s a le )2-wheeled vehicles( i n c l ud i n g d om e st i c a n d e x po r t s a le )Note 1: Because the 4-wheeled electric vehicle is the new model was launched in 2022, it only
has the data in 2022
Note 2: These sales values are based on the number of vehicles that CMC took for delivery

AP Security
Management

Multi-level Information Security
Protection Framework

Information Security
Analysis

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionData Leakage
Protection

Information Security
Joint Defense
Mechanism

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possiblerather than those for which motor vehicles ofﬁces disclosed the license plates
Appendix

56

2022 CMC Corporate Sustainability ReportTo lower the risk and reduce the damage caused by confidentiality breaches, we
implement the conﬁdential document encryption system in full scale and protect andmanage confidential data including core technologies, IP rights, patents, and trade
secrets with information technology to ensure the appropriate and effective protectionof conﬁdential data.
Additionally, to prevent the willful or unintended destruction, damage, or unauthorized
operation of personal data, we protect the personal data of customers withtechnological and organizational measures.
ExternallyInternally• Give suppliers security management
advice based on their needs andrequest them to comply with therelevant regulations, receive related
training, and sign the non-disclosureagreement (NDA).
• Build the access control and CCTV
surveillance systems at the main
entrance and access to importantbusiness units to continuously control
personnel and vehicle access.

• Periodically arrange training and awarenesseducation for high-risk employees of information
security and show them the importance and bestpractice for conﬁdential data protection.
• Establish the “CMC Trade Secret Management
Regulations”• Implement conﬁdential data protection and physicalsecurity measures and controls.
• Deploy confidential data protection solutions withinformation technology.
• Conduct internal audits periodically.
• Impose punishment depending on the severity ofthe violation in the protection of confidential data;
dismissal and litigation may be the result in case ofserious violation

Short-, medium-, and long-term targets for information security and system management

Short-term (within one year)• CAFE Response
New model ECU diagnosis and battery test
function development in response to the faceliftof the eVERYCA and system management
improvement• Expansion of the domestic two-wheeler
business
1. Two-Wheeler Dealer Management System
Revision Phase II (warranty repair system)
2. Two-Wheeler Dealer Management System
Revision Phase II (extended applications, e.g.,management preview)
3. Warranty repair system and management
preview extended application. Data is
encrypted during transmission and databasestorage, and traceability of critical personal
data operating processes.

Medium to long-term• Cloud-based systems
Version revision and upgrade of the OA systems,
including the e-document system and claim andreimbursement system.
• System function expansion
Enhancement of IQC management systems: Create
and manage key manufacturing data of parts andrevise the version of the new product value monthly
report.
• Information security
1. Implement the ISO 27001 ISMS
2. Information security check of the production
environment• Digital transformation
1. Senior ofﬁcers information system MVP
2. Data middle ofﬁce
3. New Model Development Cost Management
System Phase II
4. Network infrastructure upgrading

3.5.2 Achievements in Information Security Implementation
In 2022 we established a series of information security measures. They included establishing the
CMC Trade Secret Management Regulations and implementing conﬁdential data protection,
passing the 27001 ISMS, building the endpoint protection system, activating a meticulous
surveillance network, arranging periodic training and outreach for employees, and building
the information security threat prevention mechanism. These measures have optimized
personal data protection, enhanced cybersecurity management, fulfilled the information
security demands of customers at home and abroad, enhanced corporate competitiveness,ensured corporate development and customer interest protection.

2022
Environmental, Social &Governance

Excellent Governance
Proactive Action

Sustainability
Commitment
from theChairperson

Major Achievements in Information Security Management 2022

ESG
Highlights

About CMC
Passed the certiﬁcation of ISO/IEC 27001:2013 Standard.
(1) Implement the ISO 27001 ISMS and establish ISMS
documents.
(2) Enhance the information security control
and lower the information security risk of coresystems.
(3) Establish methods for information
security management and enhanceSocietyoverall information security protection.
(S)(4) Improve the information security
professional skills and awareness of03
personnel.

01
Developmentof “commercial
vehicle02 business”

Enhance personal data protection
awareness in employees, form
the CMC Personal Data Protection
Management Committee, and holdcommittee meetings periodically.

Continual Information Security through PDCA
(1) Drill disaster recovery for critical systems.
(2) Periodically run system vulnerability scan and system update.
(3) Periodically run social engineering drills.
(4) Periodically arrange education and training on information security.
In 2022 we arranged education and training for a total of 2,151 persons,
including 1,090 IDLs and 1,061 DLs.
(5) Periodically arrange awareness education of information security for
employees.
(6) There was no signiﬁcant information security defect found in theinternal and external audits in the year.

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

57

2022 CMC Corporate Sustainability Report

4

Circular
Reduction
Safeguarding
Environment
GENDEREQUALITY

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

4.1 Climate Change: Climate-related ﬁnancial
disclosures
4.2 Environmental Management: Energy
conservation for carbon reduction
4.3 Pollution Prevention: Waste reduction forenvironmental protection
4.4 Circular Economy: Reclaiming andRecycling for connection with circulation
DECENT WORK AND
ECONOMIC GROWTH

Sustainability
Commitment
from theChairperson

PEACE, JUSTICEAND STRONG
INSTITUTIONSESGHighlights

Outcomes and Performance in 2022
Energy Conservation Investment
Energy conservation related
investment: NT$63.239 million
Accumulative benefits: NT$3.284

millionInvested NT$3.785 million in building
the environmental and ecologicaleducation park in 2022.

Material topic

Waste emission
management

About CMC

Reduced effluent discharge by
5.6% over 2021 compare with 2022
Passenger Car Leakage Test Site
Water Conservation Improvement
System Reduced water
consumption by 5,500t/year Water
conservation rate: 2.78%

Awarded the BSI Award for sustainable resilience

Silver Award at the 4th National Enterprise Environmental
Protection Award
Built self-use PV installations at 536.5 kW to generate
electricity of about 608,928kWh/year and reduce emissions
by about 309.9tCO2e/year.

The bearing is one of the key components for vehicles. It bears the weight and gives
directions to the wheels. We input the same idea in the sustainability concepts of theCompany based on the inter-connected harmony, innovation, excellence and sustainability.
We continue innovating harmoniously and pursuing excellence for sustainable operations
like a bearing that bears the weight and gives the directions. These help us manifest our coreadvantages and demonstrate the value of sustainability through actions. Aiming to lower theenvironmental impact of production activities, we establish stringent SOPs for the disposal
and treatment of pollutants, promote the continuous construction of self-use PV installations,establish and implement energy and water conservation targets and projects, conductperiodic audits every year, maintain the environmental quality within the plant boundaries,
and build an environmental and ecological education park to contribute to biodiversity
maintenance for ecological education to bud in more venues. We also actively engage inthe low-carbon economy to develop towards green transportation. We also introduce theelectric commercial vehicle ahead of competitors to contribute to carbon reduction on
Earth.
2022 CMC Corporate Sustainability Report

Strategic Goal
• All CMC plants continuously
promote energy conservation,
carbon reduction, water
conservation, and gas
conservation and implement
various projects for processenergy conservation andcarbon reduction to enhanceenergy efﬁciency.
• Continue to comply with
pollution control regulations for
air, water, and noise.

Short-term

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionClimate changeCore Vision and Commitment

58

Air Pollution Reduction and Improvement Project
Reduced 2022 coating shop VOCs emissions
by 7.5% over 56.48/m2 in 2021 to 52.25/m2.
Reduced air pollution fees and the cost ofpurchasing fresh solvents by NTD 4.498 million/
year over 2021.

• By 2030 the PV installed capacity willreach 5,993.5 kW, with a renewables
percentage of 25%.
• Promote the annual reduction targets
for different types of pollution.
In wastewater discharge, 2020 has
been set as the base year, and the
reduction during 2021-2025 will be 15%
over 2020.

• All five phases of PV installations
will be completed by 2040 with a
total capacity of 13,282.5kW, witha renewables percentage of 55%,
• We will keep watching the longterm trend of the climate change
issues and define relevant goals
for management

Medium-termLong-term

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

4.1 Climate Change: Climate-related ﬁnancial disclosures
4.1.1 Implementation of TFCD-Recommended Climate-Related Financial Disclosures and Management Guidelines
The era of "Climate Emergency" is coming. The Company has gradually realized theoperational crisis that may be brought about by the extreme weather and global warming.
The traditional Automotive industry will face more ﬁercer challenges and rapidly changing
markets due to the climate change. Hence, we establish measurement indicators and target
management based on the results of risk identification to effectively grasp the progressand results of responsive actions, thereby reducing the ﬁnancial impact of climate risks on
operations.
The Company has been concerned about climate change issues for many years and copedwith the impact of the extreme climate on the business of the Company actively. In addition
to implementing different environmental management projects, we identify the opportunities
in the risk in accordance with the Task Force on Climate-related Financial Disclosure(TCFD) and establish and enhance relevant mechanisms in a proactive manner. We havedeveloped the management strategies and action plans for the climate change risks andopportunities with reference to the four TCFD facets of “Governance”, “Strategy”, “RiskManagement”, and “Metrics and Targets”, in the hope to reduce the impact of the climate
risks and ﬁnd new prospects and business opportunities for the Company.

Summary of 4 Core Elements for Climate-Related Financial Disclosures

Governance

Strategy

Sustainability
Commitment
from theChairperson
ESG
Highlights

Metrics and Targets

Risk management

About CMC
• The Risk Management Committee coordinatesand gathers the climate change risks identified
by each department. The ESG Committee
follows up on and manages the performance of
the adaptation programs through the periodic
committee meetings.
• The Board supervises climate change
management, and members of the ESG
Committee take charge of the climate change
issues. Together they help CMC address andpropose solutions for climate change issues,
aiming to develop corporate resilience against
the threats of climate change risks.

• We identify short-term, medium-term and longterm climate risks and opportunities and theirimpact on the operations, strategies, andfinancial plans of the organization through the
TCFD framework, and assess the development
potential of the market.
• Based on TCFD recommendations and internal
assessment methodology, we conduct scenario
analysis of ﬁnancial impact according to different
climatic scenario roadmaps with respect to theimpact of the transition, physical and other risks
on the business.

• F o r t he i dent i f i ed ri sk s, t he rel ev ant
departments are invited to discuss theimpact of climate change risks on the
Company's ﬁnances, and discuss as muchas possible the countermeasures for eachrisk and link to the annual management
guidelines• The impact and occurrence rate areused for assessment of the severity of theclimate change risks. The result of the
scenario analysis is used as a reference forthe formulation of related solutions• Establish assessment and management metrics for water consumption,energy consumption, GHG emissions, and waste generation; andactively develop the NEV business.
• To support the government’s “Net-Zero Emissions 2050” policy, weestablish the “Environmental Sustainability Policy” and “Net-Zero
Declaration” in the organization and undertake to set short-, medium-,and long-term targets for carbon reduction and achieve carbon
neutrality for all processes based on the “Taiwan Net-Zero Emissions 2050
Pathway”. We further et net-zero emissions by 2050 as the corporate
emission reduction target and implement it in terms of four aspects:
energy conservation and carbon reduction, energy transformation,
sustainable development, and low-emission transportation.

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionClimate Management Procedure
Identiﬁcation of Climate Risks and Opportunities

Measurement of Impact

Development of Climate Action Guidelines

Formulation of Climate Goals

We identify and manage the risks and opportunities
involved in the climate and formulate relevant policies
with the TCFD guidance, international standards andbenchmarking companies as a reference• Assess the significance of impact of risks andopportunities through external consultation andresearch andIntensive discussion in cross-department meetings.
• The scenario analysis of ﬁnancial impact is performed
for critical risks.

• Establish actions and approaches to address
identiﬁed climate risks and opportunities based on thesigniﬁcance of impact,
the results of scenario analysis of financial impacts,
and the characteristics of the automotive industry.
• The Company establishes the resilience andlooks forward to the opportunities in the future byformulating policies• Continuously implement relevant projects based on
the climate change policy and analysis resultsin combination with the corporate energy
conservation and carbon reduction targets.
• Follow-up actions are taken and review is performed
for the goals on a regular basis to ensure the direction
toward sustainable operations

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

59

2022 CMC Corporate Sustainability Report4.1.2 Identiﬁcation of Climate Change Risks and Opportunities
The Company formulates detailed procedures for identification of climate related risks and opportunities in accordance with the TCFD recommendations. In addition to collecting theinformation on the climate change and the practices of benchmarking companies, we conduct interviews with internal responsible units within the TCFD framework. In addition, we design
assessment questionnaires with reference to these internal and external researches and discussions to ensure more accurate identiﬁcation of the risks and opportunities related to CMC.
Besides, the Company has established action guidelines and management indicators for energy conservation and carbon reduction based on the identiﬁed critical risks and opportunities, inthe hope to make a contribution to the mitigation of the global warming and environmental degradation by making effort for the climate and environment.

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Process for Identiﬁcation of Risks and Opportunities and Formulation of
Action Guidelines and Goals
Sustainability
Commitment
from theChairperson

Collection of Data Relating to Climate
Climate ChangeInterview with responsible divisions• Collect the information on the physicaland transition risks in all respects
related to the TCFD guidance• Collect the background informationon the incidents occurring in othercountries or other companies in theindustry from new reports and networks
with the characteristics of the CMC’s
business and the risks and opportunities
on key markets as the core

• Conduct regular interview withresponsible divisions within the TCFD
framework to understand the statusquo of their operations and the plants,
and help them understand more about
TCFD• Help individual divisions focus on
the critical tasks for the climate
and environment to facilitate thesubsequent formulation of the goals

Distribution of TCFD risk and opportunity
questionnaire

Design the TCFD risk and opportunity
questionnaire with reference to thecharacteristics of the automotive industry
and distribute it to relevant responsible
units in order to assess the impact thatclimate risks and opportunities may bringabout and the frequency of the impact

Matrix analysis of material topics

Analyze the critical climate changerisks and opportunities that CMC faces
currently based on the collected
responses from the questionnaire
survey, and assess their impact, benefit
and occurrence rate to facilitate thesubsequent formulation of the action
guidelines and goals

Establishment of the 2022 CMC climate andenvironment indicators

Propose actions and approaches based on the key
risks and opportunities identified and discuss theclimate-related metrics and targets for 2022 together
with all responsible departments.

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

60

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Climate Change Risk Matrix Analysis Result
CMC Climate Change Risk Matrix

CMC Climate Change Risk Matrix
Climate change risks of “high impact and high occurrence rate”
14. Changes in consumer
behavior and preferenceOccurrence rate of Climate Change Risk

13. Demand for low-carbon
products and services
6. Power shortage

12. Product efﬁciency
regulations andstandards

9. Collection of carbon
fee/energy tax

11. Cap and trade
Climate change risks of “low impact and low occurrence rate”

Climate change risks of “high impact and low occurrence rate”

4. Supply chain interruption

2. Injury to personnel

8. Shortage in materials

3. Business discontinuity
5. Draught and water shortage
15. Adverse environmental incident

10. Punishment forincompliance
7. Employee’s health

Climate change opportunities of “low beneﬁt
and high occurrence rate”

High

Occurrence rate of Climate Change Opportunity

Climate change risks of “low impact and high occurrence rate”

High

5. Digital transformation andservice experience

8. Deployment and development of renewable energy

Climate change opportunities of “low beneﬁt
and low occurrence rate”

2. Green process and environmentfriendly manufacture
1. Planning of energy
conservation equipment

Sustainability
Commitment
from theChairperson

Climate change opportunities of “high beneﬁt
and low occurrence rate”
7. Creation of corporate
resilience

1. Damage tooperational equipment

Low

Climate change opportunities of “high beneﬁt
and high occurrence rate”

6. Development in line with
consumer preference

4. Development of new energy
vehicles
3. Statutory
subsidies to newenergy vehicles

About CMC

Low
Low

Impact of Climate Change Risk

High

CMC’s Corresponding Measures against Climate Risks

Climate change risks of “low impact and highoccurrence rate”: risk control and safety measures
Such risks were not assessed in 2022.

Climate change risks of “low impact and low
likelihood”: Assumption of risk
1. Damage to operational equipment
2. Injury to personnel
3. Business discontinuity
4. Supply chain interruption
5. Draught and water shortage
7. Employee’s health
10. Punishment for incompliance

Climate change risks of “high impact and highoccurrence rate”: avoidance of risk
6. Power shortage
9. Collection of carbon fee/energy tax
11. Cap and trade
12. Product efﬁciency regulations and standards
13. Demand for low-carbon products and services
14. Changes in consumer behavior and preference

Climate change risks of “high impact and low
occurrence rate”: mitigation or transfer of risk
8. Shortage in materials
15. Adverse environmental incident

Note: As we have appropriate management measures for the supply chain and the supply of materials and have established response
strategies for extreme situations (e.g., chip shortage due to port congestion), and our production and delivery of products haveproceeded smoothly over the past two years, we have adequate resilience to cope with the aforementioned two risks of “supply
chain interruption” and “shortage in materials”. So, they are not the risks of “high impact and high likelihood”.

61

2022 CMC Corporate Sustainability Report

ESG
Highlights

Low

Beneﬁt of Climate Change Opportunity

VisionBlueprint for
Corporate
Sustainability

CMC’s Response to Climate-related Opportunities

Climate change opportunities of “low beneﬁt
and high occurrence rate”: development after
assessment
8. Deployment and development of renewableenergyClimate change opportunities of “low beneﬁt andlow occurrence rate”: long-term plans
1. Planning of energy conservation equipment
2. Green process and environment-friendly
manufactureHigh

Climate change opportunities of “high beneﬁt andhigh occurrence rate”: practice actions
5. Digital transformation and service experience

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionClimate change opportunities of “high beneﬁt andlow occurrence rate”: actions focusing on criticalitems
3. Statutory subsidies to new energy vehicles
4. Development of new energy vehicles
6. Development in line with consumer preference
7. Creation of corporate resilience

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixDescription of Climate-Related Risks and Opportunities
Climate-Related Risks
No.

Category

1
2
3

Risk
Damage to Operational
Equipment

Physical Risks
Typhoons, ﬂoods, andextreme precipitation

Injury to Personnel

Description
Direct impact on sales locations from damage of buildings, operational, and information equipment due to anomalies (e.g., ﬂoods due to extreme rainfall) caused byextreme weather events, such as typhoons and intense rainfall
Injury of personnel during commuting, in workplaces, or when verifying damage caused by disasters due to extreme weather events, such as typhoons, ﬂoods, and intense rainfall.

Operational Interruption

Operational interruption caused by production halts due to extreme weather events, such as typhoons, ﬂoods, and intense rainfall.

4

Supply Chain Interruption

Production or operational disturbance caused by supply chain disruption due to the production halt or operational interruption of suppliers as a result of unstable materials
and energy supply due to frequent extreme weather events.

5

Draught and Water Shortage

Potential risk of ﬁres due to extreme droughts, increased operating costs due to water scarcity, leading to the crisis of operational interruptions.

Power Shortage

Frequent extreme temperatures, electricity is indispensable to both operations and production. Reduced revenues due to operational interruptions as a result of roduction
halts caused by frequent electricity shortages of TPC, particularly in frequent extreme temperatures, because electricity is indispensable to our operations and production.

Employee Health

Increased risk on employee health and then operational interruption caused by increased possibility of heat exhaustion of employees due to rising mean temperatures asa result of long-term climate change.

8

Materials Shortage

Operational interruptions or production halts due to materials supply shortages caused by drastic environmental changes as a result of long-term climate change.

9

Carbon tax/energy tax
collection

Increased operating costs, e.g., energy prices and carbon tax and energy tax collection in the future, due to the tightening GHG reduction requirements or energy
conservation and consumption policies or regulations to ensure compliance with the carbon neutrality target by 2050 in the Paris Agreement by the government as aresult of the deteriorating climate change.

Sanction for Non-complianceSanctions for non-compliance with the tightening GHG reduction requirements or energy conservation and consumption policies or regulations or exposure to litigation
due to inadequate disclosures of climate-related risks.

6
7

10

Physical Risks
Long-term Impact of
Climate Change

Transition Risk: Policy
and Legal

Increased operating costs due to emissions control or carbon credit purchase as a result of the government’s incorporation of mandatory reduction in the Climate
Change Response Act and implementation of GHG cap and trade.

11

Cap and Trade

12

Product Efﬁciency Regulations
and Standards

Mandates on products with lower emissions, based on either the Euro 6 emission standard or CAFE standard, due to the tightening government emission standards for carsand motorcycles.

13

Demand for Low-carbon
Products and Services

Increased management costs due to the increasingly demanding low-emission requirements of products in Taiwan and worldwide on either product emission efﬁciency orenergy consumption, water consumption, or air pollution control during production.

Changes in Consumer
Behavior and Preference

Shift in consumer preferences towards NEVs aroused by the interest in NEV at the rise of environmental protection awareness.

Adverse Environmental
IncidentIndirect impact on goodwill and revenues due to negative media reports on environmental pollution, and potential impact on corporate image and reputation for failure
to actively engage in the climate change issues that concern stakeholders.

Transition Risk: Market
14
15

Transition Risk:
Reputation

Climate-Related Opportunities
No.

Category

2

3
4
5

62

Opportunity
Planning of energy-efﬁcientequipment

1

Description
Enhanced energy efﬁciency and reduced operating costs due to the purchase of the latest energy-efﬁcient production equipment with higher production efﬁciency.

Resource Efﬁciency

Green process andenvironment-friendly
manufacture

Reduced electricity and power consumption due to the use of eco-friendly technologies in the manufacturing process and production line to keep up with the environmental
protection and energy conservation trends. Reduced cost for energy consumption through energy conservation measures.

Environmental
Protection Regulations

Government subsidization for
NEVs.

Increased government subsidies for NEVs due to environmental protection regulations. New product announcement due to the NEV and environmental protection trends andintensiﬁed NEV buying motivation in consumers due to government subsidization.

NEV Development

6

Market Development
and ESG Trends

7

Resilience8

Renewables
Development

NEV Development
Digital transformation andservice experience
Development in line with
consumer preferences
Creation of corporate
resilience
Renewables installation anddevelopment

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Launch new models when developing low-emission, energy-efﬁcient NEVs due to the tightening energy consumption standard.
Optimize consumer experience and integrate technology into management, e.g., online car watching and app service integration, by launching digital service experiencefor consumers in the post-COVID era.
Meeting the environmental protection concept of present-day consumers by launching related services and selling eco-friendlier vehicles to keep up with the ESG trend.

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Establish a more resilient CMC by building the disaster prevention mechanism and introducing the climate change risk management mechanism into CMC’s existing system.
Increased revenues due to green power retailing through installing independent solar panels and other renewables installations by following the future amendments torenewables-related regulations and the development of lower-emission sources of energy.

Appendix

4.1.3 Scenario Analysis of Climate Change Risks
The climate change has impact on the daily operation of the CMC to a great extent. The
terrains of high mountains and steep slopes and the drastic changes of the climate lead to
uneven distribution of rainwater and seasonal water shortage in different regions. The ﬂoods
occur frequently in the typhoon and plum rain season. The stricter environmental regulations
may lead to carbon-related fees and emission control someday in the future. These will bringa heavy burden of costs to us. Hence, no matter whether the “physical risk” or “transitionrisk”, we have assessed their impact carefully and taken management measures in a serious
manner.
Analysis of Flood Risk at Business Locations
For the operational and production bases (Yangmei Plant and Hsinchu Plant), we adopt
the “Representative Concentration Pathways (RCPs) in the Fifth Assessment Report of
the “Intergovernmental Panel on Climate Change” (IPCC) and use the difference in theradiative forcing between 2100 and 1750 as the metrics. Additionally, we infer the midcentury climate (2036-2065) based on the RCPs 8.5 scenario and the information on the

Disaster Risk Adaptation platform of the National Science and Technology Center for Disaster
Reduction.
As the analysis result of the graphic information shows, Yangmei Plant is located in the regionof Level-3 risk (moderate risk). Hsinchu Plant is located in the region of Level-4 risk where theﬂood risk is high. As the result indicates, both production bases of the CMC are exposed toﬂood risk to a certain extent. More hazards to these bases are expectedly in considerationof the more frequent extreme weather conditions. To avoid ﬂoods at the plants as a resultof extreme climate incidents in the future, prevent the business from discontinuation, andprotect the employees from being affected when coming to work, we will formulate
response policies based on the result of the analysis, assess potential hazards carefully, andpropose management and action guidelines.

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Sustainability
Commitment
from theChairperson
ESG
Highlights

Analysis of Flood Risk

Yangmei Plant

Hsinchu Plant

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Note 1: The ﬂood risk is the analysis result of the hazard, vulnerability and exposure. It reﬂects the level of disaster risk presented in most GCM models (2036~2065) under the base period (1976~2005) and RCP 8.5
scenario.
Note 2: The disaster risk is classiﬁed with the base period as the criterium. The estimated disaster risk graphic reﬂects a modal analysis based on the results of 33 prediction models.
Note 3: The Level-5 ﬂood risk indicates that the regions has the “relatively” highest disaster risk; the Level-1 ﬂood risk indicates that the disaster risk is relative low but does not mean there is no disaster risk or nodisaster incidents would happen.
Note 4: RCP 8.5 high emission scenario - The radiative forcing will rise to 8.5 watts per square meter in 2100. If the carbon reduction policy and the increase of the greenhouse gas emissions remainunchanged, the concentration of the greenhouse gas in the atmosphere will increase continuously and the temperature will rise by nearly 4°C, leading to unavoidable damage to the environment
in the world.

63

2022 CMC Corporate Sustainability Report

Give Back toSocietyin Every Way
Possible

AppendixAnalysis of Power Shortage
As the global warming becomes ﬁercer, the temperature rises drastically, the economic andindustrial activities remain growing, and the energy transformation plan in Taiwan remains
unclear, the supply of electricity in Taiwan becomes more unstable and the power shortage
incidents have occurred frequently in recent period as a result. Electricity is indispensable
to every stage of operations and production at CMC, an electricity shortage will bringtremendous impact to business operations. Hence, apart from treating the power shortage
as one of the critical risks, we also conduct statistical regression simulation analysis on power
shortage with different environmental and economic factors and use the data of the RCP 8.5
temperature scenario on the Taiwan Climate Change Projection Information and Adaptation
Knowledge Platform (TCCIP) of the National Science and Technology Council (NSTC) toobtain the probability of power shortage in a year and assess the potential loss of CMC
under this power shortage probability.

Based on the simulation and scenario analysis results of power shortage risk, the revenue
loss falls between NTD251 million and NTD289 million, accounting for 0.85-0.98% of our total
revenue in 2022. This suggests that the signiﬁcance of impact is below 1%. Hence, we believethat the exposure to the risk of power shortage due to climate issues is insigniﬁcant, and therisk will not bring signiﬁcant ﬁnancial impact. Nevertheless, we face this risk seriously because
electricity is one of the required energies for our production. To reduce the potential impactof the power shortage risk to the operation of the Company, we implement damage
prevention measures proactively by deploying emergency power generation equipment
and renewable energy power units in the hope to enhance our crisis awareness in advanceto nip power shortage in the bud.

Power Shortage Probability (RCP 8.5 scenario)
1.00%

0.98002%

Assessment of Loss in Revenue Due to Power Shortage$ 300,000,000

0.9761%0.95%$ 280,000,000

0.90%

3.56

2023

2024

3.00

$ 220,000,000

2025*The power shortage probability decreases in 2024 in scenario RCP 8.5as shown in the above table because the temperature in that year
is slightly lower than the temperature in other years. As the average cooling degree days (CCD) is lower, the power shortage probability inthat year decreases after the statistical regression analysis.

Parameter Factor

3.11

2023

2024

2.50

Excellent
Governance
Proactive
ActionSourcePercent Reserve Margin Bak

This is the indicator used to measure the power supply reliability on the power generation side of the system.

Installed Capacity ofConventional Power Unit Vol

This includes the installed capacity of thermal power generation, pumped hydropower generation, coal-ﬁred power generation, oil-ﬁred power generation, gas-ﬁred power
generation, nuclear power generation, and conventional hydropower generation, but does not include the installed capacity of new energy power units, such as wind power,
solar power, and biomass energy power generation.

Gross Domestic Product GDP

The higher GDP indicates that the economic activities in Taiwan are more prosperous and more electricity is needed and consumed to support the economic performance.
Thus, the higher the GDP, the higher the occurrence rate of the power shortage risk.

IMF (International Monitory
Fund)

Annual Total Population

The increase of the population in Taiwan means a rising demand for electricity. Hence, the more the number of the population, the higher the occurrence rate of the power
shortage risk.

Directorate General of
Budget, Accounting andStatistics, Executive Yuan

Average Cooling Degree
Day CDD

1. CDD = Σ(Ti-26 ) if T>28 , Ti = Daily Average Temperature. This value reﬂects the sum of temperatures. The higher the value, the more the days on which air conditioners areturned on, and the higher the occurrence rate of the power shortage risk.
2. This value is obtained with reference to the RCP 8.5 scenario to estimate the temperature for 2022- 2025 and calculate the CDD value.

RCPs 8.5 scenario dataand estimated by CMC

2022 CMC Corporate Sustainability Report

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

2025

Amount allowable for loss on
power shortage
Business discontinuity days

Description

About CMC

3.50

$ 251,816,274$ 240,000,000

Sustainability
Commitment
from theChairperson
ESG
Highlights

4.00

0.85198%

0.80%

64

$ 288,488,519

3.58$ 260,000,000

0.85%

0.75%

$ 289,634,209

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Taiwan Power Company
Estimated by CMC

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixRisk Analysis of Carbon Tax
To accomplish “Net Zero Emissions by 2050”, the Legislative Yuan passed the Climate
Change Response Act in early 2023, suggesting that the carbon tax will be collected in
the foreseeable future. Our 2022 GHG emissions (Scopes 1 and 2) were 20,711,441tCO2e.
Although we are not a large emitter of GHG, our operating costs will soar to affect proﬁtability
when the government collect high carbon tax.
Hence, we assess different levels of exposure during 2022-2050 under the interaction ofdifferent scenarios in terms of the three emission scenarios proposed by IEA: stated policies
scenario (SPS), announced pledges scenario (APS), and net zero emissions by 2050 scenario(NZE) in coordination with the five carbon pricing rates: recommended rates by theEnvironmental Protection Administration, predicted carbon tax rates of EU, recommended
rates of Greenpeace, NGFS 2050 Net Zero, and NGFS Below 2DC.

Although the results show that the carbon cost is signiﬁcant in all scenarios, NT$$313,677,559
the highest, the amount accounts for only 1.06% of the total revenues in 2022. Despite theinsigniﬁcant impact on operations, we highly concern ourselves with carbon-related issues. Asan automotive manufacturer and dealer, it is highly likely that we will be unable to fulﬁll themarket and customer expectation for high energy-efﬁcient products in the future due to our
failure to propose a transition plan and offer energy-efﬁcient products to address climate andemission issues. Eventually, our market presence will be lowered, and we will be abandonedby the market. Hence, apart from actively building renewables installations, we will also
optimize the manufacturing processes to reduce emissions throughout the product life cycle
through technological advancements so as to offer customers eco-friendly and low-emission
products.

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

652022 CMC Corporate Sustainability Report

CMC Carbon Tax Analysis (STEPS)$ 350,000,000

25000$ 300,000,000

20000

Year
Carbon Emissions
Scenario$ 250,000,000
15000$ 200,000,000$ 150,000,000

10000
STEPS

$ 100,000,000

5000$ 5,000,000

2050

2049

2048

2046

2047

2045

2044

2043

2041

2042

2040

2038

2039

2037

2036

2035

2033

2034

2032

2031

2029

2030

2028

2027

2026

2025

2024

2023

2022

$

0

Carbon Fee Scenario

2030

2040

2050

Rate recommended by theEnvironmental Protection Administration$ 2,254,587$ 2,319,097$ 2,479,814

Rate recommended by theGreenpeace$ 15,823,099$ 42,337,891$ 107,211,243

Predicted carbon tax rate of EU$ 32,793,987$ 58,954,890$ 107,211,243

Recommended Rates NGFS 2050 Net
Zero$ 60,198,313$ 103,618,133$ 313,677,559

Recommended Rates NGFS Below
2DC$ 40,559,850$ 70,585,688$ 138,112,964
Sustainability
Commitment
from theChairperson

CMC Carbon Tax Analysis (APS)$ 120,000,000

25000$ 100,000,000$ 80,000,000

Year
Carbon Emissions
Scenario

Carbon Fee Scenario

2030

2040

2050

Rate recommended by theEnvironmental Protection Administration$ 1,891,351$ 1,335,427$ 912,773

Rate recommended by theGreenpeace$ 13,273,846$ 24,379,811$ 39,462,420

Predicted carbon tax rate of EU$ 27,510,561$ 33,948,528$ 39,462,420

5000

Recommended Rates NGFS 2050
Net Zero$ 50,499,787$ 59,667,368$ 115,458,746

0Recommended Rates NGFS Below
2DC$ 34,025,268$ 40,645,996$ 50,836,756

20000
15000

$ 60,000,000
10000$ 40,000,000$ 20,000,000

APS

2048

2047

2046

2045

2044

2043

2042

2041

2040

2039

2038

2037

2036

2035

2034

2033

2032

2031

2030

2029

2028

2027

2026

2025

2024

2023

2022

$

CMC Carbon Tax Analysis (NZE)$ 45,000,000

25000$ 40,000,000
20000$ 35,000,000

Year
Carbon Emissions
Scenario$ 30,000,000
15000$ 25,000,000$ 20,000,000

10000$ 15,000,000$ 10,000,000

5000$ 5,000,000
$

66

2050

2048

2049

2047

2046

2045

2044

2043

2042

2041

2040

2039

2038

2037

2036

2035

2034

2033

2032

2031

2030

2029

2028

2027

2026

2025

2024

2023

2022

0

CMC CO2 Emission

Carbon Tax Rates-EPA

Carbon Tax Rates-Greenpeace

Carbon Tax Rates-EU ETSCarbon Tax Rates-NGFS_2050 NetZero

Carbon Tax Rates-NGFS_2050 Below 2DC

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

NZE

Carbon Fee Scenario

2030

2040

2050

Rate recommended by theEnvironmental Protection Administration$ 1,497,139$ 418,021$0Rate recommended by theGreenpeace$ 10,507,195$ 7,631,469$0Predicted carbon tax rate of EU$ 21,776,570$ 10,626,708$0Recommended Rates NGFS 2050 Net
Zero$ 39,974,181$ 18,677,325$0Recommended Rates NGFS Below
2DC$ 26,933,425$ 12,723,177$0

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

4.1.4 CMC Climate Action Guidelines
Facing the menacing climate change risks, either the physical risks or the transition risks
will bring tremendous potential impact to CMC. Particularly, as we are an automotive
manufacturer, the carbon issues relating to NEV development and automotive
manufacturing will become the focus and request of all stakeholder groups. Hence, we
propose the CMC climate action guidelines to address climate change issues in terms of
three major aspects: product energy efﬁciency enhancement, renewables installation, and

Item

Corresponding
Signiﬁcant Risks

Action Guideline (1): Product energy
efﬁciency enhancement• Product Efﬁciency Regulations and Standards• Changes in Consumer Behavior and Preference• Demand for Low-carbon Products and Services

loss control action enhancement. Apart from avoiding risk-related potential loss, we also
assess the opportunities from the opposite side of climate issues to propose future targets.

Action Guideline (2):Renewables installation• Collection of Carbon Fee/Energy Tax• Power Shortage• Cap and Trade

Action Guideline (3):Loss control action enhancement• Supply Chain Interruption• Damage to Operational Equipment• Draught and Water Shortage

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

Development
Opportunity• Actively develop electric two-wheelers, electric four-wheelers,
PHEV, and their support measures to keep up with the global
market trend and consumer preferences.
• Enhance vehicle energy efﬁciency and provide consumers with
eco-friendly, low-emission vehicles.
• Reduce the energy consumption of vehicles during the life cycleand develop low-emission products and services.

• Develop renewable energy plans ahead of the schedule in thelegal requirements, promote energy diversify, reduce Scope 2
GHG emissions, and lower the risk of power shortages.
• Strengthen energy management and enhance energy efﬁciency
and implement new energy equipment to reduce operating costs.
• Implement energy conservation programs to address global
warming and renewables issues.

• In 2022 we invested NT$29.4 million in building PV installations togenerate electricity of about 608,928kWh each year and reduce
emissions by about 309.94tCO2e/year.
Investments

Future Goal

• In 2023 we will invest about NT$1.28 billion in vehicle R&D andtechnology innovation.

• Continue to invest in the R&D and launch of electric two-wheelers,
electric four-wheelers, and PHEV to introduce products andservices taht meet the marekt demands.
• Set the sales target for electric four-wheelers to 6,000 units by 2027.

• It is estimated that this can save carbon tax of about NT$22.09
million and reduce electricity bill by about NT$46.27 million over a
20-year period. Compared to the investment, the beneﬁts are up
to NT$38.96 million.

• Promote transformation in power utilization pursuant to theschedule of net zero emissions by 2050
• Continuously review constructible capacity and regions toaccumulated capacity to 13,279KW in 2040, with a green power
ratio of about 47.8% for Yangmei Plant, 99.7% for Hsinchu Plant,and 120% for Taoyuan Youth Industrial Park Plant.

• Invest in part manufacturers, integrate the supply chain, and plan
new supply chain risk strategies.
• Enhance process water efﬁciency and water efﬁciency andreduce water costs.
• Review the opportunities for improving soil and water conservationand drainage capability of the plants to prevent ﬂoods andoptimize loss control in advance.

In 2022 we invested NT$2.95 million in the wastewater efﬂuent
recycling project and NT$330,000 in the passenger car leakage testsite water recyling.

• Increase the recovery rate of process and domestic water• Continuously follow up on, manage, and request suppliers to
improve ﬁre and ﬂood prevention capabilities to facilitate making
the most timely response and handling in emergency.

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible*Carbon tax mitigation is calculated at NT$3.8/kWh based on the changes in carbon tax in the NGFS Net-Zero 2050 scenario during 2023-2042.

Appendix

67

2022 CMC Corporate Sustainability Report4.2 Environmental Management: Energy conservation for carbon reduction

2016

4.2.1 CMC’s Dedicated Environmental Protection Management

2018/7In the production and marketing process of both two-wheelers and four-wheelers, on
top of considering various environmental impacts, we also make continual improvement
in environmental performance in accordance with domestic legal and regulatory
requirements. To ensure that all environmental issues are managed within the system, we
passed many ISO management systems in 2022 and review the environmental performanceand make improvements through internal and external audits and environmental
management reviews. The issues managed are described below:

CMC’s Dedicated Environmental
Protection Organization

Water Pollution
Control

WasteManagement

Toxic Chemical Substanceand Noise Management• Monitoring of the
air pollution control
facilities for theirnormal operation andmanagement• Application for thepermit of stationary
pollution sources• Testing and declarationof pollutants in exhaust
pipes• Operation andmanagement ofwastewater treatment
plants• Application for dischargeof wastewater• Testing and declarationof wastewater quality
and quantity• Formulation ofwastewater collection,
treatment andimprovement measures• Storage, clearance anddisposal management ofgeneral and hazardous
industrial wastes• Declaration and tracking ofindustrial waste• Promotion of waste
reduction and recovery• Recycle of waste• Operation andmanagement of toxic
chemical substances• Monitoring of noisearound the plant andimplementation of
preventive measures• Establishment and amendmentof environmental policies• Review and identiﬁcationof environmental laws andregulations; assessment ofcompliance• Assessment of signiﬁcantenvironmental considerations• Follow-up and managementof environmental improvement
projects• Implementation of theenvironmental management
system• Analysis and improvement of theenvironmental management
performance

Indoor Air Quality• Documentation of the indoor air
quality maintenance management
plan• Inspection and measurement of indoor
air quality at the plant• Recommendations relating to indoor
air quality improvement andmanagement• Declaration of tests

Passed the ISO 50001 EMS certiﬁcation• Established the energy policy and set energy efﬁciency
targets in accordance with the ISO verification
requirements to help enhance energy efficiency andreduce the waste of energy.
• Optimize energy use and management and reduceenergy costs• Improved corporate image and reputation andenhance market competitiveness• Complied with the energy laws and regulations inaccordance with the ISO verification requirements tolower the risk of ﬁnes.
2021

Air Pollution
Control

ISO14001 Environmental
Management System

ISO Management System Certiﬁcations and Sustainability Awards Over the Years

Declaration ofEnvironmental Measures• Monitoring and managementof pollution control facilities• Implementation anddeclaration of environmental
protection activities• Declaration of greenhouse gas
inventories• Implementation of green
procurement• Compilation of environmental
sustainability under ESG

Passed the ISO 14001 EMS certiﬁcation• Updated the environmental sustainability policy and
Net-Zero 2050 Declaration.
• Followed up on the improvement of the 2022
environmental protection projects.
June 21, 2022
EM25 Shine e-bike carbon footprint andwater footprint veriﬁcation• Assessed the carbon emissions and water consumption
in product manufacturing and identiﬁed sections withnegative environmental impacts through carbon
footprint and water footprint verification and adopt
improvement measures to reduce carbon emissions
and water consumption to eventually enhance
product sustainability.
• Enhanced consumer concern about environmental
sustainability and improved corporate image andreputation through carbon footprint and water footprint
veriﬁcation to enhance market competitiveness.
• Ensured compliance with related internationallaws and regulations and enhanced international
competitiveness through carbon footprint and water
footprint veriﬁcation.
June 27, 2022
Passed the certiﬁcation of the ISO 46001 Water
efﬁciency management systems.
• Enhanced water management efficiency to reducewater consumption costs.
• Improved corporate image and reputation andenhance market competitiveness• Complied with the water laws and regulations inaccordance with the ISO verification requirements tolower the risk of ﬁnes.
July 12, 2022

2022 CMC Corporate Sustainability Report

2019
Excellence in Energy Conservation
Service for Business Group
2020
Silver Award, the 2 National Enterprise
Environmental Protection Award (Yangmei Plant)nd2021
Taoyuan City Subsidization
for Low-Emission Technology
2018/7
Gold Award, MOES Energy Conservation
Benchmark Award

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

June 21, 2022
Excellence in Green Procurement from Hsinchu
County Government for two times
Silver Award, the 4 National Enterprise
Environmental Protection Award (Hsinchu Plant)th

SI Award for Sustainable Resilience
Extension of the green factory certification of
Hsinchu Plant

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Passed ISO 14064 GHG inventory
Effectiveness of continuous GHG management

68

MOEA Excellence in Energy
Conservation Award

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Appendix

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

4.2.2 Energy Use and Conservation
Management

Major energy conservation/water conservation
items in 2022
Reduced water consumption by
5,500t/year

Reduced gas consumption by 44,056 m /year

Reduced efﬂuent discharge by 10,516t/year

Self-construction of PV installations
536.5kW

Coating and spray ﬁnishing Direct
Heating System

Procurement of Efﬂuent Recycling
Equipment

3

Rome Avenue

Passenger Car Leakage Test Site Water
Conservation Improvement

Generated electricity 608,928 kWh/year

spray ﬁnishing Line 2 in
Coating Shop
spray ﬁnishing Line 1
in Coating Shop

Yangmei Plant Ofﬁce (2F)

R&D Building
Minor Repair Zone

Technology
Development Building

Test Assembly
Zone

Unloading Zone

EM Line

ESH Ofﬁce
Health Education
Center

Supplies Receipt Center and Logistics Warehouse

Assembly
Section

Supplies Zone
Supplies Zone

Sustainability
Commitment
from theChairperson

SPS Warehouse

ESG
Highlights

DE Secondary Line

Supplies Zone
SPS Warehouse

Yen Ching-Ling
Building

DE Master Line

Passenger Car Inspection Line
Supplies Zone

Passenger Car Assembly
Elevated

Final Assembly QC
Welding (passenger car)

Supplies Zone

Engine Pre-Installation

Welding (passenger car)

New Chassis LineCV Inspection LineCV Instrumentation Assembly I
CV/RVBoiler Room
Yen Ching-Ling
Laboratory

Innovative
Technology
Sustainable
Value

CV Instrumentation Assembly II

CV Line
CPQC

ROBOT

CV Line
DE Line3D

Supplies Warehouse

Employee Canteen (2F)

Passenger Car Minor Repair Zone
Maintenance
Section

Power
Room

Air Compressor
Room

Excellent
Governance
Proactive
ActionWater Treatment Zone

Circular
Reduction
Safeguarding
Environment

Xiucaiwo River

Efﬁciency Improvement andInvestment in 2022

Amount Saved

Investment AmountElectricity saving efﬁciency: 843,097
kWh/year

NTD 2,950,840

NTD 64,939,000

Gas saving efﬁciency: 44,056m /year

NTD 378,900

NTD 6,380,000

Water saving efﬁciency: 6,636t/year

NTD 27,500

NTD 330,000

3

Note: Basis for calculation of electricity bill saved: NT$3.5/kWh69

2022 CMC Corporate Sustainability Report

About CMC

VisionBlueprint for
Corporate
Sustainability

LoaderCV Pre-Assembly/Final Assembly

U/B

Supplies Warehouse

Passenger Car
Assembly/
Pre-Assembly

Passenger Car Assembly/Interior Assembly

Loader

Welding Master Line (passenger car)

JD LineWastewater
Treatment Plan

Passenger Car Assembly/Final Assembly

ED circulation pump replacement andadjustment

Electricity saved: 102,763kWh/year

spray ﬁnishing Line 2 A/C chiller
replacement

Electricity saved: 92,016 kWh/year

Dormitory A/C chiller replacement

Electricity saved: 344,305 kWh/year

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

CMC’s Energy Use Status (excluding renewable energy)
Yangmei Plant
Category of Energy
Purchaseelectricity

Hsinchu Plant
Unit

2020

2021

2022

Category of Energy

Unit

2020

2021

2022

kWh

28685403206308

3109000

Liter

95607

107056112788

Liter

11946214214587006

kWh23404800

23529600

22402800

Purchaseelectricity

LPG

Thousand cubic
meters000Gasoline

LNG

Thousand cubic
meters15785831721505

1532509

Diesel

Liter

14007

7285

11543

LPG

Liter

76930

100590123270Gasoline

Liter

587506570023575087

Carbon emissions

tCO2e

1835

2124

2240

Carbon emissions

tCO2e

16746

16364

15614

Total energy
consumption

GJ

16444.45

19413.32

18981.494

Total energy
consumption

GJ

161638168349157598

Number ofvehicles produced

Vehicle/year

97192

11033593219

Number ofvehicles produced

Vehicle/year

47363

48971

43934

Power energy
intensity

MWh/vehicle

0.02950.02900.0415

Power energy
intensity

MWh/vehicle

494.2

480.5

509.9

Energy use
intensity

GJ/vehicle

0.16910.17950.2534

Energy use
intensity

GJ/vehicle

3.41

3.44

3.59

Note 1: The actual number of vehicles produced by Yangmei Plant in 2022 is based on the data provided by the production planninggroup (excluding FUSO).
Note 2: Conversion of energy units: kcal = Mcal*1000; 1 kcal = 0.0000041868 GJ.
Note 3: Diesel consumption is based on the “GHG Materials Use Investigation Form”. The carbon emissions of 92 and 95 petrols arecalculated as the same category. The emission factor of natural gas is 1.879kgCO2e.
Note 4: The gas consumption at the painting shop is based on the bills issued by the CPC Corporation, Taiwan, and the data provided by
the canteen (including the kindergarten).
Note 5: The CO 2 emission factor is based on the “greenhouse gas emission factor management table” of the Environmental Protection
Administration, Executive Yuan (ver. 6.0.4, June 2019)."
Note 6: The 2021 electricity carbon emission factor announced by MOEA on 7/22/2022 is 0.509kgCO2e/kWh.

DieselNote 1: LPG 1000 Kg = 1.818L
Note 2: The unit fuel heating value of is based on the MOEA Bureau of Energy - Heat Content of Energy Products: (1) electricity 860 kcal/
kWh, (2) petroleum 7,800 kcal/L, (3) diesel 8,400kal/L, (4) LPG 6,635kcal/L; 1 kcal=4.184 kJ.
Note 3: Hsinchu Plant’s equivalent units = Motor production*1 + die casting production*0.8 + mechanically processed aluminum alloy*0.36+ truck production*2.68
Note 4: Electricity energy intensity (MWh/vehicle equivalent) = Power consumption (MWh)/Production volume of the plant (vehicle
equivalent).
Note 5: Energy use intensity (GJ/vehicle) = Total energy consumption (GJ)/Production volume of the plant (vehicle).
Note 6: The energy consumption is the quantity consumed within the Company

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

702022 CMC Corporate Sustainability ReportEnergy Conservation and Carbon Reduction Projects and Energy Conservation Efﬁciency
The five major projects for electricity efficiency enhancement included the A/C chiller
replacement of the spray ﬁnishing line 2 of the coating shop and A/C modiﬁcation of theofﬁce area on 2F of Yangmei Plant and the lighting improvement for energy conservation inblock C, PV installation for self-generation and self-consumption, introduction of winter direct
heating for the spray ﬁnishing line 1 of the coating shop, and ASU modiﬁcation of Hsinchu
Plant.
Ofﬁce A/C modiﬁcation on 2F
of Yangmei Plant
Investment Amount
NT$8.62 million

Beneﬁts upon completion
Emissions reduced:15.25 tCO2e/year.

In 2022 we placed new investments amounting to NT$63.239 million and engaged in ﬁve new
equipment improvement projects. Combining with other improvement projects in progress,
in 2022 we saved electricity and electricity bills by 764,466kWh NT$2.905 respective and gas
and gas fees by 44,056 m³ and NT$379,000 respectively. Together we reduced emissions
by 389.1tCO2e, with an annual average energy consumption by 3.3%, accomplishing theannual electricity conservation target of over 1.0%.
Lighting improvement for energy
conservation in block C of Hsinchu Plant

Improvement Measure

Problems before Improvement

Problems before Improvement

Improvement Measure

Investment AmountReplaced water-cooled floorstanding A/Cs with highefficiency screw chiller (energy
consumption level 1) including
chillers, pumps, and cooling
towers, and re-planned control
areas to save energy.

Water-cooled floor-standing
A/Cs were used in the officearea on 2F of Yangmei Plant
for 26 years. Despite the low
energy efficiency, they wasteenergy when individual control
and temperature setting wereprevented.

Block C of Hsinchu Plant was
equipped with 60 mercury
lamps with higher electricity
consumption and lower energy
efﬁciency.

Electrodeless lamps wereplanned for the improvement
to enhance lighting and energy
efﬁciency.

NT$750,000.

Electricity saved: 60,540.48 kWh/year

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Beneﬁts upon completion
Emissions reduced: 10.61 tCO2e/year.
Electricity saved: 20,851 kWh/year

Amount save: NT$113,900

Sustainability
Commitment
from theChairperson

Amount save: NT$104,200
ESG
Highlights

Replacement of the 900RT ﬁxed-speed centrifugal chiller at sprayﬁnishing line 2 in the coating shop
Improvement Measure

Problems before Improvement

Use of the high-efficiency
900RT fixed-speed centrifugal
chiller. One old chiller has beenretained for backup use.

The two 900RT fixed-speed
centrifugal chillers at sprayﬁnishing line 2 in the coating shop
were used for 19 years. As theefficiency reduced and faulty
rate increased, we planned toreplace them to enhance energy
efﬁciency.

Investment AmountBeneﬁts upon completion

NT$18.272 million

Emissions reduced: 46.96 tCO2e /year

4%3%

PV installations (self-generationand self-consumption)

12%
Highlights of Energy
Conservation and Carbon
Reduction Projects of CMC Plants

13%*Note: Calculations are completely
based on the efficiency of electricity
conservation.

68%

Electricity saved: 228,096 kWh/year
Amount save: NT$373,000

Problems before Improvement

Improvement Measure

In accordance with theRegulations for the Managementof Setting up Renewable Energy
Power Generation Equipmentof Power Users above a Certain
Contract Capacity of MOEA,
electricity users with a contract
capacity of over 5,000kW are
obliged to install renewables
at 10% of contract capacity(obligatory capacity) with PV
installations.

With respect to the regulatory
requirements, after deducting
the maximum deductible
capacity completed by 2023
and considering the equipment
installation specifications, theplanned installation capacity was
536.5KW. The installation and ongrid were completed in 2022 forgeneration.

Investment Amount

Estimated Beneﬁts uponCompletion

NT$29.4 million

Estimated generation: 608,928kWh/year
Amount save: NT$2,053,677/year

Amount save: NT$3,023,677

Increased renewables: 2.2%
Emissions reduced: 309.94 tCO2eyear

Introduction of winter direct heating on spray ﬁnishing line 1 of the coating shop and ASU modiﬁcation
Problems before
Improvement
Use steam for heating in thespray finishing line. In winter,heating water with the boiler togenerate steam transported tothe spray chamber air dispenser
and subsequent heat exchange
process consume lots of energy.

71

Improvement Measure

Investment Amount

Energy conservation throughprocess modiﬁcation is key to thisproject. Combustion equipment
is used to heat up fresh air which
is delivery to the spray changer
by fan via the vent to further
reduce the thermal efficiency
loss.

NT$6.38 million.

2022 CMC Corporate Sustainability Report

Beneﬁts upon completion
Enhanced thermal efﬁciency by 20%, i.e., reducing
steam purchasing cost by NT$270,000/year.
Reduced part and steam pipeline maintenance costby NT$330,000/year.
Reduced combined production cost by NT$600,000/
year, payback period 7.5 years.
Emissions reduced: 82.78 tCO2e/year
Gas saved: 44,056 m³/year
Amount save: NT$378,900/year

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Replacement of the 900RT
ﬁxed-speed centrifugal
chiller at spray ﬁnishing line
2 in the coating shop

Yangmei Plant PV
installation zone.

Introduction of direct
heating and ASU
modiﬁcation

Appendix

As CMC highly values the conservation of water resources, we have launched multiple
water-saving equipment improvement projects to replace the equipment, enhance water
efﬁciency, and ensure the recycling and reuse of the water resources in several areas withhigh water consumption. In addition to continuously publicizing process water reduction anddomestic water reduction, we also promote the reclamation and reuse of boiler condensate
and coating UF cleaning RO water and the recycling of die casting water to effectively
reduce water consumption.
In 2022 we promoted water recycling and reuse through the passenger car leakage test sitewater conservation improvement system and the rainwater harvesting system. In 2022 thetarget and actual water consumption target was 214,667 t/year 198,156 t/year respectively.
The actual unit water consumption reduced by 26% from 6.70t/vehicle in 2015 to 4.57t/
vehicle. The target of both items was accomplished.

Key water-saving projects are introduced and described as follows:
Yangmei Plant Passenger Car Leakage Test Site Water Conservation Improvement System
Before Improvement

We use fresh clear
well water at theend section of thetest. Water flows into
the circulation pool
below for discharge.
Water consumption isabout 22t/day.

2021

2022

Third-Party Water Withdrawal(ML)

49.34537.13439.403167.031229.725204.095

198.155

Water Consumption Intensity(t/vehicle) (Note 2)

4.850

4.107

4.51

Third-Party Water Withdrawal
(ML)

4.797

2.851

4.656

Groundwater Withdrawal (ML)

5.274

6.008

4.185

Total Withdrawal (ML)10.071

8.859

8.841

0.10360.08030.0948Note 1: Numbers of the water rights certiﬁcates: H0113148, H0108471, H0123080, H0112073
Note 2: Yangmei Plant data source: Monthly water bills (including those for the plants and dormitories) from Taiwan Water Corporation andthe monthly reported volume of groundwater used.
Note 3: Source of the data for Hsinchu Plant: Water bills and the regular wastewater testing data on the EMS
Note 4: As the volume of water used on water bills from Taiwan Water Corporation is not calculated from a ﬁxed date (but from the middle
of a month, in most cases), the period on the bill may be inconsistent with the period of time during which the water is used. The
result, 201,126 tons of water used, was obtained after the volume of water used was recalculated based on the actual period on
the bill
Note 5: Hsinchu Plant’s equivalent units = Motor production*1 + die casting production*0.25 + mechanically processed bell housing
production*0.57 + truck production*2.68

722022 CMC Corporate Sustainability Report

Water
StorageTank(existing)

Daily water conservation 22t.

Water conservation by
5,500t/year (about 2.78%
out of 198,155t/year
consumed by Yangmei
Plant)

Circulation Water
Tank (60t)

Implementation
outcomeIn 2021 we built arainwater harvesting
system with capacityof 0.025ML. A total of
0.527ML of rainwater
was harvested for use
by toilet ﬂush.

Approach Optimization

The artiﬁcial ecologicalpond is operated withrainwater harvest,
forming part of theecological circulation
system. The ecologicalpond is built to restore
endangered species
and endemic ﬁsh,and rainwater canmaintain pond water
quality and ecosystem.

▲ The 10t rainwater storage in
Hsinchu Plant.

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

Hsinchu Plant Rainwater Harvesting System Ecological Circulation Project

Hsinchu Plant

Water Consumption Intensity(t/vehicle equivalent) (Note 3)

Water Pump

Estimated water
conservation
efﬁciency▲Yangmei Plant Passenger Car Leakage Test Site
Water Conservation Improvement System

158.752

Total Withdrawal (ML)

Secondary
Filter + Oil
Separation2020

180.380

An oil-water separator (OWS) and filter are
installed to recycle the water used in the test
after filtering and through regular pipeline
CIP to reduce fresh well water consumption.
Investment of N$350,000 plus water treatment
operating cost (including ﬁlters and electricity)
4.2t

Primary
FilterYangmei Plant

Groundwater Withdrawal (ML)

Beneﬁts

OWS

Water Withdrawal in the Plants

Improvement Measure

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Beneﬁts

In 2022 accumulative
rainwater harvest
increased by 215%
over 2021 to 1.136ML. It
was used for in-housevegetation irrigation,
ecological pond water
replenishment, andtoil flush. Rainwaterreuse maintained the2022 domestic sewage
discharge at the samelevel of 2021.

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

4.2.3 Management of GHG Emissions

In 2018 we began the annual GHG inventory with third-party verification. In 2022 we
introduced the ISO 14064-1:2018 (new version) GHG inventory management system. In
addition to Scopes 1 and 2, we also included Scope 3 for inventory. The base year for Scopes
1 and 2 is 2018, while the base year for Scope 3 is 2021.
In terms of emission management and information, the 2022 emissions of Scopes 1 and 2
were 20,711,4413 tCO2e and Scope 3 were 2,861,777.9204 tCO2e (with 92.79% of emissions
from product use). In addition to the disclosure at the internal ISO 14001 Environmental
Management System review meetings, we voluntarily disclosed the greenhouse gas emissions
on the National Greenhouse Gas Registration Platform of the Environmental Protection
Administration to fulﬁll our responsibility of disclosure.

CMC GHG Emissions 2022 (t2e)
Scope 1 (Note 1)
7716.1041

Unit:tCO2e
12995.3372

12995.3372

5313.2949

2095.9470
245.9832
60.8790

Carbon Intensity of CMC’s Products
The carbon intensity of products reflects the process efficiency indirectly. Thus, we cancalculate the carbon emissions intensity of the products based on the vehicles produced at
the Yangmei Plant and Hsinchu Plant and their greenhouse gas emissions, in the hope to help
the Company march toward the goal of sustainable operations by implementing effectiveenergy management.

Scope 2 (Note 2)

Unit:tCO2e

CO2

CH4

N2O

HFCs

0.00000.00000.0000

PFCs

SF6

NF3

Subtotal

CO2

0.000

0.000

0.000

0.000

0.000

0.000

CH4

N2O

HFCs

PFCs

SF6

NF3

Subtotal

Scope 3 (Note 3)
Category 3(note 4)

Unit:tCO2e5872.0609

Category 4 (note 5)

Unit:tCO2e

181124.5778

181124.5778

Sustainability
Commitment
from theChairperson
ESG
Highlights

5872.0609

About CMC

Intensity and Volume of GHG Emissions of
Yangmei Plant (Scopes 1 and 2)

Intensity and Volume of GHG Emissions of Hsinchu
Plant (Scopes 1 and 2)

CO2

0.000

0.000

0.000

0.000

0.000

0.000

CH4

N2O

HFCs

PFCs

SF6

NF3

Subtotal

CO2

0.000

0.000

0.000

0.000

0.000

0.000

CH4

N2O

HFCs

PFCs

SF6

NF3

SubtotalCategory 5 (note 6)
Unit:tCO2e

Annual emissions(tCO2e/year)

Number of vehicles produced

Carbon emissions per unit of capacity (per vehicle)(tCO2e/vehicle)

Annual emissions(tCO2e/year)

Number of vehicles
produced

2674781.2817

Innovative
Technology
SustainableValue

2674781.2817

Carbon emissions per unit of capacity (per vehicle)(tCO2e/vehicle)

45085040

Total emissions (tCO2e)
38976

41609

43934

11497

13097

10111

3078.085
18148.424
17236.621

0.442

2020

17623.880

0.436
0.0401

2021

2022

Note 1: Greenhouse gas emissions intensity (tCO2e/vehicle/year =annual emissions (tCO2e/year)/vehicles produced.
Note 2: The vehicles produces means the sum of the four-wheelers
and two-wheelers.

73

2022 CMC Corporate Sustainability Report2823.906

0.246

2020

2716.838

0.304
0.207

2021

2022

Note 1: Greenhouse gas emissions intensity (tCO2e/vehicle/year =annual emissions (tCO2e/year)/vehicles produced
Note 2: The vehicles produced means the total number of fourwheelers

VisionBlueprint for
Corporate
Sustainability

CO2

0.000

0.000

CH4

N2O

HFCs

0.000

0.000

0.000

PFCs

SF6

NF3

Subtotal

2882489.362

Note 1: Direct (Scope 1) GHG emissions comprise emissions from fuel combustion in a ﬁxed equipment (e.g. boiler, RTO, oven, restaurant,
and emergency power generator), process emissions (e.g. CO2 and acetylene used in the manufacturing process, and ﬁre test),
mobile combustion sources of transportation (e.g. company car, ﬁnished vehicle, forklift, and test oil), fugitive emissions (refrigerantand septic tank)
Note 2: Indirect (Scope 2) GHG emissions result from the generation of purchased electricity.
Note 3: Other indirect (Scope 3) emissions occur outside of the organization. After ﬁltering under the signiﬁcance principle, we incorporate
the indirect greenhouse gas emissions from transportation (Category 3), organization (Category 4), and use of organization’s
products (Category 5).
Note 4: Category 3 GHGs comprise indirect GHG emissions generated from transportation, including emissions generated from upstream
and downstream transportation and delivery of goods (raw materials, products, waste) from the source to the plant, products
distributed to various locations, and waste directed to the disposal facilities. They are calculated based on the CO2 emitted duringtransportation.
Note 5: Category 4 GHGs comprise (a) emissions generated from goods procurement and estimated based on the CO2 emitted fromupstream manufacturing of purchased bulk materials (e.g., electricity, fuels, coatings, body materials, and coolants); (b) estimatedbased on the CO2 emitted from the purchased capital goods; and (c) the CO2 emitted from disposing of solid and liquid waste.
Note 6: Category 5 GHGs comprise (a) emissions generated or removed from product use and estimated based on the CO2 emitted fromthe use to the end-of-life (EOL) of products (four wheelers and two wheelers) sold to consumers; (b) CO2 emitted generated by theleased assets in the downstream; and (c) CO2 emitted from investment.
Note 7: The base year for GHG emissions is 2022, the operational control as stipulated in 4.1, ISO14064-1:2018, is adopted for theorganizational boundaries, covering Taipei Office, Yangmei Plant, Hsinchu Plant, and Taoyuan Youth Industrial Park Plant. The
emissions of Scopes 1, 2 and 3 were veriﬁed by AFNOR at the end of May
Note 8: In response to the report publication schedule, data of GHG emissions in 2022 was extracted from the self-imposed inventory.

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

4.2.4 Renewable Energy Installations

Performance Highlights of PV Installations 2022

608,928 kWh/year

298tCO2e/year

NT$2,053,677/year

2.2%

Estimated Generation

Carbon Reduction

Electricity Bill Saved

Proportion of Achieved Renewables (%)

Performance of the Solar Power Equipment in 2022
Plant

Yangmei Plant

Application

Accumulative
Generation (kWH)

Annual Generation(kWH)

System Installed
Capacity (kW)Consumption (kWH)

Accumulative CO2 Reduced(kg)

Electricity Bill Saved

Rented out

5426090967866852.0-3456419.2-

Self-Construction for
Self-Consumption

12168

12168

536.5

12168

6437

42588

Rented out

91234152091647

2007.81-5811615.5-

Hsinchu Plant*Basis for calculation of electricity bill saved: NT$3.5/kWh

Installation of 2,157KW

Installation of 3.537KW

2023

Step 1

2030

Step 2

Step 3

Accomplishment of
net-zero emission

Step 4

Step 5

Yangmei Plant

Step 6

Hsinchu Plant
Green power proportion: 99.7%

2025
Installation of 536.5KW
Obligatory Capacity
Completed

2050

2035
Installation of 3,300KW

Installation of 3,752KW

Maximum Installable
Capacity

Recovery andreconstruction of leased
roofs

Excellent
Governance
Proactive
ActionGreen power proportion: 47.8%

2040

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

Green Power Use Target 2040
Maximum Installable
Capacity

ESG
Highlights

About CMC

Medium- and Long-Term Renewables Promotion Plans
Description of renewables promotion after PV installations: In addition to the said obligatory capacity, we continuously review the available zones and plan targets for three phases throughrenewables promotion. We also independently promote renewables installations with a total capacity of 13,282.5kW through ﬁve stages. Targets of each phase renewables promotion: 25% by2030, 55% by 2040, and net-zero emissions by 2050 (including 44.5% through REC procurement).

Optimal Regional
Capacity

Sustainability
Commitment
from theChairperson

Taoyuan Youth Industrial
Park Plant
Green power proportion: 120%

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

74

2022 CMC Corporate Sustainability Report4.3 Pollution Prevention: Waste reduction for environmental protection
4.3.1 Air Pollution Management and Mitigation Projects
An overview of the emission of air pollutants
To effectively control air pollution and maintain ambient air quality around the plants, weinstall various control equipment such as the regenerative thermal oxidizer (RTOs) and acidgas scrubber. We also install the automatic painting robotic arms and their control system toenhance painting efﬁciency to over 89.5%. Apart from effectively reducing the productionof air pollutants including particulates (par), sulfur oxides (SOx), nitrogen oxides (NOx), andvolatile organic compounds (VOCs), they also help reduce the fugitive emission of VOCs
to protect the health of residents in local communities. We outsource the inspection of theboiler stack and RTO exhaust pipe of Yangmei Plant, and the results show that all emission
requirements are met.
At CMC, the coating and aluminum die-casting processes are the major sources of air
pollutants, including Par, SOx, NOx, and VOCs In 2022 the unit vehicle combined emissions
were 1.948kgCO2e.

Emission of VOCs
With the aim of effectively reducing air pollution, CMC has endeavored to cut the VOC
emissions produced in the painting process in a step-by-step manner over the years.
During 2014-2018, we adopted a two-stage approach to improve and modify the exhaustequipment and paint spray capture water circulation system of the spray ﬁnishing chamberof painting line 1 of the coating process in Yangmei Plant to enhance the efficiency of
capturing fugitive paint spray in the air. We also installed the spray ﬁnishing robot to enhancepaint fastness.
In 2018, we invested NT$120 million to replace the conventional reciprocating painting
machine used for 18 years in the painting line 2 of the painting process in Yangmei Plant witha dedicated paint ﬁnishing robot. We also developed new-spec materials and the improvethe exterior painting quality.
For waste solvents that are produced inevitably in the painting process, a recovery device
was installed in 2019 to reduce the quantity of solvents purchased through reclamation andthereby lower the VOC emissions. In comparison to 2021, the VOC emissions were reduced
by about 13.2% in 2022.

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Sustainability
Commitment
from theChairperson
ESG
Highlights

CMC’s Annual
Production

Coating Process VOC Reduction Targets of Yangmei Plant 2023-2027

47363

2020

Direction

2023

55267

2021

Targets
2(< g/m )

44489

2022

Emission of Air Pollutants
Category
Par

2020

2021

2022

Emissions (tCO2e/year)

1.519

1.926

1.686

Percentage Reduced over 2014-35.5%-71.8%-50.4%

Emissions (tCO2e/year)

0.458

0.581

0.479

91.4%

89.0%

91.0%

Emissions (tCO2e/year)

3.913

4.160

3.783

Percentage Reduced over 2014

42.2%

38.5%

44.1%

Emissions (tCO2e/year)

264.666

264.499225.596

Percentage Reduced over 2014

8.7%

8.7%

22.2%

Combined Emissions (tCO2e/year)

312.310285.744231544

Unit Vehicle Emissions (kgCO2e)

6.547

5.770

1.948

NOx

VOCs

Note 1: We set 2014 as the base year (emissions (t) in 2014: Par = 1.121; SOx = 5.301; Nox = 6.765 ; VOCs = 289.81)
Note 2: VOC emissions in 2018 increased due to process modiﬁcation .VOC emissions began to reduce each year from 2019 after themodiﬁcation.
Note 3: Source: Pollutant Release and Transfer Register, Environmental Protection Administration, Executive Yuan.
Note 4: Part of the emission data of air pollutants during 2019-2022 was revised based on the review result of the Environmental Protection
Administration.
Note 5: The emissions of the air pollutants of the Yangmei Plant and Hsinchu Plant in Q4 2022 were calculated on the Control Fees andEmissions Reporting Integrated Management System

75

2022 CMC Corporate Sustainability Report

2025

2026

51.25

50.50

50.00

Improvement ofmanagement andprocesses (equipment)

Review andimprovement ofpaint conditions

Optimization of
production processes
and conditions

About CMC

2027
49.80

49.60

Adjustment based on results in 2023-2025

Actual Performance of VOC Recycling Devices of Yangmei Plant in Past 3 Years

Emission Status

Percentage Reduced over 2014

SOx

2024

Year

Recycled
Solvents(kg)Percentage Used of
Recycled Solvents1

Percentage ofWaste Solvents
Reclaimed

Solvents Directed to Reduction in Waste
Solvents
Disposal(t)(Over 2017)

2020

51449

27.80%

33.11%

103.95

57.5%

2021

73066

40.17%

48.89%

76.39

68.8%

2022

64913

45.10%

61.31%

43.92

82%

Note 1: Percentage used of recycled solvents = Volume of solvents recycled/(Volume of solvents recycled + Volume of fresh solvents used)
Note 2: Percentage recycled of solvents = Volume of solvents recycled/(Volume of solvents recycled + Volume of waste solvents directed
to disposal)

VOC Emissions from Coating Process in Yangmei Plant in Past 3 Years
2020

2021

Targets in 2022

Actual Performance2022

VOCs (g/m )

61.28

56.48

55.00

52.25

Reduced Emissions

0.63

4.8

1.48

4.23

Percentage Reduced overPrevious Year

1.01%

6.82%

2.6%

7.5%

Annual Average /year2

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixOzone-depleting substance management
In terms of the control of ozone-depleting gases or substances, we are no longer using halonsand any other similar substance, as required by the government, and completely switch tousing R134A refrigerants. As for other ozone-depleting gases or substances produced during
manufacturing, improvements are made by updating process technology for electricalequipment in the processes and the emissions of NOx and VOCs are kept below the emission
limits defined by the Environmental Protection Administration. Additionally, Taiwan will
freeze the use of HFCs by 2024 and reduce their use by 10% by 2029 in response to the Kigali
Agreement, Hence, we are working towards the “use of the new coolant R-1234yf on all new
vehicles from 2029).

Yangmei Plant’s air pollution reduction project for the painting process
Yangmei Plant sets the VOC reduction target at 5% over 5 years. In 2022 it implemented
three air pollutant reduction projects to reduce VOC emissions by 4.23g/m2 over 2021 or
7.5% in total. In 2021 Yangmei Plant also reduced the expenses on air pollution fee and fresh
solvent procurement by NT$4.498 million in total. Apart from saving costs, we also hope toreduce the severity of air pollution to provide employees with a safe workplace environment
and to contribute to environmental protection for local communities.

Reduction of air pollution in the Yangmei Plant’s painting process
Item

Adjustment of the frequency of washing robots
for color changing

Beforeimprovement

Robot washing frequency of the spray ﬁnishing line #1
before color changes: Once for two robots using thesame color.

After
improvement

Beneﬁts

Control of the use of reclaimed solvents bycontracted cleaning staff

Air Pollutant Reduction of Hsinchu Plant
Standardization of the method of washing sprayguns to reduce the consumption of reclaimed solvents

Operating Filter Pack Replacement Project

Recycled solvent use control for outsourced cleaning:
896kg/month

Manual sprayer cleaning with jet.

Air pollution control equipment in Hsinchu Plant
included: sedimentation chamber, jet pulse bag ﬁlter
dust collector, and scrubber

Optimization of washing frequency to reduce thefrequency of color changing and washing.

Painting chamber wall cleaning: Replacing jet
spray with rubbing.
Recycled solvents control: Reduced from896kg to below 640kg

Replaced jet washing with rubbing with solvents.

Replacement of the jet pulse bag ﬁlter dust collector
once every ﬁve years.

Reduced VOC emissions by 2.11g/ ㎡

Saved recycled solvent consumption by 256kg
Reduced VOC emissions by 0.83g/ ㎡

2

Reduced VOC emissions by 1.14g/m

NT$227,200/year
Continuous operation of air pollution control equipment
to ensure the continued compliance with the standards
for air pollutant emissions.

Photos after
improvement

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value▲Robot cleaning for same color changing▲Replaced jet spray with rubbing for painting chamber wall cleaning.

▲Replaced manual sprayer cleaning with jet.

▲Filter bag replacement

Pre-planned Improvements Regarding the Reduction of VOCs during the Painting Process at Yangmei Plant in 2023

Planned Improvement

Purposes and Beneﬁts of Improvement

Projected Efﬁciency of VOC Reduction (g/m )Revitalization and improvement of the circulation system ofspray ﬁnishing line #2

Use of the small circulation system by the line for low-volumed colors to reduce
scrapping excessive mixed paints.

0.08

Filling volume reduction for returned unused spare sprayers

Adjustment and modiﬁcation of the spray ﬁnishing program for improvement.

0.12

Setup of a special zone for management and improvement ofpaint dilution.

Prevention of lot differences of paints from causing additional solvent
consumption.

0.2

2

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

76

2022 CMC Corporate Sustainability Report4.3.2 Water Management and Pollution Prevention

4.00

Water-Related Risk Matrix

Signiﬁcance of Impact

5.00

5.00

14
4.00

13

8
3

6

3.00

In terms of identification, by collecting water-related internal and external issues anddemands through questionnaire, email, meeting, and the CMC Water Risks and Opportunity
Assessment Form at the end of every March, we understand water-related impacts and thewater-related demands and expectations of stakeholders and fulﬁll the identiﬁed demands
through the water management system. The results of risk and opportunity assessment are
visualized in the representations below.

10

1

15
11

9

12

Water-Related Opportunity Matrix

Signiﬁcance of Impact

Water Management Policy
In water management, we identify and manage the mutual impact of CMC and water basedon the IA-0020 CMC Water Management Handbook (IA-0020) and IB-0309 Organizational
Situation and Risk and Opportunity Management SOP (IB-0309). First, the organizational policy
regarding the need to understand corporate water management capacity and water
performance improvement has been stipulated in section 4.1.1 of IA-0020.

6

2.00

1

4

Sustainability
Commitment
from theChairperson
ESG
Highlights

5

3.00

7
2

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

4

5

2

2.00

About CMC

3
1

Likelihood
1.00

1.00

2.00

1. Changing customer behavior andpreferences
2. Changing product standards
3. Substitution of existing products with
options of lower water consumption.
4. Droughts
5. Vulnerability of the ecosystem
6. Floods (infrastructure insufﬁciency anddrainage design)
7. Water supply rationing
8. Deteriorating water quality
9. Water efﬁciency, conservation,
reclamation, and treatment standards

3.00

4.00

5.00

10. Dependency on high intensity of water consumption
11. Increased difﬁculty in obtaining permits for water
withdrawal/operation
12. Increasing water pressure
13. Pollution
14. Increased water prices (water conservation charge)
15. Tightened legal and regulatory requirements (discharge
volume and discharge quality standards)

Water Pollution Prevention Policy
Coating process wastewater and domestic sewage are the two main sources of wastewaterat CMC, and chemical oxygen demand (COD), biological oxygen demand (BOD), suspended
solids (SS), E. coli, and heavy metals are the main items for water quality monitoring.
To ensure in-house prevention of wastewater pollution and comply with the environmental
protection laws and regulations, we spare no efforts in the treatment, monitoring, andreduction of wastewater, rainwater diversion and treatment, wastewater treatment
equipment upgrading, and wastewater treatment system maintenance. We also introduce
new equipment and related monitoring methods for wastewater monitoring. In termsof equipment, we introduced the new sludge dryer in 2018 to effectively reduce sludge
generation. On top of that, we have set up high-concentration wastewater collection
tanks to collect pre-treated wastewater with higher concentration separately. The
wastewater is pumped back to the retention basin for equalization and treatment in a ﬁxed
772022 CMC Corporate Sustainability Report

Likelihood
1.00

1.00

2.00

3.00

4.00

5.00

1. Sales of new products/services
2. Community relationship improvement
3. New R&D opportunities
4. Enhanced competitive strengths
5. Improvement of water efﬁciency in operations
6. Wastewater recycling management

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment

quantity at a ﬁxed time interval in order to reduce the impact of a sudden inﬂow of highconcentration wastewater into the wastewater system. To maintain the water quality of
wastewater treatment and efﬂuents, we periodically outsource water quality measurement
and monitoring and create the run chart to follow up on the wastewater quality changes
and enhance wastewater treatment efﬁciency, save energy, and reduce carbon throughoperation maintenance. In 2022 the value of water quality items were far better than the
discharge standard and regulation limits, and there was no signiﬁcant non-compliance withwater quality requirements.
For the process and domestic sewage of CMC’s Yangmei Plant and Hsinchu Plant, theYangmei Plant’s sewage is discharged to Xiucaiwo Section of Shezi River through thedischarge outlet next to the new gate after being treated in the wastewater treatment plant
and the Hsinchu Plant’s pipeline is connected to the Hsinchu Science Park’s Wastewater
Treatment Plant where the efﬂuents are released to Jiadong River.

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixWater Management & Wastewater Reduction Projects

Major Improvement Items for 2023-2024

Before Improvement

Improvement
MeasureAssess efﬂuent recycling and reusein three aspects: reduce tap waterand groundwater consumption,
reuse in toilet ﬂush and coating shop
PTT water replenishment, and pretreatment waste gas scrubber water
replenishment.

The total water consumption in 2021 was
201.126ML, including 37.134ML of thirdparty water and 163.992ML of groundwater.

Yangmei Plant
Procurement of
Efﬂuent Recycling
Equipment

Wastewater Reduction
1. Domestic Sewage Reduction Project: Investigate the points and pipelines of rainwater inﬁltrationin wastewater and make improvement for anomalies through pipeline segregation.
2. Use water-efﬁcient equipment (two zones in the west of the assembly lines and one zone in thetesting equipment (jig) section in 2023) through toilet renewal.

EMS Function Expansion and Strengthening
1. Expansion of the EMS management points: Increase water meters from 47 units to 73 units.
2. System expansion mainly includes: (1) Modify software functions in line with smart water
meter expansion (2) Increase EMS functions from 82 items to 92 items, including green
energy management and chiller performance monitoring and calculation.

Beneﬁts
Completed and started operation on
March 31, 2022

10.138ML/year

4.6%

Project water saved

10.516ML/year

Usable water
reduced10%

Wastewater and efﬂuent
discharge reducedof the total

1.6t/year

Introduction of New Technology and Equipment

CarbonReduction

1. Assessment and test of reuse applications (including laws and regulations) of efﬂuent after
recycling.
2. Participate in the Water Conservation Award of the Water Resources Agency and seek
feasible improvements through the technical support and instructions of external experts.

Project Description

Beneﬁts• Enhancement of wastewater
management capacity,
digitalization and automaticrecording to wastewater
treatment volume• Chemical and treatment
volume signage
Real-time volume, total
volume, yesterday discharge,
chemicals, and treatment
trend management• With the automatic calculation andrecording of the volume of chemicals
and wastewater treatment, reducemanual calculation of working hours
by one hour each day, up to 238
hours a year.
• Reduced wastewater discharge to
5.5% in 2022.

Digitization
and Automatic
Recording toWastewater
Treatment Volumeof Hsinchu Plant

Consolidate the real-time
volume data of processwastewater, domestic
sewage, and efﬂuentsand equipment operation
monitoring system for effective
monitoring of wastewater
input/output volume, ﬁrewater, water leakage, andoverﬂow tank wastage, anddetection and immediate
report of anomalies.

Yangmei Plant
Smart Wastewater
Input/Output
Monitoring
System2025

VisionBlueprint for
Corporate
Sustainability

2029

Treatment and recycling ofcooling tower water.

Painting chamber dry
scrubber

2031-2050

UV hardening paint coating
Coating wastewater pretreatment by quality
Wastewater zero discharge
core equipment
Introduction of pre-coatedsteel plates

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
PossibleBeneﬁts

78

ESG
Highlights

About CMC

2027
Process
Improvement• Install smart water meter forprocess wastewater and domestic
sewage to capture real-time data.
• Integrate with the water
management system for analysis
and management.

Sustainability
Commitment
from theChairperson

Items, Schedule, and Targets of Improvement

Pre-treatment processwastewater recycling equipment

Project Description

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

NTT1.5million

4,700t/year

Investment
AmountReduce leakage andoverﬂow wastage

2022 CMC Corporate Sustainability Report

NT$61,900 /year
Amount Saved

Appendix

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

4.4 Circular Economy: Reclaiming and Recycling for connection with circulation
4.4.1 Framework of CMC’s Circular Economy
The Company strives to develop a circular economy and is the only manufacturer
that is capable of recycling and processing discs. We have gained quite outstanding
accomplishments in the reclamation and reprocessing of vehicle parts, waste recycling,
scrapping and donation.
CMC’s reprocessing

Donation of trial vehicles
Scrapping

1. 2015-2022
Brake disc recovery andrecycling: 16,411ea
2. Remelting aluminum die-cast
part leftovers in Hsinchu Plant:
161.3t
3. Sorted 27.5t of recyclable plastic
packaging materials in 2022,
saving NT$324,000,

Donated a total of 88 trial vehicles
to vocational schools during 20162022.
Scrapping of trial vehicles

Scrapped nine trial 2-wheelers
vehicles in 2022.
Vehicle scrappage for customers

External manufacturers’ reprocessing
Reclamation of parts in 2022
1. Gearbox recycling: 916 units
2. AC compressors recycling: 1,891
units
3. Steering pumps recycling: 643
units

Accepted 17,134 applications in
2022
Part
Reprocessing

New Vehicle
Sales

Shipped a total of 26,894 units
in 2022, recovered 15,410 unitsof packaging materials, with arecovery rate of 57.3%

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability

Excellent
Governance
Proactive
ActionRepairWaste
Recovery

Reclamation
and Recycling
Connection with
Circular Economy

CMC’s efforts to create a circular economy are as follows:
1. To enhance automotive part reuse, recovery, and recycling, we signed up to
the voluntary regulation program of the automotive industry launched by the
Taiwan Transportation Vehicle Manufacturers Association in response to the
Resource Recycling Act to ensure that the minimum recyclable rate of 80% andthe minimum recyclable and reusable rate of 85% for target models (wholevehicle) from January 1, 2008.
2. Part design with clear indication of recycle symbols to facilitate the reuse andrecycling purposes of automotive parts to promote the easy recovery and reuseof automotive parts.
3. Part detachable design facilitate recovery after vehicle abandonment.
4. Replace the wooden bed of wooden truck bed with recyclable plastics topromote materials reuse and reduce wood consumption.

Sustainability
Commitment
from theChairperson

Innovative
Technology
Sustainable
Value

Circular
EconomyRecycling of dealers’/imported
packaging materials

In an effort to ensure the environmental friendliness of our products, CMC seeks optimal
solutions in the R&D, design, manufacturing, production, and sale stages to reduce waste
generated to the utmost. We not only improve the recycling of all plastics from vehicles on
a continuous basis, but also unceasingly enhance the part recycling rate. By accomplishing
the specific design and development goals initially set and combining technologicalinnovation with R&D, our aim to achieve product sustainability can be attained.

VehicleUse

Circular
Reduction
Safeguarding
Environment

Waste Reduction
Adoption of energy storage
systems

In industrial waste reduction,
reduced general waste (garbage)by 21.0t (37.7%) in total from 83.8t
to 52.2t. Reduced waste disposal
fee by NT$379,000/year.

Store energy discharged frombattery tests with the energy
storage cabinet to recoverbatteries of up to 10,400kg in 2022.

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible▲CMC’s Circular Economy Performance
Appendix

792022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

Key Projects Implemented
Only manufacturer recycling discs in the industry

Recycling and Reuse of Packaging Materials and HighUnit-Price Refurbished Products

Many replaced brake discs are reusable after refurbishment. After collecting the
replaced brake discs from the market, we select those with a minimum recyclable
thickness for Hsinchu Plant to refurnish them for reuse. They are welcomed byconsumers for their affordable prices, safety performance, and environmental
performance. More importantly, we are the only automotive manufacturer
in Taiwan with the brake disc refurbishment know-how. During 2015-2022, werecovered a total of 16,411 brake discs, including 551 units in 2022. Calculating at
6.42kg/disc, we recovered a total of 3,537kg in 2022. In the future, we will develop
technology for parts that can be refurbished to extend part life while develop
towards the circular economy at the same time.

We have co-established with dealers the new SOPs for the cartonsvehicle protection during transportation to recover speciﬁc partpackaging materials for reuse. In 2022 we used a total of 26,894
cartons for shipping and recovered 15,410 bumper cartons,
with a recovery rate of 57.3%. Calculating at 0.6kg each piece,
we recovered cartons of 9,246kg in 2022. During 2020-2022, werecovered a total of 43,220 cartons, with a total weight of about
25,932kg,

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

Recycling and Reclamation
Leading to Circular Economy
At CMC, we practice the circular economy by promoting the recovery, recycling, and reuse of leftover materials, waste, and parts of high unit prices. We also actively build the water and electricity reuse equipment toaccomplish the goals of environmental protection, resource conservation, energy conservation, and carbon reduction. We also reduce the cost of use for consumers.

Recycling and reuse of parts withhigh unit prices

Remelting and reuseof die-cast leftovers

Industrial Waste Sorting
and Reuse

Parts that are replaced during
maintenance and are still usable
are recycled by the service stations.
They are then handed over to thedesignated vendors for repair andconsumable replacement. Thosethat function well are offered for
consumers to purchase and use themfor replacement at lower prices

After forming, die-cast parts
were trimmed before gathering.
Die-cast leftovers are remelted
proportionally to reduce raw material
consumption and waste generation.

Optimize waste sorting in productionlines to enhance sorting efficiency,
reduce the generation of generalwaste, and allow collectors to collectand reuse. Achieving the circular
economy1. Gearbox recycling: 916 units
2. AC compressors recycling: 1,891
units
3. Steering pumps recycling: 515 units

About 161.3t accumulatively.

Reduced general waste (garbage)by 21.0t (37.7%) from 83.8t to 52.2t.
Reduced waste disposal fee by
NT$379,000/year.

Adoption of energy storage systems
Store energy discharged frombattery tests with the energy storage
cabinetRecovered batteries of up to
10,400kg in 2022.

Yangmei Plant Procurement of
Efﬂuent Recycling Equipment
Assess effluent recycling and reusein three aspects: reduce tap waterand groundwater consumption,
reuse in toilet ﬂush and coating shop
PTT water replenishment, and pretreatment waste gas scrubber water
replenishment.

1. Projected volume of water saved
10,138 t/year to reduce water
consumption by about 4.6%.
2. Reduce wastewater and effluent
discharge by about 10,516t/year

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

802022 CMC Corporate Sustainability Report4.4.2 Waste Management

Project for Paint Leftover Weight Reduction Through Natural Drying
on Racks at Spray Finishing Line #2 of the Coating Shop

Waste treatment
To reduce the environmental hazards of waste, we hired qualified public/private waste
disposal and treatment contractors to dispose of and treat the industrial waste generated.
We are also committed to managing environmental pollutants and hazardous waste inaccordance with the laws and regulations related to waste disposal and recycling of theEnvironmental Protection Administration, hoping to reduce waste generation. Non-recyclable
waste may cause various actual or potential environmental impacts due to aggressive
disposal. Landfilling untreated waste plastics may contaminate groundwater, compilingfire-retardant materials not only occupies space but also different forms of energy for
management, and so on. Hence, we need top mitigate impacts through various procedures.
As the paint leftover from the spray finishing line may contaminate both soil and water,
and untreated organic sludge will produce odor, we mitigate their environmental impact
through thermal treatment and incineration alongside medical waste containing bodily
hazards and other general waste suitable for incineration. Recognizing the potential hazardsof heavy metal exposure in the manufacturing process, we adopt physical disposal of waste,such as waste ion exchange resin, that is labor-consuming in recovery to reduce impact.
In 2022, non-recyclable waste was reduced by 43.98% over 953.3t of the base year 2017
to 534.07t, and waste solvents was reduced by about 82% over 2018. In 2022 there was notransportation, import, or export of waste regulated by the “Basel Convention” in waste
disposal.

Practice: After comparing the effectiveness of weight reduction through natural drying with racks, drying CC
paint leftovers with racks became the focus of this project. In 2022 we introduced ﬁve more racks for the natural
drying of CC paint leftovers and tested the actual clearance operability.
Beneﬁts

1
2

Reduced weight by

Reduced

Paper

Waste
lubricantPackagingmaterials
and plastics

Waste
Wood

3

Glass

Nonpackaging
plastics

Total Waste
Total

Recycling
Rate%

2118.95

23.92

413.5518.43

0689.67003264.52

4195.38

77.81

2019

2106.2715.65

425.82

10

0

682.3

0

0

3240.044029.92

80.46

Year

Reduced clearance expense of

NT$146,880 at the end of year

12.46

392.6

7.64

0

606.29About CMC

2022 clearance fee: NT$45/year
Modiﬁed racks based on the clearance methods ofcontractors.

0.83

0

3175.493893.02

81.57

2021

2169.6519.87

405.09

1.09

66.34

641.245.91

8.89

3318.083932.55

84.37

2022

2018.8922.32

578.58

6.37

82.81

1249.98

4.2

61.35

4024.54558.57

88.28

Note 1: The data is from the Industrial Waste Report and Management System of the Environmental Protection Administration, Executive
Yuan, and the statistical report on recyclable waste
Note 2: Waste oil treatment companies recycle oil for physical treatment involving oil-water separation and solid-liquid separation. The oil isthen reclaimed and reused as fuel oil
Note 3: Total waste: General waste + Hazardous waste + Recycled waste

Plant

Thermal treatment,
incineration

ThermalCleaning
treatment

Reuse

VisionBlueprint for
Corporate
Sustainability

2020

Innovative
Technology
Sustainable
Value

Hazardous commercial waste

Physical treatment Incineration

Waste
NonWaste ion
Organic Paint Inorganic
heatWaste ironhazardous
exchange Waste oil
sludge residues sludge
resistantcontainers
oil sludgeresinmaterials

Landﬁll

Incineration Solidiﬁcation

Physicaltreatment

Solvents

Generalwaste

Plasticcontaining
waste

Medicalwaste

Chemicalcompounds
containing
chromium

Nonrecyclable
waste

78.39

89.76

-

-

-

14.92

-

0

315.61-0.0163-103.95913.1963

86.43

108.33

-

0.1

-

11.93

-

3.79

231.26-0.0149-76.39

856.4349

2022

61.81

114.24

-

-

-

17.23

3.6

4.38

218.751.02

0.0142-43.92

464.96

2020

5.77

-

0

-

0

4.84

-

0

103.71

-

-

0.57

-

411.46

0

-

1

-

6.61

4

-

0

83.79

-

-

0.83

-

414.08

5.48

-

-

-

6.28

4.18

-

-

52.26

-

-

0.91

-

69.11 311.91

2021

2155.67

ESG
Highlights

Statistics on Total Non-Recyclable Waste in Past 3 Years (Unit: ton)

2018

2020

3,264 kg/year after improvement

General commercial waste

parts with high unit prices
Aluminum
scraps andcopperSustainability
Commitment
from theChairperson

CC paint leftovers: Annual generation
80kg*240 days = 19,200kg

1

Iron

17% after improvement

CC paint leftovers:
Daily average generation about 80kg.

Statistics on Waste Resource Recycling and Reuse in Past 3 Years (Unit: t)

Year

2022
Environmental, Social &Governance

Circular Reduction
Safeguarding Environment

2021
2022

Yangmei
Plant

Hsinchu
Plant

Note: Data is extracted from the Industrial Waste Report and Management System of the Environmental Protection Administration, Executive Yuan, and the statisticalreport on recyclable waste.

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

812022 CMC Corporate Sustainability Report

5

Safe
WorkplaceExcellent
Development

GOOD HEALTH
AND WELL-BEINGGENDEREQUALITY

5.1 Workforce Deployment: Driving corporate
sustainable development
5.2 Attraction and Retention: Diversifying beneﬁts
and remuneration
5.3 Training and Development: Optimizing
competencies through complete learning
5.4 Safe Workplace: Enjoying the experience ofwork satisfaction

QUALITYEDUCATIONDECENT WORK AND
ECONOMIC GROWTH

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Sustainability
Commitment
from theChairperson

PEACE, JUSTICEAND STRONG
INSTITUTIONSESGHighlights

Outcomes and Performance in 2022

Commended 29 model

employees

CPR and AED education andtraining in 4 sessions for 238

About CMC

Education and training in 1,445 sessionsfor 22,570 persons with a total ofFree neonatal insurance service for
23 newborns Birth gifts for 38 employees

VisionBlueprint for
Corporate
Sustainability

Summer internship for 20 students

Voluntarily employees suggestion1,470 pieces
Completed improvement of 192 items
Saved costs of NT$2,061,912

Innovative
Technology
Sustainable
Value

49,091hours

employees

Material
topic

Recruitment andretention

Excellent
Governance
Proactive
ActionSafe workplace

Core Vision and Commitment

Strategic Goal

At CMC, employees are the biggest asset. We are committed to maintaining employee
health, building a safe and worry-free workplace environment, strengthening employees
connection through various channels and activities, accompanying employee growth,strengthening core competencies, and promoting employee-focus benefits to achieve
mutual prosperity and the common good for the Company and employees.

Enhance the external
competitiveness of salaryand improve momentum
for talents recruitment andretention.

Short-term

82

2022 CMC Corporate Sustainability Report

Circular
Reduction
Safeguarding
Environment• Facilitate digital transformation througheducation and training and processoptimization.
• Continuously improve workplace healthand safety to give employees a more
comfortable workplace.

Practice cultural diversity andinclusion, attract and retain excellent
professional talents, offer attractive
salaries and an environment forcontinuous learning and growth, andbecome a business that employees
feel pride.

Medium-termLong-term

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

5.1 Workforce Deployment: Driving corporate sustainable development
5.1.1 Workforce Composition
Apart from implementing the relevant workforce policies and establishing internal regulations
and systems, we also make workforce composition policies in respect of corporate
development to provide employees equal job opportunities and workplace environments so
as to build a healthier corporate image.
Employment Overview• Workforce composition and structure
By December 31, 2022, the total number of employees at CMC was 2,066 persons (281
women and 1,785 men). There were 1,993 permanent employees were full-time employees(263 women and 1,730 men) and 73 contracted employees and temporary employees.
Jobs were primarily carried out by permanent employees. There were 52 agency workers(contracted).The total number of employees in 2022 increased by 18 persons over 2021. In

2022 we continued to hire sufﬁcient talents to drive overall corporate growth.At CMC, about
44.2% of employees (914 persons) have a seniority of over 20 years, demonstrating that thesense of happiness we create is the fundamental power that ease their worries.
In terms of age distribution, about 17% of employees are aged 30 years old or younger, about
52% of employees are aged between 31 and 50 years old, and about 31% of employees are
aged 51 years or older. Hence, the career extension and retirement planning of middle aged
and elderly employees have also become the important issues that concern us.

Sustainability
Commitment
from theChairperson
ESG
Highlights

2022 Employees Composition by Gender2022 Employees Composition by Age

281
Female17%
Under 30
years old52%
31~50
years old31%
51 years
old or
above

1785
Male

13%
Female

2020

88%
Male

87%
Male

Male

49

307

31- 50 years old (inclusive)

180

902

51 years old or above

52

576

Job Grade

FemaleMale

Employee

259

1539

Onsite Supervisor (team leader, CTO, DCTO)

090

Middle Management

16

117

Senior Management

6

39

Total Number of Employees

281

1785

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionSafe
WorkplaceExcellent
Development

14%
Female2021

FemaleCircular
Reduction
Safeguarding
Environment

Women to Men Ratio of Employees in Past 3 Years

12%
FemaleAge
Under 30 years old (inclusive)

2022

86%
Male

Give Back toSocietyin Every Way
Possible

Appendix

83

2022 CMC Corporate Sustainability ReportNew Employees Hires and Employee Turnovers

5.1.2 Employee Communication and Work Satisfaction
Through the multifaceted and unfettered channels and consultation mechanisms, we
proactively establish positive labor/management relations. Through the annual work
satisfaction survey on employees, we understand their views on CMC and make continual
management improvement so as to establish a highly interactive virtuous cycle with
employees.

Rate of New Employees Hires and Employee Turnover In Past 3 Years

14.81

14.47

Employee Communication
In 2022 we held a total of five labor-management meetings, one union representative
meeting, and four Employee Welfare Committee meetings. These meetings were convened
to communicate to employees the status of corporate operations, including the 2022 salaryraise, impact of COVID-19, labor shortages, and issues that concern employees, such as
travel expense adjustment and leader incentive plan. Through the periodic meeting, we also
addressed the status of resolutions made in the previous meetings, drew up contingency
plans, and determine the contents of countermeasures.

14.81

12.9

4.91

4.91

2020

2021

2022

Note 1: Employee Turnover refers to employees who leave the organization
voluntarily or due to dismissal, retirement, or death in service.
Note 2: Rate of new employee hires (%) = (Number of new employee hires/Total
number of employees at the end of year)
Note 3: Rate of employee turnover (%) = (Number of employee turnover/ Total
number of employees at the end of year)

New
Employees

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
Action

Male

Male

2020

2076

1242

59.83%

47

14

30%

2021

2048

1277

62.35%

40

24

60%

2022

2066

689

33.35%

45

5

11.11%

Note 1: Senior ofﬁcers are department managers or ofﬁcers of higher levels in the plant.
Note 2: Local is deﬁned as within Taoyuan

ESG
Highlights

About CMC

Proportion of Local Employees
Number of
Local
Total Number of Employees with
Number of Senior
Employment Rate
Employees 1 (A) Local Household
Ofﬁcers 3(B)/(A)
Registration 2 (B)Sustainability
Commitment
from theChairperson

Employees
Left

In 2022 the rate of new employee hires and employee turnover was 14.81% and 14.81%
respectively, and a signiﬁcant rise was noted in the former.To measure the job satisfactionof new employees for the early warning of their adaptability, we interview and conduct
questionnaire surveys on new employees (senior under 3 years) to understand their viewon the organization and condition. We also immediately report to the unit head of new
employees with adjustment problems to as to increase the channel for new employee
communication.

Year

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

84

2022 CMC Corporate Sustainability ReportEmployee Communication Channels

Employee Job Satisfaction

Face-fo-face communication with management

President’s forum
Labor-management meeting
Employee representative meeting
Employee Welfare Committee

To have a comprehensive picture of employees’ opinions about the Company, we
continued to perform the “employee job satisfaction survey” throughout the Company
in 2022. The six facets of the survey included managers, remuneration, colleagues, jobs,
development, and corporate culture. Employee engagement was also included in thesurvey to understand the employees’ recognition of the value of the Company, efforts andcommitments as well as retention intention. The survey was used as a basis and momentum
for facilitating the development of relevant action plans.
In the 2022 job satisfaction survey, we collected 1,716
valid responses, with a valid response rate of up to88%, up by 6 percentiles over the previous.

The score of overall satisfaction increased from4.36 marks in 2021 to 4.4 marks, and the satisfaction
with “colleague” and “supervisor” is the highest,with scores including 4.66

and 4.57 marks

respectively, both are higher than that of the previous
year.

Training and development meeting

4.66 marks
4.49 marks

4.57 marks

4.5 marks

Employee Suggestion Box

One-page website
integration

Real-time Feedback Form
The form is issued quarterly for employees toﬁll in their expectations for improvements fromCMC.

EAP Hotline
Co-established with the Taoyuan Lifeline, theservice is equipped with counselors to help
employees handle workpalce bullying, workstress, family pressure, and ﬁnancial fraud.

About CMC

VisionBlueprint for
Corporate
Sustainability

Job
Satisfaction
Note: The full score of all theitems is 6 marks.

5680 LINE GroupA channel for ubiquitously reporting problems
in the workplace environment (e.g., bumpy
road surfaces or faulty street lamps) orinquiring employee benefits (for weddings,
funerals, and other celebrations).

Sustainability
Commitment
from theChairperson
ESG
Highlights

New employees conference

Employee grievance hotline/email
Channels for reporting workplace violence(bullying)

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Colleague
Satisfaction

Supervisor
Satisfaction

Job Dedication

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

852022 CMC Corporate Sustainability Report5.1.3 Aging Workplace and Career
In addition to offering a friendly workplace environment to middle-aged and elderly
employees through ergonomic improvements, we have also arranged the Life Transition
talk series and activities to help employees understand the differences at critical transition
stages in life. The talk was planned in three stages: Understanding Transition, Change with
Conﬁdence, Leap with Joy in correspondence with four characteristics in career transition(physical health, social relationship, ﬁnancial planning, and social participation) to prepare
employees with the knowledge and attitude for facing the changes in roles and life for themto leap towards the next stage of life with joy. Additionally, we also arrange multifaceted
activities and development planning for middle-aged and elderly employees to help themextend their career, develop sub-specialties, and share valuable experience to drive CMC’s
sustainable development.
CMC Triple Zeros Evergreen Program
When population aging is taking place in Taiwan, the effective use of middle-aged andelderly employees has become an important issue in workforce planning and practiceat CMC. According to the statistics, senior employees with a seniority of over 20% andemployees aged over 51 years old account for 42.5% and 33% of all CMC employees.
Facing how to encourage and combine with the middle-aged and elderly workforce andthe retirement extension of elderly employees, we activated the CMC Triple Zeros Evergreen
Program in 2012 to encourage middle-aged and elderly employees to extend their careerand so to co-create personal and corporate value together by combining the three program
themes: zero workplace barriers, zero health burdens, and zero limit development with ﬁvemeasures: development and training diversiﬁcation, total healthcare, stress relief and LOHAS
promotion, workplace ergonomics management, and job and career redevelopment

CMC Triple Zeros Evergreen Program

Zero Health
BurdenZero Workplace
Barriers

Zero Workplace Barriers
Through targeted improvement projects and employee improvement suggestions, Yangmei
Plant has solved the employee aging problem and improved employee job satisfaction to
make plant management and production more humane. In 2022 there were 113 suggestions
for ergonomic improvement, 46 suggestions for environmental improvement, and 18
suggestions for noise reduction.By making improvement based on these suggestions, we aim
to effectively lessen the job tiredness of employees and provide middle-aged and elderly
workers with a healthy and friendly workplace environment so as to reduce work hazards or
impact due senescence.
The workplace environment improvement suggestion system has also created a spacefor labor-management communication. We have further introduced a bonus scheme toincentivize employees to make improvement suggestions. For suggestions with practicalbenefits of over NT$100,000, the bonus will be 5% of the actual amount of benefits. For
suggestions with practical benefits of NT$1,000,000, the bonus will be NT$50,000. For
suggestions with practical beneﬁts of NT$10,000,000, the bonus will be NT$500,000.

Category

Ergonomic Improvement

Environmental Improvement

Noise Reduction

Q1

27

7

3

Q2

26

10

6

Q3

39

11

3

Q4

21

18

6

Total

113

46

18

Number of Employee Improvement Suggestions and Amount Saved In 2022

Enterprise-wide

Zero Limit on
Development

862022 CMC Corporate Sustainability Report

Type of Award

Number of AwardFirst Prize

0

Second Prize

3

Third Prize

27

Fourth Prize

162

Creativity Prize

1024

Basic Prize

74

Total Number of Awards 2022

1470

Amount Saved (NT$)

Sustainability
Commitment
from theChairperson
ESG
Highlights

Statistics on the Major Categories and Items of Improvement in 2022

Scope

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

20619121,470 employee improvement suggestions with 192 four-star or higher awards saving
up to NT$2,061,912

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixZero Health Burden
In an effort to ensure the health of our middle-aged and older employees, we have acomprehensive health management procedure in place. In addition to having nurses
conduct health management and follow-ups for the employees at risk, several measures,such as “overwork control, health promotion, health management activities, and thedevelopment of assistive aids for the employees with disabilities”, are implemented tocontinuously improve the health of our middle-aged and older employees.
Management Cycle of Employees at Cardiovascular Disease (CVD) Risk
Grading Based on Annual Checkup
Results
For employees with three or moreanomalies related to metabolic
syndrome as shown in the checkup
results, we apply the Framingham risk
score (FRS) to predict their CVD risk
level within the next decade.

Monthly Overwork (OT hours)
Control and Prevention
Employees at high risk: We remindand alert them through an overtime
system and have their managers
keep an eye on their conditions. We
also limit the number of overtime
hours of employees to below 37
hours on average each month within
six months.

Production of the List of Low-,
Medium-, and High-Risk Groups
Assess the CVD risk level of employees
based on the assessment criteria of
the health and safety management
team and provide all units with thelist of employees with CVD risk forworking hours management basedon their level of CVD risk.

Health condition assessment throughthe health checkup every OctoberReassessment of health status isconducted in the Company’s annual
medical examination held every
October, and then appropriate
health improvement advice is given
by doctors

Implementation of healthmanagement and promotion
activities
1. In addition to the free outpatient
consultation and health consultation
services, we also provide sevenblood pressure meters and ﬁve scales
for employees to keep track of theirhealth condition at any time.
2 Regular health education on
chronic diseases, infectious diseases,
diet, exercise promotion.
3. A series of health promotion
activities related to physical fitness,
low-salt and low-oil diet, hiking, andothers are launched to improvephysical condition.

Zero Limit on Development
Taiwan’s automotive industry has a complete supply chain and internationally competitivetechnology and knowhow. For middle-aged and elderly workers to extend their career,
we established Brilliant Insight International Consultancy Service Co., Ltd. in 2012 to recruit
internal senior talents and develop them through the internal instructor training program
for them to become consultants in specific fields to continuously develop their expertise.
Currently, this has become a new stage for internal senior talents to start a second career.
For members who are about to retire of senior management and junior management,
after assessing the corporate development needs before their retirement, we interview
them to understand their retirement plan. Then, in consideration of their family care andtransportation needs, we match them with jobs at appropriate subsidiaries.
Additionally, when there are vacancies (job openings) in CMC afﬁliates or CMC suppliers,
we will ﬁrst inquire the willingness of senior employees and offer them the relevant educationand training to help them transfer to the new job smoothly. Through the preferential
separation/retirement regulations, we enable employees to arrange the tempo personal
career planning with greater flexibility and ease worries about a career move with lessstricter requirements and more favorable pensions than the regulatory requirements. We
also enable excellent talents that are difﬁcult to develop to ﬁnd a new stage for continuing
development.

Career Transition Outcomes for the Middle-aged and Elderly Employees (Unit: person)
Year

2020

2021

2022

Annual transitions

3

8

0

Accumulated transitions

32

40

40

Medical examinations
and classiﬁcation
Occupational disease
specialists from thecontract hospital
grade employees
based on the resultsof their special healthcheckup.

Level 1
management

Recordretention

Level 2
management

Healthinstruction

Unlimited competencies for employees

Level 3management

Follow-ups andexaminations
Level 4
management

Reporting

Reclassiﬁcation

Level 4
management

Construction
control/worker
redeployment

Continuous
tracking andmanagement

Assistant Managers/
Team Managers
Lead worker teams.

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability

Excellent
Governance
Proactive
ActionOnsite Leaders
After meeting the fundamental
requirements, leaders begin tolead other workers.

Reporting

Sustainability
Commitment
from theChairperson

Innovative
Technology
Sustainable
Value

Base-level mechanics
Start from the base levelon the arrival for thoroughfundamental training.

Special Health Classiﬁcation Flow Chart

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Project Managers/
Department Managers
Direct large corporate
projects

Circular
Reduction
Safeguarding
Environment

Consultants (Brilliant InsightInternational)
I am older, but I am
professional!Career
extension for middle-aged
and elderly employees.

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix872022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

5.2 Attraction and Retention: Diversifying beneﬁts and remuneration
5.2.1 Recruitment Diversity
In consideration of the increasingly severe competition in Taiwan’s talents market, the demand for technical talents andtransformation of new strategic development, apart from continuously reviewing and optimizing the recruitment plans, we also
developed the “talent recruitment indicators” for the recruitment process in 2022 to enhance recruitment efﬁciency and talents
quality.

CMC Talents
Four Aspects of the
Recruitment Policy

Performance in 2022
• Apart from declaring compliance with internationally recognized human rights regulations and principles, including
the UN’s “Universal Declaration of Human Rights” and “Global Compact”, the “ILO Conventions” , and others, we
also complied with the labor laws and regulations, eliminated human rights violations, and signed the “collective
bargaining agreement” with the labor union that covers all CMC employees.
• There was no forced or compulsory labor in 2022.
• Covered all groups in our employee system• Hired 20 interns in the summer internship program, one intern in the regular internship program, and one intern in theuniversity-industry collaboration program.

0.85%
0.80%
0.75%
0.70%
0.65%
0.60%

Ratio of Employees with Disabilities in Past 3
Years

Prioritization of local residents
We prioritize employment for residents in local
communities of our business locations, fulfill our
corporate social responsibility, and hire persons withdisabilities at the legal quota.

ESG
Highlights
0.83%

0.77%
About CMC
0.68%
2020

Fair and equal employment
The Company employs talent from all sectors andrecruits employees through the fair and equal
selection procedure while strictly adhering to thegovernment’s labor and human rights regulations.
Personnel engaged and employed are notdiscriminated against in terms of salaries, performance
evaluations, and promotion opportunities on the basisof race, class, language, thought, religion, politicalparty, nationality, place of birth, gender, sexual
orientation, age, martial status, appearance, facial
features, disability or past union membership

Sustainability
Commitment
from theChairperson

Compliance with labor laws
• CMC observes the regulations of the “Labor
Standard Act” by not hiring children below 15
years of age and not forcing or compellingpersonnel to engage in labor against their will. The
Company only accepts job applicants at or over
the age of 16. Hired employees must provide theiridentiﬁcation documents for veriﬁcation to ensure
the employment does not violate labor laws
• Suppliers that comply with the regulations of
the “Labor Standards Act” or the human rightsrelated laws of countries where they operate in are
selected to protect and respect human rights

2021

2022

Fostering of industrial talent• To attract students with professional competencies
to CMC, we implement the “Sprout Cultivation
Program” every year to hold on-campus
recruitment activities at key universities• Summer and semester internship programs
are developed to enable students to have an
early understanding of the environment in theautomotive industry, experience working anddiscover prospects in the industry

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

882022 CMC Corporate Sustainability Report5.2.2 Well-Planned Remuneration and Retention Action

Number and Salary of the Full-time Non-managerial Employees (Unit: NTD thousand;person)Number of employees

1950

1921

1856

Average salary

1110

1067

1111

Median salary

984

1007

994

2020

2021

2022

“Salary information of non-management full-time employees” reported to the TWSE; information posted on the Market
Observation Post System (MOPS) by the end of every April.

Female-to-male Remuneration and Reward Ratios Over the Last Three Years
Managerial positions

1.02

1.01

1.01

1.05

1.04

1.05

Non-managerial
positions

0.90

0.94

0.92

0.90

0.93

0.91

2020

2021

2022

Remuneration ratio (female/male)89

2022 CMC Corporate Sustainability Report

2020

Salary Adjustment
Structure

Salary Package

Competitive renumeration policy
We offer a competitive remuneration system to attract and retain outstanding talents togrow with the Company. The median salary for our full-time non-managerial employeesranks among the top 15% of listed automotive manufacturers. We are committed to
becoming a happy business that guarantees a worry-free career for employees andencourages them to achieve corporate operational goals.

2021

2022

Reward ratio (female/male)

Base pay

We approve
employee salary
based on thepast experience,competencies, andthe value of theposition of employees.
All salaries are higher
than the minimum
wage as stipulated in
the Labor Standards
Act. We ensure equalpay for equal work
regardless of gender,
age, nationality or
race.

Bonuses forthree major
festivals

Bonuses (equal
to at least 2
months of salary)are granted at
Spring Festival,
Dragon Boat
Festival, and
Mid-Autumn
Festival

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Additional
annualbonusesMarket salarylevel

They aredistributed
depending on
the Company’s
operational
performanceand employees’
personal
performance

We take market
salary surveys
into account for
irregular salarylevel adjustment
to keep up witheconomic trends

Performancestandards

Employees’salaries areadjustedaccording to
the Company’s
operational
performanceand their
personal
performance

Salaryadjustment
for promotion

Employees
will receive araise after apromotion to
encourage
excellent talents.

ESG
Highlights

Talents Retention Action Plan
In 2022, the Company’s new hire rate and turnover rate were 14.81% and 14.81%, respectively.
We performed follow-ups with certain groups where the termination of employment took place
the most frequently and drew up and implemented a talent retention program. The action planfor 2022 is as follows.
Assistance to New
Employees in Adaptation
To have a grasp of the satisfaction of
new employees with their jobs andachieve the early warning of theiradaptability, we conducted heartto-heart talks and questionnaire
surveys with new employees (withthree or less years of service) in 2022 tounderstand their opinions and situationsin the organization in advance. If theemployees encountered adaptability
issues, they would be reported to the line
managers of the employees in a timely
manner to facilitate their communication
with the Company.
Incorporation of Managers’ Opinions
into the Development of the Company’s
Future Policies
As surveyed, employees with ﬁve toten years of service terminated theiremployment with the Company
mainly due to “the Company’s future
development” and “limited salary
growth”. For such group of employees,
all managers were required to further
convey the Company’s vision anddevelopment prospects and associatethem with the current jobs of theemployees.

Sustainability
Commitment
from theChairperson

Employee
Satisfaction Survey
In 2022, we optimized theemployee job satisfaction survey byincorporated the organizational/
corporate culture into the survey tounderstand employees’ feeling about
the organizational culture. Based on
the survey results, we reshaped our
corporate culture after integratingwith the corporate development
direction.

Keeping the Salary Level in Line
with Market Conditions
For posts and grades with lesscompetitive salaries, as comparedto the market salary level, we
designed relevant systems andincentive improvement plans to be
implemented in 2022.

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

5.2.3 Beneﬁt Diversity
In 2022 we were awarded the “Work-Life b Balance Award-Employee Care Category” from
the Ministry of Labor. Our achievements included the promotion of a ﬂexible work system,
friendly measures for childcare support, provision of employee assistance at different stagesof life, and optimization of isolation leave and care during the pandemic to promote thephysical and mental health of employees.
In addition, to help employees take care of their families, we have formulated several leave
programs such as “paid custom leaves”, including leave for the employees to accompany
their children on their ﬁrst day of school and wedding ofﬁciant leave, to allow our employees
to take part in all the growth stages of their children. The Company has a kindergarten and anafter-school care center in place to address our employees’ needs for nursery and childcare.

CMC places great importance on physical and mental care and welfare systems for our
employees. Our employees are provided with a diverse range of beneﬁts and care measures
to meet their needs at different life stages. In response to the pandemic in the past few
years, we have formed an emergency response team with all department heads and held
meetings every day to capture the pandemic’s status to build a health protection net for
employees.
Invested in

NT$36,109,268

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Sustainability
Commitment
from theChairperson

Care and Beneﬁts 2022

Employee Health Promotion Plans
To implement the employee health promotion plans, we set up a responsible unit and form a cross-functional promotion team to create a comprehensive and individualized
healthcare system.By safeguarding and implementing health and safety through employees, equipment, the environment, and related activities, we reduce hazards and risk
factors, prevent industrial safety accidents and overwork incidents, and promote the physical and mental health of employees so as to build a true healthy and happy workplace.

ESG
Highlights

About CMC

Comprehensive Sports
Facilities• Sports and leisure center: An
indoor swimming pool, tennis
courts, indoor basketball courts,
badminton courts, a gymnasium,
aerobic rooms, and a audio-visualroom• In addition to in-house
sports facilities, we organize
comprehensive sports, fitnessclasses and form various employee
sports clubs, provide themwith budgets, and encourage
employees to form their own clubs.
Currently, there are over a dozen
sports clubs, such as the softballclub, yoga club, and others.

90

Exercise for all• We encourage employees to do
a 10-minute warm-up before workand have their managers invite
them to hiking activities after work
• Through the continuous executionof health promotion activities,
at least ten employees haverecovered from metabolic
syndrome. Employees participatingin the activities have lost weight byover 400 kilograms in total• Promote physical fﬁtness tests• A sports app is introduced in sports
and carnival games• Employees form teams (of 3-10people) to go on hikes through the
100 must-visit trails recommended
by Hiking Biji
• Over 80% of employees participate
in our online health promotion
activity and work more than 7500
steps per day for at least ﬁve daysa week2022 CMC Corporate Sustainability Report

Employee Dietary
Health• Employees are provided with awide variety of healthy meals,
including low-carbohydrate andhigh-protein boxed lunch designed
and promoted by our dietitians• Nighttime healthy boxed lunchordering service is offered when
the pandemic is severe• Organic vegetables arepurchased and transported
directly from farmers from tribes• Employees may enjoy healthy
and fresh organic vegetables bypaying NTD 7 per dish on threedays a week

Pandemic Prevention
Policies• Temporary meeting rooms are set
up to control the access of guests• Partitions are placed in offices,
meeting rooms and cafeterias• Remote work/workplace
separation is implemented• Fully-paid pandemic care leave/home rest leave• Helped employees purchaseepidemic control materials (facemasks,
alcohol, hypochlorous acid, home
test kits) and vegetable boxes.

Healthcare• Employees are provided with a free
medical examination on a yearlybasis. The Company conducts
follow-ups and management for thehealth of individual cases based on
their medical examination results• Occupational nurses and on-site
contract occupational medicine
physicians are engaged• Employee assistance programs(EAPs) are available to take care of
the physical and mental health of
employees• Annual medical examinations,classification management,
medical checkups for managers
are conducted• Preventive healthcare services andvaccination services are available• Free health center outpatient
services and off-site outpatientreferral services are offered• Massage services for stress relief andmedical care services are provided• Sphygmomanometers and AEDs
are widely accessible

Workplace of wellbeing• Care for middle-aged and elderly
employees - CMC Evergreen
Program for Three [Zeros]
CMC Evergreen Program• 5230 Happy Pregnancy Program,comprehensive care measures for
pregnant employees• CMC’s Wide-ranging Happy Leave
Program• Childcare services - A kindergarten
and an after-school care center• Introduced the Stay Fun benefit
platform to offer comprehensive
gifts each quarter. Employee canalso book various courses andactivities over platform, including
relaxing exercise, staff shopping,group shopping, stress-relieving
message, etc.
• Purchased two 7-ELEVEN smart
coffee vending machines and one
merchandise vending machine
to provide employees with more
food options during work.

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixHappy and Diversiﬁed Vacation
To help employees take care of their families and their jobs at the same time, CMC offers a variety of leave programs based on their needs at different life stages.
Custom leaves
To respect folk customs involving weddings,
funerals, and festivals, we have designed
the “paid custom leave”, including leave for
employees to accompany their children on
their ﬁrst day of school and wedding ofﬁciant
leave, enabling our employees to take partin all the growth stages of their children.
• A total of 51 employees beneﬁted from theleaves in 2022

Short-term summer vacation
A short summer break of 9-11 days is arranged for
employees to enjoy quality time with their children
during the school summer break.
• A total of 2,000 employees beneﬁted from theleaves in 2022

Flexible working hours
Our ﬂexible working hour systemallows employees to startworking from 7:00 to 10:00• A total of 850 employees
made an application in 2022

Extended paternity leave
To take care of employees after
their childbirth and ensure care andeducation for their children, theduration of paternity leave for male
employees is extended• A total of 26 employees made anapplication in 2022

Volunteer leave
Employees are provided with three daysof fully-paid volunteer leave every year
to encourage them to participate involunteering activities• A total of 280 employees applied forsuch leave in 2022

Birth Beneﬁts

Application rate

Reinstatement
rate

Retention rate

10%

73%

50%

Number of employees eligible to apply forparental leave (A)26133

Number of employees applying forparental leave (B)
7

6

13

Total
Number of employees who were to bereinstated in the reporting year (C)
7

91

23%

8

15

Number of employees applying forreinstatement (D)4Application rate (B/A)
7%

COVID-19 Leave
We offered different types of COVID-19 leave withpay better than the law to care about employees:• Isolation Leave: A total of 259 employees
applied for the leave in 2022.
• COVID-19 Family Care Leave: A total of 64
employees applied for the leave in 2022.
• Special Sick Leave: A total of 189 employees
applied for the leave in 2022.
• Home Recovery Leave: A total of 206 employees
applied for the leave in 2022.
• Paid COVID-19 Leave: A total of 235 employees
applied for the leave in 2022..

Sustainability
Commitment
from theChairperson
ESG
Highlights

Parental Leave Application in 2022

Total

107

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

7

11

Total
Number of employees who were reinstatedin the year prior to the reporting year (E)02022 CMC Corporate Sustainability Report

57%

88%

2

2

Number of employees who have been retainedfor one year since their reinstatement (F)0

Reinstatement rate (D/C)
10%

A: Total number of employees that were entitled to parental leave: Number of
employees with children under 3 years old at the beginning and the end of 2022
C: Total number of employees that returned to work in the reporting period:
Including the total number of employees that took parental leave in 2020 and due
to return to work in 2022, the total number of employees that took parental leave in
2021 and due to return to work in 2022, and the total number of employees that tookparental leave in 2022 and due to return to work in 2022.
D: Total number of employees applying for returning to work: Including the total
number of employees that applied for returning to work in 2020 and returned to workin 2022, the total number of employees that applied for returning to work in 2021
and returned to work in 2022, and the total number of employees that applied for
returning to work in 2022 and returned to work in 2022.
(D/C): Return to work rate = Total number of employees that did return to work
after parental leave / Total number of employees due to return to work after taking
parental leave*100(F/E): Retention rate = Total number of employees retained 12 months after returning
to work following a period of parental leave / Total number of employees returningfrom parental leave in the prior reporting period*100

11

Retention rate (F/E)
73%

0%

50%

50%

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixMaternity protection and various beneﬁt plans
CMC’s “childbirth care” aims to reduce the burden and stress of employees during pre- andpost-childbirth. We hope to create an environment where the employees are willing to givebirth and enabled to look after their children with no worries by allowing them to take careof their jobs and families at the same time and providing them with all-inclusive services for

Before childbirthMaternal healthprotection

Reserved parking
spaces• Reserved parking spaces near our office building, 100% antielectromagnetic wave and anti-radiation clothing, a reading
section with over 6000 books about pregnancy and parenting aswell as children's books, regularly added parenting magazines,
and well-designed breastfeeding rooms are available forpregnant employees.

Protective clothingfor expectant
mothers• In consideration of the safety of pregnant employees
using electronic devices, CMC provides them with
anti-radiation clothing designed for expectant mothers
that can deliver 100% shielding from electromagnetic
waves.

Apple Pregnancy
Card• Every pregnant employee receives an“Apple Pregnancy Card” to give theman understanding of which integrated
services and resources are offered by
the Company during their pregnancy.
To wish the employees a safe and easy
pregnancy while giving them extra nutrition
for improving the health of both the mothers
and the babies, they can get an apple
every week.

Parentingmagazines

Pregnancy Gift92

• After being informed of the pregnancy of employees, the Company
conducts hazard assessment and control for the employees ina proactive manner, arranges face-to-face appointments withoccupational medicine physicians for instructions, carries out risk
classification management, makes appropriate work arrangements,
and implements other physical and mental health protection measures
to ensure the physical and mental health and safety of pregnant
employees and postpartum employees with breastfeeding needs• CMC has endeavored to promote the maternal health protection
program. To protect pregnant workers, the program covers workers forthe period from the date of their reported pregnancy to their childbirth
as well as those who still need to breastfeed within a year after theirchildbirth. We change their work conditions (e.g. by adjusting theirworkload), adjust their working hours, and make job changes based on
the suitability suggestions of our occupational physicians• Free neonatal insurance services beneﬁted 23 employees in 2022

• CMC’s library and kindergarten have a reading section with over 6000
books about pregnancy and parenting as well as children’s books.
The Company subscribes to Baby&Mother; BabyLife; Education,
Parenting, Family Style; and other childcare and parenting magazines
for employees to borrow free of charge• Every pregnant employee will receive a cash gift for maternity of
NT$2,000 for each baby.
Beneﬁted 5 employees in 2022

2022 CMC Corporate Sustainability Reportchildbirth care, so as to help them maintain work-family balance. We continuously execute the“maternal care” program to offer supportive measures to pregnant employees, including not
only active maternal health protection measures, but also on-site reserved parking spaces for
pregnant employees, protective clothing for expectant mothers, pregnancy cards, child carebooks and magazines available for borrowing, and other thoughtful services.

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

After childbirth

Birth Gift

• A birth cash gift of NT$1,600 for each baby
Beneﬁted 38 employees in 2022

Childcare measures • We offer after-school childcare services according to the Company’s

calendar, employees’ attendance time, and their children’s holidays.
When working overtime on holidays is required, holiday childcare
services also available. About 200 employees are beneﬁted by theservice every year.
• The tuition for our kindergarten is cheaper than that for external
kindergartens. Our employees’ children are entitled to a 30% discounton the registration fee and a discount of about 10% on the monthly fee.
• For employees who are unable to send their children to CMC’s
kindergarten in Yangmei, we assist them in applying for a subsidy of
NTD 3,000/year for childcare measures (childcare centers) for children
under 3 years old

Afﬁliatedkindergarten• The Company established a kindergarten next to the office area in
1997. The kindergarten provides preschool education services forchildren between 2 and 6 years of age. To mesh with the working hoursof employees, the kindergarten is open for children from 7 a.m. to 7 p.m.
and provides childcare services that match the employees’ working
hours on both workdays and weekends. Since its establishment, thekindergarten has accepted the children of 827 employees• Benefits: If the children of employees attend our kindergarten frombaby class to senior class, the employees may save about NTD
116,160/child in monthly tuition and transport costs. If the children
proceed with their studying in the family-friendly care center, theemployees may save about another NTD 151,610/child

Family-friendly care • Since the opening in 2001, the after-school childcare center has
provided services for 168 children aged 6-12 years of employees.
centerAfter-school
temporarychildcare services
Thematic Summer
Camp• The services help employees maintain work-family balance. About 15
employees apply for the services per year
• The summer camp is planned in coordination with the employee’s
working hours, so that they can send their children to the camp before
work and pick them up after work. Apart from arranging the quality
time for employees to go to work and go home with their children,the camp also enables children to learn from doing through various
thematic activities.We plan a wide variety of themes for the summer
camps, such as the LEGO Robot Camp, Mortar Water Rocket Camp,
Game Experience Camp, Bakery Summer Camp, Basketball Camp,and Swimming Camp.With the camp activities and courses, we aim
to improve the harmonious interaction of international relationshipand train the physical strength of the children of employees andpromote family interaction.

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixEmployees Beneﬁts
Pension System

MeetupsFamily day, hiking activities, summer camps for employees’ children,
postcard sending activities, Mother’s Day and Father’s Day themed
activities, etc. are organized annually. The families of our employees
are invited to the events to improve their identiﬁcation with theCompany and thereby help retain excellent talentHigh-quality dormitory• The Company offers an employee dormitory with twin rooms/
single rooms (315 rooms for male employees/46 rooms for female
employees). The dormitory is equipped with central air conditioning
systems and provide free internet access via dedicated lines• Sports and leisure center

Diversiﬁed
transportation
services• CMC implements a deﬁned beneﬁt plan managed by the government in theretirement system in accordance with Taiwan’s “Labor Standards Act”. Pensions
are paid to employees based on their service length and average salary in thesix months prior to the retirement approval date. We contribute 2% of the monthly
salary of employees. For more information regarding the retirement system, pleaserefer to the “Post-employment Beneﬁt Plan” in p.153 of the annual report.

Deﬁned Beneﬁts

3.18%

Pension System

Contribution rate

NT$149,635,253
thousand(Provided by the Financial
Department)
Pension liability amount

Letter mailing and receipt services and bank services• Mailing and receipt services for personal letters are offered to employees• We work with two banks which provide bank services and relevant assistanceduring noon break to reduce daily hassles troubling our employees

LOHAS exercise
courses• Four types of group exercise courses are selected and offered afterwork on workdays every week. Employees are not only allowed toexercise with their colleagues in the Company’s activity center, but
are also able to choose the exercise course that best suits them fromthe courses meeting the exercise needs of people of different genders
and at different ages to move their bodies on a daily basis

Various clubs• We encourage employees to develop various interests. They haveformed 24 clubs on their own initiative, including skill-based clubs,
athletic clubs, art and academic clubs, and so forth. The employees
can make friends and develop interests through the clubs, thereby
achieving the aim of reducing physical and mental stress

Pandemic Care Assistance• We offer commute shuttle buses, company vehicles for business trips,
shuttle buses for employees to return to their hometowns, and cars for
renting at special prices at nighttime and on weekends. Employees
can rent the company vehicles to have a trip with their families on
weekends• There are ﬁve shuttle buses a day (4 for Yangmei and 1 for Hsinchu)

Sales promotions held by vendors• Invite suppliers to set up stalls at the employee canteen, offer staff discounts, andprovide convenient shopping channels for employees.

• At the beginning of the pandemic, we arranged in-house vaccination
service for employees to reduce the risk of crowd infection outsideof the Company. To take better care of employees in isolation at thepeak of the pandemic, we distributed the pandemic care kit, provide
medication, and made herbal tea for employees. We also arranged
the isolation ward in the employee dormitory to take care of health ofboth employees and their family.

Beneﬁts exclusive for employees and their family
Scholarships for employees
and their children, emergency
loans and aids are offered

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

Dependents are eligible for daily hospitalization beneﬁts under group insurance policies. Moreover, thedependents of our expatriates are entitled to coverage under casualty insurance, travel insurance andmedical insurance policies

Every year we organize events such as hikes, Family Day, Father’s Day, and Mother's Day. All events
include the family of employees to improve the family joy of employees.

In addition to offering the Labor Insurance and National Health Insurance and contributing the
sufﬁcient pension by law, we have also developed a well-established insurance mechanism that covers
group insurance, expatriate insurance, the International SOS and insurance.
2022 total insurance premiums NT$7,787,590, employee claims and allowances NT$6,345,286

Hikes: Due to the pandemic, hikes in 2022 were organized by employees. We also funded a total of
583 employees (family 173) to encourage the to exercise.

Excellent
Governance
Proactive
ActionInsurance coverage for family members: We also include the family members of employees in thegroup accident hospital in allowance of NT$1,000/day for the spouse and children of employees.
Employees are also entitled to a discount to raise the premium for their family, including lie insurance,
accident insurance, and cancer insurance. A total of 239 persons joined the premium raise for
expatriates and family.

Family Day: Online redemption for travel package tickets and gifts. Each person enjoyed anallowance of NT$2,000 for redeeming travel package tickets and gifts.

Circular
Reduction
Safeguarding
Environment

Coverage boost for expatriates and family: To increase the health and safety coverage for expatriates,in addition to the said insurance items, we also buy the accident insurance of NT$10 million and the
medical plan of NT$300,000 for expatriates, as well as the accident insurance of NT$3 million andmedical plan of NT$300,000 for their family. Additionally, family visiting expatriates overseas are also
entitled to the travel accident insurance of NT$3 million and medical plan of NT$300,000.We also
provide expatriates and their family with the medical assistance services and insurance plans throughthe International SOS to meet their needs for overseas medical and business travels.

Mother’s Day: Organized the “Flowers for the Good of Mothers” preserved ﬂower DIY activity with
156 participants
Father’s Day: Organized the “Show Your Dad” for 260 participants to show the photos of their family.
As the pandemic slowed, we organized the one-day Father’s Day Camp again to increase theopportunity for employees to maintain intimacy with their family. A total of 70 children joined thecamp as team assistants for them to understand the workplace environment of their parents andthe automaking process. We also hired environmental education instructors to help participants
understand nature, arranged physical strength courses for them, and helped them make presents
for their fathers to enrich the summer break life of employees’ children.

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix932022 CMC Corporate Sustainability Report5.3 Training and Development: Optimizing competencies through complete learning

CMC Five Training Systems

5.3.1 Talents Development
To improve workforce quality and cultivate talents for future corporate development, webuild the training center to integrate the double goal of “corporate development” and“employees satisfaction” to train professional talents, develop personal potential, andestablish a learning organization to combine corporate and individual growth.
We spare no efforts in labor and resource investment in talents development, aiming to build
a continuous and comprehensive learning environment. Through the ﬁve training systems,
including the new employee training system, vocational training system, management
training system, professional training system, and project training system, we depict thelearning roadmap of employees and develop the competencies we require in employees toclosely combine employee growth with the future corporate development.

Project training system

New employee training system

Optimize thecross-departmentcompetencies of
employees throughprojects.

Provide suitable training andguidance for new employees
to help them fuse with the
CMC family.

Professional training
systemVocational Training System
Design competency
training courses forthe required corecompetencies of all
employees at CMC.

Professional
competencies
speciﬁc to eachdepartment.
Management
training system

2022 Talent Development Project

About CMC

Digital transformation and optimization of performance management

Digital Transformation and Optimization of Remuneration System

Stage 1
(Aug-Oct 2022)

VisionBlueprint for
Corporate
Sustainability

Internal

Stage 2
(Nov-Dec 2022)
Drew up e-forms anddiscussed educationand training planning,
implemented educationand training, and optimize
system form connection.

Sustainability
Commitment
from theChairperson
ESG
Highlights

Management competencies
required for supervisors andofﬁcers.

Reviewed the existing
performance management
system, including
needs communication,
senior management
interview, and collectionof the difﬁculties andrecommendations of
middle management tofocus on the performancepolicy and support
measures.

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Project Planning(2023)
Continue with theachievements of thecurrent project, organize
training for department
head with highperformance targets, set
performance targets for
operations and team/section chief for educationand training.Promote
top-down performance
management optimization.

Project Planning(2023)
Continue with formtarget connection,
optimize theperformance
management system,and educationand training forthe performance
management system.

By linking to digital transformation, we reorganize the performance management
systemnculcate the success factors of digital transformation in employee experience,system, and culture.

Establish career domains
and career levels, deﬁne
employee development
paths, offer various
development options,and externalize efforts
and results.

External
Recruitment andappointment, offer
comprehensive salaryplans with greater
ﬂexibility, enhance CMC
salary competitiveness,and strengthen theencouragement effect of
the bonus system.

Innovative
Technology
Sustainable
Value

Project Planning(2023)
Organize executive andemployee conferences
for employees tounderstand the transition
from the old system tothe new system within theorganization.

Project Planning
Review systemtargets every year
and develop acalibration systemmeeting theorganizational
system.The new
system will go live in2023.

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development

Build a flexible, comprehensive salary system that meets market expectations and theneeds of different functions, enhance the organization’s retention and recruitmentcompetitiveness, and attract and retain excellent talents required for corporate
sustainable development.

Give Back toSocietyin Every Way
Possible

Appendix

942022 CMC Corporate Sustainability ReportAchievements in Education and Training 2022

Education and Training 2022

In consideration of the legal and regulatory requirements, corporate strategicdevelopment,
and employee needs, apart from progressively improving the quality of talents through thefive training systems, we also implement a range of leaning culture promotion activities,
including the study group, business exchange, e-newsletters, talents development pointcollection bonus, charging talks, new e-learning system, and library publicity activities.
Total Training Outcomes Over the Last
Three Years
Total sessions held

40080
22299
2881

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

43744
18396
2964

49091
22570
1445

Organized

1,445

sessions in total

Achievements in Education andTraining 2022 (by job type)New employees

Number of trainees

On-site technical personnel

Total training hours

Construction/managerial personnel

Training hours up to

Up to 22,570 participants

49,091 hours

20

1022

35

1022

17428

63

265

2867

3

138

1253

11

Entry-level managers

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

2020

2021

2022

Annual training sessions

Annual number of trainees

Average training hours
per person

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix95

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

5.3.2 Performance Development
Performance Evaluation Mechanism

Excellent Employee Recommendation and Assessment Process

To live up with the CMC’s business philosophy: “harmony, innovation, top, and sustainability”(HITS), we add a departmental development plan of 3-5 years to the annual strategy of eachdivision. By setting and regularly reviewing departmental targets, we integrate our businessphilosophy into sustainable development and practice them in the routine work.We establish
the performance evaluation mechanism by job type. After initiating the department policy
and various job plans based on the annual strategic targets undertaken at the beginningof the year, indirect units below grade 6 sets their own targets and follow up on and review
them periodically to ensure the effective connection of the job duty of employees and thecorporate performance.

To encourage employees to make excellent performance and set up examples, we beganorganizing the annual model employee selection and commendation in 1988. One out of
every 70 union members will be nominated by each unit as the candidate for the evaluation
board formed by the union board to review the candidates and determine the annualmodel employees based on their performance. In 2022 a total of 29 employees wereselected as model employees.
Excellent Employee Recommendation
and Assessment Process

In 2022 we completed performance evaluation on all CMC employees.
Employees still in service on December 31 in the year, excluding fixed-term contract
employees, and employees starting service or returning to work for less than 3 months are
not included in the performance evaluation.

Number of Candidates
Based on the number ofmembers of the labor unionin January of the year (2,004
in 2022), one out of every 70
members.

Performance Development (Performance Management System)

Organization

Carrying happiness and delivering touching
warmth with new forms of convenienceand power,
we endeavor to become the most reliable
diversiﬁed mobile partner.

Function
Individual

Two-wheeler

Commercial
vehicleCorporate strategies

Work at the plant for at least
one year, receive grade A andabove in the performance
evaluation in the past 2 years,
and fully demonstrate various
core competencies: innovative
thinking, proactivity, customer
focus, and executability.

VisionCandidate Nomination

Evaluation Mechanism
The evaluation board formedby the union board will accesseach candidate and determine
the model employees of theyear based on the candidates’
performance in all evaluation
items.
ValuesSustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

Each unit nominates candidates
by ﬁlling in the “Model Employee
Nomination Form”.

Business philosophy

Passenger
vehicleEligibility

Open Commendation
Model employees will becommended openly.

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment

Strategies for functional
divisions

Safe
WorkplaceExcellent
Development

Personal work goals

Give Back toSocietyin Every Way
Possible

Automatedguided vehicle
Competencies

Appendix

962022 CMC Corporate Sustainability Report5.4 Safe Workplace: Enjoying the experience of work satisfaction
5.4.1 Occupational Safety and Health Management
Occupational Safety and Health Improvement Mechanisms and Management Approaches
In order to facilitate and improve safety and health management for equipment, contractors, ﬁreﬁghting, emergency responses, and working environments/premises, CMC has formed a
professional safety and health organization and created a safety and health inspection system.

• To ensure the smooth promotion and implementation of safety and health work,
we have established the “Environmental Safety Department” and had a “Health &Safety Department” in place at each plant with the aim of achieving zero hazards• We have set up the “Occupational Safety and Health Committee” at different
levels, including corporate, departmental, and sectional levels, as shown below.
Take the corporate committee for example, it establishes the corporate OSH
policy, reviews the results of various OSH tasks, promotes occupational safety,
prevents accidents, improves the workplace environment, and maintains
employee health. The labor representatives holding 34% of the seats are sent by
the union.
• Our occupational safety management system applies to all CMC businessconducting venues (Yangmei Plant and Hsinchu Plant) and covers all employees(93%) and non-employees (7%, service and construction contractors).

Level

Meeting Frequency

One meeting every Management
three months
Representative

Corporate

Departmental

Chair

Indirect
Departments

One meeting every
three months

Department
Head

DirectDepartments

One meeting every
month

Department
Head

One meeting every
month

Section Chief

Sectional• In an effort to implement occupational safety and health control,
the Company take a proactive approach to carrying out a wide
range of safety and health inspections in contexts that different
types of employees may encounter in the workplace, e.g.
management by having top management walking around, gradedsafety and health inspections by managers at all levels, professional
audits by the safety and health unit, patrol inspections by all units,
etc.. Any deﬁciencies are tracked until relevant improvements are
made to prevent the occurrence of incidents

CMC OSH Core Value

Sincerity,
Accountability

OSH Core
Value

Responsible
safety andhealthorganization• As CMC takes equipment safety very seriously, the “Safety and Health Procurement
Management Guidelines” have been established to make sure the machinery equipment tobe procured is designed to eliminate its potential danger during the procurement planning andthereby ensure its inherent safety and prevent incidents in case of operating errors or equipment
failures• Potential hazards in existing equipment are identiﬁed through the mechanisms of reporting andpatrol inspections by on-site employees. Safety mats, safety bolts, photoelectric safety devices
or other interlocking devices are used, when necessary, to avoid potential hazards resulting
from man-made factors

Equipment
intrinsic safety
implementation
andimprovement

OSH system andcore value

Fire safety
equipment
management

Fullparticipation

Exempt fromhazardWe protect employee safety and health and improve the safety andhealth performance of partners. In accordance with the Occupational
Safety and Health Act, we implement occupational health and safety(OH&S) management systems (ISO 45001:2018/CNS 45001:2018) inYangmei Plant and Hsinchu Plant and pass the third-party certiﬁcation
by BSI (ISO 45001:2018/CNS 45001:2018). We adopt scientific andsystematic documentation management systems along with the PDCA
management principle, implement safety and health management
initiatives, carry out relevant hazard prevention measures, establish
management regulations, and conduct internal and external audits
to reduce safety and health risks and boost relevant performances
continuously. We also promise that we will make improvements in thefollowing directions.

• We have developed the “Fire Safety Equipment Management Rules” that require that a ﬁreprotection engineer shall be commissioned regularly on an annual basis to inspect ﬁreﬁghting
equipment and report the result. Also, all units are required to perform regular checks on all
ﬁre safety equipment and immediately notify the maintenance unit of any found equipment
defects for inspection and repair, allowing the equipment to be able to function well in case ofﬁre• To prevent ﬁre in advance and ensure the safety of operators, all switches and lights at premises
where highly ﬂammable substances are stored and used are explosion-proof and there are also
automatic CO2 ﬁre extinguishing systems installed

The Company’s occupational safety and health target achievement rates in 2022 and targets for the following year are shown below:

Achievement in 2022

Targets in 2023

97

Accomplishment rate 100%

Accomplishment rate 90%

Accomplishment rate 100%

Improvement rate for deﬁciencies
found in safety and health inspections

Achievement rate for annual safety
and health targets and management
programs

Accomplishment rate of abnormal workload follow-up on
high-risk cases

Accomplishment rate 100%

Accomplishment rate 100%

Accomplishment rate 100%

Improvement rate for deﬁciencies
found in safety and health inspections

Achievement rate for annual safety
and health targets and management
programs

Accomplishment rate of abnormal workload follow-up on
high-risk cases

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixHazard Identiﬁcation, Risk Assessment and Classiﬁcation Management
CMC places great importance on the safety and health of employees in the workplace. The“Safety and Health Risk Management Guidelines” have been established for hazards andrisks that may occur in the workplace. We also carry out hazard identiﬁcation, risk assessment
and classiﬁcation management for routine and non-routine operations in the workplace toprioritize high-risk hazards for making improvements and control risks, thereby offering theemployees a safe working environment. The Occupational Safety and Health Committee
convenes regularly to review the effect of improvements made and keep ﬁnding chances toimprove our occupational safety and health management systems. Furthermore, to ensure

the effectiveness of hazard identiﬁcation and risk assessment, relevant personnel shall receive
regular hazard identiﬁcation and risk assessment education and training every year and may
take up the work only after they are qualiﬁed. In accordance with the hazard identiﬁcation
and risk assessment results in 2022, there was one Level 1 high-risk hazard, accounting for 0.01%(Level 2: 0.01%; Level 3: 13.43%; Level 4: 75.46%; Level 5: 11.09%), and piercing, cut, scratch,electric shock, and fall are common lower-risk hazards.

Contractor Safety and Health Management
We value the safety and health of contractor personnel at work. Hence, we establish the“Contractor Management Plan” and the “Guidelines for Work Safety Implementation
Permits”. We also develop the contractor construction application system and include
the number of contractor personnel, the equipment used by contractors, the operating
environment and hazard factor notification, coordination organization meeting minutes,
education and training records, and contractor insurance data in system management. For
construction projects with more severe hazards (e.g., fall, ﬁre, electric shock, and cut), we
conduct onsite inspection from time to time and unannounced audits to prevent violationof the occupational safety and health regulations and occupational accidents, supervise
contractors to maintain occupational safety and stay alert, enhance the effectiveness ofaccident precautionary actions, and lower the operational risk.
In 2022 there was no occupational accident occurred to contractors. However, we foundSource:Monitoring and Measurement Criteria

7 offenses of the Company’s OSH regulations in the irregular onsite contractor construction
safety inspections. We issued the relevant tickets in accordance with the “Contractor
Management Plan” to ﬁne offending contractors with a total of NT$55,000. We also requested
the site directors of contractors to explain the causes of offenses and propose corrective andpreventive action for the audited defects.
In order to maintain good working environments, our plants commission the “Industrial Safety
and Health Association of the R.O.C. (Taiwan)” to carry out working environment monitoringat premises where operations involving organic solvents, dust, noise, heat, and other factors
signiﬁcantly endangering health are conducted on a half-yearly basis in accordance withthe related regulations specified in the Occupational Safety and Health Act. The results
are used as a basis for executing relevant preventive measures and developing operating
standards for safety and health.

Monitoring and Measurement Results

Protective Action

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

Environmental
monitoring data in
2022(divided into H1 and
H2)

Dust:
1. Respirable dust: 5mg/m3
2. Total dust 10mg/m3
Noise:Subject to “§300 of the Regulations for Occupational Safety and Health
Equipment and Measures”
Organic Solvents & Speciﬁc Chemical Substances: Subject to the statutory limits
for the permissible concentrations of organic solvents/speciﬁc chemicals
Working in hot temperatures:
1. Regarding working in the boiler room, in accordance with Article 8 of theRegulations for Implementation of Labor Work Environment Monitoring, as wetbulb globe temperature (WBGT) time-weighted average (TWA) for working in
the boiler room is below the limit set by the competent authorities, there is noneed for the WBGT test once every three months. However, we monitor thetemperature once every six months.
2. In accordance with the working hours and break for working in hot
temperatures, as the workload of the boiler room is minor, the WBGT-TWA is
below 30.6, continuous operation is allowed.

Respirable dust/Total dust: Wholly
compliant
Noise: Wholly compliant
Organic solvents/speciﬁc chemical
substances: Wholly compliant
WBGT: Wholly compliant

General management measures:
1. Regular annual work environment monitoring and operation management
2. Special operation health checkup each year
Dust:
1. Using local exhaust ventilation systems
2. Wearing respirators correctly
Noise:
1 Developing a hearing protection plan
2. Wearing ear protectors correctly
Organic Solvents & Speciﬁc Chemical Substances:
1. Equipment automation, separation, remote-controlled operation
2. Using exhaust ventilation systems to prevent contaminant dispersion
3. Respirator education and training and regular annual
qualitative ﬁt-testing
WBGT:
1. Install ventilation devices and fans in the interior.
2. Provide sufﬁcient drinking water.

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix98

2022 CMC Corporate Sustainability Report5.4.3 Promoting Safety Culture

5.4.2 Statistics on Occupational Accidents
To ensure effective immediate emergency handling and subsequent investigation andrecording in case of accidents incurred by employees, we have the “Accident Handling andInvestigation Procedures” in place. If an accident occurs, the concerned unit shall notify the
Health and Safety Division and the President immediately. For material accidents, the Healthand Safety Division shall make a report to related competent authorities within 8 hours. In
addition to making immediate improvements for the accident, hazardous identiﬁcation andrisk assessment shall be re-conducted for the concerned operation to check if the risk grade
is appropriate. Further and better precautions are then taken in the hope of minimizing
the risk. After detecting workplace conditions that may lead to work-related injury or workrelated ill health, employees may leave the scene voluntarily and report to the supervisor totake action afterwards. More importantly, employees will not be disciplined for leaving workin this manner.
Through the well mechanism control, there were 6 recordable work-related injuries in 2022
(excluding 20 commuting trafﬁc accidents). The main causes for the trafﬁc accidents (falls)
included not keeping an eye on road conditions, not maintaining a safe distance, andhuman error. To further remind employees to keep themselves safe, further information
dissemination and education about keys to safe driving are conducted at Occupational
Safety and Health Committee meetings, morning meetings, and education andtraining. In addition, in 2022, none of our employees incurred occupational diseases andno occupational disasters, occupational fatalities or diseases happened to the nonemployee workers and contractors directed or supervised at the workplace.

3933664

34872.5

Total number of working hours of CMC
employees in 2022(Note 1)

Total number of working hours of
non-CMC employees in 2022

Emergency Response and Management
In an attempt to respond to all types of emergencies in an appropriate manner andstrengthen our employees’ first aid and emergency response capabilities, we haveestablished the “Emergency Response Plan Management Guidelines” and “OperatingStandards for Emergency Responses”. All units set up their emergency handling team anddraw up relevant countermeasures based on operations and environmental conditions andperform regular drills to be familiar with the emergency response steps in hopes of reducing
damages and limiting personnel and equipment losses in case of an incident. Currently there
are 10 automated external deﬁbrillators (AEDs) in two CMC plants. In addition to one AED
equipped in the inﬁrmary of Hsinchu Plant, the other nine AEDs are equipped in Yangmei
Plant. In 2022, we hired experts to give four training sessions on cardiopulmonary resuscitation(CPR) administration and AED use for 238 personnel, including personnel of AED locations,safety and health staff, first responders, and onsite supervisors, for every staff member tooperate and practice CPR administration and AED use.

About CMCCPR and AED Education and Training Results Over the Last Three Years
Number of sessions

Occupational Accident Statistical Item

Proportion

CMC
Male

FemaleMale

Female

0

0.464

0

0

Injury Rate (IR)Total

Occupational Disease Rate
(ODR)

Proportion

0.054
0

Total
Proportion

0

0
0

0
0

170

0

0

Lost Day Rate (LDR)
Total

Work-related Fatalities

Number of
Fatalities

19.93
0

Total

99

2022 CMC Corporate Sustainability Report

0
170

0

0

0
0

52

4

2

238
(3 sessions were canceled dueto the pandemic)

4

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
Action

2020

0
0

249

Number of participantsContractors

Sustainability
Commitment
from theChairperson
ESG
Highlights

CPR and AED training for 238 personnel for each member to practice onsite.

Total hours of work = 238 days (2022 direct unit calendar) x 2066 persons (total number of employees) x 8 hours = 3,933,664
hours.

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

2021

2022

Occupational Health and Safety Education and Training
Every year we establish the safety and health education and training plan to enrich thesafety and health professional knowledge for employees and contractors.We implement
workplace health management and health protection, arrange health talks, and prevent
and assess disorders triggered by abnormal workloads in all plants.Additionally, Hsinchu Plant
offers general occupational safety and health on-the-job training, training on operation
with special hazards (operators using cranes for slinging operations, operator of ﬁxed cranes
with a load of 0.5-3 tons and operators forklifts with a load of over 1 ton) and on emergency
response (ﬁre, earthquake, and chemical leakage). A total of 22 courses were organized for
2,508 personnel.Hsinchu Plant was also awarded the “Excellence in OSH Implementation”,
the only one plant in Hsinchu County to receive this citation.

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixHealth service management services
To take good care of the health of employees, we have established the “Employee HealthManagement Regulations”. Apart from offering health checkups (once a year) better thanthe legal and regulatory requirements, we also implement graded health management on
employees based on the checkup results. We also arrange responsible nurses to follow up
on the health improvement of employees and occupational medicine specialists to assess
the need for job accommodation to provide a reference for the OSH Office to assist in
job accommodation. With the aim of reducing potential health hazards in the workplace,Management
Item

Process Management
Regulations

Assessment Target

Assessment
Frequency

Improvement Measurescontracted occupational medicine physicians are engaged to provide on-site medical
services and inspect the working environments at our plants together with our safety andhealth personnel and nurses to identify and eliminate occupational health hazards.
Moreover, to take care of contractors and resident personnel, we offer healthcheckups (together with CMC staff) to resident personnel of the employee canteens. ‘Additionally, apart from free consultation and post-checkup follow-up services, the inhouse outpatient clinic also provides free medical services for contractor personnel, such as
consultation, checkup, wound dressing.
Accumulated Ergonomic Improvements Made

Number of improvements

Ergonomic
Hazards

Excessive
workload

MaternityProtection

Workplace
Violence

Ergonomic Hazard
Prevention Plan

Disorders triggered byabnormal workloads
prevention plan

Maternity HealthProtection Plan

Workplace ViolencePrevention Plan

Once every three years
for onsite units, and one
musculoskeletal symptoms
survey every year.

For employees with threeor more anomalies related
to metabolic syndrome
as shown in the checkup
results, we apply the
Framingham risk score (FRS)
to predict their CVD risk
level.

The date of pregnancy
report until one year after
delivery.Breastfeeding one
year after delivery

When employees ﬁlea workplace violencegrievance

Once ayear

Once ayear

Sequence of improvement:
Engineering improvement,
administrative improvement,
health management.

Prepare a list for
management; implement
health management, healthpromotion, and health followup; and arrange workplace
relocation based on theassessment of the occupational
medicine specialist.
Job accommodation or work
time reduction.

2022
Environmental, Social &Governance

Safe Workplace
Excellent Development

Accumulated improvements

523

633

748

826

887

1000

85

110

115

78

61

113

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

2017

Implementonemployees
withpregnancy
and after
delivery

Change work conditions (e.g.,workload adjustment), work
time adjustment, and job
accommodation based onthee assessment and adviceof occupational medicine
specialist.

Workplace Gender Equality

Online Women Self-Defense
Skill Course

Subject toindividual
grievance

Take action based on theinvestigation results and prevent
recurrence. Job adjustment
or other management
approaches. Report tothe police when involving
personal safety. Impose
related disciplines based on
the work rules. Arrange legal
consultation, counseling, healthinstructions by occupational
medicine specialists, medical
assistance, and contact thevictim’s family as necessary.

2018

2019

2020

2021

2022

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionTabletop Game

Hire professional Chineseboxing coaches to teachcommon self-defense skills.

Allow employees to understandthe diversity and compositionof “home” through the “HomePlay” tabletop game to inspireviews and ideas.

41 employees signed up to

51 employees signed up to thethe course.

game.

Gender-Friendly Design
Competition
Organize the “Gender-Friendly
Design Competition” to enhance
the gender equality awarenessin employees and encourage
employees to think about themeaining of respect throughdifferent angles so as to build aworkplace with gender equality.

17 employees contributed
works to the competition.

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

100

2022 CMC Corporate Sustainability Report

6

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

6.1 Social Inclusion: Finishing the sustainability
roadmap together
6.2 Urban and Rural Sustainability: Safeguarding
society with cars
6.3 Indigenous Development: Regional
revitalization with the Indigenous Dream
Project
6.4 Knowledge and Education: Ingraining andtalents development

Give Back toSocietyin Every Way
Possible

Sustainability
Commitment
from theChairperson
ESG
Highlights

Achievements and Performance in 2022
Bu Bu Sharing subscribers 19,608 persons
Accumulative shuttle mileage 54,800 km

Internal volunteers and contractors
Participation in coastal clean-ups andAbout CMC

Accumulatively donated 12 Happiness Guardian vansto remote townships across Taiwan to travel a total of

319,091 km

Vehicle Maintenance Service Tour 856 vehicles

mountain clean-ups 25 sessions

Material
topic

Volunteers involved 2,122 persons
Volunteered services 5,857 hours

VisionBlueprint for
Corporate
Sustainability

Tire Service Check

Innovative
Technology
SustainableValue

126 vehicles of children’s welfare organizations
returned to CMC for the tire service check

Although there was no material topic corresponding to this chapter in 2022, through long-term engagement in social welfare, we will continue to create the common
good through collaboration with society based on our core automotive competencies.

Core Vision and Commitment
Starting out as a commercial vehicle manufacturer, we have been considering how tosolve social problems with our automotive competence and so to realize the SDGs. Apartfrom proactively establishing communication channels with external stakeholders throughthe daring use of corporate resources, we reshape a social welfare implementation modeland lead CMC employees towards a future of common good in society by integrating
the innovative thinking of the automotive industry with the ESG concept.We also hope tocollaborate with all parts of society to create a beautiful future where social inclusion andvalue sharing are realized.

Strategic Goal

Continuously implement social
inclusion projects to distributecorporate resources to every
corner of society

Short-term

Develop automotive talents and build areciprocal positive cycle through social
inclusion projects

Foster a social corporate culture
to ingrain volunteering in CMC
operations

Medium-termLong-term

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

101

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

6.1 Social Inclusion: Finishing the sustainability roadmap together
6.1.1 Performances in Social Inclusion
Upholding the brand spirit of “Starting for Happiness” and the development strategy of “urban and rural sustainability, we connect with the SDGs and implement ESG to promote remotetownship development so as to effectively bridge the urban-rural divide.
Realizing Rural Transportation JusticeCore
Competence

Education

Starting for
Happiness

Allocate resources to help develop
local shuttle service in Hualien andTaitung to finish the last mile or ruraltransportation.

GivingBack to
Urban
and
Rural
Areas

Vehicle Maintenance Service Tourfor Rural Vehicle Safety

Low-Emission Transportation
Network for Offshore Islands
Provide low-emission vehicles,
such as the eVERYCA EV andeMOVING e-scooters, for offshoreislands to reduce emissions fromlocal travels.

Strong Support
for Indigenous
PeopleDevelopment
Strategy
Urban-Rural
Sustainability

Achievements and Amount for Social Inclusion 2022
Investment in communities

Charitable activities

Money invested: NTD 19,242,236
Volunteers involved: 552

Money invested:
NTD 4,521,807

49%

Investment in communities

Volunteers involved: 4

Expenses for volunteers: NTD 621,900

Expenses for volunteers:
NTD 6,400

Total 100%
Amount:NTD

39,248,327

Commercial activities

Volunteers involved: 430

39%

Commercial activities

Expenses for volunteers: NTD 489,600

Continue with the Vehicle
Maintenance Service Tour and unfold
the Tire Check Service at the sametime to fund the operating expenses ofchildren’s welfare groups.

Connect with SDGs.
Support remote townshipdevelopment
Effectively bridge theurban-rural divide

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment

12%Charitable
activities

Money invested: NTD 15,484,284

Sustainability
Commitment
from theChairperson

Money invested: NTD 39,248,327
Volunteers involved: 986
Expenses for volunteers: NTD
1,117,900

Note 1: For the number of volunteers, a volunteer is counted once every 8 hours

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Note 2: Commercial activities: generally refer to investments in sales, car owners, and the improvement of the corporate image
Note 3: Expenses for volunteers are equal to the number of volunteers involved in each session times the average daily wage of NTD 1,600

Appendix1022022 CMC Corporate Sustainability ReportCMC’s Social Inclusion Roadmap

StrongSupport for
Indigenous
PeopleCore
Competence

Happiness Guardian Program
Accumulated outcomes:
Donated a total of 12 Happiness Guardian vans 20162022, with an accumulative service mileage of 319,091
km (equivalent to traveling around Taiwan 297 times)
Goal in 2024:
The Vehicle Maintenance Service Tour will be combinedwith the Happiness Guardian Program to offer vehicle
maintenance services to the vehicles under the program

Vehicle Maintenance Service
Tour
Accumulated outcomes:
Recruited students from the Taipei City University of
Science and Technology, National Taitung Junior College
and National Lotung Industrial Vocational High School to
the Vehicle Maintenance Service Tour through universityindustry collaboration to provide 24 tours across Taiwan
and ﬁx 856 vehicles through the support of 8 suppliers.
Goal in 2024:
Expand the beneﬁt of university-industry collaboration
and recruit more vocational schools to organize >150
tours to repair >5,000 vehicles.

Corporate Volunteers
Accumulated outcomes:
The number of volunteers involved reached 2,122
The time invested by the volunteers totaled 5,857 hours

Goal in 2024:
Focus on environmental sustainability based on “wetland
maintenance and coastal clean-up” and develop
volunteers for the CMC ecological pond to restore
Taiwan native species.

Dream Project
Accumulated outcomes:
Supported school lockdown without class shutdown:
Donated 300 COVID-19 rapid test kits to the 11 units
on the Happiness Guardian Program and 250 picture
books to Dapeng Primary School in Chiayi under the
Indigenous Dream Project. So far, the Dream Project
has had a total of 15,000 beneﬁciaries since it’s ﬁrst
launched
Goal in 2024:
We will be dedicated to charitable activities in rural
areas on a continuous basis to create common goodfor the areas with corporate resources

Remote Agricultural Community
Partner Development Program
Accumulated outcomes:
Purchased a total of 70,280 kg of organic vegetables
and fruits from indigenous people during 2015-2022.
Goal in 2024:
Promote organic/eco-friendly farming with CV owners
and assist with sales through the Mitsubishi LINE account.

Food Truck Program of South
Link Association
Accumulated outcomes:
South Link TAKECPIZZA Food Trucks>556 missions
Revenues >NT$3.54 million

Goal in 2024:
We will take advantage of our modiﬁed Mitsubishi
commercial vehicles to promote local revitalization andpublic welfare vehicle programs

Knowledge
andEducation

Anchor Program
Accumulated outcomes:
59 activities were held under the Anchor program
during 2015-2022 with a total of 2,833 visiting students

Goal in 2024:
Recruit excellent talents to CMC through universityindustry collaboration by combining the Anchor
Program with talents recruitment.

Trafﬁc Safety Camp
Accumulated outcomes:
Continued the Taoyuan Fuxing Township Indigenous
Primary School Project and organized four trafﬁc safety
camps for Yisheng Primary School, Paichi Elementary
School, Gaoyi Elementary School, and Hsinle
Elementary School in Hsinchu.
Goal in 2024:
Extend the Trafﬁc Safety Camp to indigenous townships
in Hsinchu and coastal schools in Taoyuan to invest
corporate resources in places in need.

Read for Hope Project
Accumulated outcomes:
Accumulative mileage of the Read for Hope >226,350
km (equivalent to traveling around Taiwan 210 times)

Goal in 2024:
Accumulate the mileage of Read for Hope to > 240,000km

GivingBack toUrban and
Rural Areas

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

Bu Bu Sharing
Accumulated outcomes:
Assisted the MOTC in promoting the Bu Bu Sharing:
Provided Fuli Township and Zhuoli townships in Hualien
and Yanping Township in Taitung with 3 DELICA vansfor shuttling up to 19,608 persons over a total mileageof 54,800km (equivalent to traveling around Taiwan 51
times).
Goal in 2024:
The Company will extend the Bu Bu Sharing service tomore areas and facilitate integrated passenger andfreight transportation in rural areas

Discovery Tour
Accumulated outcomes:
Due to the pandemic, the Discovery Tour, which
combines domestic travel and tourism have beenshifted to the online mode, and the car owners havebeen invited to travel on their own to stimulate the local
tourism industry. The number of participants accumulated
133,153 persons.
Goal in 2024:
Accumulate participants to >140,000 persons.

Environmental Ecology
Accumulated outcomes:
Successfully restored 9 species of the Fagaceae in theecological pond for native species and the Fagaceae.

Goal in 2024:
The ecological pool will be opened for guided tours
to ensure sustainable ecology through community
renovation

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

1032022 CMC Corporate Sustainability Report6.1.2 Volunteerism Development and Achievements
Volunteerism Culture: Ingraining in Taiwan and Giving Back toSociety
To actively create an atmosphere and promote sense of honor forvolunteerism, in addition to the 3-day volunteerism leave each year
ahead of competitors, we also provide company cars and otherresources for volunteering use to encourage volunteer service We
also introduce the “Volunteerism Reward Regulations” to include
volunteering activities in the department policy to enhance thedepartmental accomplishment rate.

3 days/year
Volunteerism
Leave

Due to the labor shortage in Taiwan in recent years, “continuing education” volunteering
activities have thus become the focus of volunteerism promotion of all departments. By
combining with talents recruitment and university-industry collaboration projects, such as the“Vehicle Maintenance Service Tour” and “Anchor Program”, we ingrain automotive resourceand professional technology on campuses to improve the practical capability of students aswell as develop the brand favorability of CMC Mitsubishi in students.

Support for culture industry development, funds for environmental ﬁlms
To support the development of Taiwan’s culture industry and raise the awareness of theimportance of environmental conservation in employees, we activated the Mitsubishi GreenLife Program and chartered the broadcast of environmental ﬁlms including Good Morni MIT
and Caring for Black-Faced Spoonbill for employees and their family to enjoy the ﬁlms so as
to promote ESG together through comprehensive and multifaceted activities.

Focus of Volunteering Activities

Care for Indigenous Peoples

Environmental Protection

Participation in volunteer activities with suppliers to giveback to society
In 2022 we organized a total of 25 coastal clean-ups
through the Volunteerism Reward Regulations and hired
the Xinwu Township Association to give environmental
education courses to introduce the story of Xinwu
weirs and the rules for coastal clean-ups.To extend the
ESG spillover effect, apart from actively encouraging
employees to participate in environmental sustainability
activities, we specifically organized three beach cleanups through CMCA in northern, central, and southern
Taiwan respectively. We also hired Friendly Seed, an environmental protection group, toarrange guided courses for suppliers to understand better the process of coastal clean-up
and mountain clean-up, the origins of marine debris, and the concept of environmental
sustainable development. The three clean-ups in 2022 attracted the heat participation of 37
suppliers and 121 contractors.

Automotive-Related

Continuing Education

Support for environmental protection ﬁlms from CMC employees
Volunteer Outcomes Over the Last Three Years

2020
2,479 people
involved
2,578 hours
invested

2021
2,729 persons
involved
3,383 hours
invested

2022
2,122 persons
involved
3,665 hours
invested

Volunteerism Leave Application in Past 3 Years

2020
A total of 189
applicants
A total length of 1,043
hours
Amounting toNT$208,600

2021
A total of 362 applicants
A total length of 1,659.5
hours
Amounting toNT$331,9002022
A total of 280
applicants
A total length of 1,680
hours
Amounting to 336,000

Note: The ﬁgure above represents the number of employees taking volunteer leave on weekdays. The converted value of thevolunteer leave equals to the number of employees applying for the volunteer leave times the average daily wage of NTD
1,600

104

2022 CMC Corporate Sustainability Report

Good Morni MIT introduces the characteristics of the Formosan salamander(Hynobius formosanus), an endemic species of Taiwan, and brings forth theenvironmental threats to the species including climate change and habitat
damage.We chartered the film for CMC employees and their family andenriched the knowledge and enhance awareness of CMC volunteers inenvironmental sustainability with environmental films. With such we aim tosupport the conservation of Taiwan endemic species and the development of
Taiwan’s ﬁlm industry.
Caring for Black-Faced Spoonbill recounts the efforts in maintaining the spacefor survival for the black-faced spoonbill over the years of the dedicated.
We chartered the ﬁlm for employees and their family to support the ﬁlm andfor the audience to rethink the issues relating to conservation, wetlands, andinternational promotion and to consider how to contribute to the precious
migratory birds on their transit over Taiwan through volunteering.

Employee Testimonial and Feedback
Thank you CMC. It’s like dreaming to see Director Mai's work and meet with him in person.After watching Good
Morni MIT, I was inspired to rethink what I’ve seen through mountaineering over the years.When I studied inJapan the other day, I used to watch Taiwanese productions over the internet to ease my homesickness, MIT
Made In Taiwan and was on of my favorites.As an extension of MIT Made In Taiwan, Good Morni MIT introduces
the knowledge of the Formosan salamander and further discusses ecological conservation as a whole.
Inﬂuenced my nature, I will lead mountaineers to work for “leave no trace”.

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix6.2 Urban and Rural Sustainability: Safeguarding society with cars
Services Covered by the Happiness Guardian Program

6.2.1 Happiness Guardian Program
According to the statistics of the MOTC, nearly 10,000 children under 12 years of age wereinvolved in road traffic accidents per year in recent years. In an attempt to take full care ofdisadvantaged children in rural areas, CMC initiated the “Happiness Guardian Program” in 2016
to invest our vehicle resources in rural tribes, so as to boost road safety for the disadvantaged
children. By the end of 2022, we have donated a total of 12 Happiness Guardian vans to remotetownships across Taiwan to provide shuttle services for vulnerable children. So far, a total 319,091
km has been traveled, equivalent traveling around Taiwan 297 times.
There are over 3,000 elementary and junior high schools in Taiwan, and over 1,000 of them
are located in remote townships as determined by the Ministry of Education. Through the“Happiness Guardian Program”, we team up with NGOs across Taiwan to take care ofvulnerable children by offering shuttle service for their after school club sessions. So far, we haveprovided the after school club shuttle service for Grass Book House in Taoyuan, Citong Book
House in Taitung, South Link Ark Classroom, and the Secret Space of After School Associationof Taiwan. Additionally, we funded Warm Breeze Caring Association in Taichung and AGAPE
Care Association in Changhua with NT$30,000 each for vehicle replacement through theChildren’s Vehicle Safety Solution to meet the transportation need of vulnerable children.

Children's Shuttle Safety
SolutionChildren's Vehicle Safety
Solution

We accept applications for shuttle
services from children’s welfare
groups and elementary schools inremote townships across Taiwan
and donate 3 shuttle vans eachyear.

We funded children’s welfare
groups and elementary schools
and affiliated kindergarten inremote townships with NT$30,000
each for replacing school lightbuses or 8-seat (or more) schoolvans of 10 years or older. The
quota is 50 vehicles each year.

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

Sustainability
Commitment
from theChairperson
ESG
Highlights

Vehicle Donation/NT$30,000 Vehicle Replacement Funding under the Happiness Guardian Program Over the Years
About CMC

2022

中華汽車 幸福2021

Code of Donated Car: Happiness 12
Recipient
Hualien County Tafalong Primary
School(Guangfu Township, Hualien
Coounty)

守護計畫

守護計畫

Code of Donated Car:
Happiness 6
Recipient
Association of South-Link HealthCare Promotion for Taitung
County (Dawu Township,
Taitung County)

2020

2022

Vehicle Replacement Funded
Unit
AGAPE Care Association in
Changhua2019

中華汽車 幸福Code of Donated Car:
Happiness 11
Recipient
Taitung County Pasikau
Indigenous Peoples Care
Association (Yanping
Township, Taitung County)

2021/2020
Code of Donated Car:
Happiness 10
RecipientTaiwan Corp. Sustainable
Urban and Rural Care
Association
Grass Book House (DaxiDistrict, Taoyuan City)

Code of Donated Car:
Happiness 9
Recipient
New Taipei Municipal
Qinxian Junior High School(Ruifang District, New
Taipei City)

Code of Donated Car:
Happiness 8
Recipient
Taitung County Hongye
Elementary School(Yanping Township, Taitung
County)Code of Donated Car:
Happiness 7
Recipient
Chinese Love & Joy
Charity Association(Puyuma, Taitung County)

Vehicle Replacement
Funded Unit
Warm Breeze Caring
Association in
Taichung

2018
Code of Donated Car:
Happiness 5
Recipient
Bethel Holistic Care
Association(Wugu, New Taipei City)

2020/2019
VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
Action2017

2016

Code of Donated Car:
Happiness 3
Recipient
After School Association of
Taiwan in Wanluan Township,
Pingtung(Wanluan, Taitung)

Code of Donated Car:
Happiness 4
Recipient
Tainan City Social Care
Association(Xigang, Tainan City)

Code of Donated Car:
Happiness 2
RecipientFeng Tien Primary School
Baseball Team in Taitung(Taitung City)

2017

Vehicle Replacement Funded Unit
Dabida Family Caring Association in
Xincheng, Hualien

Code of Donated Car:
Happiness 1
Recipient
St. Joseph Church in Wufeng,
Taichung(Wufeng, Taichung)

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

105

2022 CMC Corporate Sustainability Report6.2.2 Implement the Vehicle Maintenance Service Tour

6.2.3 Central Kitchen for Schools in Remote Township

China Motor Corporation has a dense distribution and service network to ensure the safetyof large-scale car owners. In order to further guarantee driving safety for car owners inremote areas, we integrate the service system of Fortune Motors with that of Shung Ye Motor
to launch the "Vehicle Maintenance Service Tour" for regions with lower service density,
such as rural, coastal and mountainous areas. Through the call of CMCA, eight suppliers,
including CPC Taiwan, General Enterprises, Bridgestone Taiwan, Yuasa, Xinquai, NGK,
Orange Electronic, and San Chien Electric, joined the event.In response to the pandemic,
we proactively expanded the scope of the “Vehicle Maintenance Service Tour” from remotetownship vehicle maintenance service to the tire check service to extend the scope oftransportation care in collaboration with contractors.

For schoolchildren in remote townships to enjoy the same dietarycare as that of schoolchildren in the urban, the Executive Yuan
introduced the “Central Kitchen for Schools in Remote Township”
program in 2021. In 2022 we joined the service by forming a delivery
network for elementary schools in remote townships with 225 Delica
vans to provide 240,000 schoolchildren in remote townships acrossTaiwan with tasty lunch.In response to the school lunch delivery
needs and the distance from schools (30 minutes’ ride or within
10km), two Delica vans joined the delivery fleet.Each van candelivery lunch for about 20 classes, while each pickup can carry
food for about 7 classes. As these vehicles must enter the campus, toensure smooth school lunch delivery, apart from keep track on thesevehicles with the GPS and managing the routes, delivery time, andtemperature with AI, we apply full-range smart logistics monitoring ofschool lunch delivery to ensure students can enjoy fresh, warm foodand make food safety visible.

Services

Service Contents

Maintenancesession/Location

Vehicle Maintenance Service Tour

• Free CPC Taiwan motor oil change• Free replacement with General
Enterprises oil ﬁlters• Buy one get one free tire of Bridgestone
Taiwan at service stations• 50% off for Yuasa batteries at service
stations• Free replacement with Xinquai
windscreen wipers• Free replacement with NGK spark plugs
after 50,000 km mileage at service
stations• Free Orange Electronic TPMSes atservice stations• Free replacement of tire valve caps by San Chien Electrical

856

Services

Station Vehicle Check

Service Contents

Maintenancesession/Location

school lunch delivery vans

240,000 schoolchildren
were beneﬁts.
Sustainability
Commitment
from theChairperson
ESG
Highlights

Vehicle Maintenance Service Tour Timetable
About CMC

2022 2021 2019
HsinchuThyakan(Taigang)
Community
MiaoliMarongarong(Donghe)Community

Four tire check sessions and 20 general maintenance sessions in Thyakan Communityof Hsinchu, Tapang Community of Chiayi, Aoba Community of Pingtung, and Tafalong
Community of Hualien.

Number ofambulances
maintained

225 Delica

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

2022 Safety for Children Tire Safety Check
Service
Free CPC Taiwan motor oil change
MAXXIS tire buy one get one free

CMC Mitsubishi service stations across Taiwan

CMC Mitsubishi service stations across Taiwan

77

126

Number of ambulances maintained

Number of ambulances maintained

Yilan
Klesan (Nan'ao)
Community
HualienTafalong(Taibalang)
Community

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionChiayi
Tapang(Dapeng)
Community

2021 CMC Mitsubishi Ambulance Inspection
Service
Free CPC Taiwan motor oil changeFree replacement with General Enterprises
oil ﬁlters

Yilan
Ropwe (Jinyue)
Community

Circular
Reduction
Safeguarding
Environment

Pingtung
Rinari (Linali)
Community

Taitung
Pasikau(Taoyuuan)
Community
Taitung
Dawu Township
Pingtung
Aoba (Qingye)Community

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix1062022 CMC Corporate Sustainability Report6.2.4 Promotion of transportation and carpool: Bu Bu Sharing

6.2.5 Social Innovation with Employment for the Homeless--Flipping Life with CMC

Remote townships in Taiwan are mountainous. As the road condition is unfavorable and the
population is low and scattered, public transport is inconvenient, and the operating costis high. Currently, public transport is mainly available on main roads in remote townships,
and there is nearly no route running through local communities, making it difﬁcult for locals
to seek medical attention, go to school, conduct business, and even enjoy an easy life.
Even worse, elderly people often need to wait for infrequent bus. This also derives problems
such as student tardiness for school and driving without a license. The shuttle service for the“last mile” for home has thus become the most concerned issue of transportation in remotetownships.
To promote transportation justice in remote townships, the MOTC piloted the multifaceted
carpool service “Bu Bu Sharing” program in remote townships in Hualien and Taitung in 2018
by guiding local NGOs to develop the carpool matching center with local idle vehicles anddriver resources to provide locals with carpool service.We joined the “Bu Bu Sharing” programin 2021 and arranged 3 Delica vans to provide the “Happiness Bus 2.0” shuttle service forFuli Township and Zhuoxi Township in Hualien and Yanping Township in Taitung in two years.
In 2023 we will add one more Delica to provide service for Wanrung Township in Hualien fortransportation to reach every part of remote townships through ﬂexible arrangements.

By linking various stakeholder groups, we facilitate multifaceted collaboration through the“social innovation” business model and invest in corporate resources to solve environmental
and social issues.In 2019 we assisted the “Association of South-Link Health Care Promotion for
Taitung County” in developing the social innovation and charity with vehicle programs using
the modification advantage of Mitsubishi commercial vehicles. By modifying the VERYCA
into food trucks for operations, they successfully created venues for local regions.In 2022
we supported the employment for the homeless with corporate resources. In practice, wesponsored three Zinger Pick Ups for the “Yowash Social Innovation” cleaning team formedby the homeless under the leadership of Lin Li-Ching, author of Working People. Through the
one-stop CV modiﬁcation, we transform the Zinger Pick Up into a ﬂoor-washing vehicle.

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

Achievements of Happiness Bus 2.0
Fuli Township of Hualien 5 routes / Zhuoxi River

77 townships 215 routes

Township of Hualien 2 routes

23,687 persons

42 Happiness Bus routes in total

Users

Yanping Township of Taitung 35 routes,

In service

78,922 km

59%

shuttle service forstudents

shuttle service

Increased to 90%
public transport coverage

In addition to sponsoring vehicles, we offer the additional free 300,000km vehicle
maintenance for “Yowash Social Innovation” for the long-term support of the “Yowash” ﬂoor
washing service for “Yowash” to enjoy maintenance service by booking with the meticulous
Mitsubishi maintenance network when they give service in different regions. Moreover,through the cloud maintenance record system, users can capture the maintenance status
and progress ubiquitously to make ﬂexible dispatch.
Achievements the Food Truck Program ofSouth Link Association in Past 3 Years“Bu Bu Sharing” Program
Year

2021

2022

RegionRidership

Shuttle Mileage

Fuli in Hualien

9583

32612

Yanping in
Taitung

8849

16631

Zhuoxi in Hualien

1176

5557

VisionBlueprint for
Corporate
Sustainability

CMC sppnsors the working trucks for “Yowash Social Innovation” to build the urban “Yowash”.

Number of times the food trucks have beentaken out for service

2022

168
250
138

Total

556

2020
2021

More about Bu Bu
Sharing

Food truck revenue
2020

NTD 600 thousand

2021

NTD 1.23 million

2022

NTD 1.71 million
NTD 3.54 million

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

1072022 CMC Corporate Sustainability Report

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

6.3 Indigenous Development: Regional revitalization with the Indigenous
Dream Project

6.3.2 Remote Agrarian Communities Partnership Development and Placemaking

It has been 23 years now since we established the “China Motor Corporation Indigenous
Culture and Education Foundation”. Over the years we have offered different forms ofassistance in improving indigenous education, culture, and employment.The foundation
promotes the Indigenous Dream Project over time to promote the “Remote AgrarianCommunity Partnership Development Program” through the voluntary charitable activities
recommended by employees, the continuous investment in learning resources for children
in remote townships through the corporate power, and the “farmer-business cooperation”.
By doing so, we hope to use corporate resources in the best interest of society to create thecommon good for remote townships.

Through “farmer-business cooperation”, we implement the Remote Agrarian Communities
Partnership Development Program. In addition to launching three times of employee group
shopping each year, we purchase the organic vegetable of indigenous smallholders for use
in the employee canteens and increase the purchase every year.
In 2023 we began combining promoting organic and eco-friendly crops with our CV
promotion. In the future we will promote the eco-friendly crops from smallholders over the
Mitsubishi LINE account to usher in the consumer power and so to combine the upstream,
midstream, and downstream inﬂuence.

6.3.1 Charitable Activity for Indigenous Townships through the Indigeneous Dram Project
Since the launch of the Indigenous Dream Project in 2014, we have reached Hagay
Community in Jianshi (Nahuy) Township of Hsinchu, Fazi Primary School in Renai Townshipof Nantou, Hbun-Sinqumi (Heliu) Community in Fuxing (Pyasan) Township of Taoyuan,
Llyung (Maliguang) Community in Jianshi (Nahuy) Township of Hsinchu, communities in
Taiwu (Kulaljuc) Township of Pingtung, and Sanmin Junior High School in Hualien. In 2019
we continuously recruited volunteer photographers to take photos for graduates for the
yearbook through the “Remote Township Student Yearbook Dream Project”. Through the
car owner donation, we also distributed Mitsubishi storage chairs and large blocks to remotetownships across Taiwan, even to offshore islands including Lanyu and Penghu.
When the government raised the epidemic control to level 3 in 2021, through the fraternity of
employees, we donated laptops to Jinyue Elementary School in Yilan for elementary schools
in remote township to lock down without shutdown. We also recruited children’s books for
Luofu Elementary Schools in Taoyuan to enable children to continue their studies. Throughthe Indigenous Dream Project in 2022, we donated 300 COVID-19 rapid test kits to the 11
units on the Happiness Guardian Program and 250 picture books to Dapeng Primary Schoolin Chiayi under the Indigenous Dream Project. By the end of 2022, the Indigenous Dream
Project beneﬁted a total of 15,000 persons accumulatively.

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability

CSR cooperation
Suppliers

CSR procurement

Sales/marketing channels

Dealers/Car owners

1082022 CMC Corporate Sustainability ReportMore about the Indigenous Dream Project

Innovative
Technology
Sustainable
Value

Organic agricultural products

Support for the
Indigenous Production-Sales
Partnership Alliance

Fulﬁllment of social responsibilities
Development of local relationships
Expansion of corporate inﬂuence

Fraternity for Remote Townships through the Indigenous Dream
Project

Sustainability
Commitment
from theChairperson

LINE
Ofﬁcial
Account/Car
OwnersStable production and sales
channels

Indigenous
small
farmers

Facilitation of remote townshipdevelopment
Promotion of eco-friendly farming
Provision of long-term procurement
options for enterprises
Sale of local agricultural products

Employee
Canteen/Employees

Festival Gifts/Guests

Purchased a total of 70,280 kg of organic vegetables and fruits from indigenous
peoples during 2015-2022.

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

6.4 Knowledge and Education: Ingraining and talents development
6.4.1 Trafﬁc Safety Camp6.4.2 Read for Hope Project“Pedestrian” is ﬁrst autonomous role children in the trafﬁc environment. However, up to 80%
of children have experienced accidents when crossing the road or running out of the road.
Statistics show that over 4,700 children were either injured or killed by trafﬁc accidents from2018-2022. The school and home are the major living venues of children. As car owners havelower traffic safety awareness and there are lesser service stations in remote townships,
locals are less capable of making emergency response to trafﬁc accidents. To keep children
from danger, we voluntarily launched the “Traffic Safety Camp Tour” across indigenous
elementary schools across Taiwan in 2017, hoping to let children learn about the trafﬁc signs
and signals, understand the vehicle body structure, and equip them with the knowledge tohandle trafﬁc accidents so as to reduce trafﬁc accidents in the future.
By the end of 2022, we had organized the Trafﬁc Safety Camp in 19 elementary schools on
offshore islands (Penghu and Kinmen) and remote townships to beneﬁt over 1,000 indigenous
students. To cultivate Taoyuan and give back to locals, we activated the “Traffic Safety
Camp-Taoyuan Fuxing Township Indigenous Elementary Schools Project” under the programin 2019. By prioritizing the camp to indigenous elementary schools in Fuxing Township in
Taoyuan, we aim to safeguard the safety of every child in Taoyuan through the related
courses.

In 2004 we began implementing the “Read for Hope Project” in collaboration with theCommonWealth Magazine Education Foundation to guide children to read through fivemobile libraries. Over the years we have adopted 200 schools in remote townships, hoping
to connect children with the world through reading. By the end of 2022, the five mobile
libraries have traveled over 226,350km, equivalent to traveling around Taiwan for 210 times,
to continuously support the read for hope dreams of children.
In addition to touring remote townships, the “Read for Hope Project” also organize the “Little
Writer Picture Book Contest” every year to encourage schoolchildren in remote townships
to engage in writing picture books. In 2023 the CommonWealth Magazine Education
Foundation published the first picture book The Biggest Strawberry Cake for Chin I-Fei, a
Bunun girl from Renai Township of Nantou. In this book, the author makes an analogy offamily affection with the dessert to express her concern and thankfulness for her family.We
immediately organized the group shopping and campus accompanying reading to help
promote this picture book.

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability

6.4.3 Automotive Education Towards Campus
Through university-industry collaboration, we have been developing professional automotive
talents over the years. In 2022 we combined the “Anchor Program” with talents recruitment
and organized the “1st CMC Design Camp” for students of departments related toautomotive design across Taiwan. Through vehicle appearance design and practical
painting and coating courses, we aim to attract potential automotive designers to join CMC.
We also continue internship for the Vehicle Maintenance Service Tour to encourage students
to walk out of the campus into the ﬁeld to connect education with employment. We alsoplan university-industry collaboration courses including vehicle test, test vehicle donation/practice, service station internship, and vehicle maintenance and check to improve thecapabilities of students of technical and vocational education and training (TVET).

Trafﬁc Safety Camp for Campus
Year
2019
2020
2021

2022

SchoolNumber of Students Beneﬁted

Ha-Yun Primary School
San-Min Primary School

71

Jie-Shou Elementary School

100

Pai-Chi Elementary School

91

Chang-Shing Elementary School

64

Kuei-Huei Elementary School

56

Hsin-Le Elementary School103

Yi-Sheng Primary School

55

Pai-Chi Elementary School

107

Gao-Yi Elementary School
Total

109

47

2022 CMC Corporate Sustainability ReportInnovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

33
727

More about the Camp

Appendix

Anchor Program
In addition to body assembly, vehicle testing is also very important to automotive manufacturing. We activated the Anchor Program in 2015 to show students the vehicle test processes andinspection methods off the campus to enhance their awareness of and demand for vehicle safety.
In 2022 we reached out to National Nei-Pu Senior Agricultural-Industrial Vocational High School and National Pingtung Industrial Vocational High School in Pingtung, Taipei City University of
Science & Technology, National Cishan Agricultural & Industrial Vocational Senior High School, National LoTung Industrial Vocational High School, and Siluo Agricultural Industrial High School to
beneﬁt up to 300 students.Apart from arranging volunteer instructors to give classes, we also donated the latest test cars for the training.

Sustainability
Commitment
from theChairperson

Course description

Electric two-wheeler

Car Test Course

Donation of trial vehicles

Service Center Internship

Vehicle Maintenance Service Tour

88 test cars to TVET schools across Taiwan.

Over3,000 students of in the automotive major

Donation

Beneﬁting

Enable students to understand the future EV
market trend.
Combine theory (academic courses) andpractice (practical courses)
Improve the EV maintenance and repair
capabilities of students

2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

Four-Wheelers

Introduction to automotive high/low
temperature tests
Real car durability and driving tests
Brief introduction to TPMS and ESC tests
Noise & vibration tests
Reliability test
Introduction to electric control
technologies for braking and handling

ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

Through university-industry collaboration and education promotion, we hope to organize related automotive continuing education courses at TVET schools for students to better understandthe new technology of vehicles and the new car development process to stimulate their interest in the automotive industry and enhance their brand identiﬁcation with CMC. Additionally, we
also team up with the Yen Ching-Ling Industrial Development Foundation to guide National Taipei University of Technology and National Taiwan University of Science and Technology to appl
for technology R&D funding every year to connect university-industry collaboration with TDPs so as to keep closer to the needs for automotive products.

Circular
Reduction
Safeguarding
Environment“Anchor”’s Outcomes Over the Last Three Years

110

Year

Number of Schools/Units

Number of Participants

Number of Hours

2020

3

500

24

2021

4

325

32

2022

13

343

52

Total

20

1168

108

2022 CMC Corporate Sustainability Report

Excellent
Governance
Proactive
ActionSafe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Vocational High School Attached to National
Taitung Junior College

Vocational High School Attached to National
Taitung Junior College

More about the Anchor Program
Please visit the CMC website

AppendixDetails on Trial Vehicle Donations

6

2015
DELICA

VERYCA

22

2016
ZINGER

vehiclesZINGER

16

2018
eMOVING

11

2017
GRAND LANCER

vehiclesvehicles16

2019
VERYCAvehicles2022
Environmental, Social &Governance

Give Back to Society
in Every Way Possible

LANCER

Sustainability
Commitment
from theChairperson
ESG
Highlights

vehiclesAbout CMC

11

2021
ZINGER PICK UP

DELICA

VERYCAvehicles

2022
ZINGER PICK UPVERYCA

VERYCA

COLT PLUS series

6
88

vehiclesTotal

vehicles2022 CMC University-Industry Collaboration Projects and Programs

111

Program namePartner Academic Institution

Project Contents

Integration of the visual and lidar dynamic avoidance technology
for AGV navigation system and HDI development

National Taipei University ofTechnology

Development of the advanced items for AGV automated navigation functions the status monitoring, mission deployment,
and route planning of AGV

Li-ion battery module real-time SoC estimation and realization

Chung Yuan Christian University

Steering angle tracking control design by building the torque and steering angle relational curve with reverse engineering anddesigning steering angle tracking controller using linear quadratic regulator for steering angle control.

Strategic development of the emergency steering assist system

National Taipei University ofTechnology

This project aims to design an emergency steering assist system to enhance the performance and safety of VCU products in themarket.

2022 CMC Corporate Sustainability Report

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixAppendix 2 Climate-Related Information of TWSE/TPEx Listed Company
Risks and opportunities on the company due to climate change and thecountermeasures

Appendix 1 Membership Associations and Professional Organizations
Organization Name

Membership

1

China Motor Corporation Indigenous Cultural and
Educational Foundation

Director

2

Yen Tjing Ling Industrial Development Foundation

Director

3

Yen Tjing Ling Medical Foundation

Director

4

Taiwan Transportation Vehicle Manufacturers Association

President

5

Car Safety Association

6

Chinese National Association of Industry and Commerce,
TaiwanMember

7

The Third Wednesday Club

Member

8

SAE Taipei Section

Director

9

SAE International

Member10

Chinese Society of Sound and Vibration

Member11

Taiwan Motor Industry Association

Member12

Taipei Automobile Distributors Association

Director

13

Task Force for the Promotion and Development ofCommon Electric Scooter Battery Swapping Technologies

Member14

Organization for the Promotion and Development ofCommon Electric Scooter Charging Technologies

Member15

Taiwan V-team

Member16

Automotive Research Testing Center (ARTC)

Executive Director

Executive Director

Item

Performance and Corresponding Report Sections

Page No.

1. Describe the board's and management's oversight andgovernance of climate-related risks and opportunities.

For details, please refer to: 4.1.1 Implementationand Management Overview of Task Force on
Climate-Related Financial Disclosures (TFCD)

59

2. Describe how the identiﬁed climate risks and opportunities
affect the business, strategy, and ﬁnances of the business (short,medium, and long term).

For details, please refer to: 4.1.2 Identiﬁcation of
Climate Change Risks and Opportunities

60-63

3. Describe the ﬁnancial impact of extreme weather events andtransition actions

For details, please refer to: 4.1.3 Scenario Analysisof Financial Impact Related to Climate Change

63-66

4. Describe how climate risk identiﬁcation, assessment, andmanagement processes are integrated into the overall risk
management system.

For details, please refer to: 4.1.2 Identiﬁcation of
Climate Change Risks and Opportunities

60-63

5. If scenario analysis is used to assess resilience to climatechange risks, the scenarios, parameters, assumptions, analysis
factors and major ﬁnancial impacts used should be described.

For details, please refer to: 4.1.3 Scenario Analysisof Financial Impact Related to Climate Change

63-66

2022
Environmental, Social &GovernanceAppendicesSustainability
Commitment
from theChairperson
ESG
Highlights

About CMC
6. If there is a transition plan for managing climate-related risks,
describe the content of the plan, and the indicators and targets
used to identify and manage physical risks and transition risks.

For details, please refer to: 4.1.4 CMC Climate
Action Guidelines

7. If internal carbon pricing is used as a planning tool, the basis
for setting the price should be stated.

Currently, we do not use internal carbon pricing
as a planning tool

8. If climate-related targets have been set, the activities
covered, the scope of greenhouse gas emissions, the planninghorizon, and the progress achieved each year should bespeciﬁed. If carbon credits or renewable energy certiﬁcates(RECs) are used to achieve relevant targets, the source andquantity of carbon credits or RECs to be offset should bespeciﬁed.

For details, please refer to: 4.1.4 CMC Climate
Action Guidelines

9. Greenhouse gas inventory and assurance status.

• Company basic data: A company with anauthorized capital over NT$5 billion but under
NT$10 billion.
• Minimum disclosures of the year as per the
Sustainable Development Roadmap for TWSE/
TPEx Listed Company: Undetermined.
• Current status: We have completed the GHG
inventory of individual companies and passed
the external veriﬁcation.

67

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value

67

117-160

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix112

2022 CMC Corporate Sustainability ReportAppendix 3 GRI Content Index

Statement of use

GRI Universal Standards
Statement of use

China Motor Corporation has reported in accordance with the GRI Standards (2022)
for the period from 1 January 2022 to 31 December 2022.

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector
Standard

N/A

GRI 2- 15

Conﬂicts of interest

3.2.3 Tax Governance and Transparent
Information Disclosure51

GRI 2- 16

Communication of critical concerns

3.3.3 Critical Incident Risk Management

54

GRI 2- 17

Collective knowledge of the highest
governance body

2.1.2 Digital Transformation Roadmap

34

GRI 2- 18

Evaluation of the performance of thehighest governance body

3.1.1 Organization and Operation of theBoard of Directors

47

GRI 2- 19

Remuneration policies

5.2.2 Well-Planned Remuneration andRetention Action

89

GRI 2- 20

Process to determine remuneration

5.2.2 Well-Planned Remuneration andRetention Action

89

GRI 2- 21

Annual total compensation ratio

5.2.2 Well-Planned Remuneration andRetention Action
Please refer to the CMC 2022 Annual Report

89

GRI 2
GRI 2: General Disclosures 2021
Indicator

Disclosure

Report Section or Explanation

Omission

Page
No.

Organization and Reporting Practices
GRI 2- 1

Organizational details

Basic Information of CMC

07-10

GRI 2- 2

Entities included in the organization’ssustainability reporting

Basic Information of CMC

07-10

GRI 2- 3

Reporting period, frequency andcontact point

About the Report04

GRI 2- 4

Restatements of information

4.2.2 Energy Use and Conservation
Management: Revision of the water
consumption intensity of Hsinchu Plant in 2020
and 2021.

72

GRI2-5External assurance

Appendix: Veriﬁcation Statement117-118

Activities and workers

Strategy, policies and practices
GRI 2- 22

Statement on sustainable development
strategy

Sustainability Commitment from the
Chairperson

2-3

GRI 2- 23

Policy commitments

1.1.2 Sustainability Strategy Blueprint

12

GRI 2- 24

Embedding policy commitments

1.2.6 Management Approaches andVisionary Targets

24-33

GRI 2- 25

Processes to remediate negative
impacts

3.3.1 Risk Management Committee

52-53

GRI 2- 26

Mechanisms for seeking advice andraising concerns

5.1.2 Employee Communication and Work
Satisfaction

84

Legal compliance3.2.4 Legal Compliance52

Membership associations

Appendix 1 Membership Associations andProfessional Organizations

112

16-19

GRI 2- 27
Compliancewith laws andregulations
GRI 2- 28

GRI 2- 6

Activities, value chain and other business
relationships

1.2.5 Material Topics and Automotive Value
Chain
2.3.1 Sustainable Supply Chain

22-23
38-39

GRI 2- 7

Employees

5.1.1 Workforce Composition

83-84

GRI 2- 8

Workers who are not employees

5.1.1 Workforce Composition

83-84

Stakeholder engagement
GRI 2- 29

Approach to stakeholder engagement

1.2.3 Dialogue with Stakeholders

GRI 2- 30

Collective bargaining agreements

5.2.1 Recruitment Diversity

88

GRI2-9Governance structure and composition

3.1.2 Sustainable Governance Structure andFunctional Committee

48

GRI 2- 10

Nomination and selection of the highest
governance body

3.1.1 Organization and Operation of theBoard of Directors

47

GRI 2- 11

Chair of the highest governance body

3.1.1 Organization and Operation of theBoard of Directors

47

GRI 2- 12

Role of the highest governance body inoverseeing the management of impacts

3.1.3 ESG Committee

48

GRI 2- 13

Delegation of responsibility for managing
impacts

3.1.3 ESG Committee

48

GRI 2- 14

Role of the highest governance body insustainability reporting

3.1.3 ESG Committee

48

113

2022 CMC Corporate Sustainability Report

GRI 3: Material Topics 2021
Indicator

Sustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment

GRI 3

Governance

2022
Environmental, Social &GovernanceAppendicesDisclosure

Report Section or Explanation

Omission

Page
No.

Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

GRI 3
GRI 3- 1

Process to determine material topics

1.2.1 Process of Materiality Analysis
1.2.2 Identiﬁcation of Stakeholders
1.2.3 Dialogue with Stakeholders

15
15
16-19

GRI 3- 2

List of material topics

1.2.4 Identiﬁcation of and Matrix Analysis ofMaterial Topics
1.2.5 Material Topics and Automotive Value
Chain

20-22
22-23

GRI 3- 3

Management of material topics

1.2.6 Management Approaches andVisionary Targets

24-28

AppendixTopic-Speciﬁc Standard
Speciﬁc Topic Standard
Indicator

Disclosure

Report Section or Explanation

Omission

Corresponding
Material Topic

Page
No.

GRI303
Water andEfﬂuents 2018

Economic

GRI201
Economic
Performance
2016

GRI204
Procurement
Practices
2016

GRI205
Anticorruption
2016201- 1 Direct economic value
generated and distributed

3.4.1 Building A Solid Financial
Foundation

Economic
performanceand proﬁt

201-2 Financial implications andother risks and opportunities due
to climate change

4.1.1 Implementation andManagement Overview of Task
Force on Climate-Related Financial
Disclosures (TFCD)

Climatechange201-3 Deﬁned beneﬁt plan
obligations and other retirementplans

5.2.3 Beneﬁt Diversity

90-93

201-4 Financial assistancereceived from government

3.4.1 Building A Solid Financial
Foundation

55-56

204-1 Proportion of spending on
local suppliers

2.4.1 Sustainable Supply Chain

55-56

59

GRI305Emissions 2016

303-1 Interactions with water as ashared resource

4.3.2 Water Management and
Pollution Prevention

77-78

303-2 Management of water
dischargerelated impacts

4.3.2 Water Management and
Pollution Prevention

77-78

303-3 Water withdrawal

4.3.2 Water Management and
Pollution Prevention

77-78

305-1 Direct (Scope 1) GHG
emissions4.2.3 Management of GHG
Emissions73

305-2 Energy indirect (Scope 2)
GHG emissions

4.2.3 Management of GHG
Emissions73

305-3 Other indirect (Scope 3)
GHG emissions

4.2.3 Management of GHG
Emissions305-4 GHG emissions intensity

4.2.3 Management of GHG
Emissions305-5 Reduction of GHG
emissions4.2.3 Management of GHG
Emissions305-7 Nitrogen oxides (NOx),sulfur oxides (SOx), and othersigniﬁcant air emissions

4.3.1 Air Pollution Management
and Mitigation Projects

306-1 Waste generation andsigniﬁcant waste-related impacts

4.4.2 Waste Management81306-2 Management of signiﬁcantwasterelated impacts

4.4.2 Waste Management81306-3 Waste generated

4.4.2 Waste Management81308-1 New suppliers that werescreened using environmental
criteria

2.4.2 Supplier Management40308-2 Negative environmental
impacts in the supply chain andactions taken

2.4.1 Sustainable Supply Chain

38-39

401-1 New employee hires andemployee turnover

5.1.1 Workforce Composition

83-84

401-2 Beneﬁts provided to fulltime employees that are notprovided to temporary orparttime employees

5.2.3 Beneﬁt Diversity

401-3 Parental leave

5.2.3 Beneﬁt Diversity

90-93

403-1 Occupational health andsafety management system

5.4.1 Occupational Safety and
Health Management

97-98

403-2 Hazard identiﬁcation,risk assessment, and incident
investigation

5.4.1 Occupational Safety and
Health Management
5.4.2 Statistics on Occupational
Accidents

97-98
99

73
Waste emission
management73
73

205-1 Operations assessed for risks
related to corruption

205-2 Communication andtraining about anti-corruption
policies and procedures

3.2.4 Legal Compliance

205-3 Conﬁrmed incidents ofcorruption and actions taken

3.2.4 Legal Compliance207-1 Approach to tax

3.3.1 Risk Management Committee
3.4.1 Building A Solid Financial
Foundation

52-53
55-56

207-2 Tax governance, control,
and risk management

3.2.3 Tax Governance andTransparent Information Disclosure

51

49
49-51

Ethicalmanagement
and legal
compliance

GRI306
Waste

55

No
relevant
mattersin 2022

GRI308Supplier
Environmental
Assessment

Society

GRI207
Tax 2019

Environment

GRI302
Energy 2016

114

302-1 Energy consumption within
the organization

4.2.2 Energy Use and Conservation
Management302-2 Energy consumption
outside of the organization

4.2.2 Energy Use and Conservation
Management

69-72

302-3 Energy intensity

4.2.2 Energy Use and Conservation
Management

69-72

302-4 Reduction of energy
consumption

4.2.2 Energy Use and Conservation
Management

69-72

2022 CMC Corporate Sustainability Report

69-72

GRI401
Employment

Sustainability
Commitment
from theChairperson
ESG
Highlights

75-76

38-39

3.2.1 Ethical Management andCompliance Management
Committee
3.2.2 Ethical Corporate
Management Policy and
Implementation

2022
Environmental, Social &GovernanceAppendices

Recruitment
and retention

90-93

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix403-3 Occupational healthservices

GRI403
Occupationalsafety andhealthGRI 404
Training and
Education

GRI405
Diversityand Equal
Opportunity

GRI407
Freedom of
Association
andCollective
Bargaining

GRI414
Supplier Social
Assessment

115

5.4.1 Occupational Safety and
Health Management

97-99

403-4 Worker participation,
consultation, andcommunication on occupational
health and safety

5.4.1 Occupational Safety and
Health Management403-5 Worker training on
occupational health and safety

5.4.1 Occupational Safety and
Health Management
5.4.3 Promoting Safety Culture

97-99
99-100403-6 Promotion of worker health5.1.3 Ageing Workplace andCareer
5.4.1 Occupational Safety and
Health Management
5.4.3 Promoting Safety Culture

86-87
97-99
99-10097-99

Safe
workplace403-7 Prevention and mitigationof occupational health andsafety impacts directly linked bybusiness relationships

5.1.3 Ageing Workplace andCareer
5.4.1 Occupational Safety and
Health Management
5.4.3 Promoting Safety Culture

86-87
97-99
99-100403-8 Workers covered by an
occupational health and safety
management system

5.4.1 Occupational Safety and
Health Management

97-99

403-9 Work-related injuries

5.4.2 Statistics on Occupational
Accidents

99403-10 Work-related ill health5.4.2 Statistics on Occupational
Accidents

99

GRI418CustomerPrivacy

2.2.1 Advanced Technology andProcess Innovation

416-2 Incidents of noncompliance concerning thehealth and safety impacts ofproducts and services

2.2.1 Advanced Technology andProcess Innovation

418-1 Substantiated complaints
concerning breaches ofcustomer privacy and losses ofcustomer data

2.6.3 Customer Complaint
Management and Service
Optimization

Customer
relationshipmanagement
Product safety
and quality
management

Customer
privacy

31-32

No
relevant
mattersin 2022No
relevant
mattersin 2022

Sustainability
Commitment
from theChairperson

Material Topic without Speciﬁc GRI Standards
Material Topic without Speciﬁc GRI Standards
Indicator

Disclosure

Report Section or Explanation

Omission
Description

Page No.

ESG
Highlights

Product and service innovation

About CMC

404-1 Average hours of training
per year per employee

5.3.1 Talents Development

94-96

404-2 Programs for upgrading
employee skills and transition
assistance programs

5.1.3 Ageing Workplace andCareer
5.3.1 Talents Development

86-87
94-96

404-3 Percentage of employees
receiving regular performanceand career development reviews

5.3.2 Performance Development

405-1 Diversity of governancebodies and employees

3.1.1 Organization and Operationof the Board of Directors
5.2.1 Recruitment Diversity

47
88405-2 Ratio of basic salary andremuneration of women to men

5.2.2 Well-Planned Remuneration
and Retention Action

8996407-1 Operations and suppliers
in which the right to freedomof association and collective
bargaining may be at risk

5.2.1 Recruitment Diversity

88414-1 New suppliers that werescreened using social criteria

2.4.2 Supplier Management40414-2 Negative social impacts
in the supply chain and actions
taken

2.4.2 Supplier Management402022 CMC Corporate Sustainability Report

GRI416
Customer
Health and
Safety416-1 Assessment of the healthand safety impacts of productand service categories

2022
Environmental, Social &GovernanceAppendices

GRI 3- 1

Process to determine material
topics

1.2.1 Process of Materiality Analysis
1.2.2 Identiﬁcation of Stakeholders
1.2.3 Dialogue with Stakeholders

GRI 3- 2

List of material topics

1.2.4 Identiﬁcation of and Matrix Analysis ofMaterial Topics
1.2.5 Material Topics and Automotive Value
Chain

20-22
22-23

GRI 3- 3

Management of material topics

1.2.6 Management Approaches and Visionary
Targets

24-28

15
15
16-19

GRI 3- 1

1.2.1 Process of Materiality Analysis
1.2.2 Identiﬁcation of Stakeholders
1.2.3 Dialogue with Stakeholders

15
15
16-19

GRI 3- 2

List of material topics

1.2.4 Identiﬁcation of and Matrix Analysis ofMaterial Topics
1.2.5 Material Topics and Automotive Value
Chain

GRI 3- 3

Management of material topics

1.2.6 Management Approaches and Visionary
Targets

24-28

2.1.2 Low-Emission Products and Development
Diversiﬁcation

34

No Corresponding Speciﬁc GRI Standards

Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionLow-emission products and services

Process to determine material
topicsVisionBlueprint for
Corporate
Sustainability

20-22
22-23

Circular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixAppendix 4 SASB Content Index
Disclosure
Topic

METRIC
CODE

Disclosure Metric

TR-AU250a.1

TR-AU250a.2

Passenger vehicle
Description

Page
No.

Percentage of vehicle
models rated by NCAP
programs with an overall
5-star safety rating, byregionBy the end of 2022, Taiwan has not adopted any NCAP
programs. As Taiwan’s MOTC will start planning the local NCAP
in 2023, no relevant data is available for disclosure on this topic
item.

Refer
to thecolumnon theleft

Number of safety-related
defect complaints,
percentage investigated

There were 473 customer complaints related to vehicle quality
in 2022, and all of them were investigated.
Four recalls were announced in 2022. As of the end of the year,
the total average completion rate was 52%.

Product
SafetyTR-AU250a.3

TR-AU310a.1

Model

Recall Cause

Number of
VehiclesSubsequent
Handling

PAJERO

Passenger seat
cylinder replacement.

130

Recall in
progress

Number of vehicles
recalled

Percentage of active
workforce covered undercollective bargaining
agreements

In 2022, all full-time employees with non-ﬁxed term contracts
were protected under the “collective bargaining agreement”.

Labor
Practices
TR-AU310a.2(1) Number of work
stoppages(2) Total days idle

45

TR-AU410a.1

Refer
to thecolumnon theleft

Refer
to thecolumnon theleft

Fuel
Economy &Use-phase
EmissionsRefer
to thecolumnon theleft

There were no work stoppages and days idle in 2022

VehicleType

TR-AU410a.1

Sales-weighted average
passenger ﬂeet fueleconomy, by region

Sales(unit)

Weighted
Fuel
Proportion
Fuel
Consumption(%)
Consumption(km/L)(km/L)ZINGER

5630

22%

10.5

2.4

ZINGERPICK UP

872

3%

10.2

0.4

DELICA

3191

13%

8.9

1.1

VERYCAPICKUP

10684

43%

13.4

5.7

VERYCA
VAN

4701

19%

13.7

2.6

Sum

25078

100%

NA

12.1

Note 1: Excluding EV and models with a total weight of over 2.7t.
Note 2: The sales proportion was low because the export
quantity was excluded.
Note 3: The total units sold in 2022 were the basis of calculation.

116

2022 CMC Corporate Sustainability Report

Sales-weighted average
passenger ﬂeet fueleconomy, by region

VehicleType

FuelWeighted Fuel
Sales Proportion
Consumption Consumption(unit)(%)(km/L)(km/L)COLT PLUS
series

4375

58%

16.1

9.3

ECLIPSE
CROSS
series

450

6%

13.1

0.8

OUTLANDER 1964

26%

13.3

3.5

LANCER

763

10%

15.5

1.6

Total

7552

100%

NA

15.1

Note 1: Passenger car calculation excluded MG cars.
Note 2: Annual fuel consumption is obtained by dividing
the annual average trip of 15,000 km by the fuelconsumption test value.
Note 3: The total units sold in 2022 were the basis of calculation.

Referto thecolumnon theleft

Sustainability
Commitment
from theChairperson
ESG
Highlights

MG

Commercial vehicle

Fuel
Economy &Use-phase
Emissions

2022
Environmental, Social &GovernanceAppendices

TR-AU410a.2

Refer
to thecolumnon theleft

TR-AU410a.3(1) Zero emissions(2) Hybrid vehicles(3) Plug-in hybrid vehicles
Sales

Discussion of strategy
for managing ﬂeet fueleconomy and emissions
risks and opportunities

About CMC

Weighted
Fuel
Fuel
Consumption
Consumption(km/L)(km/L)

VehicleType

Sales(unit)

Proportion(%)

EHS PHEV

693

54%

75.2

40.7

HS 1.5T

587

46%

13.5

6.2

Total

1280

100%

NA

46.9

Model

Total Sales in 2022

Zero emission vehicles

87

Hybrid vehicles

0

Plug-in hybrid vehicles

649• Vehicle performance improvement: 2.2.2 Low-Emission
Products and Development Diversiﬁcation, 2.3.1 Sustainable
Supply Chain• Vehicle technology Optimization: 2.2.1 Advanced
Technology and Process Innovation• Vehicle regulatory requirements and countermeasures: 2.2.2
Low-Emission Products and Development Diversiﬁcation• Vehicle development targets and planning: 2.2.1 Advanced
Technology and Process Innovation

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Refer
to thecolumnon theleft

Refer
to thecolumnon theleft

Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

AppendixAppendix 5 Veriﬁcation Statement

Materials
Sourcing

TR-AU440a.1

Description of the
management of risks
associated with the use ofcritical materials

Corresponding chapter: 3.3.3 Business Continuity Management(BCP)• Key materials: Imported electronics or imported materials• Risk identiﬁcation and items: L/T that has been delivered forsix months is considered a high-risk material that will affectboth production and punctuality of product delivery tocustomers.
• Risk control measures:(1) Create the basic data for imported parts or imported
materials (including supplier, place of origin, purchaserequisition lead-time, safety stock, and others)(2) Provide suppliers with a 6-month forecast and license
suppliers to prepare materials and maintain a safety stock
based on the forecast.
(3) Find a second source to meet the production needs asnecessary

54

81

TR-AU440b.1

Total amount of wastefrom manufacturing,
percentage recycled

The total weight of waste generated in 2022 was 4,558.57t, andthe recycling rate was 88.28%.

TR-AU440b.2

Weight of end-of-lifematerial recovered,percentage recycled

Corresponding Section: 4.4.1 CMC’s Circular Economy
Framework

2022
Environmental, Social &GovernanceAppendicesSustainability
Commitment
from theChairperson
ESG
Highlights
7981

About CMC

Materials
Efﬁciency &Recycling

Model
Passenger
vehicleTR-AU440b.3

Recyclability rate ofvehicles soldCommercial
vehicleModel

Recyclability rate

OUTLANDER

91.96%LANCER

87.03%COLT PLUS series

87.03%ZINGER

81.51%

Refer
to thecolumnon theleft

Note: Only the ZINGER was disclosed for the CV range. The
recycling rate of the VERYCA is under calculation andwill be discussed in the future
TR-AU-000.A

Number of vehicles
manufactured

A total of 44,489 units in 2022

56

TR-AU
-000.B

Number of vehicles soldA total of 44,437 units 2022 (including those sold domesticallyand abroad)25

Activity
Metrics

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

117

2022 CMC Corporate Sustainability Report

2022
Environmental, Social &GovernanceAppendicesSustainability
Commitment
from theChairperson
ESG
Highlights

About CMC

VisionBlueprint for
Corporate
Sustainability
Innovative
Technology
Sustainable
Value
Excellent
Governance
Proactive
ActionCircular
Reduction
Safeguarding
Environment
Safe
WorkplaceExcellent
Development
Give Back toSocietyin Every Way
Possible

Appendix

118

2022 CMC Corporate Sustainability Report